Previously, we saw the strategic SWOT analysis of the biggest corporate group – Aditya Birla Group. Here, we will have a look at the SWOT analysis of Electrotherm.
Electrotherm is leading the engineering industry in India and it initially built industrial furnaces for the steel and metals industry. The success journey, which began in 1983, was built on an openness to new ideas and a desire to innovate, aided by in-house research, development and an emphasis on customer-centric product and process development.
Electrotherm marketing activities are another factor that has helped the company grow into a powerhouse today. Marketing is evolving as the world moves online, and if you want to stay up to date, check out our Free MasterClass on Digital Marketing 101 taught by Karan Shah, the CEO and Founder of IIDE.
Do you want to learn how Electrotherm became so successful in multi-divisional activities? In this blog, we will learn about the SWOT Analysis of Electrotherm and decode the answer. Before we begin, let us learn more about Electrotherm, funding, products, financial status, and competitors.
Electrotherm’s journey, which began in 1983, initially built industrial furnaces for the steel and metals industry, now catering to have diversified businesses in the field of Engineering & Projects catering to the steel and foundry industry, transformer manufacturing, steel making, ductile iron pipe making, manufacturing of battery-operated vehicle named YO Bykes, renewable energy, transmission line tower and education.
Electrotherm was built on an openness to new ideas and a desire to innovate, aided by in-house research, development and an emphasis on customer-centric product and process development. Electrotherm continued to design and manufacture greater capacity furnaces, appropriate refining equipment such as metal refining converters (AOD) and ladle furnaces, high-speed continuous casting machines, and different gadgets to improve productivity and steel quality.
It also installed a mechanised charging system and high-end plant automation to reduce reliance on people, as well as a suitable fume catching and dedusting system to make steel production via the Induction Furnace route cleaner. Always innovate for a better tomorrow’ has not only been the company’s objective, but also a way of life throughout its history. Following the development of bigger melting furnaces, refining, and casting machinery, etc.
|Origin||Ahmedabad, Gujarat, India|
|No. of Employees||5,500+|
|Market Cap||Rs141.76 Crore (2022)|
|Annual Revenue||Rs4040.18 Crore (2019)|
|Net Income/ Profit||Rs2,530.59 Crore (2021)|
Products of Electrotherm
For more than 35 years, Electrotherm has worked in the steel and foundry industries, specializing in
- Steel-Making Equipment
- Steel Plant
- Electric vehicles
- Power systems
- Renewable Energy
- Induction Furnace
Competitor of Electrotherm
Electrotherm is one of the largest steel and foundry industry in India below are the list of close competitors for Electrotherm.
- Inductotherm Group
- Transformer & Rectifiers India
- Electra – the solar energy expert
- Thermax limited
- IDMC limited
- AIA Engineering Ltd
- Ratnamani metal & tubes Ltd
Now that we have assessed the background of Electrotherm, let’s delve right into the SWOT Analysis of Electrotherm.
SWOT Analysis of Electrotherm
This study focuses on the internal and external factors that can affect any company. External variables include opportunities and hazards, whereas internal variables include strengths and limitations.
It’s a planning and decision-making tool for strategic planning. It is usually more useful to conduct a SWOT analysis of Electrotherm with a specific goal in mind, such as seizing a new business opportunity or adapting to new trends.
To better understand the SWOT analysis of Electrotherm, refer to the infographics below:
So let’s start with a SWOT analysis of Electrotherm:
Strengths of Electrotherm
The first tool of SWOT is the Strengths. These are the factors that place the company at the top of the industry and make it look prospective. The strength of Electrotherm are as follows:–
- Brand Goodwill: The firm has had a strong brand reputation for the last 30+ years, which leads to different benefits in the steel and foundry industry. When compared to competitors, the company offers free, exclusive prices.
- In Necessity Business: Electrotherm commenced its business in the production of Induction Melting Furnaces without which steel in India cannot be produced. State of facts says that, for the last 30+ years, more than 25 million tons of steel have been produced every year in India on Induction Melting Furnaces supplied by Electrotherm.
- Optimised Manufacturing: The major parts which Electrotherm manufacture are passed through stringent quality control management and it ensure that the finished product lays out quality parameters with the Just-In-Time delivery management principle to prevent customer installation & operational cost overruns make achieving deadlines a reality.
- Customer First Attitude: Their focused team of 5500 employees working in the global metal melting manufacturing facility focuses on a customer-first attitude and they believe technology should be right-sized, with the process designed to minimise waste and selected to enhance product performance.
- Market Share: Electrotherm covers more than 65% market share in induction melting equipment used by the steelmaking industry in India. The company services the global markets around the world with a specific focus on the Middle East, Turkey, Pakistan, Bangladesh and Africa, Far-East countries, Europe while catering to 58 countries around the world.
- First Manufacturer of Ev 2-Wheelers: Electrotherm is the first company in India that manufactured and introduced battery-operated two-wheelers popularly known as YO Bykes that are in line with the company’s commitment to the environment.
