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Affiliated to Guru Gobind Singh Indraprastha University, Delhi PSP Area, Plot No. 1, Sector 22, Rohini Delhi 110086 1


This is to certify that I have completed the Project titled “Moser Baer – Rewriting The Future” in “Maharaja Agrasen Institute Of Management Studies” under the guidance of “Mr. Vikas” in partial fulfillment of the requirement for the award of degree of Bachelor of Business Administration at Maharaja Agrasen Institute of Management Studies, Delhi. This is an original piece of work & I have not submitted it earlier elsewhere.

Name of the Student Aashish Verma



This is to certify that the project titled “Moser Baer – Rewriting The Future” Is an academic work done by “Mr. Aashish Verma” submitted in the Partial fulfillment of the requirement for the award of the degree of Bachelor of Business Administration from Maharaja Agrasen Institute of Management Studies, Delhi, under my guidance & direction. To the best of my knowledge and belief the data & information presented by her in the project has not been submitted earlier.

Name of the Faculty Guide Mr. Vikas


I have received encouraging feedback and useful suggestions from various teachers. especially our teacher co-coordinator ‘Mr. I hope this project lives upto its purpose and use. Vikas’ which I acknowledge gratefully.Acknowledgement In the making of this project. No. Thanking you Name of the student Mr. Vikas for his good suggestions and ideas in improving the project in the best possible way. Aashish Verma Enrol. 4 . But specifically. I would like to acknowledge the contribution from my guide and mentor for this project ‘Mr.

5 .

Ii Acknowledgement…………………………………………………………Iii Chapter-1 1.1 Chapter 4 Chapter 5 Awards Conclusions Limitations Bibliography Introduction Purpose of the study Objective/Misson Research Methodology Company profile History 4 P’S MOSER BAER – SWOT ANALYSIS 7 8 13 17 18 22 50 72 74 75 76 6 .2 Chapter 2 Chapter 3 3.TABLE OF CONTENTS Student Declaration……………………………………………………….I Certificate from Guide…………………………………………………….1 1..


Since it was set up 24 years ago Moser Baer has established itself as a dynamic Indian transnational with a strong focus on research and development. 8 . the company has built across formats and moved from manufacturing 8 inch to the 5. Over the last five years. the company is the fifth largest manufacturer of optical and magnetic storage media globally. has successfully developed cutting edge technologies for recordable optical media. Moser Baer India is among the world’s largest manufacturers of optical media products. Over 80 per cent of Moser Baer's production is exported to 82 countries across six continents and the company has strong tie-ups with all the major technology brands in the world. Today. making it the largest player in India and third largest in the world. An emphasis on high quality products and services has enabled Moser Baer to emerge as one of India's leading technology companies. revenues have grown at a compounded annual growth rate of 36 per cent and profits at 60 per cent.25 inch to 3. It started with manufacturing the 8 inch floppy disc. Its goal has been simple and straightforward to be a dominant player in the global storage media arena.5 inch floppy diskettes.Purpose of Study Moser Baer was set up in 1983 by Deepak Puri to manufacture magnetic media products. As formats moved. constantly innovating and introducing new products and processes. The company has an 11% share of the global recordable optical media market.

9 .

We will move up the value chain through rapid development of technology. Integrity Consistently behaving and taking decisions in an ethical. businesses and geographies. trustworthy and fair manner in all spheres of life. Speed 10 . Values Teamwork Thinking and working together across functional silos. cost leadership and "can do" attitude to become a global market leader in every business. A feeling that encourages one to dream & realise the dreams. hierarchies. We will leverage our relationships. Self commitment to give more than 100% & create value.Vision and Mission Vision "Touching every life across the globe through high technology products and services" Mission We will drive growth through our excellence in mass manufacturing. Cooperating and supporting each other towards common goals. Passion Missionary zeal coming out of one's heart to drive to the goal which gives one a feeling of "do it with pride" and "love to be there". distribution. products and services.

Rakesh Govil Executive Vice-President . first time. Ratul is responsible for the overall corporate management and financial control of the organization. on time and every time. KEY MANAGEMENT Deepak Puri Chairman & Managing Director.Corporate Strategy & Business Development Rakesh Govil has been associated with Moser Baer India Ltd since August 1999. Deepak Puri provides strategic leadership and direction to the organization. He steers the company with his vision of making Moser Baer one of the most respected technology companies globally. Ratul Puri Executive Director Ratul Puri has been the Executive Director of Moser Baer India Ltd since 2001. Moser Baer India Limited As Chairman and Managing Director of Moser Baer India Ltd. and is currently designated Executive Vice-President: Corporate Strategy & Business Development for the Group. Yogesh B Mathur 11 .Meeting and exceeding customer's expressed or implied expectations by a "do it" attitude and by doing right.

Group Chief Financial Officer Mr Yogesh B Mathur joined Moser Baer India Ltd as Group Chief Financial Officer in July. Ravi Khanna is the Chief Executive of Moser Baer Photo Voltaic Ltd. Accounts. In his current capacity. MBPV is implementing a state of art 80 MW Silicon wafer cell and module making plant and upto 600 MW of Thin Film capacity by 2010. Under his dynamic and open management style.Entertainment Division Harish Dayani is the Chief Executive. located in Noida and Greater Noida. Ravi Khanna CE . He has been associated with the company since 2002.Blank Optical Media at Moser Baer India Ltd. Entertainment Divison. 2005. Harish Dayani CE . VC Agerwal COO . Treasury.Blank Optical Media Mr. VC Agerwal is the COO .Moser Baer Photovoltaic Ltd. he is responsible for steering the functioning of the Finance. a fully owned subsidiary of Moser Baer India Ltd. Audit and IT departments and provides strategic vision and leadership to the company. Moser Baer and is responsible for providing direction and market leadership 12 . He heads the operations of all the 4 plants at Moser Baer.

Ram Nomula CE .Corporate at Moser Baer India Ltd. he provides strategic leadership to the division's media mastering. Bhaskar Sharma is Executive Vice President in Moser Baer India Limited. He is a post graduate in Business Administration and has an overall professional experience of 32 years. 13 . GirishBaluja ChiefOperatingOfficer-Corporate Mr. Corporate R&D.for the company in India and will also be responsible for taking this new initiative to greater heights. replication and packaging services. Girish Baluja is the COO .Moser Baer Entertainment Services Mr. His responsibilities also include OM&T business (MBIL acquired this specialized Optical Technology and R&D subsidiary of Phillips). IT Peripherals & Consumer Electronics Mr. authoring. Bhaskar Sharma EVP. Ram Nomula is the Chief Executive of Media & Entertainment Services at Moser Baer. Corporate Supply chain & Six sigma initiatives. He has been associated with the company since 2005. He oversees Corporate HR. In this position.

B n V io ra d is n BRAND ARCHITECHTURE R d fin g e e in P dcFcs ro u t o u 14 .

” DieB deo l erdrnPs a s a rn 15 Ts o y a g r n r t r .Cn F uwh r .Therefore the brand positioning is: “Moser Baer – The most reliable data storage media with which your data is safe and sound. i t i e .


a movement from the known to unknown.” Some people consider research as a movement. Objectives of research The purpose of research is to discover answers to questions through the application of scientific procedure. research comprises defining and redefining problems. formulating hypothesis or suggested solutions. collecting. Research is an academic activity and as such the term should be used in a technical sense. as following :17 . The main aim of research is to find out the truth which is hidden and which has not been discovered yet. and at last carefully testing the conclusions to determine whether they fit the formulating hypothesis.RESEARCH METHODOLOGY Meaning of Research Redman and Mory define research as a “systemized effort to gain new knowledge. Though each research study has it’s own specific purposes but the research objectives can be listed into a number of broad activities. According to Clifford Woody. organizing and evaluating data making deductions and reaching conclusions.

