Developing a turnaround strategy for Alembic Glass Limited

Abstract

Abstract The g;ass industry in India has of late become extremely competitive with the opening up of the Indian market to foreign competition . In addition the absence of stringent pollution norms for the small scale sector has led to a great increase in their numbers. This has resulted in a lot of the large producers who had dominated the market in the past to face near oblivion in the marketplace We examine the case of Alembic Glass Industries which has been forced to go to the BIFR in the face of adverse market conditions in the last 5 years.We started work on this project on the request of Mr. Arvind Josh, Vice president -Human resources Alembic Glass .Our report is thus biased towards the marketing aspect of Alembic Glass and our recommendations are on how to improve the same .We examine the premier brand of Alembic Glass -YEAR in the framework of the brand prism and the shortfalls in its communication strategy over the last 5 years. We also examine the distribution setup of the firm and varify the validity of their exisiting policies with regard to territory allocation matgains. We have gound the presence of inefficiences resulting from the continuation of the old traditions in this setup over the past 50 years. Our recommendations include new incentive schemes for the distributors and a possible sharing of the costs involved in distribuation .We also look at the changes in the external environment that can have an impact on the profitability of the industry as a whole and the strengths of the firm to cope with the same. Another facet we have tried to examine is the capital management of the firm by looking at its balance sheet and profilm and loos accounts over the last four years .Our learning as a part of this research experience is given at the end.