Friday, December 28, 2012

Tata Consultancy Services Limited: Another Household Name in the Tata Group



Tata Consultancy Services Limited (TCS) is a member of the Indian conglomerate Tata Group. It is involved in supplying IT services and business solutions and outsourcing.

Founded in 1968, TCs started as a provider of punch card services to its sister company Tata Steel. Some of its earlier contracts also included the Central Bank of India’s inter-branch reconciliation system and Unit Trust of India’s bureau services.

Through the years, TCS grew larger and started offering services to foreign companies. For instance, TCS supplied SECOM, a depository and trading system for Switzerland’s SIS SegaInterSettle. TCS also supplied the Canadian Depository System with a similar system called System X. TCS was also responsible for Johannesburg Stock Exchange's automation.

As an expression of its great passion for research and development, TCS was the first company in India to establish a software R&D facility, the Tata Research Development and Design Center in 1981.

In the early part of 21st century, TCS is making record breaking revenues of $500 million annually. But in the fiscal year of 2011-2012, TCS has recorded revenues of more than $10 billion.

Wednesday, December 26, 2012

Perrigo: Access to Quality and Affordable Healthcare



Perrigo Company is a US-based healthcare supplier that leads the world in the development, production and distribution of generic prescription and OTC drugs, nutritional products, infant formula, active pharmaceutical ingredients (API), and medical and pharmaceutical diagnostic products.

Perrigo’s motivation is simple and clear – to be the leading supplier of quality and affordable healthcare products. Quality is one of Perrigo’s major values. It is a priority, not just a concept. A significant amount of resources and time is devoted to efforts that seek to achieve the highest level of quality in execution and products.

A division of Perrigo called Consumer Healthcare is responsible for the manufacturing operations in Mexico, the UK and the US. This division is supporting the company’s OTC drugs and nutritional products. Its generic drugs contain the same active ingredients as the branded ones but can be purchased at much lesser prices, making Perrigo a major supplier of store-brand generic drugs.

Perrigo is also operating the Rx Pharmaceuticals division, which focuses on developing, manufacturing and selling of generic prescription drugs. These drugs are sold primarily in US markets. Its manufacturing facilities are located in Israel and the US.

To continue its active business ventures in nutritionals, Perrigo purchased PBM Products Llc. and is now known as Perrigo Nutritionals. PBM is known to be the first to introduce store brand infant formulas in the US.  Now under the helm of Perrigo, the division is the supplier of infant formulas to seven major retailers aside from supplying infant formulas to small retailers.

In the business of Active Pharmaceutical Ingredients, Perrigo develops, manufactures and sells active chemicals and ingredients used by the industry of generic drugs. This business is primarily carried out by the Israel-based manufacturing facilities along with those located in China and India.

Perrigo’s Medical and Pharmaceutical Diagnostic Products deals with the leading drug companies for exclusive supply and distribution of diagnostic kits. Again, this business is carried out by the Israel-based manufacturing facilities.

Friday, December 21, 2012

Keichow Moutai: Bringing China’s Prized Liquor to the World



Kweichow Moutai is a Chinese liquor company that became popular for producing Moutai (also known as Maotai in the West), China’s national liquor. Moutai is a 100 proof liquor made from wheat and sorghum. More than 20,000 tons of Moutai is produced by Kweichow Moutai annually. The most expensive Moutai ever produced was aged in an 80-year old container which sells for a few hundred dollars.

Kweichow Moutai’s products are exported to more than 100 countries. Its manufacturing facility is located in the town of Moutai in the Province of Kweichow. Kweichow Moutai is owned by the state and was established in 1951.

Aside from the bestselling Moutai, Kweichow Moutai is also into manufacturing and selling of food and packaging materials. It has also developed an anti-counterfeiting technology and is in a continuing research and development projects to improve on IT products.

Keichow Moutai is a publicly traded company. Its shares are traded on the Shanghai Stock Exchange. Each Keichow Moutai A share is priced at over 100 yuan.

Tuesday, December 18, 2012

Haier Group: The Zero Inventory Home Appliance Company



Since its founding in 1984, Haier Group has devoted itself to innovate and create a brand that has become so popular worldwide for the last three decades. Haier was on the verge of bankruptcy and was threatened to close down. But now, it provides work to over 70,000 employees and reported a turnover of ¥135.7 billion in 2010. Aside from being the consumer appliances brand in the world, Haier was listed by the USA Newsweek website as one of the 10 most innovative companies in the world.

One of Haier’s highest goals is to create a brand that would become famous worldwide in the age of the worldwide web. The brand should promote consumer satisfaction at the quickest possible time. Such a goal is not seen to require massive production but a large-scale product customization.

Haier used the internet to address the challenge. The Group bravely explored and implemented the “Win-Win Mode of Individual-Goal Combination”. Using the “inverted triangle” organizational structure and the “End-to-End” ZZJYT construction, Haier slowly evolved from selling their products to selling their services. This fostered Haier’s competitive advantage.

Presently, Haier has piled up over 10,000 patent applications to become China’s leading home appliance company with the most patent applications. Haier is leading the breakthroughs for international standards. For instance, Haier helped to draft 61 international standards of which 27 are already implemented.

Haier has developed a huge marketing network throughout China. Using the internet, the company has edged other players because it responds to consumer demands very quickly. Haier implements the “zero distance virtual and practical network combination” to realize this. Through the help of the internet, Haier has developed a virtual network in online communities. Haier also managed to enter the world market through their overseas channels.

At Haier, it is not impossible to maintain zero inventory with the implementation of “on demand manufacturing and delivery”. Haier is able to convert its working capital in less than 10 days. Zero inventory means zero accounts receivable.

Friday, December 14, 2012

Reliance Industries Ltd.: Indian Conglomerate with a Global Impact



Reliance Industries Ltd. is a Mumbai-based conglomerate. The group is into petrochemicals, gas and oil refinery, textiles, telecom and broadband, retail, and special economic zone development.

Reliance is India’s second largest company in terms of revenues and is one of the largest public companies in terms of market capitalization. It is also the largest company in the private sector in terms of sales and profits. In 2012, Reliance is in the 99th place in the Fortune Global 500 list.

Petrochemicals and gas and oil refinery are the core businesses of Reliance. The other businesses with significant contribution to the Group’s success are the retail, textiles and special economic zone development. Its retail business, Reliance Retail, is now into fresh foods with Reliance Fresh.

In the next few years, Reliance would enter the aerospace market. It will invest a total of $10 billion for the design, development and manufacture aerospace equipments and components for both civilian and military aircraft. The Group created the Reliance Aerospace technologies Pvt. Ltd. and the Reliance Security Solutions Ltd. to take care of this new business venture. The application for industrial license was filed in July 2012.