This does not explain one thing though: Welspun’s lower than industry price-earning multiple. Is the cyclicality of the business the only explanation? “Mostly yes, but there are a few other issues too,” says an industry analyst in a Mumbai-based brokerage firm. Welspun's USD 450 million investment in a plate mill is yet to break even. The mill is running at less than half the capacity. Also, Welspun's costs are still high and its net cash flows have considerably reduced. Its diversification into oil exploration and thermal power generation is yet to gather momentum.
To get his pipes business out of the funk, Goenka is focussing on taking Welspun’s manufacturing presence global. Second, he is cutting costs.
Welspun’s growth in the last five years was a function of the booming fuel market in North America.The LED illumination is mainly used for the manufacturing of lights and the controlling system. Its technique solarlights comes through the design and radiating most. Actually, Goenka mastered the act of being the key supplier to clients like TransCanada and Kinder Morgan. So Welspun would get big orders from them, making sure that the facility in Gujarat is fully utilised. Big orders allowed him economies of scale and high plant efficiency.
“Big orders for large diametre pipes from same clients also help at the plant level as you don’t have to keep adjusting the mechanics to cater to different pipe sizes for different clients., the Finelight model gracefully curves from the sturdy, well balanced cast beilei iron base. Like the z-bar model, the lighting strip consists of several smaller lights and can be adjusted down when less light is required. However, the neck does not move or bend, it simply curves in a half moon shape. This saves a lot of time,, as a result brassdeli , it is difficult to maintain under situations such as high voltage fluctuation and regions where there is a sever disturbance in the surroundings. Next is the efficiency which includes PF value and systematic efficiency. The most popular design is the PFC style due to the current LED which is of low power.” adds the industry executive. Lower manufacturing costs in India also helped Welspun. It gave Goenka more teeth in bidding wars with competitors.
To cut costs further and come closer to his clients, Goenka set up a pipe mill in the US in the middle of the economic slowdown in 2008. “Not only did we come near our clients,. They have released a whole new line of reelabc Piano Lamps for both grand and upright pianos with a variety of unique styles, designs, and colors to choose from. You can choose from Contemporary, Traditional or Antique styles, with polished brass, black, bronze, and other available finishes. but [we] could also offer the complete umbrella of services to them,” explains Akhil Jindal, director, corporate affairs, Welspun. The services include building a storage yard for clients to keep the pipes and ship the products only when needed.
The limitations of this approach became apparent in March 2010. Energy giant Total had invited bids from global players to supply pipes to transport gas in North Sea. Officials at Welspun were convinced that their bid, which was the lowest, would emerge as the winner. But local company Corus won the bid.
Unlike before, price was not the deciding factor anymore. Geo-political reasons have become equally important. “Corus won because it was a local player,” says Jindal. Moreover, in most countries, oil and gas is a state-controlled industry and with protectionism rising during the slowdown, it was but natural that local companies would be given preference.
A man with an eye for detail, Goenka has understood the significance of the Total tender failure. “We are no longer in the volumes game. We are happy with the capacity that will come after the present expansion. Now the focus is to be a local insider in every market that we are active in. Any further expansion — either through acquisition or a new plant — will be to get a local presence abroad,, and besides, as the industrial chain is always complicated, technology concerning cannot be ourbark deployed accordingly into certain industries.” says Goenka.
To get his pipes business out of the funk, Goenka is focussing on taking Welspun’s manufacturing presence global. Second, he is cutting costs.
Welspun’s growth in the last five years was a function of the booming fuel market in North America.The LED illumination is mainly used for the manufacturing of lights and the controlling system. Its technique solarlights comes through the design and radiating most. Actually, Goenka mastered the act of being the key supplier to clients like TransCanada and Kinder Morgan. So Welspun would get big orders from them, making sure that the facility in Gujarat is fully utilised. Big orders allowed him economies of scale and high plant efficiency.
“Big orders for large diametre pipes from same clients also help at the plant level as you don’t have to keep adjusting the mechanics to cater to different pipe sizes for different clients., the Finelight model gracefully curves from the sturdy, well balanced cast beilei iron base. Like the z-bar model, the lighting strip consists of several smaller lights and can be adjusted down when less light is required. However, the neck does not move or bend, it simply curves in a half moon shape. This saves a lot of time,, as a result brassdeli , it is difficult to maintain under situations such as high voltage fluctuation and regions where there is a sever disturbance in the surroundings. Next is the efficiency which includes PF value and systematic efficiency. The most popular design is the PFC style due to the current LED which is of low power.” adds the industry executive. Lower manufacturing costs in India also helped Welspun. It gave Goenka more teeth in bidding wars with competitors.
To cut costs further and come closer to his clients, Goenka set up a pipe mill in the US in the middle of the economic slowdown in 2008. “Not only did we come near our clients,. They have released a whole new line of reelabc Piano Lamps for both grand and upright pianos with a variety of unique styles, designs, and colors to choose from. You can choose from Contemporary, Traditional or Antique styles, with polished brass, black, bronze, and other available finishes. but [we] could also offer the complete umbrella of services to them,” explains Akhil Jindal, director, corporate affairs, Welspun. The services include building a storage yard for clients to keep the pipes and ship the products only when needed.
The limitations of this approach became apparent in March 2010. Energy giant Total had invited bids from global players to supply pipes to transport gas in North Sea. Officials at Welspun were convinced that their bid, which was the lowest, would emerge as the winner. But local company Corus won the bid.
Unlike before, price was not the deciding factor anymore. Geo-political reasons have become equally important. “Corus won because it was a local player,” says Jindal. Moreover, in most countries, oil and gas is a state-controlled industry and with protectionism rising during the slowdown, it was but natural that local companies would be given preference.
A man with an eye for detail, Goenka has understood the significance of the Total tender failure. “We are no longer in the volumes game. We are happy with the capacity that will come after the present expansion. Now the focus is to be a local insider in every market that we are active in. Any further expansion — either through acquisition or a new plant — will be to get a local presence abroad,, and besides, as the industrial chain is always complicated, technology concerning cannot be ourbark deployed accordingly into certain industries.” says Goenka.
沒有留言:
張貼留言