- Diversified Businesses: Electrotherm is a diversified infrastructure conglomerate with business interests in the field of transmission line towers, engineering & technologies, steel & pipes, electric vehicles, renewable energy and transformer.
- CSR Activities: Electrotherm does many CSR Activities. Some of the major CSR Activities include providing health care & medical facilities to nearby rural areas and villages, organising mega health/dental check-up camps, blood donation camps and focusing on basic education, improving livelihoods, and many more.
Weaknesses of Electrotherm
Weaknesses are aspects of a business or brand that should be improved. Electrotherm’s major flaws are as follows:
- Business Model: The model of Electrotherm is something that can be easily enacted by any of its competitors. The company should overcome this challenge by creating a strong platform that can connect the supplier, vendor, and end-user.
- Local Monopolies: The customer network of the company is not very strong. This may lead to the disappearance of the firm’s name faster.
- High Transportation Cost: They have a huge transportation cost to transport cement to different retail shops. Also with the increasing fuel prices, it will further increase.
- Lack of Awareness Programs: To protect the interest of consumers, awareness programs are necessary.
- 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 for 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 Electrotherm
Like weaknesses, opportunities are the areas where a company needs to focus, on improving results, increasing sales, and, ultimately, profits.
- An Increase in Government Regulation: The un-organized firms that have not registered themselves operating in the steel and foundry industry are out of the competitive game due to government regulation. This will increase the customer base of Electrotherm.
- Branding Activities: It can initiate comprehensive branding in the country, which may help them enhance brand memory and, as a result, help the brand expand as a whole. By investing in branding campaigns for one or two years, Electrotherm may easily restore market share and brand equity, and become India’s leading brand.
The best and most cost-effective way to do brand campaigns is social media marketing. Electrotherm can create targeted organic & paid social media marketing campaigns to boost brand awareness, acquire quality leads and get repeat sales. If you are at the initial stages of your business then you must learn this one of the digital marketing skills to save your extra cost which is spent on traditional ways of marketing.
- Global Expansion: Electrotherm can make use of India’s market supremacy to expand to other regions of the world.
- Improving Infrastructure: One of the most huge advantages of Electrotherm is that it is a prominent company in the induction melting furnaces industry, which is expanding in India owing to an increase in infrastructure demand. This need will not diminish any time soon, given the growing population and improving economic conditions.
- Increasing Demand: People are opting for more stable structures and intensive use of steel is taking place, even the government is spending heavily on infrastructure projects. Thus, this is the right time to fully tap these markets.
- Recognition Other than 2 Things: Electrotherm is solely popular for its manufacturing and distribution of Induction Melting Furnaces used for steelmaking and the electric vehicle named YO bikes. The business should now get itself recognized in the other business segments too including ductile iron pipe, transformer manufacturing, renewable energy and transmission line tower.
Threats to Electrotherm
Last, under the segment of SWOT Analysis of Electrotherm, we have the Threat. These factors are important to consider as it protects the organisation from dealing with potential losses and more.
- Allegations & Frauds: Recently, the Gujarat based company Electrotherm got a case registered by the CBI for allegedly cheating the Bank of India of around Rs 632 crore. Following this, the MD of Electrotherm surrendered and the CBI charged Electrotherm causing a loss to the Bank of India. The case has consequently reduced the image of Electrotherm.
- Threat From Global Players: It faces stiff competition in Indian markets from global players. Due to India’s rapid expansion, many new multinational cement businesses are projected to emerge in the future years, ushering in a wave of change and potentially igniting a price war.
- Price Competition: When a business engages in price competition, its bottom line suffers. The threat to Electrotherm is just the same. Electrotherm is obliged to compete on price due to the enormous number of product offerings, which has a detrimental impact on its bottom line.
- Threat From Local Players: The emergence of small players in this market may increase the competition and start malpractices, and heavy discounts to retailers. One of the challenges to Electrotherm and the business is a slew of local brands offering cheap products.
- 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.
This ends our in-depth SWOT analysis of Electrotherm. Let us conclude our learning below.
Electrotherm (India) Ltd is a well-established company with a good number of subsidiaries. This SWOT analysis of Electrotherm provides you with an in-depth strategic analysis of the company’s business operations and a comprehensive and unbiased picture of the company’s major strengths and weaknesses, as well as prospective possibilities and threats. The analysis assists in the implementation of the business plans by allowing you to gain a better understanding of your partners, customers, and competitors.
One of their most significant advantages is that they are increasingly moving with technology and considering an online mode. In today’s world, this is a must. To compete in the market and expand globally.
When considering going online it is a must to focus on reshaping your marketing skills. If the above information has sparked your interest in learning more and upskilling, check out IIDE’s 3 Months Advanced Digital Marketing Course to know more.
We hope this blog on the SWOT analysis of Electrotherm has given you a good insight into the company’s strengths, weaknesses, opportunities and threats.
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