GOING GLOBAL

INTRODUCTION:

Going global is ability of the company to reach its resources in terms of attracting
foreign market and building up its reputation globally. It is the best option for
every sector of company to reach more customers and market its product in the
global market. Of course, there are positive and negative conditions while
expanding the business overseas. In an increasingly wired world, adding an
international dimension - whether through importing, exporting, outsourcing,
manufacturing overseas, or forming a strategic partnership - is now the province
of both mom and pop ventures and large conglomerates.
Taking advantage and disadvantage into the considerations I have taken two
companies Ranbaxy and Arvind Mills for case studies.

RANBAXY:

Singh joined the company in the year 1967 which begins producing generic
drugs. Companies 1st success was in the year 1969 by launching Calmpose, a
Valium generic. After that in the year 1977 company started its production in
Lagos, Nigeria through a joint venture which was the companies 1st step for
getting globalised. Gradually in 1987 Ranbaxy builds a state-of-the-art API
facility in Toansa in preparation for entry into the U.S. market.

Ranbaxy is a truly global operation, producing its pharmaceutical preparations in

manufacturing facilities in seven countries, supported by sales and marketing
subsidiaries in 44 countries, reaching more than 100 countries throughout the
world. The United States, which alone accounts for nearly half of all
pharmaceutical sales in the world, is the company's largest international market,
representing more than 40 percent of group sales. In Europe, the company's
purchase of RPG (Aventis) S.A. makes it the largest generics producer in that
market. The company is also a leading generics producer in the United Kingdom
and Germany and elsewhere in Europe. European sales added 16 percent to the
company's sales in 2004. Ranbaxy's other major markets include Brazil, Russia,
and China, as well as India, which together added 26 percent to the group's sales.
So we can evaluate that Ranbaxy has set an example for every company for
getting globalised. Ranbaxy in a very short time has captured the international
market and has proven itself as India’s largest pharmaceutical and ranks 9th
worldwide as a generics drug manufacturer.

ARVIND MILLS:

Arvind mills foundation was launched in the year 1931 on 12th of December.The
company deals with manufacturisation of cotton textiles and products include
dhotis, sarees, mulls, crepes, shirtings, printed lawns, coatings & voiles cambrics,
twills gabardine etc.
For technical know-how of fabrics for crease resistance, smooth drying etc, the
company entered into an agreement with Tootal Broadhurst Lee Co. Ltd, which is
a Manchester based company. This helped the company in bearind trade mark
such as ‘Teblesed Double Tested’. Arvind mills also signed an agreement with
Nigerian company, Gaskiya Textile Mills Ltd, in 1981, for five years in order to
gain technical and managerial services. By 1983, Arvind Mills started providing
technical and managerial services to above mentioned Nigerian company.
In 1987, company took a major step by adopting a modernization program to
triple the production of denim cloth and to produce double yarn fabrics for
exports. Then later on, in order to produce denim at the rate of 60,000 metres per
day, company undertook further measures. This lead to the emergence of
ARVIND EXPORTS and all export oriented products were formed under this
name. These were the firm steps towards globalization. From here on, the
company started proposing deals that will help them in strengthening its place in
competitive world of exports which included proposition of Video Magnetic Tape
to VHS standards, manufacturisation of artificial leather cloth, worsted woolen
yarn and suitings. It also put forward initiative of setting readymade garments.
In 1991, Arvind Mills became fourth largest producer of denim by producing 100
million meters of denim per year. In 1994, company got divided into 3 units
according to the operations which are, Textile division, telecom division and
garment division. In 1998, company became third largest manufacturer of denim.
But inspite of all the brands functioning under Arvind Mills doing well in national
as well as in international market,though, in mid1990s, the company undertook a
massive expansion in order to increase its denim capacity knowing that cotton
fabrics were slowly replacing denim demand. This can be considered as their
biggest mistake according to the existing market scenario. This expansion plan
was funded from financial institutions operating nationally and internationally. As
demand for denim was slowing down, company faced a tough time repaying the
loans which ultimately lead to higher interest rates on loan amount. Due to all
these reasons, Arvind Mills ran into financial crisis because of its debt burden and
the companurden and the company witnessed huge losses in late 1990s.

CONCLUSION

In relation to this going global is a skill that a organization must possess in order
to grow in terms of capturing market all over the globe. There are certain
difficulties that the organization needs to overcome in terms of making its
reputation and facilitating the name of the company in order to sustain. Keeping
this in mind Ranbaxy and arvind mills are two companies from india who started
their business from their home country and as they started gaining the market
reputation they started expanding their business all over the globe. Eventually
they faced lot of problem but gradually the things started working out in the
favour of their organization.

Going global is not about achievement its about learning and growth and
developing qualities like compassion, patience, remarkable openness to new
ideas, passion towards work, gaining market image and expanding business in
different countries. In todays fast moving world it is necessary that the
organization must have the potential to face the global market as it is very vast
and dignified in terms of competitors. Therefore there should be a perfect balance
while handling business globally.
REFERENCES:

 Anonymous, 2009.”Stock price quote” [online] Available at

http://sify.com/finance/stockpricequote/Arvind_Mills_Ltd-
AML/history.html Accessed on 14th December, 2009.

 Anonymous, 2009.”Arvind Mills” [online] Available at

http://en.wikipedia.org/wiki/Arvind_Mills [Accessed on] 14th December, 2009.

 Anonymous,2005. [online] available at

http://www.icmrindia.org/casestudies/catalogue/Business%20Strategy/Business
%20Strategy%20Ranbaxy's%20Globalization%20Strategies.htm Accessed on 14th
December, 2009.

 Mr. Komal Chopra,2005.”ARVIND MILLS-WORLD’S THIRD LARGEST

DENIM MANUFACTURER” [ONLINE] available at
http://www.ibscdc.org/Case_Studies/Marketing/Marketing
%20Strategies/MKS0101P.htm Accessed on 14th December, 2009.