RAHIMAFROOZ Market Driven Strategy

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Transcript of RAHIMAFROOZ Market Driven Strategy

IntroductionThe Rahimafrooz journey dates back to the early fifties when Late Mr. A C Abdur Rahim founded a small trading company and paved the way for making of one of today s leading Bangladeshi business conglomerates. Over the decades, Rahimafrooz has grown in size, scale and diversity. Rahimafrooz Group works in three different broad industries automotive market, power and energy, and retail with annual revenue of over USD 150 million (2008-09). The group comprises of seven Operating Companies (SBUs), three other business ventures and a not-for- profit enterprise. The group currently employs more than two thousand people directly and deals with further twenty thousand indirectly as suppliers, contractors, dealers and retailers.

Rahimafrooz Batteries Limited (RBL)Rahimafrooz Batteries Limited (RBL) is the largest lead-acid battery manufacturer in Bangladesh and offers an extensive range of automotive & customized industrial battery. It is one of the respected and reputed business houses in Bangladesh. It manufactures over 300 different types of automotive and industrial batteries. Its plant is ISO 9001 & ISO 14001 certified. RBL has also extended its product line to secure power solution with UPS, Rectifier and VRLA Batteries with collaboration of Enersys-USA, Eltek-Norway, AEES-France. RBL has a successful story of installing solar power in the remote rural areas of Bangladesh. It has successfully installed more than 10,000 home solar systems in the remote rural areas of Bangladesh. The company has been serving this market for the past fifty years by introducing innovative products. Rahimafrooz Batteries Limited (RBL) is one of the key players in South Asia in its field and one of the largest battery manufacturers in the SAARC region; With undisputed market leadership at home, exports batteries in more than 35 countries in Asia, Middle East, Africa & South America. The Company has embarked upon an aggressive growth plan that includes becoming a significant global player in the international battery market.

Vision 2010:To be one of the top two storage power companies in SAARC by the year 2010

Brands Lucas Optus Rahimafrooz Spark Volta

Plant Capacity:Rahimafrooz has state of the art manufacturing plant. It is equipped with all latest technologies with complete air treatment and lead-recycling management. RBL produces different types of batteries to meet the local and international market. Its capacity in Automotive Battery is 660,000 (N50) units per annum and Industrial Battery is 41 million AH/annum. By the end of 2008 production capacity of Industrial Battery will be increase to 120 Million AH. All the products are manufactured under strict quality control and ensured by international certifications.

Collaboration AgreementsIt has different technical collaboration agreements with Lucas Battery Company, U.K, Technical support Group (TSG), Hawker Batteries, UK, Invensys, UK, Hawker Batteries, UK, Eltek Norway, AEES France to ensure the quality of battery.

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SBU's Contribution to Group Sales6% 18% 9% 27%

Battery Contribution

40%Rahimafrooz Batteries Rahimafrooz Supe rstores Othe r Units Rahimafrooz Distribution Rahimafrooz Ene rgy Serv ice s

Battery ProductionBattery Production

4% 9% 85%

2%

Automotive

Industrial

Solar

Appliance

Sales of BatterySales of Battery

45%

55%

Export Sales

Local Sales

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Market OverviewThe competitive nature of the automobile industry has prompted the companies to take up new and innovative marketing strategies to thwart the competition. As consumers demand ever more sophisticated and feature-loaded vehicles, the global automotive industry faces growing challenges to balance these expectations with space constraints and weight concerns. Every component receives scrutiny to determine if it can be made smaller and lighter to promote fuel efficiency and performance and help fit more content into the available space. In addition, vehicle manufacturers and suppliers must increasingly consider environmental concerns such as recyclability, as well as overall performance. Electrical loads in vehicles today are growing every year resulting in consequent increases in cable harness, power distribution box, relay, and switch ratings, as well as costs. In the context of saturated local market, hunger for growth and creating new avenues RBL entered into the phase of export as the pioneer in 1992. Since then it has been expanding its export market with an export volume growth of 80% annually. So far RBL has exported more than one million units. RBLs first importer was Chloride, Singapore. In 1994 RBL started exporting to Pakistan and at the same time provided technical assistance to set up a battery factory in Pakistan. The export continued till the factory became operational in 1997. In 1997 RBL started exporting to India. Within very short period it had organized an extensive marketing network covering the entire country having 8 distributors and 450 dealers. By 1997 it covered all the SAARC countries except Maldives. RBL is exporting to 18 countries among which India, Sirlanka, Singapore, Nepal, Bhutan, Thailand, UAE, Kuwait, Lebanon, Afghanistan, Madagascar are regular importing countries. RBL is continuing its journey of export with excellence through stringent Quality Control, Quality Management & Environment Management System. All the companies as a part of their marketing strategy offers a range of vehicles in all the segment to make sure that the customer is driving one of their vehicles only.

