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Electrotherm (India) Ltd.
Presentation Scope
• Electrotherm (India) Ltd Introduction Vision & Values
Initiatives
• Electric Vehicle Division Objectives Strategy Strengths Achievements
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ET - Introduction
Electrotherm (India) Ltd.• In 1983, Electrotherm (ET) was started by, Chairman &
CTO, Mr Mukesh Bhandari and our MD, Mr. Shailesh Bhandari, as a firm to service metallurgical equipment
• With his expertise in the field of ‘Power Electronics’ & the team he created, the small service setup soon became a designing & manufacturing unit to make small metal melting equipments
• In 1983, Indian metal melting industry was dominated by multinationals like Asea Brown Boveri, General Electric Company, PILLAR, etc.
Electrotherm (India) Ltd.
• The company designed, developed, manufactured and sold metallurgical equipments (that were being imported during those days) to the customers at a very competitive price
• ET’s Value Proposition- Customize offerings, robust design, timely delivery & efficient after sales services –gave a competitive advantage to ET over Multinational companies
• Today ET stands amongst the foremost engineering companies manufacturing and supplying induction melting equipments to the world having its network at as many as 30 cities in India and also in 27 countries around the world including Africa, Bangladesh, Iran, Malaysia, Pakistan, South Africa, Turkey, Russia and other CIS countries
• More than 18 million tonne of Steel being produced in India is on the Induction Furnaces manufactured by Electrotherm
• ET not only manufactures capital equipment for metallurgical/ Steel Industry but expanded into execution of turnkey projects worldwide to setup steel & DRI Plants
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Electrotherm (India) Ltd.
• In 2003, Considering the growth opportunities available in India, ET has decided to diversify into other businesses i.e. Steel making & Electric Vehicles.
• Diversification gave the company exponential growth for continuously five years. Electrotherm turnover has increased from 6.5+ Mn USD in 2003 to 450+ Mn USD in 2009-10, a CAGR of more than 90%
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Electrotherm (India) Ltd.
Electrotherm (India) Ltd.
Business Today, a leading business magazine in India has ranked – Electrotherm as the “India’s Fastest Growing Mid-size Company” for the year 2007 –08 and IncIndia rated it amongst the top 75 companies of the 500 mid size companies in 2009-10
Business Today June 2008 issue
Turnover (in m USD)
0
50
100
150
200
250300
350
400
450
500
2003-04 2004-05 2005-06 2006-07 2007-08 2008-09
Year
(in
m U
SD
)
Electrotherm (India) LtdSTRATEGIC BUSINESS UNITS • Engineering, Capital and Projects Division
- Started in 1985, the first division of the company
- Manufactures induction furnace and other capital equipments
- Execution of turnkey projects in making iron and steel industries
• Special Steel Division
- Started in 2003-04
- Manufactures steel products such as TMT bars/Construction steel
- Production capacity of 150,000 TPA for TMT bars/Construction steel
• Electric Vehicle Division – Auto Division
- Electric vehicle division started in Feb’06
- Brand Yobykes
Electrotherm has started a new company ET Renewables to tap Solar market
Initiatives
ERP – Implementation
ConnEcT is project to build a system driven organization, we are implementing SAP at
each SBU’s
• KPMG, has been hired to formulate the HR policies and Organization structure
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HR Transformation
People First – The Appreciating Asset
Electric Vehicle Division (Auto)
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Journey from Steel to Wheels
The ‘power electronics’ involved in control of Furnaces finds application in electric two wheelers. This gives the company
distinct competitive advantage in Electric Vehicle market.
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• ET started working on development of hybrid electric bus in the year 2002
• In 2004 Electrotherm decided to enter the electric two wheeler market
• Brand name Yobykes
Electric Vehicle Division
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Creative Translation
YObykes is the economical, convenient, safe, environment friendly and suitable option available
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OBJECTIVES
• Yobykes to be an EV leader in Indian market with market share upwards of 25%
• Make market interventions to change supply side (Electric 2W manufacturers) from Pure Competition situation to (more than 100 players) to a four or five large player market
• Reach 0.25 million sales by 2014-15
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You can’t force
an idea that isn’t ripe.
And.
You can’t stop an idea
whose time has come!!
