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Company Analysis : Khs Gmbh

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INTRODUCTION

KHS GmbH is one of the leading producers of filling and packaging system in Germany. The company is based in Dortmund, Germany. The company also has production facilities in 5 countries outside Germany situated in Brazil, The United States, Mexico, India and China. KHS GmbH’s also has their branches across 83 countries around the world. The company has revenue of around 1,077 Million Euros as estimated in the year 2014 and has more than 4,500 employees in the company worldwide. The production cost in Germany is very high that the profit margin is too low. Moving the production to other foreign countries where the labour cost is lower compared to that of Germany could sort out the problem according to the management. Indonesia is an option that the company management is looking forward to start the production. The strategic location in relation to giant economies of China, India and Australia, low labour cost and access via sea route are the main advantages that Indonesia has. But, being a complex country, there are certain risks that the company should keep an eye on before investing in Indonesia.

1.INDONESIAN ECONOMY

Indonesian Economy has seen drastic changes in the last two decades. Currently Indonesia is South East Asia’s largest economy and one of the emerging economies in the world. Indonesia is ranked the 18th largest economy in the world. Looking at the history, the Indonesian economy was deteriorating and was in crisis in the

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