FlowServe Corporation

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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
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r
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t
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g

M
a
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g
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%

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
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g
i
o
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S
a
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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
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k
e
t

G
r
o
w
t
h

R
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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

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