• Public Sector Restructuring and Internal Audit Board - RIAB
  •  Demand Outlook for each major Product
  •  Opportunities for increasing marketability of each major Product
  •  Trends in Investments of the competitor for each major Product (State / National / International)
  •  Technology assessment pertaining to the Manufacturing Process for each major product.
  •  Mapping of Value Chain for each Product in the PSU for introducing Lean Management principles (for creating value to the customer by optimizing resources)
  •  Duties & Tariffs having an impact on each major Product, also citing competition from imports.
  •  Generic Factors influencing Growth of the PSU and the Sector.
  •  Key Strengths of the PSU
  •  Weaknesses are inherent to the PSU that needs to be addressed.
  •  Perceived Opportunities for the PSU in line with Sectoral Outlook
  •  Perceived Threats for the PSU on a National & Global canvas
  •  Possibilities for Reduction of Costs in manufacturing
  •  Possibilities for improving Energy efficiency and reduction in Energy Costs.
  •  Recommendations on required IT strategy optimizing Procurement and inventory management costs
  •  Manpower rationalization prospects including recommendations for reskilling, multi-skilling, and re-training.
  •  Road Map for Technology Upgradation / Expansion/ Diversification for the PSU with indicative costs and Time frame
  •  Feasible Project implementation Time frame

1. PSU Specific Details

  • Brief outline of the Company with major products, Capacities, Capacity Utilisation, Financial Performance, PBDT, PBT, PAT excluding exceptional income for last five years.
  • A resource audit of the Company like availability of land, skilled manpower, assets that can be leveraged to optimize the resources.
  • General factors influencing the growth of the PSU and the Sector.
  • Constraints in increasing capacity utilization to be specified. It could be issued on technology, shortage of Working Capital, Marketing constraints, Raw material constraints, etc. Please state the constraints and how they will be addressed.
  • If Working Capital is a constraint, the reason for the non-availability of Working Capital from the Bank may be specified. Reasons could vary from negative net worth, poor performance, low credit rating, etc.

2. SWOT Analysis of the Public Sector Unit fo deciding on Immediate to Short Term Interventions (1-2 Years)

  • Strengths: Key strengths of the PSU’s including locational advantage if any, raw material availability, access to market, technological advantages if any to be addressed.
  • Weakness: Including technology constraints like obsolete technology, high cost of production, manpower cost etc.
  • Opportunity: Marketing opportunities, expanding market, ban on imports, reduction in imports, raw material availability.
  • Threats: Reducing import duties, Free Trade Agreements with producing countries, availability of cheaper alternatives, increase in electricity tariff, environmental issues, raw material availability etc.
  • Challenges: Please specify the challenges the Company is facing or likely to face, like shortage of raw material, obsolete machinery, pollution related, market related, technology related etc.

3. Assessment

a) Technology

  • Technology assessment pertaining to each major product including cost of production of each product with current technology.
  • Any up gradation in process technology undertaken since inception. If yes, the benefits accrued.
  • Future process technology availability along with know how source
  • Any constraints in getting process technology
  • Benefits that will accrue due to upgradation of technology like reduction in cost of production, reduction in effluents, more compliance with environmental norms
  • Any technology upgradation for the process planned in next five years, expected outcomes, cost, and means of finance. Saving in cost of production to be specified.
  • Time frame within which technology upgradation can be achieved.
  • Any upgradation planned for utilities, mechanical equipments, instrumentation, or others, their cost benefit analysis and means of finance, Time frame to achieve.

b) Marketing

  • Demand for the product in the state, South India, and all India. The target market of the Company to be specified and the demand potential in the target market.
  • Company market share in the market it is operating as well as all India.
  • Opportunities for increasing the market share in the region as well as nationally
  • Global market size and export potential, and Global competitiveness.
  • Competition from substitute products if any anticipated. If so details.
  • Major competitors, their capacity & their inherent strengths & weakness
  • Capacity expansion plans of competitors which can impact the operation of PSU.
  • Duty tariff structure for all major products as well as critical inputs if imported, import volumes of final products with the country, country of import and state how significant is threat from imports.
  • Any suggestions to improve the price realisation like introducing product variants, improve packing etc. and map the Value chain.

c) Cost Reduction

  • Where does the Company stand on a benchmark study with respect to competitors on price realisation, raw material cost, cost of conversion of raw material to final product,manpower cost, selling & distribution cost etc.
  • Industry average of manpower cost.
  • Possibility of reduction in cost with respect to critical parameters including above and suggestions for the same.
  • How can manpower cost be reduced and suggestions?
  • Possibility of energy efficiency and reduction in energy cost
  • Recommendations on IT strategy optimising procurement & inventory management costs.

d) Environment

  • Assessment of current pollution control system to meet environment norms.
  • How to meet the changing effluent and emission norms – revamping or degradation or replacement.
  • Cost and time frame for the above

e) Energy

  • Impact of energy in the total cost.
  • Reduction of energy cost by looking at alternate sources or by changing over to energy efficient machines>
  • Cost and time frame for the above.

4. Growth – Way forward

a) Diversification

  • Any upstream, downstream, lateral, or unrelated diversification possible to leverage and optimise the assets.
  • Benefits that can be accrued with diversification.
  • Time & cost within which it can be achieved.

b) Capacity expansion.

  • Capacity expansion planned, advantages and benefits that can be accrued due to capacity expansion. Key parameters required for expansion like technology, raw material availability, market potential, funds availability, land availability, manpower availability etc. to be specified. If capacity expansion is envisaged, what is the capacity,time frame and cost.
  • How to move up the value chain product variant that can be introduced? Can a different product variant bring in a better revenue?

5. Medium term goal: 2 to 5 years

  • The short-term goal of the organisation in 1 year, 2 years and 5 years for achieving industry benchmark with respect to operating parameters.
  • Turnover and profits planned for next 1year, 2 years and 5 years. The support required from the govt. to achieve the short-term goal in detail to be given. The financial
    support from sources other than government also is to be explored

6. Vision – Beyond 10 years

  • Where do you expect the Company to be in 10 years’ time frame in terms of product range, capacity, sales turnover, profits etc.
  • What support is required from government to achieve the long-term vision? The financial support from sources other than the government also is to be explored.
  • Product and Technology Trends – Perhaps a 2060 perspective from sites like www.ibef.org,CSIR, TIFAC Reports
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