Business Management Factory Relocation
Should Lypsa Diamonds relocate its factory from Mumbai to Surat?
Candidate name: Sahil Patel Candidate number: 002151-041 Word Count: 1976
RESEARCH PROPOSAL
RESEARCH QUESTION
To evaluate if Patel Diamonds should relocate its factory from Mumbai to Surat.
RATIONALE FOR STUDY
Patel Diamonds is one of the largest retailers of diamonds in the local Indian market. It is also a major diamond exporter with interests in most global diamond centers. Presently, Lypsa Diamonds has its manufacturing facility in the suburbs of Mumbai comprising 100 mills with a monthly production of around 15000-20000 ct.
A sharp increase in the prices of rough diamonds coupled with inflation has caused a major increase in costs of productions, cutting profit margins substantially. Profitability can be increased by minimizing production costs and one way of doing this would be to consider relocation of the factory. The project aims to evaluate the relocation of the factory from Mumbai to Surat, taking into consideration the qualitative and quantitative factors.
THEORETICAL FRAMEWORK
Introduction
An overview of the diamond manufacturing industry
The company profile
SWOT analysis of Surat and Mumbai as locations for the diamond processing industry
Qualitative analysis identifying the strengths, weaknesses, opportunities and threats of both the locations.
Investment Appraisal
Financial analysis using NPV, ARR and Payback to evaluate both the options.
Projected profit and loss statement
The projected profit and loss statement of the company with the two different locations and the use of profitability ratios to evaluate the choice.
Impact on Human resources
Potential effects of relocation on the management staff and the laborers and the recruitment and training needs.
METHODOLOGY
Collect primary
Candidate name: Sahil Patel Candidate number: 002151-041 Word Count: 1976
RESEARCH PROPOSAL
RESEARCH QUESTION
To evaluate if Patel Diamonds should relocate its factory from Mumbai to Surat.
RATIONALE FOR STUDY
Patel Diamonds is one of the largest retailers of diamonds in the local Indian market. It is also a major diamond exporter with interests in most global diamond centers. Presently, Lypsa Diamonds has its manufacturing facility in the suburbs of Mumbai comprising 100 mills with a monthly production of around 15000-20000 ct.
A sharp increase in the prices of rough diamonds coupled with inflation has caused a major increase in costs of productions, cutting profit margins substantially. Profitability can be increased by minimizing production costs and one way of doing this would be to consider relocation of the factory. The project aims to evaluate the relocation of the factory from Mumbai to Surat, taking into consideration the qualitative and quantitative factors.
THEORETICAL FRAMEWORK
Introduction
An overview of the diamond manufacturing industry
The company profile
SWOT analysis of Surat and Mumbai as locations for the diamond processing industry
Qualitative analysis identifying the strengths, weaknesses, opportunities and threats of both the locations.
Investment Appraisal
Financial analysis using NPV, ARR and Payback to evaluate both the options.
Projected profit and loss statement
The projected profit and loss statement of the company with the two different locations and the use of profitability ratios to evaluate the choice.
Impact on Human resources
Potential effects of relocation on the management staff and the laborers and the recruitment and training needs.
METHODOLOGY
Collect primary