Studies exploratory or formulative research studies.studies with this object in view are known as descriptive research studies. The role of research in several fields of applied economics. The increasing complex nature of business and government has focused 18 . Doubt is often better than over confidence . Is a famous Hudson maxim in context of which the significance of research can well be understood. for it leads to in enquiry and in enquiry leads to invention”.1. has a greatly increased in modern times. Studies with this object in view are known as diagnostic research studies. 2.To determine the frequency with which something occurs or with which it is associated with something else. Research inculcates scientific and inductive thinking and it promotes the development of logical habits of thinking and organization .To test hypothesis of a casual relationship between variables. 4. whether related to as a business or to the economy as a whole. Such studies are known as hypothesis-testing research studies. To gain familiarity with a phenomenon or to achieve new with this object in view are termed as insights into it. 3. Increased amounts of research make progress possible. situation or group . Significance of research “All process is born of in enquiry . To portray accurately the characteristics of a particular individual.

It may be understood as a science of studying how research is done scientifically. It is necessary for the researcher to know not only the research methods or techniques but also methodology. both for government and business.attention on the use of research in solving operational problems. primary and secondary. Data Source The data can be collected from two sources. i. has gained added importance . Research Methodology Research methodology is a way to systematically solve the research problem. I have collected entire data of this project on 19 . In it we study the various steps that are generally adopted by a researcher in studying his research problem along with the logic behind them. Research .e. as an aid to economic policy .

Ltd. from SECONDRY SOURCES like websites.Moserbaer Pvt. 20 . books. newspapers .



In 2006. product flexibility and process integration. with the result that today there are hardly any global technology brands in the optical media segment that Moser Baer is not associated with. The company is today the only large Indian manufacturer of magnetic and optical media data storage products.creating a facility that matched global standards in terms of size.5inch Micro Floppy Diskettes (MFD).low costs. Along the way. the IT Peripherals and Consumer Electronics division was formed. deep relationships have been forged with leading OEMs. it graduated to manufacturing 3.Moser Baer India was founded in New Delhi in 1983 as a Time Recorder unit in technical collaboration with Maruzen Corporation. high profits. Moser Baer has always endeavored to create its space in the international market. Milestones 1983  Established 23 . Since inception. high margins. the company announced its foray into the Photovoltaic and Home Entertainment businesses. In 1999. reinvestment and capacity growth. quality. technology. By 1993. Moser Baer India set up a 150-million unit capacity plant to manufacture Recordable Compact Disks (CD-Rs) and Recordable Digital Versatile Disks (DVD-Rs). In 2007. Moser Baer India moved into the data storage industry by commencing manufacturing of 5. The strategy for the optical media project was identical to what had successfully been implemented in the diskette business .25-inch Floppy Diskettes. In 1988. exporting approximately 85 percent of its production. Aiding the company in its efforts has been a carefully-planned and sustainable business model . Japan and Moser Baer Sumiswald. Switzerland.

CHAPTER 3 4 P’S 24 .

The 4 P’s    Product Price Place 25 .

 Promotion 26 .

One of the principal drivers of this growth has been the increasing “attach rate” of CD-R drives in PC’s and the widespread usage of 27 . Pre-recorded CD/DVD. Moser Baer started the production of CDR’s in the year 1999. Currently Moser Baer is producing two kinds of CDR’s viz. Moser Baer products can meet any recording requirement. Rewritable Compact Discs (CD-RW). Moser Baer Pro CDR’s and Moser Baer Mini CDR’s. At that time it came out with only “Pro CDR’s”. distributing corporate information or duplicating small volume production runs.Product STORAGE MEDIA The company manufactures the entire spectrum of optical storage media products including Recordable Compact Discs (CD-R). In the Magnetic Data Storage category Moser Baer manufactures Compact Cassettes. CD-R demand has witnessed explosive growth over the last few years (1998-2002 CAGR 109 per cent). Digital Versatile Disks (DVD-R) and Rewritable Digital Versatile Disks (DVD-RW) and Blue Laser Discs in the optical storage media segment. Whether it is archiving important files. Micro Floppy Disks (MFD) and Digital Audio Tapes (DAT).

and large storage capacity (700MB). consumption of recordable media is expected to substantially increase and usage is expected to become broader based. the life cycle of CD-R should get elongated.  Lengthened PC life: As there has been a perceptible extension in the life cycle of the PC during the global economic slowdown. the latest DVD drives are also backward compatible to CD-R media.CD-R media for information storage and data interchange.  Legacy installed bases: There are over 1. drive popularity  Backward compatibility: Virtually all DVD drives being currently sold. Recordable CD disks should be in use well into this decade. It would be important to note that the CD format is well entrenched in hundreds of millions of homes and offices and is the only medium virtually guaranteeing information interchange. CD-R Demand Drivers  A high PC penetration: As more PCs are sold with Recordable CD and DVD drives.  Price of drives: As prices of recordable CD drives have reached levels almost that of Read only. also most DVD recorders. which can read CD disks. including the 28 .  Due to the differences in applications. can playback CD disks. Importantly.5 billion drives installed worldwide. can also record CD-R disks.

installed base of DVD drives.  Moser Baer Thermal: For thermal printing surface applications.  Moser Baer Extra: 700 MB/80 min. the number increases to over 2.  Moser Baer Audio: For optimum recording of music in realtime applications. 29 . for enhanced storage capacity. Video recording applications.  Moser Baer Premium: Ideal for critical archival applications and increased security. Varieties of CD-Rs  Moser Baer Super: Ideal for all general Data.  Moser Baer Printable: 650 MB/75 min with unique printable layer.0 billion and growing. Audio.

This is because Moser Baer realises 30 . Quality for Moser Baer is not a mere statistic.30 Mechanical Radial Deviation + / . It is a part of every process.090 Recorded BLER average < 10 cps Jitter < 35 ns Reflectivity (Rtop) > 65% I11 / Itop > 0.0. It is an integral part of every input that goes into making of storage media.3º Eccentricity < 60 um Stability Read Cycles > 10^6 Projected Lifetime 10 – 30 years CD-Rs Demand Drives Moser Baer defines quality as 100% conformance to customer requirement. It's like an attitude with the company. It translates into customer delight.08 Push Pull Amplitude 0.65 I3 / Itop > 0.Specifications Format Recording Capacity Recording Time Orange Book (Part II) and ISO 9660 650 MB ( 700 MB also available ) 74 minutes available ) ( 80 minutes also Unrecorded Groove reflectivity > 70% Radial Contrast (typ.) 0.

Being the first and only 52x CD-R to be 31 . nothing but 'zero defect' manufacturing is what Moser Baer targets for its products. Moser Baer Pro CD-Rs Moser Baer Pro CD-Rs are an advanced creation for highspeed recording and compatible with most conventional recording drives. Strictly dust free working environments with climate controlled plants. So.that even one in a million error prone disc can spell disaster for the user. the top of line machinery & equipment and the benchmarked processes & practices assist them in giving quality products consistently.

but also audio and video files.14 + 0.01 mm Centre Hole 15 mm ± 0.launched in India. they provide excellent thermal sensitivity to the laser ray and maintain data integrity without degradation in any way. Moser Baer Pro CD-Rs are compatible with most conventional recording drives.05 : Dia mm Recording Pthalocyanine : Layer Dye Reflector : Silver Layer Protective : UV Lacquer Layer A CD-R is a blank media that can be used to record data on it.06 / Thickness : -0. Once the data has been recorded or written on the CD-R.3 : Diameter mm 1. it 32 . Pro CD Recordable Moser Baer Pro CD-Rs are highly advanced discs that enable high-speed recording and storing of not just data. they also provide excellent thermal sensitivity to the laser ray and maintain data integrity without degradation in any way. The first 52x CD-Rs to be launched in India. Capacity Speed Disc : 700 MB / 80 min : 2x-52x 120 mm ± 0.

