In our previous article, we elaborated on the SWOT Analysis of a multibillion-dollar American company, 3M company. This time, we will tackle the SWOT analysis of SRF Limited in-depth.
A multi-business chemical company- SRF Limited has been into manufacturing of chemicals, packaging films and technical textiles since 1970. Its first plant is located in Manali, Chennai.
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In this blog, we will cover the strengths, weaknesses, opportunities and threats of SRF limited. Before we begin, let us learn more about the company, its history, products, services and financial success.
About SRF Limited
SRF Limited is a chemicals conglomerate engaged in the manufacturing of single unit tyre cords and it is a leading, professionally managed diversified chemicals conglomerate. SRF Limited has a workforce of 7,000 employees across 11 manufacturing plants in India and one each in South Africa, Hungary and Thailand. The company currently exports to more than 75 countries.
SRF – Shri Ram Fibres Limited was established in 1970. It also entered into the manufacturing of refrigerators in 1989. It operates in various business segments including technical textiles business, fluorochemicals, speciality chemicals and packaging films. The company is a market leader in most of its business segments in India and commands a significant global presence in some of its businesses/products.
|Founder||Arun Bharat Ram|
|No. of Employees||7,000+|
|Market Cap||Rs 65,918.11 Crore (2022)|
|Annual Revenue||Rs 8,400 Crore (2021)|
|Net Income/ Profit||Rs 382.45 Crore (2021)|
Products of SRF Limited
SRF Limited is the largest manufacturer of technical textiles in India. SRFs technical textile products include:
- Tyre cord fabrics
- Belting fabrics
- Industrial yarn
- Packaging Films
Competitors of SRF Limited
SRF Limited has many competitors in the stock market, few competitors in market are:
- 3M India
- Gillanders Arbuthnot Company Ltd.
- Grasim Industries Ltd.
- Kesoram Industries Ltd.
- Oswal Agro Mills Ltd.
Now that we have understood the company’s core products and services, let’s dive deep into the SWOT analysis of SRF Limited.
SWOT Analysis of SRF Limited
SWOT analysis is a study which is undertaken by the majority of companies to determine their core strengths, weaknesses, opportunities and threats. It is a framework that is used to evaluate a company’s competitive position which later helps in strategic planning.
SWOT analysis can be conducted by any popular brand or any brand which is still new in the market can make use of this template to evaluate internal and external variables that might influence the brand authority and market development.
Below is a step-by-step detailed guide to help you with the SWOT analysis of SRF Limited.
Strengths of SRF Limited
The strengths are basically what makes the brand different from the other competitors and what the organisation excels at. Following are the strengths:
- Reach and Distribution: SRF Limited has customers globally and supplies products to a wide variety of industries. This makes sure that the products are made easily available to their customers at the right time.
- Cost Structure: As we read earlier, the main motive is to make the products available at a low rate so that they can be more affordable. SRF Limited’s low-cost structure helps them supply products that are low cost but with superior quality.
- Brand Reputation: SRF Limited has been in the business of producing chemicals, tyres, coated and laminated fabrics for a large number of years. Also, with the variety of products and services it provides, it is established as a leader in the industry. This helps the corporation to gain a reputation and get recognized easily.
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- Dealer Community: SRF Limited has built a very strong relationship with its dealers that not only help in supplying the products but also promote the company’s core products and training.
- Financial Position: SRF Limited has a very strong financial position in the market with consecutive profits over the years along with accumulated profit reserves which can be utilised for future expenditures or marketing activities.
- Skilled Labour Force: SRF Limited has invested heavily in the employees that have made them not only skilled but are also highly motivated.
Weaknesses of SRF Limited
The weaknesses are a major drawback that stops the organisation from performing at its optimum level. They are the areas in which businesses can make improvements. The major drawbacks are as follows:
- Research and Development: SRF Limited has a good share of expenditure on the research and development department but it is spending way less than a few of the players within the industry which have benefitted as a result of their innovative products.
- Diversity in the Workforce: The local workers contribute to the majority of the workforce at SRF Limited making it difficult for outsiders to adjust and hence resulting in the loss of talent.
- High Employee Turnover Rates: SRF Limited has a very high employee turnover rate as compared to its competitors which means it spends a lot on training activities as employees keep leaving and joining.
- Need to Invest More in New Technologies: According to the country’s scale of expansion and the geographical areas SRF Limited needs to invest more money in technology to integrate the processes across the board. Currently, the investment in technology is not on par as per the vision of the company.
- Limited Success Across the Core Business: Although SRF Limited is one of the leading organisations in its industry it faces challenges in moving to other product segments with its present culture.
Opportunities for SRF Limited
Opportunities are the favourable external factors that may give the organisation a competitive advantage over others. The opportunities of SRF Limited are as follows:
- Social Media: Over the years the number of active users on social media channels has increased and with this SRF Limited can make use of its social media handles to promote its products, interact with customers and even provide after-sale services.
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- Transport Industry: The transport industry has been booming and is expected to boom in the next few years as well which has resulted in more demand for SRF Limited products which is helpful for SRF Limited to scale its business.
- Globalisation: Increased globalisation doesn’t restrict SRF Limited anymore to conducting activities in its own country which can act as an opportunity to extend operation in other countries and thus enter new markets and unleash potentials of other new markets.
- Population: The population has been growing and is expected to grow at a positive rate for the upcoming years. This is beneficial for India as there will be an increase in the number of potential customers that it can target.
- Expansion to Other Global Markets: The company is planning to expand its international activities with a particular focus on Asia and America. This serves them as an opportunity to acquire a new customer base.
Threats to SRF Limited
Threats are those factors that have the potential to provide harm to the organisation in any form. The threats of SRF Limited are as follows:
- Technological Advancements: The technological advancements by a few competitors can pose a threat to SRF Limited as today’s customers are more attracted towards new technological advancements and may be lost to competitors’ offerings thus reducing the market share of SRF Limited.
- Competition: There is always an ongoing competition that puts downward pressure on the prices. This could lead to lower profits if it makes changes in the price or may also result in lower market share if it doesn’t make price changes.
- Exchange Rate: The exchange rate also keeps fluctuating and makes it difficult for a company like SRF Limited because it extends service internationally while its suppliers are local.
This ends our complete SWOT analysis of SRF Limited. Let us conclude our learning below.
SRF Limited is a well-known company with a significant global presence. In the SWOT analysis of SRF Limited, we observed that the company is heavily reliant and enjoys strong brand recognition and trust with its customers. It has a strong distribution network and has reached across all the markets it serves, but suffers from an increasing number of suppliers in the same space and better R&D efforts by its competitors.
Also, one point not to miss out on is that SRF Limited is in line with its marketing effort. It has created a customer base for itself by tapping into the digital era and creating a social media presence on several platforms. If you are interested in learning digital marketing, don’t forget to check out IIDE’s 3 Month Advanced Digital Marketing Course.
We hope this blog on the SWOT Analysis of SRF Limited has given you a good insight into the company’s strengths, weaknesses, opportunities and threats.
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