The Jai Group
The Jai GroupBusiness Services for the BRICs Economies
Company Profile Presentation
March 2014
Jai-int 01/04/2014 13:17
J
Large Companies
Focus of Jai Group-
Management Consulting
Gerdau TATA
CVRD
Birla
Focus of incumbent consulting companies
FordUnilever
IBM Bayer
Jai: Strategic Partner for first time entrants into emerging markets …
AREAS OF POTENTIAL STRATEGIC ASSISTANCE
BPCL
IOCL
CCorrea
The Jai GroupBusiness Services for the BRICs Economies 1
Companies
Mid-Sized Companies
Developed Countries Developing Countries
Focus of Jai Group-
Co-Management / Business
DevelopmentFocus of Jai
Group-Co-Management/
Management Consulting
= High degree of Globalization in Emerging Markets
= Low degree of Globalization in Emerging Markets
Thermax
Sterling
Purico
TorrentBermad
Chiesi
Kaplan
FCC Ranbaxy
Caramuru BPCL
EngevixBajajAuto
Promon BEML
Source: Jai Group Analysis
Jai-int 01/04/2014 13:17
J
Practicality:Focus on
practical needs :results focus
in all our analysis
JAI GROUP CORPORATE VALUES
… combines rigor with practicality and action orient ation …
The Jai GroupBusiness Services for the BRICs Economies 2
Help clients achieve competitive
advantage in emerging markets
End Product Quality:
Analytical rigor
with high degree
of objectivity
Value Delivered:Ensure client gets
value for money and
Implementation help
Best of the firmfor our clients:
Contacts and credentials that open doors around
the world
Source: Jai Group Analysis
Jai-int 01/04/2014 13:17
JJAI GROUP RESOURCES
… while bringing people, process, and access edge …
GLOBAL NETWORKUNIQUE PROPOSITION
• Presence in India, Brazil, North America, South Africa and Mexico
• Superior access to political leaders, embassies and industry leaders
• In constant dialogue with investors and generators of opportunities
• Only global strategy consulting firm dedicated exclusively to emerging markets
• Over 40 engagements with multiple clients
• Experience, proprietary approaches and models in all sectors
The Jai GroupBusiness Services for the BRICs Economies 33Source: Jai Group Analysis 3
PEOPLE AND KNOWLEDGE INSIGHT INTO EMERGING MARKETS
generators of opportunities
• Consultants from first tier consulting firms and top executives of large BRICS companies
• iBRICS dedicated to the research, training and dissemination of business practices in BRICS
• Regularly published in newspapers and periodicals
• Understanding of strategy, culture, practices, and main players in emerging markets
• Full support while presenting, discussing and working with local companies
Jai-int 01/04/2014 13:17
J
ManagementContractorServices
The Jai Group
ManagementConsulting
… and acts as both Management Consultant and Managem ent Contractor …
FOCUS ON EMERGING MARKETS
The Jai GroupBusiness Services for the BRICs Economies 4
Services
• Help emerging market multinationals – Structure and analyze complex issues
involved in international expansion in emerging markets
– Numerically and using hard facts validate intuitive hypotheses
– Synthesize findings to evolve coherent strategy
• Stand in as country managers until local operation attains critical size to build a local team
– Implement strategies /structure partnerships
– Coordinate investment projects
– Recruit and manage other service providers
– Provide basic infrastructure and logistical support
Source: Jai Group Analysis
M & A Advisory
• Support M&A Deals across Geographies– Stand in as representatives and
support for the entire process – Coordinate negotiations and due
diligence– Analyze target and present basic
diligence and market feedback for better understanding of target from a customer and supplier standpoint
Jai-int 01/04/2014 13:17
J … having served clients in 5 countries …
GEOGRAPHIC COVERAGE
US
Corporate partnerships/ actively prospecting
Permanent offices
Relevant experience
Alliance partners
Russia
The Jai GroupBusiness Services for the BRICs Economies 5Source: Jai Group Analysis
Brazil
Mexico
US
South Africa
India
Jai-int 01/04/2014 13:17
JSCOPE OF ACTIVITIES
… in a variety of projects in several sectors …
Service BreakdownIndustry Breakdown
Sourcing Analysis & OptimizationOpportunity
Scan Oil & Gas
Auto Energy
PharmaBanking
The Jai GroupBusiness Services for the BRICs Economies 6
* Energy, mining, engineering, oil & gas.Source: Jai Group Analysis
Partner Search, Mergers & Acquistions
6
MiningAgro
ServicesIndustrial Commodities
Engineering
TelecomMarket Entry Analysis and Feasibility Studies
Contract Management
Jai-int 01/04/2014 13:17
JSOME CLIENTS WE HAVE WORKED WITHSeveral repeat clients - long term relationships
… and with a good track record in the India- Latin Am erican corridor …
The Jai GroupBusiness Services for the BRICs Economies 7Source: Jai Group Analysis
GOVERNMENT OF INDIA
Jai-int 01/04/2014 13:17
JLATEST SUCCESS STORIES – INDIA BRAZIL CORRIDOR
…which in many cases led to success stories in the I ndia Brazil corridor..
