Proposal by at Kearney2

A Proposal

March, 2001

Automotive Component Manufacturers AssociationAutomotive Component Manufacturers Association

Restructuring for Growth

A.T. Kearney 23/3603/2

Contents

The Indian auto component industry

Global trends and implications

The challenge

Project objective, scope and deliverables

Project approach, team

Professional fees

A.T. Kearney qualifications• Selected CVs


The Indian component industry


The auto component industry in India has grown at about 22% over the past decade, but represents just 0.64% of global sales and 0.11% of total global trade in components

1990-91 1999-00

Rs. 2,400 cr

Rs. 14,000 cr

22% CAGR

Global sales

~Rs. 2,200,000 crIndia: Turnover of component industry

Indian exports = Rs. 1,600 cr Global trade = Rs. 1,500,000 cr

The global trade in auto components represent 68% of total turnover, which suggests that auto value chains are truly global

While the total Indian industry turnover represent 0.6% of global turnover, exports represent a miniscule 0.11% of global trade in components

This implies that the Indian auto component industry is largely domestic focused and has not exploited the global trade opportunities


The development path followed by the Indian automotive industry has led to the fragmentation of the component industry structure and sub-scale operations compared to global firms

020406080

100120140160180200

India Global

Annual sales/employee

0

10

20

30

40

50

60

70

80

90

>Rs. 250 cr Rs. 100-250 cr Rs.50-100 cr. <Rs. 50 cr

% of firms

Top 10 firmsRs. lakhs

Source: ACMA, One Source, A.T. Kearney analysis


The Indian industry has cost advantages (and no pronounced disadvantages vis-à-vis other emerging countries) which can be leveraged to build globally competitive industry

20 %-30%1

Japan India

Material 55%- 60%

Profit 10%-12%

Dep. 5%-8%

Material ~ 30%

Labour 8%-10%

Overheads &others 15%-18%

Dep. ~ 4%

Profit ~ 5%

Overheads &others ~ 28%

Labour ~ 32%

1 - Despite 50-60% lower productivitySource : JICA, Mining and Industrial Development Studies Department of Japan. Indian industry interviews. A.T. Kearney analysis of Indian component companies’ cost chain

Supplier Skills CR Thai Malay Indon India

Quoting and competitiveness

• Professionalism• Price

Service/logistics• Inventory mangmt.• Shipping• Order management

Sales/administration• Communication• Certification

procedures• Delivery process

Engineering design• Standards• Specifications

Quality• Processes• Performance• Testing, approval

Other• Dies, patterns• Packaging• Transport

Production technology

High

Low

Hung Rus

+

Source: A.T. Kearney study of component industry in emerging markets

Globally competitive

Indian component industry?


While the component industry has been better at share holder value preservation than OEMs, it compares poorly to many other industries and thus domestic players will find it difficult to attract investment for growth

0.0

20.0

40.0

60.0

80.0

-40000 0 40000 80000 120000

Software

Food Beverages and Tobacco

Electrical Machinery

Pharma

Consumer Electronics

Banking

PlasticsRubber

Cement

Auto ancillaryAuto

Value creation (Rs. crores)

PE

(av

erag

e fo

r ye

ar 2

000)

Price reduction programmes of Indian OEMs will put further pressure on the supplier’s bottom-line

Source: Prowess financial database of CMIE.Intrinsic Value creation: (Free cash flow/1+discount rate)1+…(free cash flown/1+discount rate)n + market capn/(1+discount rate)n


Global trends


Key trends in the automotive industry are driving changes in OEM purchasing strategies

Globalization— OEM’s continually look to new regions for both low-cost production and sales growth

Consolidation among vehicle manufacturers— Top five auto makers account for over half of total global production— More centralized purchasing and global supply requirements

Rationalization of supply sources— Focus on suppliers working in partnership with OEMs in the design and development of

components— Increasing focus on modular construction and subcontracting of systems management

Reduction in the number of vehicle platforms— Further cost reduction by building more vehicles based on a single platform that is

interchangeable between models (increase components commonality)

Impact of the Internet— Some OEM’s moving their entire purchasing programs on-line — OEM’s forming joint-venture to create virtual marketplace for all commodity purchases

Global overview

A.T. Kearney 23/3603/10

As a result, the supplier base is also being restructured by strategic changes driving the OEMs

Changing roles and responsibilities for suppliers

Industry structure is consolidating

Suppliers must face up to profound strategic issues

Changing roles and responsibilities for suppliers

Industry structure is consolidating

Suppliers must face up to profound strategic issues

Impact on component industryOEMs define and focus on

core competencies

OEMs outsourcing to

module/systems suppliers

OEMs want to deal with

fewer suppliers

OEMs are globalising and need suppliers to match their

footprint

Suppliers must increase knowledge and expertise base rapidly

Increased responsibility with potential offers of larger and longer supply agreements, but also greater financial risk

