Factors for Constant Profit of KSB Pumps Company Ltd (2014)

Abstract

This project is on KSB Pumps Company Ltd which is a multinational company whose head quarter is located in Germany. KSB is the leading supplier of pumps, casting and automotive products. Since 2014 KSB profit ratio is not up to the mark, management is not able to achieve targeted profit ratio. Factors for constant profit have been identified in order to overcome come the issues like no shareholders wealth maximization, unable to improve its operations and unable to expand its business After conducting interviews with top management and doing labor force survey factors that have been identified are:  Old infrastructure  Labor intensive setup  Higher rejection rates  Higher maintenance cost These factors won’t let KSB to achieve targeted profit ratio because these factors costs very high to KSB and due to this KSB is not able to target more customers in order to get more business. To overcome this issue, management has to replace old machineries with the new one, which will be fully automatic plant and from that all these factors will be eliminated and production capacity will also increases which let management to target more customers in order to increase revenue.