The Jai GroupBusiness Services for the BRICs Economies 8Source: Jai Group Analysis
Jai-int 01/04/2014 13:17
JOverview of Key Activities We Perform (1/5)
Key ThemeTypes of
problems solvedResources Available
Specific servicesExternal agencies involved
Type of Clients for whom we have solved these
problems
Actual tasks and activities
End deliverables
(typical)
Market Benchmarking
• What is the market size ?
• Who are the key competitors
• What are the current and projected market
• Relationships and access to most companies
• Deep sense Business Priorities
• Experience
• Market Size• Historical and future growth
analysis• Competitor profile analysis• Key inferences from what
others tried and succeeded / failed
• Consumer and supplier
• Only if deep quantitative data to represent consumer insights is required
• Luxury Footwear company
• Engineering
• Interviews/ document research
• Answer questions
• Identifyingneeds of
• Summary report of market dynamics
• Suggestions on market entry modes and
The Jai GroupBusiness Services for the BRICs Economies 9Source : Jai Group Analysis, External Agencies Services Cost Additional and independent of Jai Group Services
projected market dynamics
• Experience• Local Presence
• Consumer and supplier scenario
required• Engineering
Services Company• Transmission
Tower Company• Aluminum
Conductor Manufacturer
• Trailer Axle Manufacturer
• Agricultural Implements
• New Automobile Vertical
needs of customer
modes and next steps
Ideal Pricing and Tax
Structure implications
• What re the current pricing practices ?
• What is the best way to price ?
• How to save taxes ?
• Experience• Ability to
understand and interpret taxes
• Competitor pricing• Optimal price analysis• Customer feedback on
price sensitivity• Recommendation on
cutting costs
• Tax Lawyers• Freight
forwarders
• Interviews/ document research
• Tax data research
• Excel modeling• Manage ext
agencies
• Ideal price point to enterthe market
• Sustainability analysis and tax liability summary
Business Plan Development
• What is the best strategy to win?
• What could be the financial and operational implications ?
• Experience
• Market Intelligence• Generate and rank
strategic options• Model financial implications
and stress test• Evolve Implementation blue
No
• Preparing a business plan strategy and analyze financial viability
• Business plan and financial model with projections
Jai-int 01/04/2014 13:17
JOverview of Key Activities We Perform (2/5)
Key ThemeTypes of problems
solvedResources Available
Specific servicesExternal agencies involved
Type of Clients for whom we have solved
these problems
Actual tasks and activities
End deliverables
( typical)
Partnership Search (non-
equity partners)/ distributor
• Who is the best partner ?
• What best way to engage/ extract
• Local Presence and cultural insights
• Experience in
• Finding a partner that matches client needs
• Basic business diligence of partner
• Lawyers for taking care of Legal
• Luxury Footwear company
• Engineering Services Company
• Transmission Tower Company
• Aluminum Conductor Manufacturer
• Search• Short listing• Negotiations• Modeling of
relevant
• Final partner
• Signed term sheet
• Overviewof
The Jai GroupBusiness Services for the BRICs Economies 10
distributor ship/ Sourcing
partners
engage/ extract value ?
