Last time we had a look at the detailed SWOT analysis of Shell, an Anglo Dutch-based multinational oil and gas company. This time we will dive deep into the SWOT analysis of Nava Bharat Ventures and its work.
Nava Bharat Ventures is India’s leading Ferroalloys manufacturer established in 1972. Today the venture is a multinational company, operating in India, South East Asia and Africa.
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Before we begin further with the SWOT analysis of Nava Bharat Ventures, let us discuss the company, what products it has to offer, its financials and its competitors.
Founded in 1972 as an Indian ferroalloy maker, Nava Bharat is a multinational company with operations in India, Southeast Asia, and Africa. They are a diverse group working in metal, energy, mining, agribusiness, and healthcare businesses. It also employs more than 1,000 people in operations across two continents. Currently, Nava Bharat Ventures produce and supply more than 200,000 tons of ferroalloys each year. Operates several 743 MW power plants for self-consumption and sales. The company also works with hundreds of sugar cane farmers to produce and process sugar and ethanol. And in 2017, their investment expanded around healthcare services.
Nava Bharat Ventures was promoted by Dr D. Subba Rao, Sri P.Punnaiah and Sri A.S.Chowdhri in 1972, Nava Bharat Ferro Alloys Limited (NBFA) commenced operations in 1975 with the manufacture of ferrosilicon at Paloncha in Andhra Pradesh, a state in Southern India. To better represent the diversified business activities, the name of the company was changed to Nava Bharat Ventures Limited (NBV) in July 2006.
|No. of Employees||5781+|
|Market Cap||Rs 2,482.67 Crore (2022)|
|Annual Revenue||Rs 949.92 Crore (2021)|
|Net Income/ Profit||Rs 168.56 Crore (2021)|
Nava Bharat Ventures has a variety of products and sub-products below listed are some common types of products manufactured by them:
- Ferro Alloys
- Operation & Maintenance
These are some close competitors of Nava Bharat Venture:
- Banpu Public
- SITI Networks
- Consolidated Minerals
- Tata Metaliks
- Flagship Pioneering
- Indian Metals & Ferro Alloys
Now that we know everything we need to know about Nava Bharat Ventures, let’s start with the SWOT analysis of Nava Bharat Ventures.
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 analyse where the company is falling short, where it is excelling, and what needs to be worked upon.
To better understand the SWOT analysis of Nava Bharat Ventures, refer to the infographic below:
So let us first start by looking at the strengths of Nava Bharat Ventures from the SWOT analysis of Nava Bharat Ventures
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 Nava Bharat Ventures’ strengths:
- Huge Customer Base: It has a great market influence in the domestic business which makes it a huge strength for Nava Bharat Ventures.
- Quality: The quality of Nava Bharat Ventures is quite strong and it provides a quality manual for the entire organization.
- Research and Development: It is a strong, innovative, and creative advanced team for research and development which is a pro point. They invest 2.5% of their annual turnover in the R&D of Nava Bharat Ventures.
- Continuous Profits: This is a great strength for Nava Bharat Ventures since it has been getting huge profits and dividends for years.
- Support From Collaborators: Nava Bharat Ventures has been getting constant and huge support from collaborators that helps with modern technologies and transform them to suit Indian conditions.
- Strong Base in Engineering: Since it has a strong base in engineering, it is stable in the market and industrial relationships. It is the largest Ferroalloys manufacturer and works on various power generation and mining projects like coal-based thermal projects, gas-based, shelved-based, etc.
Weaknesses are negative aspects and attributes which have little control over. These are the areas where the business needs to improve to remain competitive.
- Longer Delivery Cycles: Its products take more time to deliver than its international competitors which can be a huge con according to the customer base.
- Less Marketing Manufacturer: Nava Bharat Ventures lacks a marketing manufacturer which leads to inadequate supply.
- Criticism: Zambia’s largest coal mine concessionaire – Maamba Collieries of the coal power plant is criticized a lot for impacting adverse effects on the environment since it is near to the Sundarbans mangrove forest.
- The Inability of Certain Activities: Inability of certain activities such as providing suppliers credit, soft loans, and financing power projects.
- 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.
Opportunities are places where the company can find growth, profit, and market share possibilities.
- 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 Nava Bharat Ventures to expand its product portfolio dramatically.
- Local Collaboration: Partnerships with local firms can help Nava Bharat Ventures expand its market share in foreign markets. Local firms have a local experience, but Nava Bharat Ventures can contribute global procedures and execution skills.
- Increasing Government Regulations: The electric utility business is becoming increasingly regulated, making it difficult for unorganized firms to compete. Nava Bharat Ventures 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 Nava Bharat Ventures.
- 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.
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.
- Growing Technological Knowledge of Local Businesses in the Export Industry: For Nava Bharat Ventures, one of the most significant risks of partnering with local firms in the export market is the risk of losing intellectual property rights. In emerging nations, particularly in China, the intellectual property rights framework is weak.
- Competitors are Catching Up with Product Development: Even though Nava Bharat Ventures continues to dominate the Electric utility 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 Nava Bharat Ventures in the Electric utility 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 Nava Bharat Ventures 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 Nava Bharat Ventures: 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 Nava Bharat Ventures to spend less in emerging regions, resulting in slower development.
This ends our comprehensive SWOT analysis of Nava Bharat Ventures. Let us conclude our learning below.
Nava Bharat Ventures is a ferroalloys manufacturer. In this SWOT analysis of Nava Bharat Ventures, we have observed that it has had a commendable growth in the past years.
With the growing competition in the Nava Bharat Ventures-like market, companies are left to struggle to win over their customers with better marketing efforts. In an ever-changing world where digital marketing is very important, a good knowledge of the industry is essential for all marketers. If you would like to learn more and develop skills, check out Online Digital Marketing Course to learn more.
We hope this blog on the SWOT analysis of Nava Bharat Ventures has given you a good insight into the company’s strengths, weaknesses, opportunities and threats.
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