33 .cannot be erased. But to write data onto a CD-R. to some. a CD Writer not only reads data. Moser Baer introduces Mini-CD-Rs just for that. it can also write data on the disc. this media redefines 'Compact' Discs. Its storage capacity today can vary from 650MB to 800 MB. quite a few mp3 songs! They come in an attractive box to ensure that even these small CD-Rs are safe. Like a regular CD-ROM drive. In fact.R is concerned. CD-R speeds have reached 52x today. They provide you with better portability while maintaining their superior recording/playback characteristics and compatibility. one needs a CD Writer. CD Writer or CD Player. this medium is ideal for presentations and credentials or for that matter. Best of all. these Minis CD-Rs can be used in any CDROM drive. Moser Baer Pro Mini CD-Rs With hard disks shrinking to the size of 'Thumb-drives'. With a diameter of 8 cm. Music sharing has been one application that has been a trigger as far as the popularity of CD. CD-Rs too have come to be seen as physically bulky and unnecessarily large in terms of data storage space.

14 + 0.05 mm : Polycarbonate : Pthalocyanine : Silver : UV Lacquer Blu-ray Discs 34 .3 mm 1.Capacity Speed Disc Diameter Thickness Centre Hole Dia Disc Material Recording Layer Reflector Layer Protective Layer : 185 MB / 21 min 24x(Drive : dependent) : 80 mm ± 0.06 / -0.01 : mm : 15 mm ± 0.

1x-6x and BDRE 1x-2x Fully integrated & equipped R&D facilities in Netherlands and India. Blu-ray Technology at Moser Baer Moser Baer is world’s first company (outside Japan) • • • • • • • First to ship next-generation formats like Blu-ray discs. the 2nd largest Optical media manufacturer in the world. Verified by the Blu-ray disc association: BDR 1x-2x. 1x-4x. Supplier to leading OEM brands State of the art manufacturing facility in Europe. Calibration & Test discs supply for Philips entirely managed by OM&T “LTH” dye based BDR 1x-4x at GN* * under development Technology at its best 35 .. Our technological prowess is verified by the fact that Philips has transferred its entire supply of CD. guaranteed by the technology & process expertise provided by one of the format originators – Philips. The discs are manufactured at its subsidiary OM&T (formerly Philips R&D) based in Europe and at its factory in Greater Noida (near Delhi) in India. OM&T is one of the founding members of the Blu-ray disc association (BDA) & a pioneer in developing the Blu-ray format.Visit BDA Website Moser Baer India Ltd. DVD & BDR calibration and test discs to OM&T. brings to you the highest quality Blu-ray discs. The Greater Noida facility is the world’s largest single location optical media factory producing all types of formats.

• • • • • “Scratch Protect” best in the class surface protection for everyday handling “Print Max” Full surface printable Inkjet & Thermal* discs Works with leading drives & CE recorders Ideally suited for data archiving. hi definition Audio-video recording & distribution etc. 25GB BD RE 1x-2x. Lifetime in excess of 50 years * under development Meets all your needs 1. 1x-6x. BDR 1x-4x. 4. 25GB Full Surface Inkjet Printable Full Surface Thermal Printable 36 . 3. 2.

Crystalline Silicon Cells and Modules 80 MW fully automated.PHOTO VOLTAIC Moser Baer provide customised energy solutions using different technologies to suit customer specific requirements.IEC 61646. IEC 61730.IEC 61215 (Edition II). Solaria for Low Concentrators and Skyline for Mid Concentrators 37 . CE. IEC 61730 (Safety Class II). horizontal. in-line cell manufacturing facility with throughput of 3.000 wafers/hour 80 MW flexible module line capable of delivering modules in multiple cell configurations Certifications . UL 1703 Thin Film Modules 40 MW capacity with products available in quarter size. CE Concentrator Strategic Investments in SolFocus for High Concentrators. half size and full size Use of non-toxic materials in manufacturing of products Certifications .

Malayalam.000 titles in all the popular languages and has already released close to 3. The company is the first to offer home videos in every popular language of India and it is today India's largest Home Entertainment company. Marathi.000 of them in the market. English. Moser Baer Entertainment is working towards providing unprecedented value by offering high quality products at a price that delights consumers. Moser Baer Entertainment has acquired the rights for close to 10. Bengali and nonfilm categories. In short. Gujarati. Telugu. Kannada. the company is establishing a strong presence across the country in all major metros as well as in smaller towns through an active and well-organized multitiered channel. The company has released video content in DVD and Video CD formats using Moser Baer's proprietary and patented technology that ensures the highest quality standards and significantly reduces cost. This move will take advantage of the established Moser Baer production capability and a well developed distribution network. It currently offers home video titles in Hindi.\ Moser Baer Home Videos Overview Moser Baer Entertainment offers home video titles in various Indian languages at unmatched prices and is also engaged in media content creation. Tamil. Headquarterd in Mumbai. 38 . The movie titles come with world-class packaging.

PC Peripherals.Consumer Electronics Products Moser Baer has entered into IT Peripherals and Consumer Electronics. Media Players and Multimedia Speakers. UPS and External Hard Drives. In IT Peripherals the product range comprises of USB drives. In the Consumer Electronics arena. Memory Cards. the company has come up with a product range with medium to hi-end positioning comprising of Ultra Advanced LCD TVs. TFT Monitors. MP3 Players M P 5 6 52 G • H • I 39 . DVD Players. Portable DVD Players. Digital Photo Frames. DVD writers.

• R • H • P • U MP 582-2G • • • • • • Clip your music anywhere Plays MP3 and WMA digital music files Random (shuffle) Music Playback Hold feature prevents accidental key presses Mobile Data storage function USB 2.0 for fast file transfers PRICE 40 .

Strong demand across all segments of optical storage media industry has led to a firm pricing environment.Back in 2002 Moser Baer was planning to go for a major expansion at an investment of Rs. However. Today the scenario is that Moser Baer can even afford to go for further price increases owing to various favorable factors most of which were clearly foreseen by Moser Baer and duly acted upon as well. was a major area of concern for Moser Baer. And this strength resulted in a positive outflow in the company’s investment. mainly on account of higher sales of bulk41 . the positive impact of which largely accrued during the first quarter of 2004-05. The company had initiated price increases during the fourth quarter of year 200304. The company is known to be one of the lowest cost producers in the world in the magnetic and optical media storage industry. 1000 crores. But the obsolescence rate of technology in the industry coupled with a downtrend in the prices of the portable optical and magnetic storage media devices and shrinking market of the portable storage media. The changing shape the technology could have rendered hundreds of crores of company’s investment go down the drain. on the face of rapid growth in the internet providing free memory space. Despite these early unfavorable predictions and circumstances Moser Baer emerged a winner. the Average Selling Price (ASP) declined by 5%.

Moser sells recordable compact discs (CDR) in more than three dozen countries for an average 22 cents each and about 85 percent of its annual sales come from exports. anti-subsidy duty on EU sales and continued rupee appreciation. strong demand conditions for CD-Rs and higher contribution from DVDRs should help sustain margins". he added." said executive director Ratul Puri. Moser Baer expects the pricing environment to remain stable through 3QFY03. "While the full impact of anti-subsidy duty will be visible in the following quarter. With the continuing growth in demand for CD-R media. The bulk-packaged shipments rose by over 60% sequentially in the first quarter. "In a period which saw firm prices of key inputs. Moser Baer believes that the recent increases in prices for CD-R media are sustainable and do not forecast any further significant price erosion in the market place. conversion of excess CD-R capacity to DVD-R. with the possibility of prices increasing 42 .packaged disks and rising contribution of sales to crosslicensees. closure of smaller and less efficient manufacturing plants. we were able to improve operating margins due to better pricing for our optical media products. Moser Baer expects that pricing for CD-R media is expected to remain in a narrow range.