• Experience in dealing with cultural sensitivities
partner• Modes of
engagement possible
Legal implications
Manufacturer• Trailer Axle
Manufacturer• Agricultural
Implements • New Automobile
Vertical
relevantnumbers
• Handholding
of capabilities of selected partner
Acquisition target search, valuation and due diligence
• Who are the potential targets ?
• How much should we pay ?
• How best to lock them in ?
• Relationships and access to most companies
• Experience• Language
• Identifying a target• Understanding
financial soundness
• Business diligence based on informal market feedback
• Auditors for Due Diligence
• Lawyers for taking care of Legal implications
• Transmission Tower Manufacturer
• Petroleum Company• Sugar Manufacturer
• Search• Research• Interviews• Excel analytics• Financial
statement scrutiny
• Manage extagencies
• List of potential accusation targets
Source : Jai Group Analysis, External Agencies Services Cost Additional and independent of Jai Group Services
Jai-int 01/04/2014 13:17
JOverview of Key Activities We Perform (3/5)
Key ThemeTypes of
problems solvedResources Available
Specific servicesExternal agencies involved
Type of Clients for whom we have solved
these problems
Actual tasks and activities
End deliverables ( typical)
Plant/ Delivery center
Location search
• Where to locate operations and why ?
• Experience• Language• Local
presence• Access to
Government contacts
• Analyze tax benefits• Find tax saving zones• Analyze logistics costs
implications
• Lawyers for taking care of Legal implications
• TransmissionTower Manufacturer
• Petroleum Company
• BPO Company
• Carry out a location surveyboth qualitative and quantitative
• Government negotiations
• Manage Ext
• Final suggestion on 2 best locations to start operations
The Jai GroupBusiness Services for the BRICs Economies 11
contacts• BPO Company • Manage Ext
agencies
Human Resources
• What is the ideal profile of talent needed ?
• How best to find them ?
• How much to pay ?
• Mckinsey Alumni Network
• Contacts in Industry
• Relationships with Advertising agency
• Help design local Org Chart
• Understand and recommend talent profile for each position
• Find candidates fitting profile submitted by client, negotiate salaries
• Informal Background Checks
• HR Recruiting Firms
• Transmission Tower Manufacturer
• Auto component Manufacturer
• Research• Follow through• Negotiations• Select and
Manage any ext. agency
• Final candidate• Informal
feedback on candidate profile and capabilities
Source : Jai Group Analysis, External Agencies Services Cost Additional and independent of Jai Group Services
Jai-int 01/04/2014 13:17
JOverview of Key Activities We Perform (4/5)
Key ThemeTypes of
problems solvedResources Available
Specific ServicesExternal agencies involved
Type of Clients for whom we have solved
these problems
Deliveredthrough
End deliverables
(typical)
Physical Infrastructure
• Where best to locate office ?
• How much rent to pay ?
• Access to real estate firms
• Understand and recommend size of operation
• Comment on strategy to be employed for step by step expansion
• HR Recruiting Firms
• Indo Canadian BPO
• Secondary and Primary Research
• Access to networks
• Final shortlist of 2 best locations for setting up an office
The Jai GroupBusiness Services for the BRICs Economies 12
expansion networks office
Administrative
• Optimal legal structure ?
• Visa and Immigration issues ?
• Accounting and legal representative help ?
• Banking relationships
• Central Bank registration forCapital influx
• Experience• Law firms
that work with us
• Raise all the relevant issues• Answer many general
questions without resorting to a lawyer, saving on fees
• Help draft scope of work for lawyer, limiting to critical and specific questions
• Help navigate price-quality-experience trade off for legal firm selection
• Help find appropriate legal representatives
Yes, Lawyers• Corporate• Labor and
immigration
• Transmission Tower Manufacturer
• Seed Company
• Indo Canadian BPO
• PharmaCompany
• Automobile and Agricultural Implements Company
• Discussions• Research• Handholding• Joint learning
through external meetings
• Monitoring Activities of Agencies Employed
• Answers to specific queries on the market
• Monitoring of processes required for various activities
Source : Jai Group Analysis, External Agencies Services Cost Additional and independent of Jai Group Services
Jai-int 01/04/2014 13:17
JOverview of Key Activities We Perform (5/5)
Key ThemeTypes of problems
solved
Resources Available
Specific ServicesExternal agencies
involved
Type of Clients for
whom we have solved these
problems
Actual tasks and activities
End deliverables
(typical)
• Who are the relevant clients ?
