What is the strategic direction of the company over the last 3 years?

Is the
strategic direction likely to last till 2025?

Orient Electric has strived to bring technology and competence to the customers in the form of fresh and innovative products.
Consumers insights have been focused more to improve their product offerings:-
• Aerodynamically designed Aero series fans that focuses on three important aspects, i.e. increase in air delivery, reduction
of sound, and aesthetics
• IoT-enabled air coolers and India's first outdoor cooler that can be assembled and dismantled in just 3 minutes has been
introduced
• IoT-enabled fan that can be controlled via Orient Smart mobile app and voice assistants like Alexa and Google assistants
was introduced
• Strategic partnership with an Italy-based De'Longhi Group by bringing in three international small appliances into India
namely- De'Longi, Kenwood and Braun
• In the switchgear category, They introduced modular switches with 3AB technology that is far safer and superior
technology compared to what is currently available in the market
• Distribution network by over 3500 dealers, 1,00,000 retail outlets and a strong service network that covers more than 300
cities

Orient Electric has delivered up to the mark in their strategic directions over the recent past. Though they are moving a step
ahead compared to their competitor, it might not last till 2025. They need to continuously get involved in innovation,
expanding their market into rural India and find be at par in reaching their consumers digitally through various platforms.
Are the vision/mission/goals appropriate? Should they be realigned keeping in
mind the company’s goal in next 5 years?

• The company’s vision and mission states that they want to make their customers happy by providing them the best of
solutions
• They consistently try to achieve and beat the benchmarks in quality and are continuously evolving according to changing
customer lifestyles and needs
• They are always looking for new ideas and this is reflected in their work i.e. they have launched Aeroslim, India’s first IoT
enabled fan
• Also, they optimized their inventory through efficient consumption. They believe in maintaining highest standard of
professionalism
• To drive their organizational goals they have collaborated with businesses and have taken pride in their own as well as
others work
• Their focus on B2B channel with partnership across different verticals accelerated their category growth by 200%
• They have also collaborated with De’ Longhi Group
• They are transparent and open while sharing information to all their stakeholders
• With their listing on BSE and NSE, their transparency as well as governance standard has increased
How do you assess the external environment for the company changing in the next
5 years?

Unpredictable Weather: - Unpredictable weather conditions like a delayed summer or winter, seasons shorter than usual,
unseasonable summer rains and winter mildness could impact the selling of fans, air coolers and water heaters

Increasing Competition: - As the industry has a very low barrier for new entrants which can be coupled with increasing
price-based competition can affect Orient Electric's growth

Material Costs: - Increase in raw material & resource cost could ultimately increase the overall product cost structure that
will decrease the profit margins of the company

Commodity & Currency: - Unprecedented swing due to global macroeconomic factors may impact the forex rate and
commodity prices, creating short term economic pressures
 
 What emerging trends must be incorporated in the 5-year strategic plan and
how are they likely to affect the strategic directions of the business?

Emerging Trends
Innovations in product aesthetics: -Consumers are attracted towards enhanced and appealing interiors which will lead to the
demand of premium fans with better aesthetics shortly.
Energy-saving technology: -As solar is an emerging sector in the country, people are more inclined towards saving energy or
using energy-efficient products. Thus for a start, Orient had recently introduced a new ceiling fan based on Brushless Direct
Motor(BLDC) which saves 50% power compared to conventional fans.
IoT enabled ceiling fans: -In the era of 4g and 5g in the near future, people would want to leverage this technology into
electrical appliances as well. For example, Orient invented a smart fan that will be connected through the internet and will
automatically adjust the speed of the fan according to the temperature inside the room. Cloud computing can be used to
monitor it anywhere.
How will they affect or help in the business
Growing middle-class income: - As the income of middle-class individuals increases, they would want to buy more energy-
efficient products from the market and thus increasing the demand for those products
Housing for all: -The government is targeting the addition of 26 million households, apart from the normal growth in the
number of households, to 350 million by 2025 and electrify them using energy-efficient products.
A lot of urban population is becoming or coming into the category of millennials, they would surely want to try the new IoT
enabled electrical appliances.
 What in your opinion are the internal strengths and weaknesses that the
firm can leverage or change? Would you suggest any enhancements or
changes in the same?
Strengths
Modernised facilities
Last-mile reach
Cutting-edge technology
Enhanced Manufacturing
Sectoral knowhow
Safety first
 
Weakness
Easily replicated models
Limited Global reach
Raw material Supply
Third-party transportation

Enhancement/change
Engage with small-town retailers and electricians, strengthening its market connect.
Enhancement of distribution network
Consumer Preference
Widening Portfolio
Having a wide range of suppliers of raw materials and building its own transport system in tier 1&2 cities
. Are there any specific growth engines you can identify within the company
that it should focus on? Elaborate on your identification criteria and the
plans for the same
Creating High-Performance Team
Innovation and Product design
Strengthening Brand 'Orient Electric’
Nurturing Channel Partnerships: This Includes
Export Footprint
E-commerce
CSD and B2B
Retail Presence
Orient Connect
Forming bonds with Electricians
Go Digital: This includes
SalesForce Automation
Demand Forecasting
Business Intelligence (BI)
Security Systems
Product Traceability
 
Harnessing Quality and Supply chain efficiencies
 Based on external and internal environment discuss whether the company
should focus on growth/performance or both

• The Indian Appliance and Consumer electronics sector is one of the fastest growing sectors in India
gaining traction due to increase in the personal income, aspirations for a superior lifestyle, increasing pride in office/ home
interiors, wider electricity access etc.
• There has also been a shift from analog to digital systems with a focus on IoT. Products are increasingly marked by
advanced sensors, dimmers etc. and although the consumption of electronic appliances is less in India, it is still growing
• Market growth will be catalysed by consumer aspirations for cutting edge technologies.
• In the near future, demand for electrical products will remain encouraging. This growth is likely to be derived from
increase in MSP across crop categories, announcement of schemes by govt.
• Orient Electric should focus on growth as well as performance.
• Currently company enjoys more than 50% of market share in premium segment
• It has invested deeper in R&D with an objective to create new product and stay ahead of its peers
The company intends to grow through initiatives like-
Widening the pool of premium fans
Expanding and entering new markets
Optimizing costs using digital connectivity
Strengthening manufacturing capability
Educating customers about advanced product features
Targeting diverse segments
 
 Long term assets and inventory rose by the same
proportion, meaning they want to expand capacity
and are looking forward to a good sales next year