The market demand is expected to grow at a CAGR of 30% over the next three years. Given their relative low costs. MOSER BAER HOME VIDEOS They have recently acquired license to manufacture and distribute VCDs and DVDs of Indian movies.subsequently.(both of them individually cost less than $1 at present exchange rates). 43 .and DVDs @ 34/. 28/. They sell these CDs at Rs. demand for CD-Rs is largely unaffected by the slowdown.

PLACE Place refers to the means by which your customer acquires your product. the warehouse) as well as the actual route of distribution. They try to develop a product which gives the customers a very strong advantage. Moser Baer looks at the biggest market first and then runs down that list. It also looks at the markets where the pricing is the best to start with. Africa. the web page. Europe is the company's largest market and it is now addressing new high growth markets such as Middle East. the telephone. Commonwealth Independent states (CIS) countries among other countries through its joint venture with Imation Corporation. Japan. This includes the actual place it is purchased (the shop. US. more than 80 percent of the company's revenue comes from the international markets. Moser Baer has a presence in 82 countries. Markets: The global market for optical media continues to record robust 44 . It then would want to go to the markets that are highly competitive and also not very large at the initial period.

TDK. in turn. Maxell. Most manufacturers including MBI supply to a number of these 45 . Emtec (formally BASF) etc. expected to result in strong growth in optical media sales. The continued increase in the population of drives over the next few years is. The drive population is expected to grow by more than 70% in CY 2003-04 over the past year which should result in strong demand for CDR media. The major brands in the industry are household names like Sony. The largest consuming markets continue to be the USA and Europe. Verbatim. The markets for these products are global in nature with USA and Europe accounting for around 60% of global demand. Samsung.growth on the backbone of new sales of optical media drives and the resulting population of drives in the marketplace. Imation. The Company has increased its market share in the US markets while continuing to be a dominant player in Europe. MBI like its peers in Japan & Taiwan caters to the major global markets and has the additional advantage of satisfying a large and fast growing domestic demand.

it plans to significantly strengthen customer relations by entering into strategic alliances with these customers.branded players and usually have strong long term relationships with them.  Improve geographical sales and distribution Over the last few years. product capability. the Middle East and Latin America. Moser Baer has significantly reduced its share of sales in the European community and enhanced sales into the North American market. Going forward. packaging options. Near term operational objectives  Value added products Moser Baer plans to improve its sales mix by leveraging on its strong research and development and engineering capabilities to deliver higher value added products to markets. These products are designed to meet the specific enhanced functionality demanded by high end customers. Moser Baer also plans to provide its customer base with enhanced quality. This will reduce threats from protectionist measures undertaken in the European Community.  Time to market 46 .  Strengthen customer base Even though it is supplying 11 of the 12 largest global brands in the world. it plans to penetrate and grow in emerging markets like China. logistic and supply chain capability. India.

improved response time to customer’s requirements. multiple format ready facilities and the ready availability of trained skilled manpower will enable it to achieve these goals. speedier compliance with statutory requirements in different geographies. sales of products. but not limited to. its ability to bring products to market and rapidly commercialize those products and grow capacities to generate economies of scale are vital to its success in a competitive environment. raw material sourcing. logistics management. MBI is the only Indian manufacturer of these products 47 . The domestic market contributes about 15 per cent to their revenues.  Implement ERP Moser Baer implemented a robust ERP system in 2004. reciprocal training programs etc. MBI presently supplies its products to eight of the top ten global brands on a medium to long term basis and has strategic relationships with some of these companies encompassing a range of activities including. This should further improve operational efficiency in the system and enable further improvements on working capital management.As Moser Baer moves up the technological curve and allies with the leading technology developers within the industry. including the development of flexible manufacturing systems. collaborative R&D programs. A number of measures.

It expects to leverage this on the back of its understanding of the local market. Moser Baer has an extensive distribution set up. 48 . Domestic market is a significant and fast-growing market for Moser Baer (especially for CDR) and it derives better margins in the domestic market.and is also the sole licensee for the EMTEC (formerly BASF) brand in the domestic market. Also.

with increasing demand from the office and professional segments. MBIL has recorded good progress with its 'Moserbaer Pro' range of products. Since its launch in April 2003. the option of burning low numbers of CD-R becomes more attractive. Tens of thousands of items are published each year but down at a very specialized and local level. CD-RWs & Mini CD-Rs have notched up encouraging sales. often as small as 100-200 pieces. For publishers. With the price of CD-R coming down all the time. it makes sense to burn CDs rather than go to the 49 . The brand is now well accepted in the domestic market and the consumer feedback on the product has been excellent. Whether on audio cassette or CD the runs for audio CDs are tiny. the company introduced the 'Moserbaer' brand of optical media.Progress of ‘Moserbaer’ branded media in domestic market The Indian market is seeing a burgeoning growth in the use of optical media. Moserbaer Pro range of CD-Rs. The company is confident of capturing 50% of this market within the next 3 years. Demand for Recordable Optical media is expected to grow from Rs 400 crore in CY02 to Rs 1. The Indian music market is dominated by local content.500 crore in CY05. To address this fast growing Indian market. MBIL is confident of capturing over 20% of this market by March 2004.

trouble and expense of glass mastering and replication for tiny quantities involved. This is already beginning to happen now around India. There are nearly 4,500 audio cassette replicators in the country. For most, buying a CD replication line falls way outside their investment criteria. A CD-R burner on the other hand is well within those limits. Moser Baer sees a larger demand coming from this area and feels that in a few years' time the market for CD-R media including all applications could be anywhere between 150-400 million pieces per year. “The Indian market for CD replication is really going to start picking up over the next year or two," says Deepak Puri, the Managing Director of Moser Baer India. “It's going to grow very very fast. Demand for audio product is still growing in India. Most products are supplied on audio cassette. I think the cost of CD hardware is one of the most important factors. It's much more critical here in India than in other parts of the world.”


• Advertising The company has decided to launch its initiative with a Masterbranding campaign and follow up with campaigns for 2 sub-brands:1. Professional segment 2. Re-recording segment The creative approach has been rendered by the ad agency on an emotional platform, for strong target audience identification .The claim being

”Welcome to Moserworld, Where perfection is a reality.” The campaign has used global legends in fields as diverse as science, sport, and cinema to highlight the product’s performance and safety of such data when it is captured onto a Moser Baer product. For e.g.: Einstein, Nadia Comaneci, and Marilyn Monroe. A few ads are shown below:

Product Campaign – Corporate Segment The sub-brand for this segment is MoserPro. This brand aims to position itself on the plank of being a “Totally reliable storage media for vital business intelligence” The creative approach of the agency has been to communicate the brand promise i.e. absolute security for the user’s business intelligence, through thought provoking headlines, using typical management jargon. The payoff being – Don’t take chances. Product campaign – Households/youth The sub-brand for this segment is Mosermagik. The target audience is the SOHO segment i.e. the Small Office Home Office segment. The Co. wants MoserMagik to be associated with ‘perfect recording and replay of movies and music’. The creative

approach is to indirectly refer to popular entertainment icons so as to create instant rapport. A few print ads are given below: 53 .