Market SizeThe total Indian battery market is estimated at close to Tk. 170 crores. Out of this the industrial battery market is estimated at around Tk. 60 crores which includes the VRLA (valve regulated lead acid) battery market, which is estimated at around Tk. 50crores in the current year. The power and UPS industries are other key user segments. The automotive battery business is estimated at around Tk. 100 crores. Conclusive industry data on SARRC is not available. To best estimate, the market share of the SAARC is about 35% for automobile batteries and around 25% for industrial batteries.

Product OverviewRahimafrooz markets three major brands of automotive batteries: LUCAS, VOLTA and SPARK. All the batteries are produced under strict quality controlled plant of the Rahimafrooz Batteries Ltd. It has introduced new brand SPARK for the taxi cab. This specially designed to take the load and frequency of the taxi cab. Lucas Automotive Dry Charge Battery: 12 Volt Battery

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German Drive Range Heavy Duty Range 6 Volt Batteries Lucas PCM

Rahimafrooz manufactures specialized Industrial Batteries. The plant is equipped with modern production machineries and testing facilities including those for tubular plates. It conforms to international standard ISO 9001 & ISO 14001and to JIS, DIN, BS and IEC specification. It produces a wide range of lead-acid industrial batteries with capacities from 20AH to 2500AH. The batteries are used for applications in telecommunication, power station, railway system, electric vehicle, forklift, ship, buoy lighting and solar power system. Industrial Batteries Deep Cycle Electric Car Battery IPB Battery Standby Stationary Traction

Specific features of our industrial battery are: Long life Minimum maintenance Low internal resistance High rate of discharge performance High resistance to adverse mechanical and electrical condition Tolerance to extremes of temperature

Special Features: Excellent cycling ability provides high reliability and exceptionally long life Large electrolyte reservoir means high tolerance to water loss and minimal maintenance. High charging efficiency Low self discharge, dry pre-charged plates Robust, clear case and rugged construction ensures mechanical durability

The quality, dependability, reliability and long service life of thicker Flat Plate deep cycle batteries are the result of balanced design of the plates, separators and incorporation of latest technical developments in lead acid battery technology.

Strategic TargetingThe target market is a group of customers to whom the company aims its marketing effort. The target market of the RBL is automobile users and industries like telecommunication, power station, railway system, electric vehicle, forklift, ship, buoy lighting and solar power system and household for IPS and UPS battery. Targeting broad groups of buyers within a specific product/market, such as automobiles. Consider, for example, the global market for automobiles. In 2003 the sales of the Chevrolet Impala model were 1.5 million units; in 2005 Carolla best-selling model had sales of about 300,000 units. y considering auto mobile markets, RBL segmented their market and develop

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products like Locus. The fragmentation of needs and wants in markets is creating subgroups of buyers within the total market, each displaying different customer satisfaction requirements. Such differentiation provides an opportunity for businesses to design product offerings to meet the needs of customers in different market segments. Targeting all people and also organizations in a market is not a typical strategy for RBL. Instead, many target one or more segments within the total market. Deciding what people (or organizations) to target is a critically important strategic decision. Rahimafrooz Batteries Limited introduced a latest technology battery Volta Mainten