3M Israel Ltd., a subsidiary of US manufacturing giant 3M Co. (NYSE:MMM), is restructuring. Incoming 3M Israel CEO Ajay Nanavati has decided to change 3M policy in Israel and to focus on products with potential growth in the domestic market, instead of handling tens of thousands of 3M products. He promised to double 3M Israel’s turnover, estimated at a few tens of millions of dollars, within five years. 3M develops and manufactures products in a range of industrial sectors, and has an annual turnover of $21 billion.
Nanavati told “Globes” that, under the restructuring carried out in recent months, 3M Israel was refocusing from products to market segments. For this purpose, five managers have been appointed for market segments: healthcare, transportation, electronics, construction and infrastructures, and consumer products. The sector managers will replace structure of product managers that his been in effect since 3M Israel was founded in 1996. As a result of this change, he said, “3M Israel has become a pioneer in 3M Co., which is adopting this new structure.”
3M Israel currently has 65 employees. Nanavati said every dentist in Israel knows about the company’s products, as do hospitals, which use its sterilization products, and manufacturers. Most green road signs and reflecting tape are 3M products. “I believe that we under-penetrated. 3M began operating in Israel ten years ago, but we lost opportunities to develop during the intifada and recession,” he said, adding, “Our level of penetration here is so low that the chances of growth are high.”
Nanavati said that 3M Co. was committed to 3M Israel’s growth, and that the company was hiring, and investing in training and infrastructure.
Nanavati said 3M Israel had 200 customers. These include Israeli subsidiaries of 3M Co.’s international customers, such as Alcatel (NYSE: ALA; Paris: CGEP), Hewlett Packard Co. (NYSE:HPQ), Intel Corp. (Nasdaq:INTC), Motorola (NYSE: MOT), and Nokia (NYSE; LSE: HEX: NOK). The company also plans to tighten relations with Israeli companies, in order “to create relations with the end consumer and become a problem-solver, not just a marketer,” he said. “We’ll take measures to strengthen 3M’s brand, especially in industrial forums and trade shows.”
Published by Globes [online], Israel business news - www.globes.co.il - on August 3, 2006
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