PUNJ LLOYD – MARCHING AHEAD AT BRISK PACE

The caselet details the various operational areas of Punj Lloyd, especially in hydrocarbons, infrastructure and services. It also focuses on the market segmentation initiatives of the company on the basis of high growth and potential markets. The caselet also examines how the implementation of aggressive growth strategies in a phased manner helped the company bag many domestic and international projects.
Issues:
Q1. Importance of strategic planning

Q2. Benefits of effective market segmentation initiatives

Q3. Implementing aggressive growth strategies in a phased manner

Introduction
As on September 30, 2005, Punj Lloyd Limited (PLL), the engineering, constructions, and services company operating in the Engineering, Procurement and Constructions (EPC) domain had generated 56.28 percent of its total revenues from the projects executed outside India. This was possible due to the increased number of orders that PLL bagged from other countries in the last few years.
PLL was established as a public limited company under the Indian Companies Act in 1989. PLL started its operations in the engineering construction domain, primarily in the pipeline laying segment. This family operated enterprise expanded its operations into construction of tankage and terminals, infrastructure services, construction of process plants in the petrochemical industry, turnkey telecom solutions, engineering services, plant and machinery management and maintenance, and construction of power plants. In 2004, PLL entered into the broadband services sector by establishing Spectranet, a division of PLL.
The company has achieved this position in a short span of ten years. As of November 2005, SIL produced 21,000 MT of yarn per annum and 10 million meters of fabric per day through its weaving operations with an installed capacity of 125 looms or weaving machines…

Questions for Discussion:
Critically analyze the growth strategies adopted by Punj Lloyd. Discuss the major factors that contributed to its success.
Punj Lloyd identified the foreign market as a major focus. Discuss the pros and cons of this approach.