EXECUTIVE SUMMARY

The Klein Schanzlin and Becker (or KSB) Group is one of the leading producers of

pumps, valves and related systems. KSB has expand themselves that they are know all

over the world and mostly everywhere, where there is a new company or building the

products of ksb there its has a history of 130 years in business sector. KSB is one

affiliated group in many countries. The company’s international operation makes the

organization as manageable dimensions for short pathways. They are large enough to

offer the whole spectrum of operations and all the interesting activities one expects of

a global player. They are there in every sector of production engineering, design and

development, sales and marketing, services, materials management or in all the areas

of business administration. The aims to find out whether KSB is managing its

resources for competitive advantages by company’s key business structure and

operations, products as well as provides summary of its strategies.

The strategic method of making process within the company through porter’s

method. SWOT Analysis of the company provides Strengths, weaknesses,

opportunities, Threats as well as provides a good framework for reviewing strategy,

position and direction of a company or business proposition.

The concern about ksb global strategies is to maintain its growth. It also includes their

transformed business model through innovation that is producing sustainable

competitive advantage. Innovation and research Development are the major emphasis

on the improvement of automation of pumps and valves with the reduction of human

efforts and life cycle cost.

TABLE OF CONTENTS

INTRODUCTION………………………………………………........................4

STRATEGY ANALYSIS…................................................................................6

RESOURCES AND CAPABILITIES…………………………........................10

THE NATURE AND SOURCES OF COMPETITIVE ADVANTAGE……...13

INNOVATION AND CHANGE……………………………………………....14

EVIDENCE OF NEW STRATEGIES FOR GROWTH………………………14

ACTS OF SUCCESS…………………………………………………………..15

CONCLUSION………………………………………………………………...16

REFRENCE LIST……………………………………………………………...17

APPENDICES……………………………………………………………….....18

4

INTRODUCTION

KSB has been serving the community since 1887 which is founded in

Germany and expanded almost all over the world in 130 years. Company main

objective was innovation and development in the field of pumps and valves.KSB

Production amenities in 19 countries, marketing companies and service centres in

more than 100 countries. The ksb Group is on furnish all over the world with

approximately 14000 employees globally. With Market capitalization of € 707.6

million sales of companies, offices, agencies and more than 30 manufacturing sites.

2000 highly trained specialists from around 120 service centres offer our customers

global inspection, maintenance and repair of KSB products and even competitor

makes.

KSB PUMPS COMPANY profiles provided detailed financial data and key

credit information. KSB Pumps Company predominantly operates in the Engineering

Services sector. The Company is principally engaged in the manufacture and sale of

industrial pumps, valves, castings and related parts.

According to KSB Pakistan is an affiliate company of the world famous German

KSB Group, which was founded in 1871. The KSB Group is among the leading

companies in the field of pumps and valves with subsidiaries and affiliated companies

all over the world. The KSB name stands for the highest standards of product and

service quality.

KSB Pakistan was established July 1959 in Lahore. The production facilities at

Hassanabdal were completed in 1964 and a full fledged foundry was commissioned in

the same premises in 1980. Now the company employees over 500 people and have

Sales Office at Lahore, Karachi, Quetta, Rawalpindi, Peshawar and Multan. The

company also operates through a dealership network throughout the country.

KSB Pakistan became a public limited company in 1979 providing a broader base for

local participation. The company’s shares are traded on both the Karachi and Lahore

Stock Exchanges. The Company received the Merit Trophy for exports of the

5

Federation of Pakistan Chambers of Commerce and Industry and top company award

for exemplary payment to the shareholders by Karachi Stock Exchange.

Another award for corporate excellence and good Management practice as bestowed

on the company by the management Association of Pakistan.

