[ detailed report at: http://bit.ly/mti-report ] Presentation on the "Growth Prospects of Machino Tools (India)" by Shabbir Akhtar, along with Pritam Jaiswal, for the Summer Internship Project, done while attending the 2011-2013 session of PGPM at Globsyn Business School.

3. About Machino Tools (India)
Name Machino Tools (India)
Industry Mining
Directors Mr. Dhruv Jaiswal, Mr. Prem Jaiswal, Mr. Arun Jaiswal
Products Cutting Tools, Mining Tools
Major Suppliers G.T. International Co.Ltd., Guiyang, China
(International) Wollong Tungsten Carbide Manufacturing Co.Ltd., Jinan, China
Major Suppliers Yuri International, Mumbai
(National) Senegal Hardware, Mumbai
Major Buyers Berawar Traders, Jaipur
Annu Tools, Surat
Competitors Nitish Tools Pvt. Ltd., Coimbatore
Mahavir Tools Corp, Kolkata

4. Problems faced by MTI
• The company is not making much profit when
procuring products from India, as compared to
China
• Legal issues might cause the import from
Wollong Cemented Carbide Co.Ltd. to be
stalled
• The industry might become stagnant soon,
thus the company wants to explore areas of
diversification

5. Questions Asked by MTI
• What is the present financial position of the
company?
• Whether to procure the products from China
or India?
• What are the different areas the company can
diversify into?

6. Objective of the Project
Consulting MTI on growth opportunities by:
• finding better suppliers of its present products
• providing diversification options for future
growth

7. Project Enablers
• Business Trips
• Purchase Deals
• Sales Deals

8. Business Trips
Location Arrival Departure Purpose of Visit
China April 13 April18 Study Purchase Options
Singapore April 18 April 18 General Business Meet
Delhi April 25 April 28 Study Purchase Options
Vijayawada May 5 May 5 Meet Buyers
Chennai May 6 May 8 Meet Buyers
Coimbatore May 9 May 10 Meet Buyers
Bangalore May 10 May 11 Meet Buyers
Hyderabad May 11 May 12 Meet Buyers
Dheri-on-shon June 21 June 23 Sell Products
Rourkela June 26 June 28 Sell Products
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9. Purchase Deals
Company Name Products Outcome Reasons
Taizhou Harte HSS Drill Not Materialized High Price Quoted
Shall Group Taps, Remers Not Materialized High Price Quoted
Shakti Commodities Cemented Carbide Re-materialized Future Opportunities
G.T. International Extension Drill Rods Materialized Diversification
Zhejiang Dewai Cemented Carbide Materialized Profit Expected
HED Electric Induction Motors Materialized Diversification
Nanchang Best Way Mining Inserts Not Materialized Poor Quality Product
Zhuzhou Ginte Mining Inserts Not Materialized Poor Quality Product
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10. Sales Deals
Company Product Sales Volume
Y. S. Machine Tools CNMG Carbide Tips Rs. 27,000
Sridi Sai Baba Enterprises Drills and Cuttoff Wheels Rs. 40,000
Maa Shanti Enterprises Sandco CG Hollow Drill Rods Rs. 40,000
Sahoo Enterprises Mining Inserts Rs. 64,000
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11. Answer One: Financial Position
Ratio Company Industry Competitor
Current Ratio 1.6 1.9 2.1
Debt-Equity Ratio 1.2 1.3 1.65
Debtor’s Turnover Ratio 3.7times 4.2times 6.4times
Creditor’s Turnover Ratio 4.2times 1.4times 2.3times
(International)
Creditor's Turnover Ratio 2.3times 1.1times 1.6times
(National)
Net Profit Margin Ratio 9% 7.4% 10.2%

12. Answer Two: Purchase Decisions
Product Purchasing From Purchase Option Decision
HSS and HSTS Drills Senegal Hardware Shall Group, China Continue
Tools, Mumbai purchasing from
Yuri International, Taizhou Harte India
Mumbai Mechanical Tools
Co.Ltd., China
Tungsten Cemented Wollong Tungsten Zhejiang Dewai Start purchasing
Carbide Tips Carbide Cemented Carbide from Shakti
Manufacturing Manufacturing Commodities again.
Co.Ltd, China Co.Ltd., China Build relationship
Shakti Commodities with Zhejiang
Pvt. Ltd., Delhi Dewai.

13. Answer Three: Diversification Decision
Product Induction Motors and Pneumatic Mining Tools
Compressors and Extension Rods
Procured From NingDe Mindong HED G.T. International Co.Ltd,
Electric Co.Ltd., China China
Cost Price to MTI 3HP 960rpm Induction $FOB 1.73/kg (Rs.95.5)
Motor will cost the
company $CIF 85.14
(Rs.4682)
Price to be set by MTI 3HP 960rpm would be Rs.120/kg
priced at Rs.5990
Initial investment by MTI Rs.1,50,00,000 Rs.74,80,000 (Four
containers to be ordered
this year)
details

14. Extended Support
• New MTI Logo
• MTI Website
• CRM Implementation

15. New MTI Logo
The two logos merged Other logo options given to MTI
to make the new logo
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16. MTI Website
home page design of the MTI website contact page design of the MTI website
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