Product Range
Strategy Implementation
Developing new products with higher speed, capacity to meet need of Indian consumer
xplorWith 24Ah & 33Ah
Strategy Implementation
Developing new products with higher speed, capacity to meet need of Indian consumer
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250 W 500 W 750 W 1000 W 1500 W 1750 W
24 Ah
33 Ah
40 Ah
20 Ah YOsmartYO Electron
YO electron ER
YO Style
YO Speed
YO Exl
Motor Power
Bat
tery
Product Range
46 Ah YO Exl ER
YO Xplor
Manpower
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Mr. B. K.Vaishya Sr. VP - R & D BHEL
Mr Arun Pratap Singh VP & SBU Head - Auto TATA Motors
Mr Pounit Varshney GM - Sales & Marketing Yamaha
Mr R S Tyagi GM – Zonal Sales Hero Motors
Mr Shrikant Pathak DGM - Service LML - Piaggio
Mr C Balagopal DGM - South India Bajaj
Mr Mukul Mathur ZM - East India Force Motors
Mr. Ullas Kalele Plant Head Kinetic
Mr. Sunoj Nair Manager – International Business Yamaha
Mr Jitendra Patel ABM TAFE Tractor
Manpower
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Mr Manoj Bidani DGM - Vendor Development Hero Motors
Mr Kailash Sharva AGM – Design Hero Motors
Mr. Nitin Jain Manager – Sales (Gujarat) Kingfisher
Mr Girish Potdar Manager - Service & Spares Kinetic
Mr Subodh Mahulikar Sr Manager - Serivce & Spares Royal Enfield India
Mr. G Vishwakarma Sr. Manager - Prodn GM
Mr. CB Mishra AGM - Stores Hindustan Motors
Mr. Sanjay Bhatnagar Sr. Manager - Quality Kinetic
Mr Vijay Mathur ABM - Rajasthan Mahindra
Mr Rajesh Srivastava ABM - UP (East) Kinetic
Mr Sanjay Khare ABM- Maharashtra Scooters India
Mr B Nair ABM - AP Hero Motors
Manpower (Contd.)
Strengths
• ET is led by the Chairman who is also the CTO
• Strong in-house R&D team working to innovate and bring to market state-of-the-art products. (product improvements, new products, ARAI approvals)
• Strong organizational commitment towards electric auto products
• State-of-the-art manufacturing plant with installed capacity of 288,000 vehicles per annum.
• Investment in technology (motor/battery).
• National presence for electric two wheelers in an year’s time
Our Strength
• Top notch industry professionals from manufacturing, production, quality assurance, business development, sales, service, logistics becoming part of EV team
• A very strong service network to ensure total customer satisfaction at every stage
• Strong Alliance: Mudra, Indicia research, Kaizen Institute.
• Investing into training of dealer technicians and sales staff. (have trained more than 600 dealers/dealers’ staff )
• Strong dealer profile: auto and retail
Our Strength
• Setting up In house manufacturing of critical components (motor, battery, controllers)
• Have invested upfront into brand building and will continue to do so in the future.– Strong presence on TV and in print– Effective PR work– Auto Magazines– Neo wheels
Our Strength
Network
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• To achieve initial volumes• To ensure efficient and timely customer
support at doorstep • To gain confidence of being a National
Player • YOWorld • YOPoint • YOService • LGO
Build Strong pan India Distribution & Customer Support
Network
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Leading the revolution
Phase 1: GujaratQuickly grew it to about 26 dealers in a couple of months
Build Strong pan India Distribution & Customer Support Network
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Phase 2: Western & Central IndiaExpanded the network to about 120 YOworld across 8 states
Build Strong pan India Distribution & Customer Support Network
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Phase 3: Pan IndiaThe only brand to have an All India presence
Build Strong pan India Distribution & Customer Support Network
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Nationwide exclusive network of 200 YOworlds (3S)
Availability of workshop, spares after sales service is critical to the growth of this category
Build Strong pan India Distribution & Customer Support Network
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Service Station equipped with Test equipments
Build Strong pan India Distribution & Customer Support Network
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Trained more than 3000 – Local garage owners & puncture people for small checks and repair
Build Strong pan India Distribution & Customer Support Network
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– Good showrooms
– Workshops
– Trained manpower
– Customer education
Provide a superior electric vehicle buying experience to the consumer
We have trained more than 1000 dealers/dealers’ staff in last 1 yr
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A superior electric vehicle buying experience to customer