During the last thirty years the company has rapidly expanded its production range to

include a large variety of pumps to serve various sectors of the economy. The new

pumps for local production have been selected to particularly meet the requi8rements

of sugar, paper and other process and chemical industries apart from meet the

requirements of drinking water supply, sewage disposal and surface drainage

schemes. The latest additions have been pumps of large capacity which are

specifically meant for irrigation and drainage applications. Pumps are produced in

various metallurgical executions including cast iron, Ni-resist cast iron, bronze and

stainless steel. The range submersible motors ranging from 3HP to over 100HP.

KSB Pakistan has been the major supplier to the vitally important control and

reclamation projects (SCARP) installed by WAPDA. In the agricultural section,

KSB’s name is synonymous with productivity and reliability. The latest technology

and know how has been made available to KSB Pakistan’s customers.

KSB Pumps are produced strictly in accordance with the design and specifications of

KSB AG in order to maintain standards of the highest quality. Comprehensive

inspection and test bed facilities are available at Works Hassanabdal to ensure

compliance with these quality standards.

The production facilities are also being regularly modernized and extended to cope

with the challenges of new product technology. The foundry is capable of producing

sophisticated automotive components apart from pump and valves casting and is

leading supplier of tractor castings in the country.

6

STRATEGY ANALYSIS:

For several years, the share pump-related services have taken in the value creation

chain has been on the increase. The term is used to describe the road from the raw

material to the consumer plus the value added at every station. In KSB Pakistan the

Structure in the designing of implementing and evaluating strategies is based on the

specific process of the organization’s mission, Vision and objectives, developing

policies and plans. A balance scorecard is often used to evaluate the overall

performance of the business and its progress towards objectives.

POTER’S FIVE MODEL:

Poter’s five forces have been analysed to develop KSB successful marketing

strategies. By focusing and analysing the structure of and dynamics between the

Five forces – Competitor, Potential new entrants, Customer, Supplier and

Substitute. KSB is working on to find the opportunities for improving upon its

marketing strategies. These forces are identified as follows.

1- Competitor:

1. Price 2. Flexibility 3 . Quality Service 4. Differentiation

5. Time. These five identify the real competitor of the business.

KSB has faced competitions’ from Kirloskar Bros. both companies have achieved

their reason of competitive advantage as well as quality in terms of product services

and innovation.

7

2- Potential New Entrants:

To be provided world class human resource with highly motivated and empowerment

to the new Entrants, which includes Local Training, Training Abroad, Service Award,

Leaves, Medical Insurance, Travelling benefits, salary employment benefits, personal

loans.

In 1970 Dawood engineering introduces new technology in the pumps and valves

business. In after that a joint venture between the cheenab engineering and dawood

revealed new entity in the business of manufacturing goods.

3- Consumer:

Product is to be provided to consumers on economical cost prevailing in the market.

All facilities such as installation, commissioning, periodically repairs & maintenance

are to be provided by the Suppliers. Suppliers as and demanded by them on Priority

basis. KSB Operates in the field of Industry and agriculture sector and industry sector

is related with the industry of spare parts which includes companies such as Toyota

and Honda. but as far as agriculture sector is concerned the actual consumer is the

agricultural land consumer.

4- Supplier:

As large organization KSB deals with lot of suppliers who are providing goods and

services to KSB as well as to its customers.

There is a supply chain Model

8

Consumer

KSB

Supplier of component group and systems

Supplier of components systems suppliers of c part

Supplier of un-machined semi finished and standardized parts

5- Substitute:

The sector is in state of rapid growth and technological development, and there fore

new competitors are coming to the sector even though the sector is dominated by KSB

As far as other companies are in they are playing good role in the market.

1. Products to be supplies on low case

2. High-performance design or high quality consistent quality.

3. Rapid delivery (on-time delivery)

4. Flexibility = Variety/Volume.

5. Superior customer service.

6. Convenience.

SWOT ANALYSIS- KSB:

In SWOT analysis you identify Strengths, weaknesses, market opportunities for your

company and threats to your business. The way to use the analysis is develop

marketing strategies that will minimize the affect of weaknesses on the business.

While maximizing the strengths. By that will help in matching your strengths against

the market opportunities.

