Hyflux: Expansion Into India Essay

4011 words - 16 pages

Hyflux's Expansion Strategy in India
Executive SummaryHyflux, with its cutting edge technologies and strong operational capabilities, is a leading provider of integrated water treatment systems with operations in China, Middle East, South East Asia and recently, India. With a huge growing population, increased economic growth and market liberalization, India is experiencing a boom in business activities. As a country grows, so does its need for commodities. Industrial and potable water is a scarce resource and there is an exponential increase for water. Many water treatment companies, including Hyflux, have identified India's demand for water. Consequently, many water technology companies have entered into the Indian market.This report analyzed and examined the potential of the current strategies adopted by the company in the Indian market. To provide an overview of the Indian market, we used PESTEL and TOWS analysis to explain the external conditions that the company faces.In addition to water treatment, this report offers an alternative strategy in India. It will show how the company can attempt to enter the oil recycling sector in India with some of their superior and latest membrane technologies.As consultants to Hyflux, we provided strategic recommendations for new market opportunities as well as market entry strategies into India. This report analyzed Hyflux's core competencies as well as suggestions on how to optimize its competencies in its ventures in India. In addition, this report highlighted the risks and limitations of the recommended strategies. Having analyzed the effectiveness of Hyflux current strategy, our team formulated an exit strategy for the firm.Our overall proposed strategy for Hyflux serves to minimize the various risks involved in their expansion plan into India. Apart from that, it will allow Hyflux to better achieve their objectives in their India expansion plan.Company BackgroundWith market capitalization exceeding S$1 billion, Hyflux has grown beyond just a water treatment company. It is recognized as Asia's leading environmental company with operations and projects in Singapore, China, Middle East & North Africa and India. Specializing in membrane technologies and backed by its membrane and materials research centre in Singapore, Hyflux ensures that the development of cutting edge membrane technologies is the key driver to spearhead sustainable company growth in the four core areas of the company, namely water, industrial processes, specialty materials and energy.Industry AnalysisAvailability of potable water is a key factor to the growth of a country's economy. India is one of the biggest emerging markets now. However, it is estimated that 170 million people in India have no access to safe drinking water and two-thirds of its 1.1 billion people have no proper sanitation. In addition, India is heavily dependent on ground water resources, which has led to increase in extraction levels, creating water shortages....

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