Good showrooms
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Good showrooms
A superior electric vehicle buying experience to customer
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Good showrooms
A superior electric vehicle buying experience to customer
Brand building
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• Creating a national level brand with inputs from Mudra Communications, 2nd largest Indian Brand Consultant
• Strong presence on TV and in print ( brand investments before sales ) ( drive small players out )
• Research based market segmentation & promotions
• Effective Below the line promotions
• Effective PR work
• Auto Magazines
• Neo wheels
Building India’s No. 1 EV Brand
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TV campaign• NO Petrol - YObykes
Introduction of YObykes as india’s 1st EV Runs 700km in Rs 50
• NO Petrol – YOSmart A story of a mother, kid and YOsmart – one of the key TG for
YOsmart Differentiate YObykes from other EV players Start building sub brand – YOSmart
• NO Petrol – YOSpeed To address the issues & apprehensions regarding – speed,
sturdiness, capacity etc Re-emphasis the NO Petrol Plank
Building India’s No. 1 EV Brand
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Consumer Education: Explain all merits. Address all apprehensions
A superior electric vehicle buying experience to customer
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Title for the school event
Taking product to the customers
Strategy Implementation
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Contest form
Taking product to the customers
Strategy Implementation
International Business
Stepping into International business
• Early 2008 –stabilization of domestic YO business propelled IB option to be explored.
• Country mapping started from end 2007
• Similar economy with inherent value proposition of YObykes was the key driver in identification of countries.
• Neighboring countries were the automatic choice to start with.
International business plan• Exports to Nepal and Bangladesh
started• Srilanka is due to start in June,2009• Africa and Europe are considered to be
the next destination- to be operational in Kenya and Tanzania by Sept. 2010
• Ethiopia, Ghana, Ivory Coast, Egypt, Sudan, Algeria, Morocco, South Africa and Uganda would be operational by Sep 2010
Showroom at Nawalparasi, Nepal
IB Plan(contd)• Potential Country partners are being
identified in Ireland, France
• Turkey, UK, Italy, Netherlands, Romania, Bulgaria and CIS countries- are identified in the first phase, time line to start with Nove,2009 and to be operational in all these countries by September 2010
Siemens OLMS
@Bangalore International Airport
McDonalds
Testimonials
Testimonials
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Achievements • YObykes is India’s largest selling electric two wheeler brand with
more than 75000 satisfied customers
• Largest Sales and Customer Service network of more than 200 YOWorld (Sales, Service Spares Facility) and 300+ touch points
• State-of-the-art manufacturing facility with capacity to produce 2,88,000 units per annum at Kutch in Gujarat
• In-house production of key component as well as in-house R&D facility provides - core competency to develop newer, better products as per market requirements
• Experienced set of professionals from Automotive Industry and Electronics Area
• Received ‘Overdrive - Automotive Product of the Year 2007’ award
• Only electric two wheeler manufacturing company to receive the prestigious membership of ‘Society of Indian Automobile Manufactures’ (SIAM) and founding member of Society Of Manufacturers Of Electric Vehicles (SMEV )
Fork Lift Business in India
• Currently the volume in India is around 6000 nos
• It is expected to grow at 20%
• Godrej and Voltas own the 75-80% of the market
• There is a potential for new player to enter the market and make a dent
Why Electrotherm
• Electrotherm hs understanding of industrial business
• Has more than 3000 probable customers in its portfolio
• Has best understanding of Electric vehicles in the Indian market
• Has infrastructure available of supporting EVs
Business Case
Year 2011-12 2012-13 2013-14 2014-15 2014-15 2015-16
Forklift Market in India 6000 7200 8640 10368 12441.6 14929.92
ETLift Sales 300 504 864 1348 1866 2239
5.00% 7.00% 10.00% 13.00% 15.00% 15.00%
ETLift (Turnover in M USD) 6.7 11.2 19.2 30.0 41.5 49.8
Net Profit (in M USD) 0.33 0.56 0.96 1.50 2.07 2.49
PV of the earnings (@10%) $0.30 $0.46 $0.72 $1.02 $1.29 $1.40
PV of Total Earnings (in M USD) $5.20
Investment in Lift Business (in M USD) 0.1
NPV (in M USD) $5.10
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