9

1. Strengths

a. Job Knowledge

b. Productivity

c. Job perfection

d. Professional ability

e. Sense of responsibility

f. Initiative.

g. Supervisory/Managerial skills

Weakness:

All weaknesses to be pointed by the immediate

Supervisors/Foreman/Engineer/Managers of their subordinates so that corrective

measures (such as training of the relevant job, discipline, co-operation, attitude &

behaviour) are to be adopted for improvement of quality of products.

Opportunities:

Industrial Engineering.

Spare parts and other components.

Maintenance.

After sales services.

Distribution.

Sales offices chain around the country.

Operations.

Making joint venture with firms. R&D program.

Public Relations.

Showing the true picture and attracting new buyers.

10

Purchasing.

Increasing its physical and technological capabilities.

Threats:

1. Economic conditions.

The current economical condition of the country.

2. Legal environment.

The laws conflicts in the business for the legal framework.

3. Technology.

The technological changes in terms of innovation.

4. Competition.

More threats from the competitors with low pricing strategy.

5. Markets.

Business condition and the market condition.

Resources and capabilities:

1. Labour productivity

In KSB Productivity can be defined as how efficiently and effectively we use our

resources at lowest possible cost. Labour plays a very important role and consider as a

basic unit for the productivity of any organization.

There are many factors that influence on the labour productivity and it is very difficult

to measure. There are many factors that increase the efficiency and effectiveness of

any organization but labour is consider as one of an important element. Labour

efficiency depends upon their skills and knowledge towards their job. If their attitude

towards job is positive and they are internally satisfied with their job they will do their

11

work honestly and they will be loyal with their jobs and their attitude at the work

place will be better than those who are not internally satisfied with their jobs. So there

should be right people at right place.

Experience makes the labour skills high, the high experience in field leads to high

performance at workplace. More experience and high skilled employees play a very

important role in the productivity of any organization. Attitude also consider a lot... if

any employee has high skills but has poor attitude, his performance and output will be

low and this will produce a negative effect on the overall performance of any

organization. So there should be always positive attitude towards work for better

performance. Training also counts a lot. If employees have not accurate knowledge

about their work then the organization's productivity can be low. If the employees do

not know how to use the new technology or new machinery and they have no

knowledge to handle the new technology and they are not trained how to use this, then

this can produce a negative effect on the efficiency of the organization and the

organization can not compete in the market.

Motivation is also another factor in the productivity of KSB organization. if

employees are motivated by their manager their performance level is limited level.

Managers keep their employees' motivation level high they can motivate them by

fulfilling their basic needs, their safety need, he can motivate them by increase their

salary by giving them bonus on their work. they should reward their employees and

treat them equally and eliminate the discrimination among them. He should show

sympathy with their personal problems, promote their work level and should increase

their wages etc.

So these are the factors to enhance the efficiency of the labours and decrease the

efficiency of the labours. By eliminate the negative factors and increase the positive

factors KSB increase overall its performance.

12

2. Machine Productivity:

In the past KSB System for purchasing and delivering used the comet

software but analysing the in future that wont work they move to more advance level

software called sap. Machine productivity, in today's working environment, is

something we all must strive for. Software systems aim to improve efficiency through

advanced monitoring of machinery and removing the reliance on additional personnel

who would normally be required to do perform that monitoring.

3. Capital productivity:

A way of measuring a company's efficiency by comparing working

capital with sales or turnover. It is calculated by first subtracting current liabilities

from current assets.

4. Energy productivity:

Like labour or capital productivity, energy productivity measures the output

and quality of goods and services generated with a given set of inputs. The ratio of

value added to energy inputs, which is the inverse of energy intensity of GDP,

measured as a ratio of energy inputs to GDP.

