I have tried for some more details of the company . the company just dont have any Web presence atall..Not a single Website i found. and SIF is not at all a BRAND. THEIR IS A COMPANY " THE SOUTH INDIAN FLOURMILL PVT LTD. " They have the Brand SIF Company add:19-20 Royapuram Beach Road . Chennai - 13. Ph: 044 - 25903541 / 44. They are doing very well and the company owned by Gujaratis not this Krishnan or Maya.. Comapny who just dont have any web precence how can they think of going globaly...I am really worried ... May God Help them.
d. Raw materials could be exported to its partnered company and co-ordinate in setting up modern machineries for the production in the respective markets. e. Operations manager should be hired for the new market who should be from the Indian food industry and well aware of the FDA regulations and the compliances of the market
In a global market, firm%u2019s initial objectives to be work towards holding percentage of share in market than to look for profit maximization. Rest will fall in place as time goes by.
I should appreciate your thoughtfulness of putting up such an appropriate case that is relevant to the current market trends.
Yes, SIF should utilize the current market trends in expanding itself at a quicker pace.
Here is my brief view on this case:
1. Raise funds through the IPO in Indian market as there is increase in the confidence level of the investors (FII%u2019s) in the Indian economy%u2019s growth and policies. Raise the IPO issue for three purposes: a. Pay off the current liabilities b. Loans c. Bring down the current liabilities d. Expansion plans for the US market
2. Expense analysis to be done to minimize the current expenses and use them to acquire newer technologies that could bring down the cost of production and sales
3. Going global is very a good idea of expanding SIF a. They have an established brand in India which could be used to acquire licenses b. Look out for Mergers & Acquisition opportunities to optimize its expansion plans, which is an acceptable avenue to enter an overseas market. Take the case of Renault and Mahindra merger as a recent example c. Management is confused and undecided about which one of the overseas market to focus upon. Apart from Krishnan%u2019s plan to enter US market, it opened up two other markets like UK and Asian markets. Therefore SIF should take the assistance of well known research firm for the market study and analysis to take an effective steps towards the responsive market d. Raw materials could be exported to its partner
I should appreciate your thoughtfulness of putting up such an appropriate case that is relevant to the current market trends. Yes, SIF should utilize the current market trends in expanding itself at a quicker pace. Here is my brief view on this case: 1. Raise funds through the IPO in Indian market as there is increase in the confidence level of the investors (FII%u2019s) in the Indian economy%u2019s growth and policies. Raise the IPO issue for three purposes: a. Pay off the current liabilities b. Loans c. Bring down the current liabilities d. Expansion plans for the US market 2. Expense analysis to be done to minimize the current expenses and use them to acquire newer technologies that could bring down the cost of production and sales 3. Going global is very a good idea of expanding SIF a. They have an established brand in India which could be used to acquire licenses b. Look out for M&A opportunities to optimize its expansion plans, which is an acceptable avenue to enter an overseas market. Take the case of Renault and Mahindra merger as a recent example c. Management is confused and undecided about which one of the overseas market to focus upon. Apart from Krishnan%u2019s plan to enter US market, it opened up two other markets like UK and Asian markets. Therefore SIF should take the assistance of well known research firm for the market study and analysis to take effective steps towards responsive market d. Raw materials could be exported to its partnered company and co-ordinate in
SIF has emerged as one of the major players in Indian Market and it is an Indian company which has made itself different from others in the market . SIF should go global because - It is having a very good presence in Indian market ,it also has rich experience in handling products would be a great asset if SIF decides to go abroad. SIF going global, is the right idea but even before that it should first test all its products even in the foreign market, know the preferences of people and their tastes as they differ a lot when compared with the tastes of Indians. Though, large number of Indians are living in Foreign Country SIF%u2019s success is a probability.the only edge we have is their busy life and their preference towards the ready mades but, there are already many number of readymade products that are available and are in the market since longtime. So, the best strategy that SIF could opt for would be by entering into licensing with mid-size food companies in the US and UK for carrying out production and marketing operations in those countries. And once it is a success then it can think of setting up a production unit in US ,UK ,etc. While, this would be one approach and other one would be producing more in India and export to South Asian countries, the US and the UK using the services of distribution agencies based on these countries. Hence, SIF could opt for either of the strategies and proceed further.
