Case Name :      Electrosteel Castings Ltd.

Authors :           Robert Klassen, Nitish Bahl

Source :             Ivey Publishing

Case ID :            902D16

Discipline :        Strategy

Case Length :    18 pages

Solution Sample availability : YES

Plagiarism : NO (100% Original work)

Electrosteel Castings Ltd., based in India, had been the largest domestic manufacturer of iron pipes for over four decades. Although it had achieved solid growth in recent years, the market was under increasing pressure as overall growth slowed and new competitors entered the market. The CEO saw international expansion as critical to future growth. It would also provide additional currency for further investment in new process technologies. After extensive study, management narrowed the options to Europe or Southeast Asia. Given limited resources, Electrosteel could enter only one market, either with a new marketing office or a new manufacturing plant. Building an overseas plant was particularly attractive, as it would effectively translate into Electrosteel being considered a local competitor in that market, reducing costs and improving customer service. Awareness of foreign competitors investigating similar international expansion options significantly increased the need for a decision.