Energy productivity is a useful tool with which to analyse the public-policy aims of

demand abatement and energy efficiency because it encapsulates both. By looking in

terms merely of shrinking demand, there is a danger of denying opportunities to

consumers particularly those in developing economies that are an increasingly

dominant force in global energy demand growth. Rather than seeking to reduce end-

user demand and thus the level of comfort, convenience, and economic welfare

demanded by consumers there should be a focus on using the benefits of energy most

productively.

The concept of energy productivity provides an overarching framework for

understanding the evolving relationship between energy demand and economic

growth.

13

Energy-productivity improvements can come either from reducing the energy inputs

required to produce the same level of energy services or from increasing the quantity

or quality of economic output.

Nature and sources of competitive advantage:

Nature and sources

1. Standardization:

2. Use of Internet

3. Computer viruses

4. Searching for lost or misplaced items

5. Scrap rates

6. New workers

7. Cuts in health benefits

Competetive advantage

• The emergence of competitive advantage

External sources of change

Changing customer demand

Changing prices

Technological change

• Sustaining competitive advantage

Identification

Incentives for imitation

Diagnosis

Resource acquisition

14

• Competitive advantage in different market settings

Market type

Source of imperfection of competition

Opportunity for competitive advantage

• Types of competitive advantage: cost and differentiation

Cost advantage (similar product at lower cost)

Differentiation (price premium from a unique product)

Innovation / Change:

There are plenty of innovation and changes around the world, but the most

important change is going on the Australia. With water consume and recycling the

water and in industrial sector high pressure pumps showcasing in exhibition in

Brisbane 2010.gobally Ksb innovating a product to convert the thermal heat in to

energy and use it to increased the operating reliability of optimised high suitable

handling mineral and synethic.

Maintaining innovation is critical and especially in tough times and

getting it right is as must. In 2009 KSB introduce a new pump called “ZORRO” that

was a new innovative change. That was introduced with the current study of the

customer needs. The company define its change on following factors.

1. Develop productivity measure

2. Determine critical )bottleneck) operations

3. Develop methods for productivity improvements.

4. Establish reasonable goals

5. Get management support

6. Measure and publicize improvement

7. Don’t confuse productivity with efficiency.

Evidence of new strategies for growth:-

1. All CNC Machines imported and installed

2. Modern technology is being utilized

3. Workforce/Management people are being deputed on deputed locally/abroad

for training.

4. Most of facilities beyond the Labour Laws are being extended to workforce.

15

5. Best environmental atmospheres have been provided at their workplace to

facilities the workers and enhance their productivity

Acts of Success:

1. Empowerment:

Empowerment refers to increasing the spiritual, political,

social or economic strength of individuals and communities. It often involves the

empowered developing confidence in own capacities.

2. Communication:

Communication is a process of transferring information from

one entity to another.

3. Transparency:

Transparent procedures include open meetings, financial

disclosure statements, the freedom of information legislation, budgetary review,

audits, etc.

4. Synergy:

Synergy is where different entities cooperate advantageously for a

final outcome. If used in a business application it means that teamwork will produce

an overall better result than if each person was working toward the same goal

individually.

16

Conclusion:-

KSB is one of the old companies in the world with the major business enterprise. KSB

has a responsibility to our shareholders, employees, customers and the nation to

continually improve the performance of the company and its business. Doing the

works with responsible way will lead the prosperity in the industries and communities

in which it participate, there are plenty of bigger challenges to be face yet, the way the

company is growing to innovation of technology will provide the cutting-edge

technology with less cost in internally and investment.

The competitive improvement mentioned earlier gives Ksb confidence that

if it’s prepared to take the lead in the new world. It can be seen that various strategies

are used by ksb in order to gain advantages over its competitors. In a competitive

market a company must identify its strengths, weaknesses, opportunities and threats to

strengthen the company and achieve its objectives and target different market. With

technological changes comes innovation and innovation can be good or bad for a

company and in the case of KSB innovation was perceived through vigilance.

