In our previous article, we had done a detailed SWOT analysis of Enel, an Italian Multinational Electricity & Gas Utility Company. In this article, we are going to explain the SWOT analysis of Sandhar Technologies.
Sandhar, an Indian transnational and a global manufacturer of automotive is one of the two leading companies which is dealing in commercial vehicle locking and two-wheeler rearview systems. It is an Indian multinational and a global manufacturer of automotive components.
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Now, we will discover strengths, weaknesses, opportunities and threats covering Sandhar Technologies. Before we delve into the SWOT analysis of Sandhar Technologies let’s learn about the company, its history, products, services and competitors.
About Sandhar Technologies
Sandhar Technology was founded in 1987 by Jayant Davar. The company currently has 3 subsidiaries and 10 joint ventures with 41 factories. Sandhar Technologies all over the world focuses on the client-centric element which is substantially furnishing Original Equipment Manufacturers (OEM).
They’re committed to empowering the lives of our employees to live better, increasing their efficiency, and promoting the manufacturing of innovative products and solutions. Over the years, they have experienced steady growth in their business in terms of product portfolio, manufacturing plants, clients they serve, and also various other aspects that set them apart in the industry.
Adding their effectiveness with their unique aphorism which is “Growth. Provocation. Better Life”. They also concentrate on vehicle safety as well as the security systems along with the visage of India’s presence and also a growing transnational footmark.
|Origin||New Delhi, India|
|No. of Employees||8000+|
|Market Cap||Rs 1,533.66 Crore (2022)|
|Annual Revenue||US$278 Million (2018)|
|Net Income/ Profit||US$37.4 Million (2018)|
Products of Sandhar Technologies
Sandhar Technologies has been a global marketer since 1958 and deals in the following businesses:
- Automotive locking and security systems
- Commercial Tooling
Competitors of Sandhar Technologies
Competition among businesses may lead to the development of new or improved goods, as well as more efficient operations. Sandhar Technologies has a few major rival companies around the globe. Some of the top competitors are
- Dallara Automobili
- Volkswagen Autoeuropa
- Mphasis Ltd.
Now that we know about the company’s history, its products, and its close competitors, we can move on to the SWOT analysis of Sandhar Technologies.
SWOT Analysis of Sandhar Technologies
SWOT analysis examines the strengths, weaknesses, opportunities, and threats that a firm faces. SWOT Analysis is a tried-and-true tool that enables a company like Sandhar Technologies to compare its business and performance to that of its competitors.
It will give us a strategic analysis of its internal and external environment, which is crucial for understanding the SWOT Analysis of Sandhar Technologies.
To better understand the SWOT analysis of Sandhar Technologies, refer to the infographics below:
Below is an explicit guide to the SWOT analysis of Sandhar Technologies.
Strengths of Sandhar Technologies
Sandhar Technologies, being one of the leading companies in its industry, has several benefits that help it flourish in the marketplace. These strengths not only help it retain market share in existing areas but also help it break into new ones.
- Famous Brand: A well-known name in India for over 25 years reflects the amount of trust its customers hold including Honda, TVS, Bajaj and many such big brands.
- Global Operations: Sandhar Technologies has 43 manufacturing facilities and a presence in 3 countries in Spain, Poland, and Mexico.
- Major Distributor: Sandhar Technologies is one of the major distributors of automotive locking and manufacturing systems, vision systems, stampings, operators cabin, zinc die, aluminium die, magnesium die, automotive optoelectronics, polymers, painting, plating, coating, commercial tooling, helmets, fuel pumps, assemblies and new component is used by some of the major automotive manufacturing companies like Honda, Bajaj Auto, TVS Motor Company.
- Offer Many Services: They offer customers a wide range of solutions including Casting Simulation, Prototyping, Tool Designing & Manufacturing, Assembly, Die Casting, Shot Blasting, Powder Coating, Core Making & multi-process Foundry services.
- Leading Market Position: Sandhar Technologies holds the largest Indian auto component group position for automotive components. Since its inception the growth enabled the company to create a new revenue stream and diversify the economic cycle risk in the markets it serves, propelling Sandhar Technologies to the top of the Indian market.
- Highly Qualified Workforce: Through training and learning initiatives, Sandhar Technologies has been able to develop highly qualified 8000+ employees. Sandhar Technologies devotes significant resources to employee training and development, resulting in a team that is not just highly competent but also driven to attain greater success.
Weaknesses of Sandhar Technology
Strategy is all about choices and weaknesses are areas where companies can improve through SWOT analysis and leverage their competitive advantage and strategic positioning.
