GROUP 11

Kailasam Leather
Exports (KLE)
Private Limited
 Group Members
 Amith MS
Group 11  Bobita Debnath
 Emberu Mannar Degala
Kailasam Leather Exports (KLE)  Manjit
Private Limited  Manvitha K
 Pavan Kumar I R
 Satyabrata Rout
 Shruti Priya
 Sushanth S
 Kailasam Leather Exports GROUP 11

(KLE) Private Limited

 S M Kailasam, The Founder & Managing Director of
Kailasam Leather Exports (KLE) Private Limited.
 In the year 1965, he came up with an idea of
opening a Venture of his own called Kailasam
Leather Exports.
 Although the Iranian traders have control over
leather industry Kailasam managed to get in by
using his connections from Kanpur.
 KLE was running smoothly until the government
introduced ‘duty draw-back scheme’ which
benefited local leather goods traders and KLE’s
exports raised drastically over 50 crores.
 In 80s, KLE entered manufacture leather garments
in collaboration with a French firm which was a
failure. Due to the dynamic market changes KLE
went through several ups and downs and currently
not stable.
 GROUP 11
WHAT WENT WRONG?
 Narrowness of production base

 Absence of diversification

 Traditional management techniques - Lack of

modernization

 Financial constrains - No financial support was

extended by the group for collection of data.

 Lack of Exploration - Limited product range

 Marketing problems

 lack of trained workers

 Inefficiency in production
 GROUP 11

1 Anticipate Future Competition

SHOULD
THEY HAVE
2 Early decision
DIVERSIFIED?
REASONS

3 Late entry into the segment

Yes!!!!

4 Laidback Strategy
 GROUP 11
ENTERPRISE STRATEGY
A key element of enterprise strategy is the use of industry analyses. The most popular analysis
framework is the five forces framework.

Threat of Power of Power of Competition Barriers to

substitutes Buyers Suppliers entry

 Substitutes available  Buyers have lesser  It is labour intensive  Competition for KLE  Barriers to entry in
at lesser prices. knowledge about and all along has increased due this industry is not
 Leather business the market price remained export to entry of high due to cheap
increased among and the demand. oriented. multinationals in labour cost and low
the locals.  Bargaining power  Need to maintain a domestic market. capital investment.
 Demand for KLE has increased due strong relationship  Fast changing  Export ban of raw
gradually reduced. to stiff competition with vendors for fashion trends and hide imposed by the
from other leather goodwill of the changing in Government of
goods traders company demands are India hit hard on
difficult to adapt. KLE.
 EXPORTS REPORT OF LEATHER & GROUP 11
LEATHER PRODUCTS (1980- 81 to 1988-89)
(Value In crores rupees)

Name of the
1980-81 1981-82 1982-83 1983-84 1984-85 1985-86 1986-87 1987-88 1988-89
item

Semi-Finished
50.33 53.24 54.41 53.35 48.16 49.07 52.50 72.50 45.00
Leather

Finished
227.79 226.40 199.90 195.58 308.53 288.19 400.89 485.97 649.88
Leather

Footwear
45.07 77.22 79.30 113.56 132.78 190.35 240.69 323.83 425.63
components

Footwear 33.75 30.05 19.58 23.48 26.77 33.03 80.38 128.03 130.17

Leather
- - - - - - 62.27 105.72 166.15
Garments

Saddler y &
- - - - - - 11.50 14.15 16.22
Harness

Leather
34.76 41.02 35.17 29.80 35.67 83.42 73.93 114.56 175.33
Goods

Industrial
9.04 6.97 11.01 8.95 16.54 18.4 48.60 - -
Leather
ANALYSIS GROUP 11

 The KLE had been unsuccessful in sustaining in the market due to various uncertainties raised by the
government, competitors and the change in the market demand.

 The KLE had majorly concentrated on expanding its business internationally where competition is
huge. The KLE should adopt the PESTEL marketing strategy in order to avoid and forecast the
uncertainties in the near future.

 The KLE should concentrate on their primary business of manufacturing of raw leather where they
holds an good business in the market instead of setting up the new companies as and when the
market demand changes, this leads the KLE to invest more capital on the companies.

 The KLE should concentrate more on the domestic markets and the buyers where their is an huge
potential and scope for expanding their business as they have a goodwill in the local markets.

 The KLE should utilise their existing customers base in penetrating their garments and shoes domestic
market and by launching the various new products as per the market demand. Once they grab the
domestic market and sustainable in the market they can concentrate on international business.

 The KLE have to collaborate with the local firms instead of going for collaborating with the other
countries firms, this helps the KLE to grab the customer base of the locally existing firms and increase
the sales and the turnover of the company.
 GROUP 11

THANK
YOU