Unbiased Dice

Presents
 Group 10:
NAVJOT SINGH BINDRA (91010)
SHANKY JAISWAL (91025)
SANDEEP AGARWAL (91048)
SHEFALI SRIVASTAVA (91050)
SHWETA GANGWANI (91052)
SWAGAT KUMAR PANDA (91058)
OVERVIEW OF THE PRESENTATION
ESSAR’s SBUs

BCG MATRIX

PERCEPTUAL MAP

BALANCE SCORECARD

EXISTING STRATEGIES ACROSS VARIOUS SBUs

ANALYSIS AND SUGGESTED STRATEGIES

 ESSAR’s SBUs
• 6 MAJOR SBUs
ESSAR steel
ESSAR Oil
ESSAR Power
ESSAR Tele Holdings
ESSAR Shipping Ports & Logistics Ltd (ESPLL)
ESSAR Projects

• 4 MINOR SBUs
ESSAR Realty Limited
ESSAR Minerals Limited
ESSAR Agro tech Limited
ESSAR Publishing
BCG MATRIX
 40.00%

35.00% AEGIS
STAR QUESTION MARK
30.00%

25.00%

20.00%

VODAFON
E 15.00%

10.00%
1.6 1.4 1.2 1 0.8 0.6 0.4 0.2
ESSAR OIL
CASH COW ESSAR STEEL DOG
5.00%

0.00%
 PERCEPTUAL MAP
(VODAFONE)
Telecom Call rates Coverage
Operator
Reliance 50 18
Tata Indicom 50 24
BSNL 62.5 26
Airtel 83.3 29
Vodafone 100 28
Idea 99 17
MTNL 117.5 2

 Call rates= Avg. of local and STD rates per minute

 Coverage=No. of states covered
 Perspective Parameter Weight Performance Score Unacceptable Acceptable Excellence

Finance Profit Margin 5 5526.36 Cr 3.0 less than 3600 Between 3600- 7400+
7400

Between 11800-
  Sales 5 24000 Cr 3.8 less than 11800 26500 26500+

    10   6.8      
Between 3.00-
Customer Satisfaction 4 4.09 3.8 less than 3.00 3.50+
3.50
Between 2.72-
  Percieved Quality 3 4.28 2.9 less than 2.72 3.60 3.60+

  Retention Capability 3 78.13 2.7 less than 36 Between 36-65 65+

    10   9.4      
Internal Business Asset TO ratio 3 0.28 1.0 less than 0.40 Between 0.40- 0.95+
Process 0.95
Between 1.10-
  Income/employee 3 2.67 Cr 2.8 less than 1.10 2.20 2.20+

Between 3800-
  Customers/employee 4 9,536.25 3.6 less than 3800 9000+
9000
    10   7.4      
Learning and
Growth
Innovation / R & D 10   8.5      

Overall
Performance   10   8.0      
5.00%

4.50%

4.00%

3.50%

3.00%

2.50%
Vodafone
2.00% Airtel
Industry
1.50%

1.00%

0.50%

0.00%
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 Pay per Second
Vodafone growing at a higher rate than Airtel

Consumer Base increasing – 41% from 2008 to 2009

Penetration is low – So pay per second will attract more consumers

Number Portability – Survey

Vodafone rated higher in Over-all Satisfaction
More people wanting to switch to Vodafone than to Airtel
34/56 – Airtel to Vodafone
10/64 – Vodafone to Airtel

Vodafone expected to eat up consumer base of Airtel

 EXISTING STRATEGIES
Modernization and expansion: ESSAR hyper-mart
ESSAR steel
●

●
DIFFERENTIATION AND QUALITY ASSURANCE: 24 carat

ESSAR Oil ●
Acquisition abroad: Kenyan refinery

ESSAR Power ●
To acquire big projects : Mahan power project
 ESSAR Tele Vodafone: to add value to the services(VAS) it
●

provides and to the packages it offers to

Holdings customers

ESSAR Shipping ●
Critical Infrastructure in
Ports & Logistics Ltd
(ESPLL) Strategic Locations in India

ESSAR To win more challenging projects in India and

●

abroad Ex. ONGC’s Neelam Heera

Projects Reconstruction Contract
 SUGGESTED STRATEGY
To keep generating huge amount of
LONG TERM
revenue from SBUs like Vodafone
(On the brink of being a star SBU)
and invest the retained earnings on
STRATEGY
those SBUs which belong to fast
growing se ctors in Indian e conomy
 Average growth rate
of more than 10%
CAGR in output in the
Steel
industry-
ESSAR

last five years

steel

BPO
industry
-AEGIS

Market growth 37%

ESSAR steel
•  Need of the hour: Modernization, Expansion
• High R&D investment is required for this SBU for continuous innovation leading to
improvement in quality.

AEGIS
• Need of the hour: Global expansion to low cost workforce countries like, for example,
African countries.

• Set up cost is required as it will have to open new offices abroad.

Both the investment can be financed by the huge revenue expected to get
generated from Vodafone.