Neeraj Kochhar Viraj Group uses all such parameters and strictly analyses the outcome while reporting the organization’s stature. We believe in the celebration of work but also use stringent standard checks to assure no compromise with quality is being done at any level. Every individual at Viraj Profiles receives equal respect and attention, personal growth is also one of our key commitments.
A successful organization comprises a dedicated team willing to perform and take challenges to achieve the envisioned goals. There can be multiple parameters of success for any organization. Many variables like profit ratio, product quality, organization’s goodwill, market share, and further prospects among others, collectively represent the organization’s prominence. However, one of the most testing determinants of a healthy and growing organization is the harmony among team members and the work environment.
Factors Affecting Profitability
The procurement of raw materials highly affects the cost-effectiveness of any organization. The stainless steel industry’s major raw materials namely are iron ore, coking coal, and limestone. Coking coal is mostly sourced from outside the country and hence incurs higher costs. Around 85% of coking coal required in domestic steel industries comes from import trade.
Other than raw material costs Chinese imports also impair the demand for Indian steel. The Indian government did impose tariffs to deal with cheaper Chinese imports but it still threatens the domestic industry’s market capture.
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Viraj profiles through rational choices eliminate extra costs that would add up such as transportation expenses. The organization is self-reliant in transporting raw materials and other needs.
- The container yard and fleet of trucks are in close vicinity to the manufacturing units.
- Container Freight Station at JNPT Nhava Sheva port eases the overseas transaction.
- Usage of upgraded machinery such as Section Rolling Mill-level 2 automation increase the cost and time effectiveness.
Ways to Optimise Profit
There are ways which one can imply to optimize profits. The different choices we make determine our success rate in comparison to the choices made by our competitors. Resource allocation in a disciplined manner while paying due attention to waste management helps in optimizing profit. Some of the ways of optimizing profit are –
- Using upgraded pieces of equipment and technology such as a modern furnace.
- Cost reduction in raw material procurement through developing ways of meeting raw material requirements from domestic production.
- Investing in iron ore mines, biding in the auction, as and when the financial statements of organizations allow doing so.
- It’s older than being penned in a Neeraj Kochhar Latest News section, but the reduction of freight cost is easily possible for Viraj Profiles as it has its own Container Freight Station at JNPT Nhava Sheva port.
- Human resource is more valuable than any materialistic one. Choose your workforce wisely, the one you can rely on and grow together with.
- The stainless steel industry is a multipurpose material. Increase involvement in industries that uses it to produce premium products.
What does the Financial Statement Tell
Financial statements of business operations are like a tell-all reflection of the organization’s situation. If your statements are showing thin profit margins one might make out that in case of any uncertain downturn the company wouldn’t be able to sustain through it. Lowering the cost of production brings a substantial increase in the profit margins.
The cost break-up indicates what is taking up the majority of the expense columns. These too are dominated by the amount involved in gathering raw materials. In the market for the stainless steel industry the producer can neither manipulate the product price nor can it bargain on raw materials rate. The market decides the prices and not the producers.
Most of our coking coal comes from Australia. This is an expense we have no control over. Therefore, successful organizations like Neeraj Kochhar Viraj Group use effective measures to cut down costs in other departments like procuring other resources than coal from domestic produce, meeting transportation needs from inhouse trucks and port services.
How To Analyse
Maintaining a larger profit margin is how you keep stepping up the ladder. But keeping that efficient gap between expenses and profits made is not a child’s play. In the Stainless Steel industry, the market is the bigger player in influencing the price. Therefore, it becomes vital for the management team to work on lowering the cost of production and gain the power to manipulate the price and chase out the competition.
These are some of the general parameters used while analyzing any stainless steel industry:
- Market share ratio in reference to the market demand.
- Sectors like infrastructure, automotive, food processing, housing among others drive the majority of stainless steel demand. Keep a check on demand growth in these sectors.
- Review and analyze future demand and price growth predictions done by credible sources.
- Creating a brand value for your organization helps it stand out from its competitors. Adding premium products range, expanding your operations rather than sticking to a certain sector are some of the distinguishable traits of successful organizations.
Some Handy Tips
- Regular market research and analysis to keep track of changes in price and demand.
- Maintaining transparency swells up the credibility of the brand and attracts investors.
- Collaboration and acquisitions also act as the make and break tools for growth and expansion.
- The technological upgrade should be an integrated part of the work culture
- Keeping eyes on coming opportunities and partaking in financial instruments like equity prepare you for calculative risk-taking.
Conclusion
Success has no set recipe that can be practiced, making sure the proportions are just like been told. One can find several anecdotal examples and get inspired from success stories posted over the internet. But every individual has to put in honest efforts and do things their way to advance towards success and keep at it.
Organizations should have a vision that keeps them motivated. Neeraj Kochhar Viraj Profiles have a vision, ‘To be counted amongst the most respected and preferred enterprises globally’ and they as a team have committed themselves to achieve it.
Source: NETNEWSLEDGER