Media and Public Relations Strategy Media Strategy The target audience-specific medium for the respective

audiences is used to generate maximum eyeballs. For e.g. the Mosermagik product is targeted at the SOHO segment and therefore advertising in general publications like India Today, youth and news channels would be an appropriate strategy. Similarly the MoserPro product targeted at the corporate segment would do well if advertising is placed in leading business dailies and magazines like the Economic Times. It is but obvious that press would be the media driver of Moser Baer’s advertising. Additionally there would be direct marketing efforts as well as Internet support. The Co. has decided to put special emphasis on IT professionals on their direct marketing efforts and Net support, as they are the opinion leaders in this product category. The Co. has also decided to handle the volume segment with below-the-line reinforcement. Below the line strategy Focus on the Youth Segment (catch them young)







• Introduce scholarships at NIIT/ Aptech for best students. - Communicate the schemes at the centers through leaflets, posters etc. Coverage in media (e.g. Education Times). • Tie-up with IT Educational Institutes and Public Schools, Book Shops, offering subsidized CD-Rs to students.

Sponsor IIT Campus Show.

• CP Festival – Tie-up with a music company. • Sponsorship of a music related T.V. Programs. • POPs in Music Shops and Video Libraries. • Sponsor popular (youth-oriented) movie premiere.

Put Ads and sponsor relevant sections on Youth, Movie and IT Sites.

Public Relations Strategy • Focus on the financial segment Analysis in business dailies like Economic Times-Investor’s Guide and Business Magazines. Coverage/ interview on business programmes on TV like NDTV, Star Business News and CNBC. Stock recommendations with emphasis on the intrinsic strengths of the company.

Tie-up with magazines like Data Quest for free sampling of CDR. Coverage in computer magazines.• Focus on the Corporate / SOHO Segment Features in business dailies and magazines. CHAPTER 5 MOSERBAER SWOT-ANALYSIS 57 .

Opportunit ies Most major brands are 1 looking opportunities 2 Geographical proximity to key markets CD-Rs are explosive 2 emerging opport unities 3 Engine S ering t 3 I n d 58 .Moser Baer .a SWOT analysis SWOT Analysis Strength s Lower cost (lower 1 depreciation.

i a n r o n g f o c u s o n R & D a n d m a r k e t i s s h o w i n g s i g n s o f deman d for CD-Rs A growing captive local 4 market 5 Integrated manufacturing Commi tted shareh 6 olders 59 .

W e a k n e s s e s Threats 1 High capital intensity CD-R market is in over market 1 supply Price competiti As most of the products on leads 2 are 2 to lower growing very fast. they need to Margin constantly expand manufacturing capacit 3 A ies n t i D u m p i n g a n d a 60 .

and continually reduce costs. driven by a desire to protect local jobs tend to use anti dumping and other trade protection tools to provide some measure of protection to the 61 . • A growing captive and local market adds to our growth potential as a tool to protect their business. This leads them to seek protection from local governments. • Strong focus on R&D and engineering enables Moser Baer to constantly innovate product offerings. manpower and overhead costs make Moser Baer one of the most competitive manufacturers in the world.n t i s u b s i d y proceedings initiated by European Commission on exports of disks by MBI to Europe Taiwanese moving into 4 China to Reduce cost of production 5Emerging TechnologiesStrengths • Lower capital investment. who.

The Commission however imposed a 7. The company’s strong R&D capability and joint R&D program’s with leading technology players enables the company to lead innovation rather than trail it. 62 . A detailed investigation later. However. Following this. the European Commission initiated an investigation into the alleged dumping of recordable compact discs (CD-Rs) by Indian manufacturers (Moser Baer in particular). Moser Baer’s business could be threatened from more efficient emerging technologies. against exports from India to the European Community. the European Commission terminated its anti-dumping investigation.3 per cent countervailing duty.local industry. we are following an active strategy to mitigate this threat by diversifying our global presence and customer base and rapidly move into newer and larger markets like the USA. to countervail the alleged subsidization of domestic manufactures by the Government of India. • Emerging technologies In a dynamic technology environment. the low cost and ease of storage on optical media. considering the explosive growth in digital content. In May 2004. the huge installed base of both read and write drives and the time to market for a new format this threat is perceived as low. These investigations could be instituted again in future and continue to pose a risk to our operations into Europe. However. the commission concluded that it could find no evidence of dumping by our company.

the company completed it’s expansion in capacity form 0. quality and other information available on a real time basis to better manage the complex production process. Short / Medium term: Our near term strategy is to leverage our manufacturing base.1 billion units. 63 . and during FY04 capitalize quickly on the growing DVD-R opportunity.Strategy 1. the optical media industry in the medium term offers us sufficient growth opportunity with 53 52 capacity of 40MW. yield. along with the required utilities and clean rooms. This will enable the company to significantly reduce it’s time to market. diverse production machinery together to make available output. We believe. Additionally.8 Billion units to 1. the company built manufacturing facilities. post the favourable outcome of the anti-dumping inquiry by the EC (European Commission). Expansion During the year. low cost and uninterrupted power supply. • Integrated on a plant wide basis. to ensure quality. to house the next phase of expansion. customer relationship and the explosive growth expected in the optical media segment to significantly enhance our global share and retain and improve our leadership position within the industry.

in the facilities. The plant is equipped to produce all formats of optical media –CD / DVD (recordable. we invested Rs 176 Million (1. along with improvements in process technology. A first-mover advantage. Research and development In 2005-06 (FY03). • One of the only two companies in the world to get a certification from Philips for 48x write media.62 per cent of its sales) in research and development and created an 80-member team of research professionals.The investments already made. The capacity expansion and technology progression initiatives are being conducted at the company’s newest plant in Greater Noida. • Developed 2x DVD R media • Developed high speed CD R/W media • Developed 2. Some of the benefits of our R&D program are enumerated below. • Introduced nine new products during the past 12 months. re-writeable and pre-recorded). and infrastructure.4x DVD R/W Quality 64 . will enable the company to establish incremental capacity at an investment 25-30% lower than current capital costs. higher realization and enhanced margins are likely to accrue form this investment in the long term.

” Moser Baer has continuously created quality products through the intelligent use of technology. We gained the goodwill of existing and new customers by servicing them with speed and sensitivity. committed human resources.Moser Baer’s quality commitment is enshrined in its Quality Policy: “We are committed to Excellence and Total Customer Satisfaction through Team Work. and the extensive use of advanced statistical techniques to monitor and control product quality. Marketing Moser Baer marketed a growing variety of products with a visible branding differentiation in 2004-07. We moved closer to our vision to make the ‘Made in India’ mark respected by customers and a testimony of world-class manufacturing standard. with defect ratio for some of our products approaching six sigma levels. and Timely Delivery of Quality Products of International Standards. Our share of the global market has grown from a mere 1% in 1999. packaging variations. 2006-07 65 . to over 11 per cent in FY02-03. enabled us to offer a visibly differentiated product offering to customers. As a result of this we have surpassed world-class quality standards. Marketing highlights. In house developed and patented. Ceaseless Innovation. Strict confidentiality of proprietary processes and delivery of promised standards helped build strong customer loyalties.

the company entered into a global alliance with Imation Corp.• 2 new major OEM’s added to our list of customers. balanced our large presence in Europe with an increasing US and emerging market focus. Product pricing The Average Selling Price (ASP) of the company is impacted by a number of factors: • Ratio of sales of different formats in the overall sales mix: As an example 66 . This sourcing deal estimated to be worth in excess of US$100 Million per annum. USA. • We entrenched our presence in 36 new countries. is the single largest outsourcing deal ever entered into with an Indian company. • Eleven of the world’s top twelve global brands sourcing from us. resulting in Imation sourcing a substantial part of their requirements of optical media from Moser Baer. • Value-added features/packaging were provided to • We shrank new product development time from 22 months to ten months Alliances During the year.

which are substantially higher than standard products. (ASP declined by 19. ASP declined sharply over the prior period. During FY 06. the company has raised prices of its products between 5-15 per cent.5 and CD-R sell for around 20-25 cents. A higher percentage of sales of DVDs significantly improves ASP’s • The type and style of packaging .CD-R and DVD-R are packaged in many different types of cases / boxes which can significantly impact the selling price(as an example CD-R packaged in jewel boxes sell for 30% more than CD-R packaged in cake boxes) c) The ratio of niche products in the overall product mix: Niche products can sell for prices.DVDs sell for US$ 1 to 1. the full impact of which would only be seen during the following financial year. the temporary postponement of capacity expansion as a result of the anti – dumping investigation. sharply increasing input costs driven by a rising petrochemical prices and the appreciation of the Indian rupee. We reduced the impact of these factors by sharply increasing the manufacturing volumes through improved 67 . Revenue analysis The FY06 was a challenging year for Moser Baer as a result of over supply that existed in the first half of the year. Overall. A higher proportion of niche products in the overall product mix can influence the ASP.6 per cent over the FY 05) However afterhitting their lows by the end of Q2FY06. ASP’s stabilized and started to increase by Q4FY06.

