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Rank 20: MOSER BAER: Bucking the Slowdown Horse

author-image
DQI Bureau
New Update

Deepak Puri
Managing Director

Ratul Puri



Executive Director

PM Pai



President

Rakesh Govil



Head (Corporate Strategy


& Treasury)


Ramesh Sanka


Financial


Controller & CIO



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Talk to anyone at Moser Baer about the slowdown and he admits that

there’s been one–if there hadn’t, they would have grown at 150%! Yes, we

talking about a company which has jumped over 30 ranks in the past two years to

enter the DQ Top 20 club for financial 2001-02. That’s heady going, especially

for a company operating in the hardware manufacturing and exports segment. So

what was slowdown year like for Moser Baer? Revenues grew 102%, profits were up

60% to Rs 221 crore, and capacity was hiked by 100% to 760 million units, from

380 million units. With the additional capacity, the company became the only

entity in Indian IT to be ranked among the Top 3 in the world in any segment.

Also, Moser Baer emerged a key supplier to eight of the top ten global media

brands–among them Mitsubishi and LG–apart from retailing in the local market

under its own brand-names Emtec and Xydane.

Performance

Highlights
Capacity doubled to 780 million units
Third-largest global optical media manufacturer
Homegrown brands Xydane and Emtec command 45% marketshare in India
CD-Rs account for over 80% of total revenues
Strengths
Amongst lowest-cost manufacturers globally
Strong R&D team–9 new products in 2001-02
Spending on capacity expansion is much lower than international standards–a clear benefit
Weaknesses
Hard to crack the branded market, given the competition from Mitsubishi, LG and Samsung
Moser

Baer India Ltd.
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Startup: 1983
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Products & Services: Magnetic recording

media and



optical recordable media
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Branch OfficeS: 4
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Address: W-123, Greater Kailash I, New Delhi

110048
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Tel:

6438082-87
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Fax: 6438057/6218429
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Website: moserbaer.net

While the growing media market has no doubt helped, the fantastic performance

also stems from Moser Baer India’s strong R&D thrust. MBIL has about 80

engineers, among them two dozen PhDs, purely for R&D and engineering work,

on which the company ploughs in over 2.5% of annual revenues (Rs 15-17 crore).

Among the many feathers in the R&D cap is the development of the proprietary

process PC12D XT, which has helped the company slash manufacturing costs by

10-15%.

And this also helped in completing the capacity expansion in record time and

below project cost. In fact, with the same initial budget, the company now

intends to ramp up capacity to a billion units.

In FY 2000-01, the company had acquired Luxembourg-based Capco, thereby

gaining access to key European brands. A year down the line, branded products

account for 30% to total sales. While this is 5% under that achieved in FY

2000-01, we need to take into account the huge capacity ramp-up–also, it is

always easier to push sales in the OEM segment, against establishing one’s own

brands. Looking forward, the company plans to ramp up capacity to over a billion

units, and increase thrust on the fast-growing domestic market. In parallel, it

plans to increase its marketshare in India, from 35-40% to 50%.

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