HUSKY INJECTION

MOLDING SYSTEM

Group No 4
Santosh K Pant
Rohit Dubey
Viswajeet Sahu

Husky Introduction

Known for building highest performance

Machine in business & Charging hefty premium
for that
In 1990s enjoyed explosive growth with
revenue from $ 250 Million in 1992 to more then
$600 Million in 1995
Net income quadrupled and company registered
a return on equity approaching 40%
After 1995 Maintaining its position becomes
difficult for husky as Competitors started
invading lucrative market of Husky

Market Study : Plastic Sector

Types of Player of trillion
Dollar plastic sector

Processor
Processor
Manufacturers
thousand of plastic
products
and
sell
them to downstream
manufacturer, retailer
and End consumer
Example's
are
automobile
dash
board and bumpers,
food
packaging

Resin
Maker
They used to
produce resin
from
petrochemicals
like BASF /Dow
chemicals & Du
Pont .
Resin came in
Various form like
Poly propylene,
Polyethylene

Equipment
Manufacturer
Equipment
manufacturer like
Husky and others use
to make machinery
which used to convert
Resin into final
products

Injection Molding

Willingness to Pay: Comparison of preform systems (Exhibit : 6)

Saving of Purchasing Expense

Saving On Raw Material

Savings on Electricity Consumption and on Floor

Space

Weight of Preforms /Year=Quantity * weight of preform*365

=370523.04*24.39*365
=3298525785 gms

Saving on electricity=3298525785/1000*0.137*0.08
=$36151.84/Year
Savings on floor Space
Each Husky system can save 8.7 sq ft if rent is assumed to be
10$/sq ft/Month then savings in rent will be
=8.7*10*12= $1044/Yr

Why Husky System was preferred by customers

Saving in purchase expense= $0.14 Million

Saving on Raw Material = $2840/ Year
Savings on Electricity =$36151/Year
Saving on Rent @$10/sqft/month= 1044/year

Consumer can save 0.14 Million dollar on purchasing

expense with additional other savings as mentioned
above with better quality product as mentioned in
exhibit few blemishes and less bursting pressure

Husky Crisis Causes

Shortage of resin
i. 58% of total cost (Exhibit 3)
ii. Demand of Husky product dropped
. New entrants and competitors
i. Not responded in desired manner to market changes
ii. Low cost product supplied by Competitors eg Mannesmann Group
. Narrow Range of products
i. 70% Revenue from PET system
ii. Focused only on 10% Market of Medium Tonnage Machines
. Low production Volume
i. Only 300 Machines /year
ii. Could not able to reach Economies of scale

How should Husky Respond

Strategy of Husky towards

Competitors
Short Term :

Should focus on emerging

Market Like Asia as revenue
generated
are
comparatively lesser in this
zone.
Customer
relation
ship
Management
i. Enhance sales team
ii. Convey
advantage
of
Huskys
products
to
customer

Long Term :

Cost Cutting: By expanding

to new Markets like Asia
where
scope
of
cost
reduction is there.
Increase bargaining Power
over suppliers
i. Build inputs instead of
purchasing from them
ii. Strong
product
differentiation is required
. Diversification in new area
like automotive.
. Must start working for high
and small tonnage machines
also