Find the cost analysis and strategy that would work in the Indian market?

McRishi Anela has recently taken up a new assignment as Head of Marketing at MNZ Gmbh MNZ is a Germany based engineering firm manufacturing and selling industrial engineering products. The firm manufactures rubber steel gaskets, metal expansion joints, PTFE expansion joints, camarofile gaskets, etc. The firm has just taken note of the Indian market and wants to set up operations in India Rishi is just back after meeting his boss in Germany. When he visited the manufacturing plant at Germany, he realized that quality was the single watchword and no effort would be spared to produce gaskets of the highest quality. His boss had indicated during the deliberations, that emphasis on quality made low cost of production impossible. Rishi, however is aware of the single biggest problem in India-the local competition. Local manufacturers could offer rubber gaskets which were cheap, had a reasonable life and the existing users had no cause to look for an alternative. He is trying to put together a cost analysis and a strategy that would work best in the Indian markets. The following is the cost structure of some of the low end", rubber steel gaskets products produced by MNZ. Macturing Marketing Marcial La overheads RX overheads R Rubber Gaskets Rubber . Gaskets A sample of one of the high end metal expansion joint is as follows: Manufacturing Marketing overheads R 6.000 3.0 4. 4. Exhibit Balance Sheet of MNZ Gmbh (Extract of piping Division) Liabilities Share Capital Long Term bains Short term loans 500,000 300.000 200.000 Fixed As Accounts Receivable Inventory Cash Total 250000 3.10.00 Total 1.OK.CO 1.OK McRishi Anela has recently taken up a new assignment as Head of Marketing at MNZ Gmbh MNZ is a Germany based engineering firm manufacturing and selling industrial engineering products. The firm manufactures rubber steel gaskets, metal expansion joints, PTFE expansion joints, camarofile gaskets, etc. The firm has just taken note of the Indian market and wants to set up operations in India Rishi is just back after meeting his boss in Germany. When he visited the manufacturing plant at Germany, he realized that quality was the single watchword and no effort would be spared to produce gaskets of the highest quality. His boss had indicated during the deliberations, that emphasis on quality made low cost of production impossible. Rishi, however is aware of the single biggest problem in India-the local competition. Local manufacturers could offer rubber gaskets which were cheap, had a reasonable life and the existing users had no cause to look for an alternative. He is trying to put together a cost analysis and a strategy that would work best in the Indian markets. The following is the cost structure of some of the low end", rubber steel gaskets products produced by MNZ. Macturing Marketing Marcial La overheads RX overheads R Rubber Gaskets Rubber . Gaskets A sample of one of the high end metal expansion joint is as follows: Manufacturing Marketing overheads R 6.000 3.0 4. 4. Exhibit Balance Sheet of MNZ Gmbh (Extract of piping Division) Liabilities Share Capital Long Term bains Short term loans 500,000 300.000 200.000 Fixed As Accounts Receivable Inventory Cash Total 250000 3.10.00 Total 1.OK.CO 1.OK