Techno-commercial availability of product package Commitment for consistent up gradation and sustenance/ diligent effort in order maintain the pocket margin leading to win-win situation No competition agreement in the identified sector Considerable marketing effort necessary to establish new range
Options • Local Manufacturing • Strategic alliance or Out sourcing PUD’s from manufacturers in China • Formulation •Import PUD Intercompany
Polyurethane Dispersion – opportunities in China Local Manufacturing
Polyurethane Dispersion – opportunities in China Application – Leather Finish (Market potential for Stahl)
PUD Marknum
Base coat (aromatic) , 250 Base coat (Aliphatic) , 3000
Top coat , 2000
Polyurethane Dispersion – opportunities in China Projected PUD requirement per annum
Polyurethane Dispersion – opportunities in China
Options • Local Manufacturing • Strategic alliance or Out sourcing PUD’s from manufacturers in China • Formulation •Import PUD Intercompany
Polyurethane Dispersion – opportunities in China Strategic alliance or Out sourcing PUD’s from manufacturers in China
Strength (S)
Weakness (W)
Increase in product offerings to customers distinct advantage over established competitors Shorter lead times Can open new opportunities due to product and application knowledge synergy No additional investment in the manufacturing infrastructure
Opportunities (O) Can open vistas for application in other areas viz. wood coatings etc.
Threat (T) Competitors are planning to set manufacturing facility for various application including leather
Polyurethane Dispersion – opportunities in China
Options • Local Manufacturing • Strategic alliance or Out sourcing PUD’s from manufacturers in China • Formulation •Import PUD Intercompany
Projected PUD requirement, MT per annum
Base coat (aromatic) , 100 Base coat (Aliphatic) , 850
Top coat , 975
Polyurethane Dispersion – opportunities in China
Strength (S)
Increase in product offerings to customers distinct advantage over established competitors Shorter lead times Customized solution Positive impact on the market about commitment to growing geography Better capacity utilization Well established range for application area Reach on going project within Stahl could be an opportunity
Weakness (W) Investment in manufacturing infrastructure viz. reactor etc. Need clarity about ROI Could result in under utilization of capacity in other plant Need internal processes in place to protect IP Legal obligation for storing / usage of restricted raw materials in china
Options • Local Manufacturing • Strategic alliance or Out sourcing PUD’s from manufacturers in China • Formulation •Import PUD Intercompany
Polyurethane Dispersion – opportunities in China