Lal Bahadur Shastri Institute of

Technology & Management

Assignment
Case study analysis of

ELLORA TIME'S
MANUFACTURING WOES

Guided by:

Submitted by:

Dr. Alok Mittal

Amit Mehla
PGDM Batch 2014-16
PGDMGFT14004

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 world.
The case is structured to enable students to:
(1) understand the impact of competition from a 'low-cost' country that can pose a threat to the
domestic manufacturing company;
(2) evaluate the basic differences between the manufacturing environment and the regulatory
regime of India and China;
(3) determine the factors, which were critical in Ellora's decision to move the manufacturing
facility from India to China;
(4) evaluate the impact of the decision on the future of the company, its diversification plans and
its performance in domestic and export markets; and
(5) discuss the consequences of the decision of the company to shift the production facility to
China and its impact on the manufacturing sector in India.

SWOT Analysis
Strengths:

Good brand value.

Excellent marketing & distribution network.
Admirable credit rating- No payment of increasing demands.

Weaknesses:

Competition from Chinese markets (cheap labour, high productivity & lot of government
approvalas).
Discouraging policy framework (poor tax structure & lot of government approvals).

Poor infrastucture (Erratic delivery schedules).

Higher inventory holding costs.
Higher corruption levels.

Opportunities:

To diversify in other products since they have brand & distribution network.
Enjoying huge market share in competition from Chinese markets.

Threats:

Indian regulatory set up (Duty of 5% on spares plys 25% on raw materials).

Illegal methods adopted by Chinese firms to capture markets.