enron international

8/12/2019 Enron International

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ENRON INTERNATIONBusiness Plan in INDIA


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Using relevant information given in the case study and appropriate conceptualconcepts related to international environmental analysis, consumer behaviorand country entry modes, critically analyze Enron Internationals businessstrategy for India?


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Market Summary

Enron, established a subsidiary, Enron International, and gave it theof building and running power generation projects in the developing

Enron would set up two LNG terminals and units in India, one at Daat Ennore in the state of Tamil Nadu.


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Opportunities to Learn

Bombay fields not able to supply LNG

LNG imported from Gulf of State of Qatar 170 State and Federal permits

- How to get the work done in India.

Corruption charges by BJP and Shivsena

- Enron was able to know the political environment State government not letting them survive

- Strong agreement and public survey protects them


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Business Concept

Enron International had plans to invest $20 billion in India.

Become a maximum producer of LNG in India by 2010


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Risks and Rewards

$4 Billion investment by couple of investors and State owned QatarPipeline Co resulting 15% annual growth in Shareholders income

Sued State government and rewarded by immediate effect on govern

Custom Inspector charges duty at different rates.

Risk of holding public opinion rewarded by 60% Indian support.

Risking $20 Million in training workers.

22.6% decrease in power rates in return walk away with 2450MW pplan.


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Key Issues of the success Central Government support.

Strong agreement with the government. Public opinion support


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Why DABHOL???

Government in Maharashtra and Government headed by Congress.

Located near western coast i.e. comparatively closer to Qatar. Dabhol encouraging foreign investors to invest.


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Enrons Business Strategy for India

Because lot of political interferences and political conflicts the businstrategy has to be designed as follows-:

Not to trust on the government policies and entry modes as most of tare being managed by government servants/workers/policy makers athese are just a matter of entry restrictions.

A strong contract so that minimization of future problems.

Maintain a good relation with the Central Government.

A good public relation required.

Factory setup at the Indian Western Coast transportation cost is bit l


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Other factors resulted ENRON succes

Public support 80% of Maharashtra and about 60% of the whole nat

Reframing of policies and agreement between Enron and Indian Gov

enron international

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