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Lal Bahadur Shastri Institute of 

Technology & Management

  Assignment

Case study analysis of 

 ELLORA TIME'S

 MANUFACTURING WOES 

Guided by: Submitted by:

Dr Alo! Mittal Amit Mehla

  "GDM Batch #$%'%(

  "GDMG)T%$$

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Case study analysis of ELLORA TIME'S MANUFACTURING WOES 

The case examines the reasons behind Ellora Time Pvt Ltd, the leading Indian clocks and

calculators manufacturer's decision to shift its production base from India to China The case

explores in detail the differences in the regulatory set!up in India and China that has made

manufacturing in China much more lucrative and profitable The case also briefly mentions the

reasons for China's popularity as a manufacturing destination for companies all over the "orld

The case is structured to enable students to#

$%& understand the impact of competition from a 'lo"!cost' country that can pose a threat to the

domestic manufacturing company

$(& evaluate the basic differences bet"een the manufacturing environment and the regulatory

regime of India and China

$)& determine the factors, "hich "ere critical in Ellora's decision to move the manufacturing

facility from India to China

$*& evaluate the impact of the decision on the future of the company, its diversification plans and

its performance in domestic and export markets and

$+& discuss the conseuences of the decision of the company to shift the production facility to

China and its impact on the manufacturing sector in India

S*+T Analysis

Strengths:

• -ood brand value

• Excellent marketing . distribution net"ork

• /dmirable credit rating! 0o payment of increasing demands

*ea!nesses:

• Competition from Chinese markets $cheap labour, high productivity . lot of government

approvalas&

• 1iscouraging policy frame"ork $poor tax structure . lot of government approvals&

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• Poor infrastucture $Erratic delivery schedules&

• 2igher inventory holding costs

• 2igher corruption levels

+,,ortunities:

• To diversify in other products since they have brand . distribution net"ork

• En3oying huge market share in competition from Chinese markets

Threats:

• Indian regulatory set up $1uty of +4 on spares plys (+4 on ra" materials&

•

Illegal methods adopted by Chinese firms to capture markets