Thanks to visit codestin.com
Credit goes to www.scribd.com

Scribd
Upload
292 views1 page

Spartek Answer

The ceramic tile industry in India had become very attractive, bringing in many new competitors like Spartek who partnered with overseas companies to start their businesses. Spartek's great success and de-licensing contributed to the industry's appeal. However, with many fragmented markets in India, competitors could carve out niches that might disrupt Spartek's plans to expand further. The document suggests Spartek should have considered diversification in the overcrowded industry. It identifies Neveli Tiles and Ceramics as the best target for acquisition, noting its brand name, diversified operations, strong southern presence, and weak financial position due to losses and debt that could make it open to acquisition.

Uploaded by

Aniruddha Patil
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOC, PDF, TXT or read online on Scribd
292 views1 page

Spartek Answer

The ceramic tile industry in India had become very attractive, bringing in many new competitors like Spartek who partnered with overseas companies to start their businesses. Spartek's great success and de-licensing contributed to the industry's appeal. However, with many fragmented markets in India, competitors could carve out niches that might disrupt Spartek's plans to expand further. The document suggests Spartek should have considered diversification in the overcrowded industry. It identifies Neveli Tiles and Ceramics as the best target for acquisition, noting its brand name, diversified operations, strong southern presence, and weak financial position due to losses and debt that could make it open to acquisition.

Uploaded by

Aniruddha Patil
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOC, PDF, TXT or read online on Scribd
You are on page 1/ 1

The ceramic tile industry had become so attractive that it had brought in a host of new competitors who like

spartek come start their business with overseas collaboration. Sparteks spectacular success coupled with de-licensing were the main reasons for the industrys attractiveness. Spartek was yet in the process of completing its latest phase of expansion to 26000 TPA. With the markets in India being so fragmented there was every chance that competitors could create selective niches in the regional market which could prove disastrous for another spartek expansion. As such we feel that spartek should have gone for the diversification route in an already overcrowded industry.

According to us the best target company for acquisition would be neveli tiles and ceramics limited. The company has a good brand name. It has diversified operations in the fields of sanitaryware, ceramic-ware, stonepipes etc. It has a very good presence in the southern states. From the target companys point of view, spartek has the necessary expertise in the ceramic tile industry where neveli has not been doing that great experiencing large cost and tome over-runs as well as teaching troubles. Financially the position of the company is not strong because of the losses and heavy borrowings to finance the over-runs which might make them open to acquisition. Jai Shah-M1045 Bhavesh Tank-M1051 Aniruddha Patil-P1040 Yograj Rajput-P1046

You might also like