Rajratan Global Wires: Expansion and International Location Choice
Prashant Salwan
Indian Institute of Management Indore, India
Nilesh Kate
Pune Institute of Business Management, Pune, India
Volume 18: 2023, pp. 371-384; ABSTRACT
The case highlights Rajratan Global Wires Ltd. (RGWL), a major player in the tire bead wire manufacturing and global supply industry. Based in India, Sunil Chordia, Chairman and Managing Director of RGWL, was carefully considerding the most effective strategy for advancing the company’s growth. The critical decision was whether to expand the capacity of the exsiting Thailand plant to 60,000 tons annually and/or to seek out new expansion opportunities domestically in India or further afield, to cement RGWL’s standing as a top-tier manufacturer of tire bead wire at the global level. The case is pertinent for analyzing the strategic implications of expanding production capacity domestically or in a foreign country. Students learn how to use capacity planning and numerical calculations along with cost-benefit analysis to arrive at a suitable decision.
Keywords: global supply, location decision making, tire bead wire, India, Thailand
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