• What is the value
• Language• Deep sense
Business Priorities
• Industry
• Identify key clients• Develop Marketing
Material
• Trailer Axle Manufacturer
• Aluminum
• Research and logistics
• Building relationships
• Identifyingneeds of
• Requests for Proposal
• PotentialSales Orders
• Product
The Jai GroupBusiness Services for the BRICs Economies 13
Sales Callsvalue proposition for each ?
• How best to approach, pitch and convert ?
• Industry level Contacts
• Local presence to travel at will
Material• Set up meetings and visit
( including travel)• Pitch and follow up• Customize proposals
No• Aluminum
Conductor Manufacturer
• Cosmetic Company
needs of customer
• Matching client USP to customer need and creating a win – win partnership
• Product Development Requests
• Feedback on what customer wants
Periodic Strategy Review
• How has the market dynamics changed ?
• What course corrections are needed ?
• Experience• Language• Local
Presence
• Finding out what has changed
• What is required to sustain the business
No• IT / ITes
Company
• Answer questions raised
• Carry out a market update specific to client sector
• Summary of findings
• Suggestions on how to alter or retain strategy
Source : Jai Group Analysis, External Agencies Services Cost Additional and independent of Jai Group Services
Jai-int 01/04/2014 13:17
J
Trading and Commerce Sourcing Expertise
Market Expertise
… providing managerial leverage to emerging market m ultinationals
JAI GROUP EXTENDED TEAM
• Ser Trading (Brazil) • Rakesh Vaidyanathan• Rachit Chaudhry (India)
• Rakesh Vaidyanathan• Dr Garcia (Mexico)
The Jai GroupBusiness Services for the BRICs Economies 14
The Jai GroupIndia- Latin America -
Brazil Corridor
In-depth legal expertiseDeal Making and
Partner Negotiations(Private and Govt.)
Strategy and Financial Analysis
Plant location and logistics
• Luis Farinelli (Brazil) • Roberto P. Rio Branco (Brazil)• Manuel Vazquez (Argentina)• Dr Garcia (Mexico)
• Rakesh Vaidyanathan• Giancarlo Oliveira (Brazil)• Rachit Chaudhry (India)• Fernando Alves (Brazil)
• Rakesh Vaidyanathan• Dr Garcia (Mexico)• Rachit Chaudhry (India)
• Giancarlo Oliveira (Brazil)• Dr Garcia (Mexico)
Source: Jai Group Analysis
Jai-int 01/04/2014 13:17
JRAKESH VAIDYANATHAN – JAI GROUP’S FOUNDER AND MANAGI NG DIRECTOR
• Rakesh Vaidyanathan co-founded The Jai Group after years of experience inManagement consulting first with late Dr. Jaikumar of the Harvard Business Schoolin the United States and Mexico and later with Mckinsey and Company in theirMiami and Madrid offices and most recently with The Boston Consulting Group intheir São Paulo office
• A graduate from the Indian Institute of Management, Calcutta and MBA from TheWharton School , Rakesh also holds an Electrical Engineering degree from the
When not helping
The Jai GroupBusiness Services for the BRICs Economies 15
Wharton School , Rakesh also holds an Electrical Engineering degree from theCollege of Engineering Guindy in Chennai India. In addition, he obtained an M.A. inInternational affairs specializing in Latin America from the University ofPennsylvania
• Rakesh has worked with large multinational clients and their local subsidiaries andemerging market companies in the Industrial goods segment in steel, steelproducts, auto-components, textile, stationary, plastics packaging, consumer goodsmanufacturing and third party logistics and distribution industries in India, Mexico,Spain, Brazil and the United States. Rakesh speaks Tamil, Hindi, Spanish,Portuguese and English fluently
When not helping clients, Rakesh is either writing Tamil Poetry or trekking in the mountains of the
south of Brazil
Source: Jai Group Analysis
Jai-int 01/04/2014 13:17
JUV RAO - INDIA
• Mr UV Rao is a consultant with The Jai Group. • Before this, he has had over 40 years’ experience in Electrical and Auto Components
industry and has worked with Brown Boveri, Switzerland(now ABB) and the Tata Group, where he has worked in various capacities.
