DANA GROUP OF COMPANIES

(An Overview)

DANA GROUP OF COMPANIES

(An Overview)

By :- Dr Ruchi Dana

dana_ruchi@gsb.stanford.edu

About Us

� Introduction

� Foot print

� Timeline, Our Vision & Mission

My Entrepreneurial Venture: DANA Cable Trays

� An Overview

Our Operational Strategy

� Expansion plans, Quality & Lean Management,

Weathering Tough Times

� The “Rise & Fall” of Steel Markets

AgendaAgenda

Steel Import Export

Water Heaters, Chillers

Steel, Coil Sliting etc

Cable Trays

Pipes, Mill(India)

Dana Water Heaters

Delta Steel

Dana Steel Processing

Dana Steels Pvt. Ltd

Seven Eagles Intl Trading

DANA GROUP OF COMPANIES

ISO 9001:2000

Accredited

Middle Eastern Origin

Trans Region Operations

Inter Continental

Presence

Multi Lingual Employees

Multi Disciplinary

OfferingsApika Enterprises

Vidhyadar Hospital

General(India)

Hospital(India)

Operations Foot PrintOperations Foot Print

Al-Quoz & Um-Al-Quein

(UAQ) Factories:•Glass lining factory

•High precision slit line

•Fully automated Cut-to-

length machines

•CNC & Roll Forming

•Water Chiller & Heater

manufacturing

•Coil Service Centre

Ajman Factory:•Cable Tray & Ladder

manufacturing

•Struts & Tracks

manufacturing

•Steel Coil Service Centre

•Plate Mill

UAE - HQ Libya

Stat. 1 Stat. 2 Stat. 3

Coil Service Centre

UAE + India + Libya

Business units

Forward-n-backward

Integration

Combined delivery

from India, Dubai &

Libya

QualityService

Commitment

India

Stat. 1 Stat. 2 Stat. 3

Automated Steel

Slitting line

Pipe Mill

“Pre-Engineered

Building

Manufacturing”

Head Office : Dubai Water Heaters unit

acquired

Trading office

CLIENT BASE CLIENT BASE

DANA Group: Time LineDANA Group: Time Line

1st generation family owned business – Dr. Birbal Dana

by Dr.Dana part time

General Trading

Full – time

Entrepreneurshi

p

1st DANA

office set up

1st Show Room in Dubai,

Office & Warehouse – New Delhi

Land acquisition for Hospital – Jaipur

1st manufacturing

facility inaugurated

“Dana Water Heaters &

Coolers Factory LLC”

Prime Industrial land acquisition in NCR

1st foray into Steel

Inauguration of “DANA Coil

Service Centre”

Unit in Dubai

Value-Added Steel manufacturing

facility:

“DANA Steel Processing Industry LLC”

ERW pipes & Tubes

manufacturing:

“DANA Steels

Private Ltd.”

Acquisition: state owned home-

appliance manufacturing factory

Commence DANA’s

5th manufacturing

facility -

Value-Added Steel:•cable management

systems•coil service center•profiles & cladding

Dubai Based Traditional Clients

Overseas market penetration, Brand building, Media /

Exhibitions presence and Effective Client Management

Risk Distribution to overseas market

Compete in Dubai on low price margins

Analyse overseas market price and bid strong; leverage overseas profits for discounts in Dubai prices

Core Business Platform

Leverage our

steel trading division for

low steel cost

& gathering competitive

intelligence

Maintain high service quality and

control costs by efficient operations

management

Target cash rich oil companies,

appoint agents in

overseas market, personal

visits to all GCC Countries & UAE

Manage costs

by using our existing factory setup & expert

work force

Multi-Client Base for regular sustained enquiries/orders

Overseas Agents

Oil IndustryClients

GCCMarket

Cuts costs,Gives

competitive

edge,Ensures

cash flow,Differentiates

on Quality

Gives prominence

in Dubai

Online and Phone

Enquiries

Following outlines the functional framework I followed to develop my entrepreneurial venture of Cable-Trays in my family

business - DANA Group of Companies

Following outlines the functional framework I followed to develoFollowing outlines the functional framework I followed to develop my entrepreneurial venture of Cablep my entrepreneurial venture of Cable--Trays in my family Trays in my family

business business -- DANA Group of CompaniesDANA Group of Companies

Enables sustenance

in Dubai

DANA Cable Tray: Business Development FrameworkDANA Cable Tray: Business Development Framework

Our Vision and MissionOur Vision and Mission

Our

Vision

Our Mission

We aspire to be the global steel industry benchmark for world’s

most reliable and innovative steel manufacturer, service and

solution provider in the steel industry.

