The primary objective behind establishing "Sumitomo Electric Hardmetal India" was to capture untapped market segments where their existing distributor, Motherson, had limited or no presence. However, even after two years of operation, the company has failed to significantly increase its revenue or acquire a strong base of potential customers.
This indicates that the foundational purpose of setting up the subsidiary has not been achieved. The current management appears to be maintaining operations without meaningful strategic direction, drawing substantial salaries while delivering no notable sales growth.
Moreover, a critical metric further supports this concern: more than 75% of the company’s total business still comes from Motherson, highlighting that the independent presence of Sumitomo Electric Hardmetal India in the market remains negligible
