Welspun Group Of Companies Essay


Discuss about the Welspun Group of Companies.



Welspun group is one of the largest and fastest growing conglomerates of India and is a company of $3 billion (Cavusgil, et al., 2011). It is involved in many sectors like steel, energy and infrastructure and have an established product range in different sectors like pipes, textiles and plates & coils. It is a company expanded firmly in more than 50 countries, employing about 24000 people and having more than 100000 shareholders.

Challenges Faced and Swot Analysis


As the group took its path towards success and globalization, challenges started showing up so as to bring the brand down. The path towards globalization was not so smooth but according to the people working under Mr. BK Goenka, the company overcame all the challenges and progressed towards success. There were many challenges faced by the company, some of them are mentioned below:

From all the challenges the one that came first is the problem of faith. All the foreign buyers were in great dilemma about the product and quality of the product produced by an Indian based company (Cavusgil, et al., 2014).

Second is the layers of middlemen between the company and its foreign clients as the middlemen reduce the margin of profit of the company and also intrudes in the direct communication between the clients and the company.

Third most important part is the penetration in market. As the culture of company is different from the foreign markets, so it faced some problem due to the cross culture business (Singh., 2015:60-61). In different countries it faced different problems regarding the political, cultural and legislative differences.

Fourth one is a various serious challenge which the company has to face and that is the attrition of many of the senior executives ("Welspun Group Faces Top-Level Executives Attrition"., 2010). According to the results of some of the interviews and survey, it is showed that most of them left due to job dissatisfaction.

Swot Analysis


  • Domestic markets are the main factors for the success of the company (Mathur and Mathur., 2009).
  • The company got monetary assistance from many sources.
  • Its sales and distribution network is very strong.
  • The company has many powerful strategies to overcome the market penetration barriers.


  • The competition is very high ("Welspun Group SWOT Analysis”., 2016).
  • Debt rating for the future is high


  • The company has huge opportunities to grow.


  • Low profit range
  • Fluctuating economy
  • Cash flow
  • Competitors
  • Politics and laws of government.


From many researches it can be seen that the group is growing at a high rate since the last two decades. It has expanded in many countries along with providing a high range of employment. It is adding a huge amount to the economy of the company and also to the development of the country. According to the CEO of the Welspun Group, the high growth of the company is going to sustain for a long term due to some of the most successful sectors of the group (Rau., N.A).

There are many key factors which are contributing to the success of the company and helping it to move high up. Some of them are:

Cost Leadership: The Company has tried its best to have the cost leadership in all its sectors among its competitors. It has introduced many products in low cost but without any lack in the quality of the product. For example Welspun is expertise in constructing tough in-house designs with great engineering at low cost (Pathak and Singh., 2010).

Quality of Product: The quality of the products of the company is the major key factor for the success of the company. As at the starting many company were having the faith problem as Welspun was an Indian based company but with the course of time all trusted the company mainly for its quality.

Strong Execution: Welspun has the capability to commit to its client as it has the ability to fulfil the commitment. It has an experienced team of employees and management which are capable of turning the promise to reality in the given amount of time and budget.

Innovation: Welspun keeps on experimenting on the market by introducing new innovative and attractive products so as to increase the customer base.

Growth Startegy as Role Model

The company rose high up in the success scale in a short period of time. The company mainly focused on the two main strategies to grow and those are Geographical strategy and Product diversification strategy (Khan., et al., 2009:57-82). According to these strategy, the company explored all the suitable markets which can be helpful to start their market and entered all the emerging markets along with that they also introduced new products as well as old products in a new way to the market.

Talking about the role model strategy, yes, other companies can make this strategy of growth as their role model for success but that to be in special conditions. Some of them are:

  • Joint venture: If the company is in a joint venture with other company or it is planning to go for joint ventures.
  • Having ownership specifications: If the company can get the advantages of having ownership specifications as it can make it more reliable to success than others.
  • Location Specifications: If the company is in favorable condition and can get more advantage as compared to other locations can follow this strategy.
  • Globalization: If the company is having a strong network for globalization.


From the above study we can conclude that, Welspun is one of the largest group of companies which is growing at a high rate and doing its best to maintain its position. It has been expanding its brand name in about 50 countries. The path towards globalization was not so smooth but according to the people working under Mr. BK Goenka, the company overcame all the challenges and progressed towards success. Some of the challenges are faith, middleman, leaving of executive level employees and market penetration barriers. It has the highest rate of sustainability due to many factors. The company mainly focused on the two main strategies to grow and those are Geographical strategy and Product diversification strategy.


Cavusgil, S.T., Knight, G., Riesenberger, J.R., Rammal, H.G. and Rose, E.L., 2014. International business. Pearson Australia.

Cavusgil, S.T., Rammal, H. and Freeman, S., 2011. International business: the new realities. Pearson Higher Education AU.

Khan, S.R., Dhar, D., Navaid, M., Pradhananga, M., Siddique, F., Singh, A. and Yanthrawaduge, S., 2009. The Readymade Garment Sector in India. In Export Success and Industrial Linkages (pp. 57-82). Palgrave Macmillan US.

Mathur, P.M.K.K.M. and Mathur, S.S.M.N.N., 2009. New Horizons in Indian Management. Gyan Publishing House.

Pathak, P. and Singh, A., 2010. Solar Power as a Source of Ecologically Sustainable Growth in Rajasthan.

Rau, R.H.G., Lean Six Sigma.

Singh, R., 2015. India's renewable energy targets: How to overcome a $200 billion funding gap. Renewable Energy Focus, 16(4), pp.60-61.

"Welspun Group Faces Top-Level Executives Attrition". timesofindia-economictimes. N.p., 2010. Web. 13 Aug. 2016.

"Welspun Group SWOT Analysis - Strengths, Weaknesses, Opportunities, Threats Of Welspun Group. Find 100,000 More Reports And SWOT". Swotanalysis24.com. N.p., 2016. Web. 13 Aug. 2016.

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