SIF like many other peers wants to go Global;it is a case of herd following but nothing wrong in that. First the NEGATIVES of the company. 1.Small turnover of 26 cr with 6 manuf. units. 2.Success in India does not mean Success in Exports. 3.From dis.it is clear that NO ONE in company has any idea about Exports. 4.Knowing S Indian Culture Mgmt is likely to be conservative in spending money on building Brand Equity.It will remain a classic story of Chicken n Egg.
Now the POSITIVE'S:
1.A strong dedicated Professional Team.
2.Already TECHNICAL Knowledge about Product and idea about Consumer Likeness.
STRATEGY
1.Make a seperate subsidairy for Exports. This will help to raise funds and monitor costs.
2.Do Test Marketing in a country with sizable S Indian population.US/UK should be avoided as they are High Cost Entry Points and a failure here, which could be more due to low spends on Advertising and Promotions, may give a setback which actually may not be correct.A success in Low Cost Country could provide the necessary strength in dealing with Companies in US/UK.Also it will help to sort out initial problems on Packaging,Shelf Life and other Logistics which are going to be different from India.
3.Use only Coimbatore factory for Export Production as the Top Mgmt is located here.
4.Hire a COO experienced in launching Food Products successfully in World Markets.
Remember how SIF started and has grown;so do not expect OVERNIGHT RESULTS N HV PATIENCE.
An average supermarket in the US stocks around 30,000 items on its shelves. Each month 20,000 products are trying to make its way upon those shelves. US is overloaded with choice and people feel overwhelmed with the time and energy they need for decision making about what to buy. Grossary shopping comes close to last on the most enjoyable things to do (Schwarz, Barry - The paradox of choice, 2004).
People will not take the time to look search the shelves for SIF products. So while the market is huge - the cost of entering the market just in this respect will be massive. Why do you buy mix food packs? Time savings in meal preparation.
US and UK citizens do not eat Indian dishes as regularly as Indians do. Moreover, the family size (i.e. the number of dish eater) are likely to be smaller than the Indian family size (much more single households), so the packages would need to be smaller, too. To sum up, expect smaller product packages and less numbers sold. (Produce little and distribute it much further than)
Competencies? High quality Indian side dish foods. Where do I particularly expect this to be served outside India? Indian restaurants and Asian shopping malls. So abroad first target to Asian shopping mall instead of directly to retail market.
So, strike a deal with such a chain, then license production to US and see how the whole thing develops and then decide later on whether to take the second leg and really enter the retail market.
An average supermarket in the US stocks around 30,000 items on its shelves. Each month 20,000 products are trying to make its way upon those shelves. US is overloaded with choice and people feel overwhelmed with the time and energy they need for decision making about what to buy. Grossary shopping comes close to last on the most enjoyable things to do (Schwarz, Barry - The paradox of choice, 2004).
People will not take the time to look search the shelves for SIF products. So while the market is huge - the cost of entering the market just in this respect will be massive.
Why do you buy mix food packs? Time savings in meal preparation. But since SIF produces kind of side-dishes SIF expects to consumers to prepare complete Indian style meals (so the flavors add up).
Important aspects-
-US and UK citizens do not eat Indian dishes as regularly as Indians do. Moreover, the family size (i.e. the number of dish eater) are likely to be smaller than the Indian family size (much more single households), so the packages would need to be smaller, too. To sum up, expect smaller product packages and less numbers sold. (Produce little and distribute it much further than compared to India this could also lead to fast consumer reaction towards products and could bring fast result to prepare for the further strategy).
What are their core competencies?
High quality Indian side dish foods. Where do I particularly expect this to be served outside India? Indian restaurants,
I have tried putting in many suggestions and strategies for their previous contents.... Never won... Dont bother with the smart manager contest at all. Forget about it. They are all lame problems with lame solutions... Ignore!!!
In my opinion it is the right time for the company to Tap the International market like USA and UK where the Indian nationals are more.
secondly as these are food products which required slf life sending exporting from India should be ruled out as it will reduce the self life.
The other option is that they should be looking for similar company in the traget country in food business having well establish network of distribution in the tragated area for aquistion. As the company finaicials( capital And reserve ) are enough to acquire Undertaking with similar line of business. This will help the company not only have the approvals to be obtained for staring a unit but can expolit the existing network of distribution immediately by introducing the SIF product line in phase manner.