- Expenditure on Building Fresh Supply Chain & Logistics Network: AI has significantly modified the business model in the technology industry and hence, Sandhar Technologies has to build a new expensive supply chain network.
- Sloping Market Share With Rising Revenues: The electronic industry is growing faster than the company itself making it challenging to analyze the trends within the technology sector.
- Components Can Get Readily Copied: Sandhar Technologies’s business model is the issue to address which can get easily copied by its competitors. The organisation must develop a platform model that can combine suppliers, vendors, and end-users to ensure a secure supply chain.
- Net Profit Declines: Net profit of Sandhar Technologies declined 55.44% to Rs 13.03 crore in the quarter ended December 2021 as against Rs 29.24 crore during the previous quarter ended December 2020.
- Net Worth: Its net worth from all its sources of funds (share capital, reserves, preference shares etc) is also less than some of its competitors (such as Endurance Tech) as per Money Control’s analysis as of March 2021.
Opportunities for Sandhar Technologies
Opportunities are possible areas for a company to consider to improve results, sales, and, ultimately, profit. Sandhar Technologies includes the following opportunities:
- Survival: The company has been able to resist the losses caused due to the pandemic which implies the company has a long way to go in sustaining itself as a manufacturer.
- Expansion: While the company is going international, it is simultaneously leaving an everlasting imprint, which implies that the company has the potential to expand to many locations. Sandhar Technologies raised Rs 272.10 crore to set up a manufacturing unit in Nalagarh, Himachal Pradesh to manufacture sheet metal parts like frame parts, complete frames, handlebars, swing arms etc. for two-wheelers.
- Transport Industry Boom: More and more automotive industries are relying on external suppliers for vehicle components to save their manufacturing costs which imply that Minda’s importance won’t decline and would rather increase with time.
- Pandemic: Due to Corona, people are preferring to use their vehicles rather than public transport for fear of infections which means that the sale of automobiles (especially electric) would increase with time which would have a positive impact on the sales of Minda products to automotive manufacturers.
- R&D and Tech: If the company starts investing more capital to boost itself and to be in sync with the latest developments in tech, the company can have a bright future!
- Expected Growth: According to recent research India could become a major manufacturer of automotive components and a global auto parts manufacturing hub, says ET. Sandhar Technologies can benefit from this opportunity and grow its business.
Threats to Sandhar Technologies
External environmental factors that can harm Sandhar Technologies’ growth are known as threats. Sandhar Technologies’ threats include the following:
- Raw Material Price Volatility: Aluminium and steel are the major raw materials for the company. Any disruption in the availability or pricing of these raw materials may have a significant bearing on business profitability.
- Global Pandemic Outbreaks: A highly infectious third/fourth wave of COVID-19, leading to lockdowns or restricted mobility, could impact the business growth of all auto component manufacturers, due to reduced demand for new vehicles, as well as lower wear and tear of existing ones.
- Strong Rivalry from other Components Providers: There is a lot of competition in the industry these days. This affects prices, resulting in a drop in revenue or income for Sandhar Technologies.
- Threat from Local Distributors: Growing strengths of local distributors also presents a threat in some markets as the competition is paying higher margins to the local distributors. Also, local distributors like repairing centres and garages are selling duplicate two-wheeler suspension components in the name of Sandhar Technologies which is again another threat for the company.
- Country-specific Regulations: Each country has a different set of rules and regulations regarding the transportation of goods. Some goods have very strict restrictions in some countries making it difficult to transport them.
This ends our complete SWOT analysis of Sandhar Technologies. Let us conclude our learning below.
As we can see, Sandhar Technologies has huge potential owing to its consistent performance and prestige as an old brand in India. What makes its future picture look a bit glum is it’s approaching strong and equally good competitors who are running at the same pace and may cross over Minda’s position if Sandhar Technologies lags in any of the aspects, be it upgrading technology, maintaining good financial records along with relations with clients.
However, the company has outperformed its rival competitors with its incredible marketing efforts in branding. With the increasing competition and advancement in technological expertise, digital marketing plays a vital role in boosting traffic, if the company gets better visibility, sales and revenue will eventually increase.
Hundreds of thousands of businesses now use digital marketing to reach a considerable number of people because it is easier and more cost-effective than other traditional ways. If you are interested in learning more and getting upskilled in digital marketing then check out IIDE’s 4-month online digital marketing course to know more.
We hope this blog on the SWOT Analysis of Sandhar Technologies has given you a good insight into the company’s strengths, weaknesses, opportunities and threats.
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