Transcript of Kushan aqua-ltd-b2b
- 1. KUSHAN AQUA LTD. Presented by:- Soumya sharma Sugandha Ghosh
Priyamvadha Awasthi Prsenjit Basu Rituraj
- 2. About The KK Group KK Group started its operations in 1972
by Mr. Krishna Kumar in Kolkata. The overall worth of the company
is $9 million dollar. Global presence in rubber liners and conveyor
components for mines and mineral industries.
- 3. Companies under KK Group First venture was Megha Ltd; a
collaboration with Swedish firm in the business of rubber liners
and other products relating to mining. Another venture was Mars
which was into supplying conveyor components. Kozley; it was into
supplying cyclones for separating solids from liquids, main
customer were iron ore mines. HMPL was in supplying wear resistant
components and sheets from high molecular weight plastic. Another
venture was KAL which was totally out of the line venture it was
into Water Management.
- 4. KK Group Consolidated view (2001) COMPANY LOCATION SALES IN
US $ Million 1. Megha Ltd Kolkata 3.5 2. Kushar Aqua Ltd. Noida 4.0
3. Mars Kolkata 0.5 4 .Kozley Kolkata 0.25 5. Hi Molecular Plastic
Ltd. Hyderabad 1.0 TOTAL 9.25 The financial health of HMPL and
Kozley was not strong,HMPL with worth of US $1 million had losses
of $1.2 million and long term debt of 1 million
- 5. Problem Statement Mr. KK wants to strengthen the groups
global presence in the rubber liner and conveyor components and
consolidate all the operations in Kolkata. For this he wants to
divest KAL ($5 million) which was into water management based in
noida and invest that in development of core business.
- 6. KALs Product Market Scope Set up in 1988 in noida.
Collaboration with German firm; Goliathe. KALs business was divided
into two groups; *Cooling Tower Division *Environmental Group Under
CTDs there biggest competitor was Himalayan Towers with the total
market share of 70% in India. KAL enjoyed leadership in EGS with
market share of 90% in india.
- 7. KALs Product 1) TUBEX: Tube Settlers for water treatment- it
is a PVC tube for settler of solid liquid separation in water
clarification. KAL was the largest producer of PVC tube settlers in
asia. Exported to various countries like usa,canada,japan and so on
with an expected order worth of around US $0.5 million. Supplier to
municipal corporation and NTCP. Average sales for last five years
is $0.3 million per year.
- 8. 2) BIODEX; Tube filters for waste water treatment- It is a
media for aerobic and anaerobic application for Biological Oxygen
Demand reduction in industrial and domestic waste water treatment
plants. This product has contributed in environmental protection
and land savings. Average sales $0.8 million per year. 3)PLASDEX:
plastic fills for cooling towers- It is PVC fill material used in
cooling towers for transfer of heat. Manufactured in three
different sizes as per the need of water quality. Average sales
$1.25 million per year.
- 9. Market Study Of KAL products The demand was linked to
investments in projects. Acceptance of Counter flow designs. Other
source of demand could be retrofitting. Retrofitting and
replacement contribution :- 10-20% Annual sales accounted by
exports is 10% Market size estimates(In US $ Million) Potential
estimated is $15 million. Optimistic $8 $7.5 $15.5 Realistic $6 $5
$11.00 Pessimistic $4 $2 $6.00 Cooling tower EG total
- 10. Expected Average Sales/year(In US $ Million) Realistic
level of projection could be achieved by sustaining aggressive
market development activities. Water management has to gain more
prominence in India . Marketing function within KAL is recommended.
KAL has Future products. Domestic Exports Total Optimistic $7 $2 $9
Realistic $4.5 $1 $5.5 Pessimistic $3 $0.5 $3.5
- 11. KK group Future Plans & Possibilities Transformation of
his group from Local to a Global company. Major emphasis on
globalization. Global market--- Mining products:- US $120 million
Conveyor belts and other products:- US $250million Branches offices
in Ghana, Australia, USA & Indonesia. By the year 2000, Size of
company should have been US $50million but it was only US
$9million. Reduce the turnover of the Executives. Wanted to devote
his time to the operations in Kolkata.
- 12. REASON FOR KALS DIVESTMENT Mr. Krishna Kumars desire to
consolidate and focus towards the globalization It was stressful to
manage multi location plants Healthy position of KAL, a major
reason behind its dilemma of divestment. Cash Inflow of US $
5million could be utilized towards strengthening KK groups global
business