To maximize value for our worldwide client base by supply high

quality steel products, providing related services and solutions

while utilizing innovative technologies and a team of motivated

employees, focused on continuous improvement, highest business

standards, work ethics and corporate citizenship

Our Strategic Vision•Moving up the Steel Value

Chain

•Diversifying the Product

Base

•Geographic Expansion

Our target goal is to achieve zero incidents and zero

injuries, together with zero property damage; and is

to be achieved by daily diligence, a proactive safety

partnership throughout all operations, providing

measurable safety measures, adequate safety training,

and effective communication to all employees.

Our HSE

Vision

INDIA

• Addition of New lines to Tube Mill.

• Start-up of Cable Management

manufacturing facility in NCR.

• Pre-Painted Galvanized Iron (PPGI)

with backward integration into GI and

Cold-rolled steel.

UAE

• Branch office in Abu Dhabi

• Phase 3 of New Ajman Facility - 2013

• Setup of Hot Dip Galvanizing facility -

2013

LIBYA

• Trading Division

• Building & Construction Division

• Mini-mill cold-rolled steel

Middle East & Africa

• Agencies

• Site Trading Offices

• Formation of Gulf African Holdings for

strategic investments in Africa.

Expansion PlansExpansion Plans

Assess

Market and

Demand Analysis

Study Available

Infrastructure

and Facilities

Analysis of

Service Delivery

Production

Capability

Design

Lean Management

Work Flows

Training Programme

Management Systems

Monitor

Production Monitoring

Team Co-ordination

Performance

Budget Estimates

Design Iteration

Development Plan

Interface with Customer

Feed Back

Strategize

Conceptualize the

Process Structure

Market

Research

Raw

Material

Control

Manufact

uring

Optimizat

ion

Financial

analysis

Sub

Contractor

Management

Safety Net

Options for

Disposal

Process

Enhancement

Quality: Scope & ApproachQuality: Scope & Approach

Process-Centric

Approach

Customer/Order

Machineal Support

Lean Management

En

han

ce

d v

alu

e

Intermediaries

Order-Centric Approach

Customer/Order

Intermediaries

Ma

ch

ine

1

Ma

ch

ine

2

Ma

ch

ine

3

Ma

ch

ine

4

Ma

ch

ine

5

Fra

gm

ente

d

valu

e

Production O/P

Lean

Mach 1

Mach 2

Mach 3

Mach 4

Mach 5

LEAN ImplementationLEAN Implementation

Dynamics as a Stockist / Coil Service Center.

- Higher Risk & Exposure to Price Fluctuations.

- Market Responds Quickly to Import Price Volatility.

- Inventory Valuation – Frequent Change.

Rising Phase

MarketPeak

Falling Phase

Time

Steel

Price

-- Import Steel Price

-- Local Mkt Price

The “Rise & Fall” of Steel MarketsThe “Rise & Fall” of Steel Markets

Market CharacteristicsMarket Characteristics

The “Rising” Phase

�Competition feels “GOOD”.

�Banks say “YES”.

�Customers “LISTEN”.

�Suppliers are “KING”.

�Asset worth “INCREASES”.

�Anticipatory “BUYING”.

The “Falling” Phase

� Competition “KILLS”.

� Banks say “NO”.

� Customer becomes “KING”.

� Asset worth “DECREASES”

� Panic “Selling/Offloading”.

Before recession flat galvanized 1350 USD/MT During recession 560

USD/MT

Frequent

Assessment

of Steel Market

Identify

Opportunities

Adjust

to

Market Dynamics

Learn from the

Experience

� Cautious “Buying & Selling”

� Control of consumer Credit

� Maintain Customer Relationships

� “Value” Add

� Secure payment terms – control credit

� Price Adjustments – “the customer is right”

� Take “actual” control of finances

� Explore alternative markets – balance risk

� Assess inventory

� Analyze orders in Hand

� Be flexible: 10 mt or 1000 mt [just do it]

� Keep your stake holders informed

� Tolling / Job-Work

� Forward Integration

� Analyze incoming Imports

� “Value Addition” – The True Savior

Surviving “Rise & Fall” of Steel MarketSurviving “Rise & Fall” of Steel Market

� Know where you stand

� Put existing infrastructure to alternative use

� Control Discretionary expenses

“It is not the strongest of the species that survives, nor the most intelligent, but the one most responsive to change.”

-Charles Darwin

Ruchi DanaEmail :- dana_ruchi@gsb.stanford.edu