Capital structure 68 . enhanced contribution from sales of DVD products and commencement of sale of packaging materials to outside third parties. Margins Moser Baer’s EBIDTA margin declined from 46. as opposed to 95 per centplus yields in stable plants.61 per cent in 2005-06 to 36. the total revenues increased from Rs 6805. • Sale of lower margin jewel box products.50 per cent increase. • Price increase of inputs (polycarbonate. a 59.59 millions in FY05 to Rs 10855. general-purpose polystyrene. certain expenses associated with the expansion were charged to the P&L account. we saw significant improvement in the market resulting in increases in selling prices and a sharp reduction in inventories.22 millions in FY06. Consequently. Towards the second half of the year. • Relatively low yields came from the new lines at Greater Noida. • Due to the postponement of the expansionat greater Noida. which is a usual phenomenon in early stages of the production cycle.59 percent in 2006-07 for a number of reasons: • Reduced ASP’s during FY06.production efficiencies. high impact polystyrene. furnace oil and freight) had a bearing on margins.

comprising 48. our capital was Rs 559. We have also tried to build a prudent basket of currencies to hedge against currency risks. On the redemption date .we redeemed these preference shares. This increase was primarily on account of a 9. We did not have any revaluation reserves on our books as on 31 March 2006.30 per cent. Loans Over the years. there were no preference shares or warrants outstanding. The Securities Premium Account comprised 41. Moser Baer has funded its ongoing expansion programmes through loans raised at progressively lower costs.472 equity shares of Rs 10 each and 75 million cumulative redeemable preference shares of Rs 100 each (11. Our current currency wise total debt outstanding is as follows: 69 .90 per cent from Rs 8732.406. Reserves Moser Baer’s reserves increased 25. while General Reserve comprised 58.24 March 2006 . our average cost of debt declined by 40 basis points in FY06. As on 31st of March 2007. 43 million to Rs 10994.68 per cent of the total reserves. and minimize costs.At the start of 2006-07 (FY06).43 million in FY06.69 per cent rise in our retained earnings. As a result.06 million.5 per cent).

Financial objectives. Capital expenditure We invested Rs 7781. strong operating margins and healthy debt coverage indicators.02. CRISIL has rated short-term commercial paper program as P1+.80 per cent. our gross block increased by 115. indicating the highest level of safety. We intend to enhance our optical media capacity from 1. interest service cover ratio of 5. initiatives and achievements Interest Our interest outflow increased from Rs 375 million to Rs 543 million in FY06. Our incremental investments for capacity creation are between 20-25 per cent lower than our historic costs. The incremental capital expenditure is being funded by debt and internal accruals. representing an increase of 44. We 70 .56 in 2006-07. Moser Baer’s revenuesto-assets ratio improved from 0. primarily on account of a rise in the our overall debt levels.06 to 0. Gross block and depreciation In 2006-07 (FY06).90 per cent from Rs 9132 million to Rs 19716 million on account of the ongoing capacity expansion.We believe that our current total debt to equity ratio of 1.50 in 2005.35 and debt service cover ratio of 4 place us in a prudent and comfortable gearing position. The Company’s financial profile is characterised by high turnover growth resulting from the substantial expansion of its CD-R capacity. a favourable financial profile and business strengths.1 billion to 1.65 million to meet the increased demand for optical media products and new emerging formats at a state-of–themanufacturing facility at Greater Noida. reflecting an improved asset utilisation.45 billion during FY07.

Depreciation increased from Rs657 million in 2005-06 (FY05) to Rs 1175 million in 2006-07 (FY06) on account of increase in fixed assests.37 per cent in FY06 and 126. 71 .8 days (last quarter of 200506) as against an industry benchmark of 90-120 days. Working capital management We have substantially reduced our working capital levels during the year through a mix of improved management and better information systems. • A reduction in the receivables cycle: We significantly reduced receivables from 120.provided depreciation on a straight-line basis as per the rates specified in schedule XIV of the Company’s Act 1956.9 days of revenues (start of 2006-07) to 68. This sharp decline in receivables was achieved through a number of initiatives: a revision in the terms of trade following an improvement in the demand and supply balance during the course of the year. production lines and facilities can be used to manufacture multiple formats) and the relatively long life cycles of products in our industry we believe that the risk of our asset base becoming obsolete is low. Overall net working capital has reduced to 41.48 per cent of revenues from 77.42 per cent in FY 05. Due to the flexible nature of our asset base (most of our assets. a more stringent credit policy and improved information availability.

69 per cent decrease. loans and advances stood at Rs 506. We disbursed loans and made advances to the suppliers of capital goods and raw materials. Most of these advances were to capital equipment suppliers. Loans and advances In FY06. These short-term surpluses were invested in lowrisk financial instruments that optimised returns and protected the invested principal.05 per cent.95.03 million in FY05. 72 .66 million in FY06. we significantly reduced our inventory levels during the year. a 72. there were junctures when the temporary availability of resources was higher than the immediate use.69 million compared to Rs 875.• A reduction in inventories: By better utilizing our information systems. Capital employed The total capital employed invested in our business increased from 17334. which were secured against bank guarantees. Surplus management In a growing business. The company generated a Return on Average Capital Employed of 17% in FY06. representing an increase of 34.29 million in FY05 to Rs 23237. and managing our stock keeping levels.

direct labour and appropriate factory overheads. • Inventories Inventories are valued at cost or net realisable value. None of the fixed assets has been revalued during the year Capital Work-in-Progress includes expenditure incurred on assets under / awaiting installation and capital advances paid. All costs relating to the acquisition and installation of fixed assets are capitalised and includes financing costs relating to borrowed funds attributable to acquisition upto the date the assets are ready for use. whichever is lower. rollover charges on foreign exchange contracts and adjustments arising from exchange rate variations relating to specific borrowing attributable to these fixed assets. Work-in-Progress and Finished Goods are valued at cost which include direct material. • Depreciation 73 .Significant Accounting Policies • Fixed Assets and Capital Workin-Progress Fixed Assets are stated at cost of acquisition less depreciation. Raw Materials and Stores & Spares are valued at moving weighted average rates.

Depreciation is provided on straight-line method at the rates specified in Schedule XIV of the Companies Act. Fixed Assets costing individually Rs. discounts and Sales Tax. Depreciation on additions to the value of existing fixed assets on account of revaluation of foreign currency loan is being provided prospectively taking into account the residual life of the assets based on the rates prescribed in Schedule XIV of the Companies Act. • Revenue Recognition Sales are recognized on dispatch of goods (Domestic) and on the date of shipping bill/bill of lading (for Exports) to end customers. 74 . 1956. Sales are net of sales returns. Scrap income is recognized on receipt basis and is included under Operating Revenues. 5000 or less are fully depreciated in the year of addition. Depreciation is provided on pro-rata basis from the month in which the assets have been put to use and upto the month in which assets have been disposed off. 1956.

