Algypug Enclosures Case

Introduction

• Rs.3000 crore industry

• Market Leader- Rittal with Rs 300 cr in sales attributes to 55% of the organized sector

• Mostly seasoned orders and undifferentiated

Industry Overview

• Rapid growth in demands

• Involvement of consultants

• Customer based buying behavior

• Buying behavior ranges from precision to general orders

Why unorganized?

• High Demand

• Varying functional and performance requirement

• Low capital investment

• Maker is low in the value chain

Benefits of Standardization

• Flexibility – Customers can choose specs – lesson need of customization

• Strength and rigidity – Multi fold profiles could be developed – increase load carrying capacity of enclosures – differentiate product

• Provide max amount of installation space

• Better cable and wire management

• Climate control

Algypug Enclosures

• Employee base consists of mix of Enclotek and new hired employees

• 50% of sales in acoustic enclosure segment

• Quarterly revenue – 2.75 crs (2010-11)

• Bangalore based company (95% business)

• Recently started operating in North region

• 50% of the company sales are in acoustic enclosure segment

Expansion strategy?

• Expansion only in South India with base in Bangalore

• Pan India sales will be very risky and not easy

• Pan India credit and logistics will be troublesome

• Reduce dependency on the distributors

• Develop own sales force• Relationship development and management

The Branding – A Strategy• Segmentation –

• Acoustic• Customized Industrial Enclosures• Standardized Industrial Enclosures

• Target• Standardized Industrial Enclosures

• Positioning• High flexibility product of high quality

Core Brand Values

1) Service – Efficient service – Maintain relationship with clients

2) Quality – Multi fold profiles – better load carrying capacity

3) Flexibility

Factors for Branding Flexibility Strength and Rigidity Installation Space Cable and Wire Management Climate Control

Thank You