Feasibility study and business plan for local assembling of diesel generating sets in Pakistan :
Master of Business Administration Executive
Faculty / School
Faculty of Business Administration (FBA)
Year of Award
MBA Executive Research Project
This feasibility study report delineates prospects, scope, benefits and commercial viability for the development of Greaves Generating Set assembly plant in Pakistan.
This report highlights issues encountered by companies engaged in trading and after sales support of Generating Sets business. Many of these companies' imports assembled/ manufactured Generating Sets from numerous countries like USA, China, France and other European countries etc and sell to local customers. Greaves Pakistan (Pvt.) Ltd is also among them. Due to import, these companies pay heavy custom duties and trade taxes along with freight charges to Pakistan custom. Further, level of dependence on Generating Set suppliers/ OEMs (original equipment manufacturer) is very high as local Generating Sets companies which do not have direct access to parts manufacturers and OEMs not only add substantial margins on Generating Sets but also provide expensive spare parts. A part from custom duties and taxes, currency variations is also an important factor which hurts profit margins of local Generating Set companies. In addition, the peak season for Generating Set business and customer demand for Generating Sets become very high. Besides Generating Set demands, customers which are already using Generating Sets intend to get serviced their Generating Sets which augment spare parts requirements. Delayed in shipments of both Generating Sets and its spares not only irritate existing customers but also loss of potential new customers. Moreover, in government tenders, those companies which have local manufacturing plant/ facilities are more preferable than importers.
Above issues are addressed in details in this feasibility report along with their proposed solutions by developing a Greaves local Generating Set assembly plant in Pakistan. In addition, development and operation of local Generating Set assembly facility needs manpower and infrastructure which is described in a separate section.
In order to develop this feasibility report, an external environment analysis is done to address electricity demand-supply gap.
An analysis of location for Generating Set assembly plant was developed. Two options were considered in this report, first option was Greaves owned warehouse situated at Gulbai-Karachi and other option is EPZ (Export Processing Zone) Karachi. Both options have their own pros and cons which are discussed in details.
The exploratory research is carried out by using a questionnaire. The ordinal, interval and Likert scales are used in our questionnaire. As per questionnaire, a detailed survey analysis was made to gather customer insights about Generating Set market and its services.
Marketing analysis is further extended in subsequent chapter with major focus on Greaves standing in its customers currently. All the aspects of brand asset management such as significance of Greaves brand, its brand equity, brand purchase model, current positioning, and brand extension and brand communication are discussed.
The final part of this report is based on financial projections for Generating Set assembly plant along with projected revenues. As a conclusion it can be stated that through a well defined and structured process of research and survey, almost every aspect of market orientation, issues encountered by Greaves while importing of Generating Sets and development of Greaves local Generating Set assembly plant has been discussed. The research findings at this point of time are all exploratory and include customer insights about their preferences of generating set. This report can prove a basic building step for further fine tuning the results and factors deciding the real essence of market sustainable leadership. Thus, this reports end up with envisioning Greaves management to begin the road towards sustainable market share with a well laid foundation.
Link to Catalog Record
Raza, A. (2015). Feasibility study and business plan for local assembling of diesel generating sets in Pakistan : (Unpublished graduate research project). Institute of Business Administration, Pakistan. Retrieved from https://ir.iba.edu.pk/research-projects-emba/272
Available for download on Tuesday, December 31, 2030
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