We owe a large part of our success to the excellent human resource base that we have created. We also have a Systems & Procedures Audit Department. the Company has not entered into any transaction of the material nature with its Promoters. Internal controls have been further strengthened by the implementation of ERP. Management’s Responsibility Statement The management is responsible for preparing the Company’s consolidated financial statements and related information that appears in this annual report. people represent our biggest insurance. Deloitte Haskins & Sells is our internal auditor verifying the internal controls. our manufacturing systems and development capability. the Directors or the management. that may have potential conflict with the interest of the Company at large. Moser Baer’s internal control systems are commensurate with our size and operations. etc. The intellectual capital of Moser Baer is reflected in the quality of our business strategy. The management believes that these financial statements fairly reflect the form and substance of transactions and reasonably represent the 75 . up from 875 recruits in FY05. Disclosures During the year under review. We added 1006 new people in FY06 to our human resource base. and the strong relationships we have with customers. their subsidiaries or relatives.Human Resources / industrial relations Moser Baer recognises that in a volatile technology environment.

our earnings-generating initiatives are consistent with our risk standards. acquire and build new businesses and to grow our existing businesses. our ability to attract and retain qualified personnel. but uncertainties that could cause actual events to differ materially from these forward-looking statements. These risk include. the level of market demand for our services. The forward-looking statements include our financial growth projections as well as statements concerning our plans. and we assume no obligation to update these statements as circumstances change. 76 . currency fluctuations and market conditions in India and elsewhere around the world and other risks not specifically mentioned. Disclaimer Some of the statements in this report that are not historical facts are forward-looking statements. the highly-competitive market for the types of services that we offer.Company’s financial condition and results of operations in conformity with Indian Generally Accepted Accounting Principles. intentions and beliefs concerning our business and the markets in which we operate. These are risks include. Our comprehensive risk governance culture ensures that business decisions taken balance risk and reward. our ability to create. market conditions that could cause our customers to reduce their spending for our services. Consequently. but are not limited to. These statements are based on information currently available to us. strategies.

We manage the variables impacting business risk with a disciplined risk management process in keeping with established standards. sets prudent limits on quantum of risk undertaken and does risk evaluation of major policy decisions. desired total returns to shareholders and the credit rating of the company. However. TECHNOLOGY OBSOLESCE RISK MANAGEMENT The obsolescence of technology is inevitable and Moser Baer’s real challenge is to anticipate and respond to both evolutionary and disruptive changes. the removable storage segment has proven to be remarkably 77 . well poised to manage and mitigate these risks. however. For example. The company proactively evaluates and puts in place risk-mitigation initiatives. Moser Baer is. customer concentration risk and geographical risks amongst others.Our risk-management revolves around corporate policies that outline standards and provide measurement guidelines for each risk category. Our risk appetite dictates the risk-management initiatives. These risks may stem from technology obsolescence. The risk management strategies and processes are periodically reviewed in keeping with the changing environment. many technologies may prove to be more resilient than anticipated. Risk environment A number of potential risks in the current environment might make the optical media industry prospects unattractive over the coming years. Moser Baer’s risk-management mechanisms are consistent with the strategic direction of the company.

The success of this approach is reflected in the company’s increasing global share and high growth.Some of these risks are external. Effective processes and models Comprehensive risk governance Qualified risk professionals As installed capacities in global data storage industry have risen. As a company poised to take on the mantle of industry leadership. We have a three-pronged risk management process.5 inch floppy diskette still survives and is only now making its exit after 22 years despite being regularly confronted with far more advanced and capable storage solutions. SECURITY RISK MANAGEMENT 78 . and some are internal to the company. prices have sharply declined .Moser Baer has responded to price-based competition with an unbeatable price-value proposition – superior quality. attractive price and regular introduction of new products. We have developed a risk reporting management process to help manage potential risks in an informed manner. timely delivery. .resilient in the face of rapid technological developments with the need for broad based global compatibility being a strong stabilizing influence. The same solid entrenchment is observed with CD-R whereby a huge global installed risk management. and result from the business environment we operate in. Moser Baer is exposed to various risks. The 3.

As a part of its Disaster Recovery Plan. the most rapidly growing Consumer Electronic (CE) product in history. all related risks have been mapped by the company. The position is further strengthened by a number of compelling factors. The rapidly proliferating DVD format. The versatility of the CD and DVD format families has served to establish them as a bridge between the information storage and entertainment segments thereby greatly extending their utility and reach. 79 . not only maintains seamless backwards compatibility with CD-R and the other members of the CD family but opens up complementary new video. and game application segments further strengthening the global mass appeal of the 120mm disc formats. political and economic disturbances.Operations could be disrupted due to natural. The flexibility and reach of the CD and DVD formats has proven to be compelling technology enabler for a broad range of Industries spanning the Personal Computer and CE segments. multi-media. broadband. estimated to far exceed 7 billion units by 2007. have served to provide the format with considerable staying power even in the face of exiting new options such as high capacity optical disc. solid state memory. A Disaster Management Team has been entrusted with mobilization of resources and asset safety during emergencies base of readers and writers. and wireless delivery.

The latest projections suggest that even as far out as 2010 almost 80% of the installed base of optical disc writers will be CD-R compatible.These now have a vested interest in the preservation and orderly evolution of this technology infrastructure. Moser Baer expects that the above factors will result in strong demand for CD-R discs going forward and that the market for DVD recordable and rewritable disc will grow to comparable levels. or at least slow down. Thus. we believe that significant barriers are in place to prevent. while various new and emerging technologies have the potential to compete technologically with CD and DVD. These include: Hundreds of millions of satisfied. At the same time. the displacement and eventual obsolescence of these formats. A broad coalition made up of almost all major global PC/CE companies and content providers into whose business models 80 . with global demand climbing to the level of billions of discs in the next few years. cost conscious users and a current global installed infrastructure base of over 2 billion compatible hardware devices. the Company has taken concrete steps to ensure that its manufacturing infrastructure and technology base are fully capable to meet the needs and requirements of the anticipated evolution in optical disc technology from CD to DVD and beyond this. to the carious Blue Laser based high density formats that have recently been announced.

Numerous internal innovations have resulted in a product leadership position for Moser Baer in CD-R and we are rapidly extending this to other formats. all of which can have considerable commercial/financial implications. Billions of dollars invested in CD/DVD hardware and disc manufacturing capacity and the need for similar infrastructure investments for alternative technologies. In fact. The newly commissioned state-of-the art mastering facility will round off Moser Baer’s technology platform and equip the company with resource base required for the next decade. STEPS TAKEN TO MITIGATE TECHNOLOGIES RISKS In the dynamic storage market segment. often with multiple degrees of redundancy. recordable and rewritable). Ability to rapid commercialise new products: The internal R&D resources have been steadily expanded and strengthened and today cover the spectrum from CD to DVD ( pre-recorded.CD/DVD products and applications have been integrated and who must gain from any transition. segment significant technological risks exist in a number of critical areas. Moser Baer has invested substantially in addressing and mitigating risks in all these areas. Access to new technology: 81 . preliminary R&D efforts in Blue laser based formats (expected to reach the mass market in the 2006/2007 timeframe) have begun.

we have unfettered access to cutting edge technology and process knowhow. These will provide us a seamless pathway to future 82 . Drive/media compatibility: Today. by virtue of being recognized as one of the major suppliers of optical media to the global markets. Evolutionary capabilities of manufacturing infrastructure: By virtue of its relatively late expansion. Moser Baer is in the unique position of possessing a very high proportion of advanced. is the latest in a long line of such arrangements and provides an extra dimension to Moser Baer’s future technology portfolio. They commonly utilize our media in their product development activities and regularly provide Moser Baer with preproduction samples to ensure seamless compatibility. 3rd generation. In addition.Through long standing strategic partnerships with key technology providers. multi-formatcapable manufacturing platforms. Moser Baer’s blue chip customer base provides an additional level of product compatibility assurance. Moser Baer has forged excellent cooperative links with all major hardware suppliers. The culmination of our efforts was the fact that Moser Baer was one of the three CD-R disc manufacturers (and the only non Japanese one) certified with the first 52x writers that recently came to market. including many of the leading global companies at the forefront of new format development. The recently announced partnership with Imation Corp.

