Previously we studied the SWOT Analysis of Vedanta Resources which is the largest mining and non-ferrous metals company in India. Let’s study the in-depth SWOT analysis of APAR Industries.
APAR Industry has had consistent growth over all the past years. They are the top producers as, “One of the largest aluminium and alloy conductor manufacturers in the world, third-largest transformer oil manufacturer in the world & also they are manufacturers of the widest range of cables in India.”
The corporate business goal here is with its main saying which is “Tomorrow’s solutions today”. With research, innovation efforts, timely delivery & global commitments they want to be a boon to the metal & oil industry as they are powering a smarter world since 1958.
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Before we begin further with the SWOT analysis of APAR Industries, let us discuss the company, what products it has to offer, its financials and its competitors.
About APAR Industries,
(Shri Dharmsinh D. Desai – Founder of APAR Industries)
APAR Industries was established in the year 1958, in India. They are India’s key manufacturers of conductors, a wide variety of cables, speciality oils, polymers and lubricants. With the founder’s vision to manufacture power transmission conductors and here is how the business looks today.
It was a small conductors company which was then by 2020 was transformed into a billion-dollar company and expanded over 125 countries as a trusted manufacturer & supplier of conductors a wide variety of cables, speciality oils, polymers & lubricants, also leading in innovation & sustainability curve globally in all the main businesses. There are 77 companies in this corporate family of APAR Industries Limited. APAR Industry has 23 offices in around 4 countries.
|Founder||Shri Dharmsinh D. Desai|
|No. of Employees||1378+|
|Market Cap||Rs 2,398.68 Crore (2021)|
|Net Income/ Profit||Rs 54.96 Crore (2021)|
Products by APAR Industries
- Speciality Oils
- Cable Solutions
- Speciality AutomotiveS
Competitors of APAR Industries
The world is a competitive place so even APAR Industries has its competitors as follows:
- Mutual Industries
- Voksel Electric
- Tidewater Oil
Now that we know everything we need to know about APAR Industries, let’s start with the SWOT analysis of APAR Industries.
SWOT Analysis Of APAR Industries
SWOT analysis is like a formula for identifying Strengths, Weaknesses, Opportunities, and Threats (SWOT) that a market possesses for a company. The main objective of this analysis is to help us, as investors and the company, to make business decisions wisely.
By using this method, we analyze where the company is falling short, where it is excelling, and what needs to be worked upon.
To better understand the SWOT analysis of APAR Industries, refer to the infographic below:
So let us first start by looking at the strengths of APAR Industries from the SWOT analysis of APAR Industries
Strengths of APAR Industries
The strengths of a firm can be positive qualities that help the company to maintain goodwill in the market or give it a competitive advantage. Mentioned below are some of APAR Industries strengths:
- Legacy in its Sector: Since 1958, APAR Industries has been the largest manufacturer of aluminium and alloy in the world. Also, it is the third-largest manufacturer of transformer oil. These achievements are one of the biggest strengths of APAR industries.
- Support From Collaborators: APAR Industries has been getting constant and huge support from collaborators that helps for modern technologies and transform them to suit it according to Indian conditions.
- Strong Base in Engineering: Since it has a strong base in engineering, it is stable in the market and industrial relationship. It is the largest manufacturer of conductors and works on a wide variety of cables, speciality oils, polymers and lubricants.
- Increasing International Visibility: As we all know, it is a multinational corporation, working in over 125 countries. The group is always trying to expand more, provide safe employment, trying to capture markets with their products.
- Sustainable Innovation: APAR Industries is focused on providing sustainable innovations and promise to maintain a greener tomorrow so that the future of generations is not affected. Such dedication and commitment to sustainability show the organization’s involvement in CSR works.
Weaknesses of APAR Industries
Weaknesses are negative aspects and attributes which have little control over. These are the areas where the business needs to improve to remain competitive.
- A Decline in Net Profit: In the financial year ending 2021, APAR Industries consolidated net profit declined 33.34% to Rs 54.96 Crore which previously was Rs.82.45 Crore.
- Shortage of Technical & Financial Resources: The business has experienced a shortage of technical and financial resources, which has reduced its ability to grow its service locally and globally.
- Strong Government Regulations and Policies: There are strong government rules and regulations that make operational efficiency low and create a hindrance in the working of a company.
- Operational Complexity: With an increasing audience, the group is providing a large number of consumer goods as much as they can. While making adjustments, a small change can make an unexpected impact on operational complexity. Providing a variety of products is causing operational complexity to the group.
- The Processing Chain is Quite Long: Having a huge customer following delays the process of ongoing functions like maintaining a large scale of client records & keeping them up to date every time takes time and while doing all the work simultaneously it delays the ongoing processes.
Opportunities for APAR Industries
Opportunities refer to the chances of the progress of the company in future. Let’s have a look at the opportunities for Total Energies:
- Accelerated Technological Innovations & Advances: Rapid technical advancements are increasing industry productivity, allowing suppliers to provide a wider range of products and services. This may enable APAR Industries to expand its product portfolio dramatically.
- Local Collaboration: Partnerships with local firms can help APAR Industries expand its market share in foreign markets. Local firms have a local experience, but APAR Industries can contribute global procedures and execution skills.
- Increasing Government Regulations: The speciality oils and lubricants business is becoming increasingly regulated, making it difficult for unorganized firms to compete. APAR Industries may be able to expand its client base as a result of this.
- Demand for Power Domain: There is a huge power domain to produce more equipment. This provides a huge opportunity for APAR Industries.
- Ageing Power Plants: Since it has more old and required services and is in the market for a long time it has faster machinery and more market visibility compared to its competitors.
Threats to APAR Industries
These are the factors that have the potential to harm an organization. Threats are uncontrollable external factors that might overcome or damage the strength and opportunities.
- Decreasing Employees: The Employees have been decreasing by 13% in the year 2022, this can be a threat to the company for its output generation, etc.
- Low Connections on Social Sites: Every business should work on their social sites too for engaging people and more audience interactions for business but the industry has around 193 Twitter followers. This number of social engagement is not vital to survive in today’s digital world.
- Competitors are Catching Up with Product Development: Even though APAR Industries continues to dominate the aluminium and alloy conductor market in product innovation. It is up against severe competition from both foreign and domestic opponents.
- Urban Market Saturation and Rural Market Stagnation: This tendency is a continuing problem for APAR Industries in the transformer oil business. One of the causes is that product acceptance is delayed in the rural market. Second, because of the wide distances and lack of infrastructure, serving rural clients is more expensive for APAR Industries than serving urban ones.
- Shortage of Trained Human Resources: Due to significant staff turnover and a growing reliance on new solutions, the firm name may encounter skilled human resource issues in the future.
- Institutional Distrust and the Possibility of Legal Action Against APAR Industries: Due to the difficulty of enforcing WTO norms and legislation in diverse markets. Legal proceedings have become both costly and time-consuming. It may cause APAR Industries to spend less in emerging regions, resulting in slower development.
This ends our comprehensive SWOT analysis of APAR Industries. Let us conclude our learning below.
APAR Industries is a well-known corporation with a significant global presence. In the SWOT analysis of APAR Industries, we observed that the company is heavily reliant and enjoys strong brand recognition and trust with its customers. It has a strong customer base with a great track record of millions of people, not just from India but from all over the world.
The company has a strong logistical basis and has reached across all the markets, but suffers from the increasing number of manufacturers in the same field and better R&D efforts by its competitors.
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