Extensive SWOT Analysis of Surya Roshni – A Indian Multinational Company

Quick Stats on Surya Roshni

Founder	B.D. Agarwal
Year Founded	1973
Origin	Haryana
No. of Employees	2,766+
Company Type	Public
Market Cap	Rs 2,548.24 Crore (2022)
Annual Revenue	Rs 20.3b (2021)
Net Income/ Profit	Rs 404.9m (2021)

 

Products By Surya Roshni 

Here is the list of products which Surya Rohni deals with – 

• Lighting
• Steel
• PVC Pipes
• Fans 

Competitors of Surya Roshni

Surya Roshni is India’s leading manufacturing company of fans, LED bulbs, home appliances, etc, it also has a good place in the global market. Its top 4 close competitors are-

• APL Apollo Tubes
• Prakash Steelage
• TATA Steels
• SYSKA
• Havells

Now that we know everything we need to know about Surya Roshni, let’s start with the SWOT analysis of Surya Roshni.

SWOT Analysis Of Surya Roshni

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 Surya Roshni, refer to the infographic below:

So let us first start by looking at the strengths of Surya Roshni from the SWOT analysis of Surya Roshni

Strengths of Surya Roshni

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 Surya Roshni’s strengths:

• Best-In-Class: Surya Roshni provides the best steel pipe, lighting & consumer durable products and technology for markets across 50 countries in the world and ensures the production of only the best cutting-edge products at all times.
• Customer Satisfaction: Surya Roshni achieved the position that it has today because of the trust and confidence imposed on them by its customers. Their customers are satisfied with Surya’s effective exceptional products and services.
• Using Latest Technology: Surya Roshni focuses on working passionately with all the latest technologies to make the lives of customers comfortable and delighted. Surya Roshni is also potentially acknowledged as the future of lighting technology.
• Range of Products: Surya Roshni manufactures a range of electronic products including home appliances, kitchen appliances, commercial & industrial appliances, fans & lighting, water heaters, motors etc. and many more. All the products are of high quality, cost-effective and electricity savers which is why these products rule the Indian market.
• CSR Activities: Surya Roshni has a huge contribution to social initiatives and it commits to continuously improving its social responsibilities. Surya Roshni CSR efforts revolve around eight strong pillars of health & nutrition, education, skill development, sanitation, healthcare, environment, heritage conservation and other humanitarian causes being children at the core.
• Follows Sustainability: Surya Roshni lives on an ethos of sustainability and manufacturing its goods using new innovative efficiencies. Surya Roshni is focused on delivering powerful, sustainable and energy-efficient solutions. Surya’s sustainability vision is to reduce CO2 emissions, improve environmental protection, improve quality of life, and offer profitable solutions to the market.
• Highly Skilled Workforce: Surya Roshni is empowering large resources in the training and development of its employees, resulting in a workforce that is not only highly competent but also motivated to achieve a surplus.

Weaknesses of Surya Roshni

Weaknesses are the areas where the company is lacking behind and needs improvement. Let’s have a look at the weaknesses of Surya Roshni:

• Globally Small Market Share: The global market share of Surya Roshni is slowly going down. Big international brands like Samsung, Prestige, Philips etc. are covered at all places ultimately reducing the market visibility of Surya Roshni. 
• Debt Ratio: Surya Roshni is estimated to owe a high debt ratio which is a big weakness for its business success.
• The Slowdown in Global Markets: A slowdown in the global market will affect more adversely after a series of acquisitions.
• Switchgear Segment: Although Surya Roshni’s lights, switchgear, and fans are preferred by household contractors, still Surya Roshni has a weak place in the overall industrial switchgear segment or we can say on a global scale.
• 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. 

Opportunities for Surya Roshni

Opportunities are uncontrollable external events a person can potentially leverage. These are favourable external factors that could give an organisation a competitive advantage.

• Gain Orders: Surya Roshni should gain more bulk orders to increase its revenue. Surya Roshni won an order of Rs 124.35 crore from IHB for the supply of API 5L Grade 3LPE coated pipes for the LPG pipeline project from Kandla to Gorakhpur.
• Advantage of Being Leading: Surya Roshni is India’s leading brand in terms of electronic equipment and this can be taken as an advantage by Havells to extend its acquisition of other companies including Chinese manufacturers.
• Globally Emerging Markets: Critically, an emerging market economy is transitioning from a low income, less developed, often pre-industrial economy towards a modern, industrial economy with a higher standard of living.
• Working on Weak Segment: Surya Roshni working on its weaknesses will provide them with more opportunities to expand its business operations. 
• New Technology: Surya Roshni may now use differential pricing in the new market thanks to the new technology. It will motivate the company to reinforce its existing clients via excellent service while also attracting new clients through various value-oriented offers.
• New Markets: The adoption of new technology criteria and government free trade agreements has provided Surya Roshni with an opportunity to enter a newly developing market.

Threats to Surya Roshni

Threats are the external factors that may cause loss to the firm over time or all at once. Some of these are stated below keeping Surya Roshni in mind:

• High Competition: Surya Roshni’s stable profitability has increased many competitors in the industry over the last two years which has put downward pressure on not only profitability but also on overall sales, so this is one of the biggest threats for Surya Roshni. 
• Competitors Advance Technologies: New technologies developed by competitors or market disruptors could be a serious threat to the industry in the medium to long term future. This is because due to the new technologies developed by the competitors they would be able to do more production, and because of more production, they would be able to supply more as per the demand. New technologies also help in reducing the cost of production.
• The Pressure on Environment Bodies: The company’s heavy manufacturing of electronic equipment plants led to increasing pressure from environmental activists and several lawsuits against Surya Roshni for exploiting the environment.  
• Local Distributors & Contractors: Distributors and contractors taking contracts for fitting electronic components in Indian households are using local or duplicate electronic components to save higher margins and to increase their profit. This has been a huge threat to Surya Roshni because local manufacturers and distributors are capturing the market at a faster pace by providing higher margins to such contractors. 
• Huge Dependence on Indian Market: Surya Roshni is hugely dependent on the economic movements of the Indian market because the business seeks maximum profit from India and a sudden uneven economic condition can lead to Surya Roshni seeing some bad days.

This ends our elaborative SWOT analysis of Havells India. Let us conclude our learning below.