• He has also established green field projects in Electrical and Auto Component products in collaboration and as JVs with French, Japanese and Spanish companies. During his tenure with Brown Boveri he has worked for 3 years in their Head Quarters in Switzerland.
• Examples of his experience are:
The Jai GroupBusiness Services for the BRICs Economies
• Examples of his experience are:� Sales and Marketing Electrical Products and execution of Projects(Switchgear and Protection
Equipment) to Utilities and Industry in India, Europe and New Zealand.� Production Planning and Control of Switchgear factory to streamline Planning Process and reduce
inventories.� Starting Green Field Projects with Foreign Collaboration / Joint Venture and establishing
manufacturing facilities.� Driving Business Excellence initiative under TBEM(Tata Business Excellence Management)
Programme across all the Joint Ventures of Tata Autocomp Systems Ltd.� Was CEO of units manufacturing Auto Components in JV with Spanish(Rear View Mirrors, Control
Cables and Gera Shifters) and Japanese(Control Cables)companies
• UV graduated from VJTI Mumbai in the year 1963.He has an MBA from IIM Ahmedabadin 1974. He speaks English, Hindi, Kannada, Konkani and German.
16Source: Jai Group Analysis
Jai-int 01/04/2014 13:17
JRACHIT CHAUDHRY - INDIA
• Rachit is a Case Team Leader at The Jai Group working on a number of projects in the Indo – Latin American Corridor
• Some Key Projects he has worked on :� Market Landscaping of Transmission Tower Industry (Fabrication, Galvanization and
EPC) in Brazil� Market Landscaping, Ideal Price Point Analysis and Distributor Search for a
Motorcycle Company in Brazil, Colombia, Venezuela and Bolivia� Development of Business Strategy from Ground Zero for a Two Wheeler Business in When not charting
The Jai GroupBusiness Services for the BRICs Economies 17
� Development of Business Strategy from Ground Zero for a Two Wheeler Business in Colombia
� Location Search and Demand Analysis in Brazil for an IT/Ites Company� Opportunity Mapping for an American Agri Business Giant in India� Market Research Studies for the Indian Consulate in Sao Paulo for
• Improving Indo-Brazil Trade• Scope and feasibility of trade in select regions and industries• Webinars providing insights to various sectors in Brazil, eg Electrical, Automotive,
Beverage, Textile
• Rachit has Graduated in Computer Science from University of Pune, India
When not charting out business
prospects for clients, Rachit slips into ‘Chef Mode’ – rustling up a
dish or two
Source: Jai Group Analysis
Jai-int 01/04/2014 13:17
JCOMMERCIAL REFERENCES
The Jai GroupBusiness Services for the BRICs Economies 18Source: Jai Group Analysis
� Kalpa Taru Mr. Sanjay Dalmai, Head International Business 91 22 30645000
Jai-int 01/04/2014 13:17
JSAMPLE PROJECTS
• Aditya Birla Opportunity landscape for investments in Latin America
• Tata International Opportunity landscape for investments in Brazil
• Bharat Petroleum Project 1: feasibility study for investments in ethanol capacity
The Jai GroupBusiness Services for the BRICs Economies 19Source: Jai Group Analysis
Project 2: partner search and valuation of selected companies
• Rajshree Sugars Feasibility study for investments in ethanol capacity, target search and valuation
• TVS Partner search and negotiations to leverage Brazilian banking automation capabilities in India
• Torrent Market entry strategy for Mexico