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Rallis India
Presented By:
Subject : Strategic Management
Batch 97 , Group 7• Krupesh Shah (07)• Vengadeshwaran P
(19)• Atul Sande (04)• Sagar Kuckian (36)
About Rallis India▪ India’s one of the leading agrochemicals company.
▪ Established in 1851.
▪ By early 90s, Rallis became the 4th largest seed company in India.
▪ Has 5 manufacturing plants in Gujarat and Maharashtra.
▪ Network of 2,300 distributors and 40,000 dealers across India.
▪ Product segment include:
Pesticides Seeds Seed Treatment Chemical
Fertilizers Household Products
To enhance value for customer by providing Agri-Solution and Chemistry led businesses.
Leveraging customer intimacy, strategic partnership & technology accessDelivering superior investment returnsHigh employee engagementNurturing innovation across value chainDriving corporate sustainability
Trust, Excellence, Customer Focus, Care
Porter’s 5
Competitor Rivalry: HIGH• 800 formulators
• Counterfeit pesticides• Mergers & acquisitions
Threat of Substitutes: LOW• Expensive product development• No substitute for seed segment
Bargaining Power of Suppliers: MEDIUM to LOW
• Low supplier concentration
Bargaining Power of Buyers: LOW
• Farmers have low influence on price
Barrier to Entry: HIGH• High capital requirement• Strict compliance & laws
Strength:
1. R&D2. Product range3. Strong network4. Last mile connect5. Value added services
Opportunity:
1. International market2. Product portfolio expansion3. Scope for increase in usage
Threat:
1. Integrated pest management 2. Competitors 3. Monsoon effect4. Pest occurrence unpredictable
Weakness:
1. Cost pressure2. High cost of raw material3. Employee strength
SWO
T An
alys
is
The Growth Matrix
6
PRODUCTSN
EWPR
ESEN
T
PRESENT NEW
MAR
KETS
Diversification
(Metahelix acquisition)
Market Penetration
(Customer engagement programs)
Product Development
(Non pesticide business )
Market Development
(Europe, Asia, Middle East, America, Africa and Oceania)
Diversification Strategy▪ Rallis acquired Metahelix Life Sciences
▪ Metahelix is an agricultural biotechnology company
▪ Drive agricultural productivity & yield enhancement
▪ Strengthened seeds portfolio
▪ Expected revenues growth at a CAGR of 37% for FY12E – FY16E.
Turnaround Strategy▪ Loss of Rs. 1.07 billion in 2002-03
▪ Factors: growing competition, excess production, poor distribution management, rising interest costs, low capacity utilisation etc.
▪ Rallis Poised: exiting non-core businesses, focus on the core pesticides business, selling non-performing assets, reducing costs and improving cash flows.
▪ Alliances with the likes of Syngenta, DuPont and Bayer.
▪ Net profit of Rs. 255.5 million in 2003-2004 and Rs. 341.6 million in 2004-2005.
BCG
Mat
rix
Busin
ess G
row
th
Rate
Low
Hi
gh
Gelatin, Pharma,
Tools, Leather
Chemical,
Non-pesticide products
Pesticide products High Low
Market Share
