The KK Group was founded in 1972 in Kolkata, India and has a current worth of $9 million. It operates several companies focused on supplies for mines and minerals. The document discusses divesting KAL, the water management division located in Noida, for $5 million to focus resources on expanding the core rubber and conveyor businesses globally. KAL produces tube settlers, tube filters, and plastic fills for cooling towers, with a domestic market size estimated at $11 million realistically. Divesting KAL would provide cash to strengthen global operations per the founder's request and consolidate multi-location management.

1. KUSHAN AQUA LTD.
Presented by:-
Soumya sharma
Sugandha Ghosh
Priyamvadha Awasthi
Prsenjit Basu
Rituraj

2. About The KK Group
 KK Group started its operations in 1972 by Mr.
Krishna Kumar in Kolkata.
 The overall worth of the company is $9 million dollar.
 Global presence in rubber liners and conveyor
components for mines and mineral industries.

3. Companies under KK Group
 First venture was Megha Ltd; a collaboration with
Swedish firm in the business of rubber liners and other
products relating to mining.
 Another venture was Mars which was into supplying
conveyor components.
 Kozley; it was into supplying cyclones for separating solids
from liquids, main customer were iron ore mines.
 HMPL was in supplying wear resistant components and
sheets from high molecular weight plastic.
 Another venture was KAL which was totally out of the line
venture it was into Water Management.

4. KK Group Consolidated view
(2001)
COMPANY LOCATION SALES IN US $ Million
1. Megha Ltd Kolkata 3.5
2. Kushar Aqua Ltd. Noida 4.0
3. Mars Kolkata 0.5
4 .Kozley Kolkata 0.25
5. Hi Molecular Plastic
Ltd.
Hyderabad 1.0
TOTAL 9.25
The financial health of HMPL and Kozley was not strong,HMPL with
worth of US $1 million had losses of $1.2 million and long term debt
of 1 million

5. Problem Statement
Mr. KK wants to strengthen the group’s global
presence in the rubber liner and conveyor
components and consolidate all the operations in
Kolkata. For this he wants to divest KAL ($5
million) which was into water management based
in noida and invest that in development of core
business.

6. KAL’s Product Market Scope
 Set up in 1988 in noida.
 Collaboration with German firm; Goliathe.
 KAL’s business was divided into two groups;
*Cooling Tower Division
*Environmental Group
 Under CTD’s there biggest competitor was Himalayan
Towers with the total market share of 70% in India.
 KAL enjoyed leadership in EG’S with market share of 90%
in india.

7. KAL’s Product
1) TUBEX: “Tube Settlers” for water treatment-
it is a PVC tube for settler of solid liquid separation in
water clarification.
 KAL was the largest producer of PVC tube
settlers in asia.
 Exported to various countries like
usa,canada,japan and so on with an expected
order worth of around US $0.5 million.
 Supplier to municipal corporation and NTCP.
 Average sales for last five years is $0.3 million
per year.

8. 2) BIODEX; Tube filters for waste water treatment-
It is a media for aerobic and anaerobic application for Biological
Oxygen Demand reduction in industrial and domestic waste
water treatment plants.
 This product has contributed in environmental protection and
land savings.
 Average sales $0.8 million per year.
3)PLASDEX: plastic fills for cooling towers-
It is PVC fill material used in cooling towers for transfer of heat.
 Manufactured in three different sizes as per the need of water
quality.
 Average sales $1.25 million per year.

9. Market Study Of KAL products
 The demand was linked to investments in projects.
 Acceptance of ‘Counter flow designs’.
 Other source of demand could be ‘retrofitting’.
 Retrofitting and replacement contribution :- 10-20%
 Annual sales accounted by exports is 10%
Market size estimates(In US $ Million)
 Potential estimated is $15 million.
Optimistic $8 $7.5 $15.5
Realistic $6 $5 $11.00
Pessimistic $4 $2 $6.00
Cooling tower EG total

10. Expected Average Sales/year(In US $ Million)
 Realistic level of projection could be achieved by sustaining
aggressive market development activities.
 Water management has to gain more prominence in India .
 Marketing function within KAL is recommended.
 KAL has Future products.
Domestic Exports Total
Optimistic $7 $2 $9
Realistic $4.5 $1 $5.5
Pessimistic $3 $0.5 $3.5

11. KK group Future Plans & Possibilities
 Transformation of his group from “Local” to a “Global” company.
 Major emphasis on globalization.
 Global market--- Mining products:- US $120 million
Conveyor belts and other products:- US $250million
 Branches offices in Ghana, Australia, USA & Indonesia.
 By the year 2000, Size of company should have been US $50million
but it was only US $9million.
 Reduce the turnover of the Executives.
 Wanted to devote his time to the operations in Kolkata.

12. REASON FOR KAL’S DIVESTMENT
•Mr. Krishna Kumar’s desire to consolidate and focus
towards the globalization
•It was stressful to manage multi location plants
•Healthy position of KAL, a major reason behind its
dilemma of divestment.
•Cash Inflow of US $ 5million could be utilized towards
strengthening KK group’s global business