Flowserve provides pumps, valves, seals, and other industrial products across several divisions. It generates the majority (41%) of its revenue from the oil and gas industry, followed by general industries (22%) and chemicals (19%). While North America accounts for 33% of sales, growth opportunities exist in expanding into high-growth regions like Asia Pacific and the Middle East. To drive future growth, Flowserve should focus on developing new products, penetrating high-growth markets like water treatment and pharmaceuticals, and pursuing strategic acquisitions.
Flowserve provides pumps, valves, seals, and other industrial products across several divisions. It generates the majority (41%) of its revenue from the oil and gas industry, followed by general industries (22%) and chemicals (19%). While North America accounts for 33% of sales, growth opportunities exist in expanding into high-growth regions like Asia Pacific and the Middle East. To drive future growth, Flowserve should focus on developing new products, penetrating high-growth markets like water treatment and pharmaceuticals, and pursuing strategic acquisitions.
Flowserve provides pumps, valves, seals, and other industrial products across several divisions. It generates the majority (41%) of its revenue from the oil and gas industry, followed by general industries (22%) and chemicals (19%). While North America accounts for 33% of sales, growth opportunities exist in expanding into high-growth regions like Asia Pacific and the Middle East. To drive future growth, Flowserve should focus on developing new products, penetrating high-growth markets like water treatment and pharmaceuticals, and pursuing strategic acquisitions.
Flowserve provides pumps, valves, seals, and other industrial products across several divisions. It generates the majority (41%) of its revenue from the oil and gas industry, followed by general industries (22%) and chemicals (19%). While North America accounts for 33% of sales, growth opportunities exist in expanding into high-growth regions like Asia Pacific and the Middle East. To drive future growth, Flowserve should focus on developing new products, penetrating high-growth markets like water treatment and pharmaceuticals, and pursuing strategic acquisitions.
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The document provides an overview of Flowserve's main product segments, industries served, geographic revenue breakdown and growth, as well as strategic analyses using BCG matrix and Ansoff's matrix.
Flowserve's main product segments are pumps, valves, seals, actuation and instrumentation. The key industries served are oil & gas, general industries, chemical, power and water. Oil & gas accounts for 41% of sales.
North America and Europe currently generate the most revenue but have saturated markets. Asia Pacific and the Middle East show the most growth potential. North America grew slowly from 2010-2012 while Asia Pacific and the Middle East grew faster.
Product Overview
Product Segment Products
Pumps Valves Seals Actuation & Instrumentation Steam traps & systems Hydraulic decoking systems Energy recovery devices Monitoring and control Heritage brands Engineering Product Division Industrial Product Division Flow Control Division Product Overview Future Focus Industry Industry Sales Oil & Gas 41% General Industries 22% Chemical 19% Power 14% Water 4% Sales % Water Treatment Equipment market CAGR 7.4% till 2018 as per bloomberg news
Wasewater treatment equipment market in North America holds $216mn in 2013 with CAGR of 10.1%
North America holds highest pharmaceutical machinery market share of 34% with CAGR of 4.3%
Automotive Industry profit development North America holds 23 % profit share among geography share [ Source McKinsey research report ]
Revenue Region Revenue Region Growth Mostly flowserve depends on North America and Europe market as both are saturated Most expansion should focus on Asia Pacific region and Middle East North America 33% Europe 21% Asia Pacific 20% Middle East & Africa 16% Latin America 10% Region Sales 2012 Segment Revenue Segment Revenue Segment Margin 50% 31% 19% Segment Sales % EPD FCD IPD 2012 2011 2010 EPD 33.8 34.6 36.4 FCD 34.8 34.7 35.3 IPD 24 22.5 25.6 0 5 10 15 20 25 30 35 40 O p e r a t i n g
M a r g i n
%
Segment Margin Revenue Growth Rate -80.00 -60.00 -40.00 -20.00 0.00 20.00 40.00 60.00 2012 2011 2010 Y o Y
o n
R e g i o n
S a l e s
YoY Region Growth 2012-2010 North America Europe Asia Pacific Middle East & Africa Latin America OTSW Opportunities 1. Pharmaceutical , Food & Beverage , Dairy Industry should be focused. 2. Customized System solution for the serving Industry 3. New product development such as Angle , Diaphragm , Cryogenic Valves 4. Branding activities such as donated few billions for flood activities . Threats 1. Many emerging local players with same quality and supply. 2. Providing customized solution like Valve , Actuator , Air supply with control cabinets . 3. Emergence of multiple product focused Industries with same application & system solutions 4. European products well know for Quality. Strength - 1. Mergers & Acquisition , 2. 170 Quick Response Centre turn delivery shorter , 3. Service support , 4. Global presence , 5. Acquired company & brand values , 6. Cash rich company Weakness - 1.Less product development focus , 2. Lack of Product portfolio , 3. Less focus on product development on Medium range of size ( Such as Water Treatment , Automotive , Metal Productions , etc . 4. More mergers and Acquisition fading Flowserve originality. OTSW BCG MATRIX STARS Oil & Gas FCD products QUESTIONS Middle East Water , Pharmaceutical & F & B segment CASH COWS IPD Products DOGS Latin America
M a r k e t
G r o w t h
R a t e
Relative Market Share Market Growth Oil & Gas segment serves more revenue with FCD division contribute secondary revenue but high margin Capturing more markets where more oil & gas segment grows IPD product market grows very low Market Share Middle east having more opportunities for Oil & Gas segment . But turn over very less from these region Water , Pharmaceutical , F & B market grows well in North America , But contribution of sales is very less Latin America market is very low growth as well as less share
BCG MATRIX ANSOFFS MATRIX MARKET PENETRATION Take the market share of competitor by delivering value or convincing PRODUCT DEVELOPMENT- More Focus to develop new products such as Customized to make barriers for competitor entry MARKET DEVELOPMENT Doing through Mergers & Acquisition DIVERSIFICATION Different segment focus FLOWSERVE