17

References:-

KSB Pumps Pakistan 2010, KSB Pakistan History, Viewed 8 March 2010,

http://www.ksbpak.com/history.htm

Wikimapia 2010, KSB Pumps Company, Viewed 9 March 2010,

http://wikimapia.org/11552119/KSB-PUMPS-COMPANY-Rawlpindi

KSB 2010, a World of Difference, Viewed 8 March 2010,

http://www.ksb.com/ksb/web/COM/en/company/konzern/1__ueber__uns/

1a__KSB__in__Kuerze/ksb__ins__kuerze__en__index__art.html

Companies and Markets, KSB pumps company- Company Financial and Credit

information, Viewed 10 March 2010,

http://www.companiesandmarkets.com/Summary-Company-Financials/ksb-

pumps-company-126216.aspx

Anam Rauf n.d., Labour Productivity factors, Viewed 13 March 2010,

http://ezinearticles.com/?Labour-Productivity-Factors&id=3799836

McKinsey & Company 2010, What is energy productivity?, Viewed 18 March 2010,

http://www.mckinsey.com/mgi/publications/global_energy_demand/

Energy_Productivity.asp

18

Appendix 1

         

         

         

History Mission ValuesManagemen

t

Financial

Reports

Quality

Policy

 

KSB Pakistan

KSB Pakistan is an affiliate Company of the world famous German KSB Group, which

was founded in 1871. The KSB Group is among the leading companies in the field of

pumps and valves with subsidiaries and affiliated companies all over the world. The

KSB name stands for the highest standards of product and service quality.

KSB Pakistan was established in July 1959 in Lahore. The production facilities at

Hassanabdal were completed in  1964 and a full-fledged foundry was commissioned in

the same premises in 1980. Now the Company employs over 400 people and has Sales

Offices at Lahore, Karachi, Quetta, Rawalpindi, Peshawar and Multan. The Company is

ISO 9001 certified by M/s. SGS Pakistan (Pvt.) Ltd. The Company also operates

through  a dealership network throughout the country. The Company operates a full-

fledged Service Department comprising of qualified and experienced personnel

capable of undertaking turnkey installation jobs and O&M Contracts.

KSB Pakistan became a public limited Company in 1979 providing a broader base for

local participation. The Company’s shares are traded on both the Karachi and Lahore

Stock Exchanges. The Company received the Merit  Trophy for exports of the

Federation of Pakistan Chambers of Commerce and Industry and top Company award

for exemplary payment to the shareholders by Karachi Stock Exchange. Another award

for Corporate Excellence and Good Management Practices was bestowed on the

Company by the Management Association of Pakistan.

During the last three decades, the Company has rapidly expanded its production range

to include a large variety of pumps to serve various sectors of the economy. The new

pumps for local production have been selected to particularly meet the requirements

of sugar, paper and other process and chemical industries apart from meeting the

requirements of drinking water supply, sewage disposal and surface drainage

schemes. The latest additions have been pumps of large capacity which are

specifically meant for irrigation and drainage applications. Pumps are produced in

various metallurgical executions including cast iron, Ni-resist cast iron, bronze and

stainless steel.

KSB Pakistan has been the major supplier to the vitally important salinity control and

reclamation projects (SCARPS) installed by WAPDA. In the agricultural sector, KSB’s

name is synonymous with productivity and reliability. The latest technology and know

how has been made available to KSB Pakistan’s customers.

KSB pumps are produced strictly in accordance with the design and specifications of

KSB AG Germany, in order to maintain standards of the highest quality.

Comprehensive inspection and test bed facilities are available at Works, Hassanabdal

to ensure compliance with these quality standards. The production facilities are also

being regularly modernized and extended to cope with the challenges of new product

technology. The foundry is capable of producing sophisticated automotive components

apart from pump and valves castings and is a leading supplier of tractor components

castings in the country.

Appendix 2

         

         

         

 

    Industrial    Building    Waste Water    Water    Energy     GA

Drawings     Technical Literature

 

 

KVP

Vertical type, single stage, non-clogging impeller pumps suitable for sewage

and effluent disposal from industries, chemical, paper, sugar and food stuff

industries. Available for both wet and dry pit installation.