2. the growing popularity and increased functionality of new products like drives.proof its capital investments and more importantly. unbeatable price value proposition and excellent service. The company. writers and PCs owing to their better storage capacity. wider applications and greater security. Moser Baer added 2 large OEM customers while not losing a single toptier customer in FY03. Other risks and key management initiatives 1. A combination of these initiatives extended our reach to a wider larger spread of customers. Besides. INDUSTRY RISK MANAGEMENT Moser Baer operates in an industry where technology trends are constantly changing and evolving which may jeopardize future growth. however. readers. evolutionary product mix. it stands to benefit from the current growth trends in the DVD-R format. to tailor its operations to provide an optimal. Given our product quality. it is prompting legacy recordings to migrate to new media. faces no immediate threat from the dynamic environment in which it operates. On the contrary. are expected to drive demand exponentially. CUSTOMER ATTRITION RISK CONTROL Our over-dependence on a few customers could impact revenues in the event of attrition. Due our wide customer base (we believe that we have one of the 83 . As consumption evolves from analogue to digital technology.

USA. 4. Latin America and the Middle East. As a de-risking measure. To mitigate the risks arising from servicing customers in only a few regions . The company has worked towards providing challenging high growth environment for it’s employees. Europe and Japan . We have continuously benchmarked ourselves to improve our HR policies and practices. 84 . to minimize the impact of protectionist measures the EC may undertake in the future. we have reduced our exposure to European customers. institute a performance-based remuneration structure and suggest HR practices that would help create an inspiring workplace leading to the retention of human intellectual capital. PEOPLE RISK MANAGEMENT High quality human resources are vital to the success of our business. and the ability that gives us to increase volumes with customers. we believe that the impact on the company in the event of customer attrition would be low. GEOGRAPHIC RISK MANAGEMENT A geographically concentrated revenue base may affect growth in the event of some of these regions not performing up to expectations.Moser Baer marketed products to 36 geographies over the last few years. Hewitt Consultancy was appointed to review the roles of key members. 3. We continue to focus on emerging markets like India.widest customer bases in the industry). even as we service customers in Europe and North America.

this has led to a reduction in attrition rates (four per cent in 2002-03 compared to 7-12 per cent for the rest of the industry). COMPETITION DE-RISKING By virtue of its relatively late expansion. Moser position of possessing a very high proportion generation. multi-formatcapable manufacturing 63 62 Creating value EVA fact sheet EVA Calculation The negative return to share holders is the result of certain extraneous factors beyond the control of the management: • The anti-dumping and anti-subsidy investigations • Postponement in commercialisation of additional capacity by a quarter • Increase in costs due to appreciation of the rupee • Increase in prices of raw materials due to rising petrochemical prices 85 . We now intend to implement an ESOP to enhance employee motivation and retention.Over the years. 5.

Moser Baer Golden Peacock Environmental Eco –Innovation Award 2008 Golden Peacock Award for Occupational Health and Safety '07 Award for being 'Highest Exporter in IT Sector' from 'Export Promotion 2008   2007  Council for EOUs & SEZ Units'. CMD.   Business Standard 'Most Innovative Company of the Year Award' 07' ELCINA . 2006 .07 in the categories- Quality. R&D and Business Excellence  Award by "Electronics and Computer Software Export Promotion Council (ESC)" in IT Hardware category.Awards  EFY 2008 Special Award to Mr Deepak Puri.DUN& BRADSTREET Awards. titled "Award for Maximum IT Hardware Exports" 86 .

Deepak Puri.Asia Pacific's Leading Technology 87 . Deepak Puri and "Excellence in Manufacturing Award" to Moser Baer from Optical Disc Systems    Golden Peacock Environment Management Award Plasticon Award 2005 by Plast India Foundation Frost & Sullivan Awards for excellent Manufacturing Practices.India's Best Managed Company for the year 2003 NMA Leadership Award 2003 to Mr. Deepak Puri. Managing Director. DataQuest Top 20 Deloitte Award for Fast Growing IT Company and Manufacturing 2004   Excellence  Corporate Role Model and Lifetime Achievement Award to Mr. Moser Baer   Business Today .Distinguished Entrepreneurship Award' 06 to Mr. Noida  Dataquest IT Man of the Year Award 2003 to Mr.  PHDCCI . Amity Business School. Deepak Puri. Moser Baer by Centre of International Business. Deepak Puri. Deepak Puri Managing 2003 Director. CMD  Golden Peacock Award for Competence in Quality and Innovation 2005 Management  Global Industry Leader Award" to Mr. Moser Baer  Deloitte Touche Tohmatsu Fast 500 . Managing Director.. CMD  "Electronics Organisation of the Year Award" from Electronics for You Publication Group. "BEST OF ALL" Rajiv Gandhi National Quality Award by Bureau of Indian 2006 Standards  Indira Awards for Marketing Excellence awarded "CEO of the Year Award" to Mr.

Companies in 2003  Dataquest Awards . Deepak Puri. we conclude 88 . Moser Baer 96-97  Highest Exports Award in Electronic Components amongst Non-SSI Category CONCLUSION • After studying the MOSERBAER PVT. Deepak Puri.Fastest Growth Company for the year 2001-02 ELCINA (Electronic Component Industries Association) Electronics Man of the Year to Mr. Managing Director. LTD. . Executive Director. Managing Director. Moser Baer  All India Award . 2002  Ratul Puri.Top Growth Company for the year 2002-03 Ernst & Young Entrepreneur of the Year 2002 for Manufacturing to Mr.Company of the year 2001-02   Dataquest Top 20 .Highest Exports in Electronic Hardware (Non-SSI) for 2001 2000-01  The Economic Times Awards for Corporate Excellence . Moser Baer  LMA (Ludhiana Management Association) Vardhman Award for Entrepreneur of the Year 2002 to Mr.

• Lowest-cost manufacturer of optical media in the world.Entered the highly exciting and emerging global technology space of photovoltaic in mid-2005 • It entered into the fast growing Home Entertainment Business in 2006 and is the first to offer home video in every popular language of India and is the largest home entertainment company in India • The first storage media company in the world to ship HD DVDs using a special disc structure using common materials.that Moserbaer Pvt. Ltd. is the among the top two media manufacturers in the world . 89 .It is the highly R&D-focused company .

Had these limitations been overcome. 2. has been taken from secondary sources like websites. It’s really difficult to work out such a large project between two months time. Data constraint : All the data that has been collected for this project. which cannot be overlooked. Some of the limitations are : 1.Time constraint : Time was really a limiting factor for the project . the findings would be accurate. books and newspapers. 90 .LIMITATIONS Although the project has been worked out at its best yet there are some limitations . www.BIBLIOGRAPHY WEBSITES • • • • NEWSPAPERS • • • THE ECONOMIC TIMES THE TIMES OF INDIA THE MINT BOOKS MARKETING MANAGEMENT BY PHILIP KOTLER 91 www.moserbaerpv.