Test

The case deals with the changing dynamics which a major corporation, Ingersoll Rand, had to face when it attempted to capture the Indian market by selling its products at lower profit margins. The case details the history and the structure of the company as well as its operations across the world and India in particular and goes on to explain why the head honchos in the Ahmedabad office deemed the step taken by Sanjay Mehta to be unsatisfactory in lieu of smaller margins.

If we look at the history of Ingersoll Rand, we see that they have had technical expertise from 1871 and have been world leaders in manufacturing equipment, especially air compressors, power tools, jack hammers etc. A better idea may be drawn from the fact that the company had a major role to play when the Panama Canal was built in 1904 and also in the construction of the Hoover Dam between Arizona and Nevada. It has also participated in the evacuation work in the Niagara Falls and construction of the English Channel. The company has structured itself to function across 4 major market segments

i. Security and Safety

ii. Infrastructure

iii. Industrial Productivity

iv. Climate Control

As far as making headway into India goes, the company started operations here in 1921, from Kolkata. It started its functioning as a trading company and gradually set up its first manufacturing plant in Naroda in 1965. Post this the expansion of IR was exponential in India and between the years of 1993 to 1997, the company faced steep capacity expansions. By 1998, it was successfully crowned the market leader in vibratory compactors. Its figures started to exhibit impressive future forecasts with a CAGR of 7.69% in revenues and 5.62% in profits after tax. The company has exhibited exceptional leadership with manufacturing of air compressors. Specific to this case we see that the company has been working on the textile industry. As far as the products go, the company has expertise to manufacture and...