Specifications

DN Q H TEMP SPEED

65-350 up to 2700 m/hr up to 85 m up to 105 ºC up to 1450 rpm

  Download Product Intro.                            

 Download O&M Manual.

  Download Drawings.                                           

 Download Curves.

 

KWP

Single stage, non-clogging, horizontal centrifugal pumps used in process

design, suitable for mediums that contain suspended solids and viscous

substances, finds its applications in building, food, paper, sugar, sewage

and effluent industries.

Specifications

DN Q H TEMP SPEED

65-300 up to 1900 m/hr up to 120 mup to -30 ºC to

250 ºCup to 2900 rpm

  Download Product Intro.                            

 Download O&M Manual.

  Download Drawings.                                           

 Download Curves.

Appendix 3

         

         

         

 

LISTOFPROJECTS            

 

KSB Projects department is involved in new installations, rehabilitation, operation &

maintenance of water and waste water transfer and treatment systems. The Projects

department designs and

implements customized,

package systems and

installations in close co-

operation with our customers

all over Pakistan. As a

dependable partner with

decades of experience, KSB

Projects has the know-how to

offer customers, innovative

systems for all water transfer

applications.

KSB focuses on three

types of projects namely:

Turnkey construction

Rehabilitation & refurbishment

Operation and maintenance

KSB Projects provides the following Services to the valued

customers:

Complete engineering and design

Project development and optimization

Hydraulic and mechanics

Construction including all civil, mechanical & electrical works

Automation & electro-techniques

Project management & controlling

KSB Projects, provides intelligent and economically sound solutions, from planning phase

to the commissioning of the finished installation for all applications in the field of water

supply, irrigation, drainage and waste water.

In addition, KSB Projects supplies every service needed to run, maintain and monitor the

trouble-free operation of customer's installation.

KSB Projects assumes full responsibility for the process as a whole as well as for all tasks

involved in the construction of fluid transfer system and all this with a quality

Management system certified to ISO 9001.

           

Home  |  Corporate Profile    |  Services  |  Products    |  Projects     |  Contact Us

 Copyrights © KSB Pumps, Pakistan. All Rights Reserved.

  Site By: 360º - Creative Solutions

Appendix 4:

                                                                                                         

International

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Financial

Calenda

r

Financial

Reports

o An

nu

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Re

po

rts

Gr

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o An

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al

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Ak

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KSB Group: Consolidated Balance

Sheet

2008 2007

€

million%

€

million%

Assets

Non-current

assets

  Fixed assets 417.6 29.3 340.7 27.1

  Deferred tax

assets13.7 1.0 12.4 1.0

431.3 30.3 353.1 28.1

Current

assets

  Inventories 282.1 19.8 238.3 18.9

  Receivables

and other

current assets

540.4 38.1 485.2 38.6

  Cash and

current

financial

instruments

167.6 11.8 181.4 14.4

990.1 69.7 904.9 71.9

Balance

sheet total1,421.4 100.0 1,258.0 100.0

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Trade Fairs

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Meeting

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Governa

nce

Annual

Docume

nt

Contact

Investor

Relation

s

Equity and

Liabilities

Equity (incl.

minority

interest)

605.8 42.6 505.9 40.2

Non-current

liabilities

  Deferred tax

liabilities28.1 2.0 13.3 1.1

  Provisions 269.6 18.9 259.0 20.6

  Liabilities 23.5 1.7 29.6 2.3

321.2 22.6 301.9 24.0

Current

Liabilities

  Provisions 200.1 14.1 180.3 14.3

  Liabilities 294.3 20.7 269.9 21.5

494.4 34.8 450.2 35.8

Balance

sheet total1,421.4 100.0 1,258.0 100.0

Click here to download the KSB Group's

Consolidated Balance Sheet:

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KSB Group: Consolidated

Balance Sheet (german)

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Balance Sheet (english)

 

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