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MIP Case let presentation:United Electrical Engineers (Pvt). Ltd
GHOUS ZAMAN KHIZER ALAM HASHAM ZAHID
CHAUDHRY AHAD
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Background Founded in 1975
1984 Partnership -> Pvt. Ltd. Company
Excels in the field of electrical networking andinstallation in different industries, multistoried office
buildings, power plants and other high valued projects
Provision of high quality services a top priority
High Price high quality proposition
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ClienteleSome of their clients include
British Petroleum
CNBC
National Refinery Limited
Jinnah Terminal
1999 - expanded the scope to electrical works insubmarine constructions for PNS dockyard.
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Industry Overview / Competitors UEE an established company in sparsely populatedindustry
Major competitors: Siemens and Areeba
Competition from emerging related industry ofrenewable power sources SRS Pvt Ltd.
Private electricians low quality low price
Market shares:
UEE: 25% SIEMENS: 35% AREEBA: 37%
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Consumer Behavior / Market analysis Dismal Law and order situation, energy crisis and lackof government support leads to budgetary contraints for
companies
This in turn leads to cost cutting measures
The renewable power source industry is fast
conquering the minds of consumers
High risk high reward business
Risk stems from working on credit, variability indemand, and project specific technicalities that need tobe expertly met
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MAJOR CHALLENGE / CONCERN
High price high quality proposition still theway to go?
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ALTERNATIVES
Take up only mega projects where slightly cheaper
service quality can be offset with the sheer volume tominimize the impact on profit margins
Approach the gap between UEE and its marketthrough diversification
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THE DECISION - DIVERSIFICATION
UEE Diversified into the business of providing powergenerators on a rental basis
2007 - Rental Mall a one stop solution:
Providing generators (100 KV 1275 KV) along withsupport services and related products like electrical
panels for a complete solution
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THE RESULT
UEE used its well established image to cater to a direneed in the business environment in Pakistan
Rental Mall A huge success!
Major clients:
Telenor, Descon, TSM, Dolmen , Tufail group, ICAP andIBA city campus.
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THANK YOU
QUESTIONS?