OEM-owned suppliers must reduce reliance on sales to parent company

Increased focus on the aftermarket

Suppliers must increase knowledge and expertise base rapidly

Increased responsibility with potential offers of larger and longer supply agreements, but also greater financial risk

OEM-owned suppliers must reduce reliance on sales to parent company

Increased focus on the aftermarket

Impact on component suppliers

Global overview

A.T. Kearney 23/3603/11

Auto component firms are aggressively increasing their global footprint and system supply capability through mergers and acquisitions to meet these strategic thrusts

Magna

Full service module/system development

First tier/system

supplier

Global

Multi-regional

Regional

Johnson Controls

Full service module/system development

First tier/system

supplier

Examples

KSA (Germany)

Zipperle (Germany)

Eybl Durmont (Austria)

Marley (UK)

Pebra (Germany)

Caradon Rolinex (UK)Georg Naher (Germany)

Tricom (UK)Douglas &

Lomason (US)

Ymos (Germany)

Steyr-Daimler-Puch (Austria) Roltra Morse (Italy)

Roth Frères (France)

Aggressive investment in Emerging Markets (esp. South America)

Becker (US)

Prince (US)

A.T. Kearney 23/3603/12

Consequently, automotive component industry in emerging markets are potential targets for takeovers

70

2530

75

0

10

20

30

40

50

60

70

80

1994 1999

Local suppliers Global suppliers

Brazil - % Sales of Local vs Global suppliers

Brazil auto component industry restructured through• Mergers, acquisitions and majority owned JVs with

Brazilian suppliers• As the industry consolidated, the number of suppliers

dropped from 1400 in 1994 to about 700 in 1999

Source: A.T. Kearney database, press clipings

0

914

47

05

101520253035404550

1995 1999

100% subsidiary Foreign JVs

India - No. of foreign players

Would Indian component industry go through the same

transformation as Brazil?

A.T. Kearney 23/3603/13

Given these supply chain trends, analysis of successful global suppliers suggest that they have adopted different strategic thrusts for growth

Increasing ownership of value chain (design, engineering, assembly, testing, etc.), e.g.Magna

Innovation - breakthrough in

technology/product or processes, e.g. Bosch

Geographic expansion and/or scope expansion

(more products and systems) e.g. Tennecco

1

2

3

0%

5%

10%

15%

20%

25%

-10% 0% 10% 20% 30% 40% 50% 60%

Revenue Growth — 1996 to 1998 CAGR

RO

NA

— A

vera

ge 1

996

to 1

998

Average = 12.0%

Average = 15.4%

Visteon

Meritor

TRW

GKNStandardProducts

Eaton

UTA

Delphi

TokicoYazaki

NSK

NHK

DDC

TennecoBorg Warner

Magna

LearJCI

Textron Dana

Valeo

Caterpillar

Showa

Rieter

SiemensTS Tech

Magneti Marelli

Collins & Aikman

Donnelly

Autoliv

Federal Mogul

Hayes

Simpson

MascoTech

American Axle

SommerAllibert

Aisin

Lucas Varity

Denso

Cummins

Bosch

Calsonic

1996 to 1998 Supplier Performance

Tower

Arvin

100%

Size of Circle Represents 1998 Automotive Revenue North America

Europe

Asia

Eaton

RONA - Return on Net Assets

Source: A.T. Kearney study of global suppliers, 1999

Execution play - leadership in process

cost, e.g. Lear

3

A.T. Kearney 23/3603/14

The challenge

A.T. Kearney 23/3603/15

The challenge facing the Indian auto component industry

Implications for on Indian industryGrowing

global trade in auto

components

Relative cost competitiveness and no major

capability disqualification

Global suppliers entering low cost

countries like India through M&A

Lack of scale (size) and scope

(width of products and capabilities)

Global opportunity and threat Indian advantage and threat

• Opportunity for $ sales and Re costs• Growing global trade• Indian cost competitiveness, no major dis-qualifications

• P/E of Indian component exporters are higher• Lack of scale and scope leaves the Indian firms

open to potential threat from the M&A route taken by global players to enter emerging markets

• Relatively poor shareholder value creation has led to weakening of investor support

• Hightens take-over threat from global players• Investment support for own growth will be difficult to get

How should the Indian component industry re-structure itself to exploit global opportunity, minimise take-ver

threats and garner investor support?

A.T. Kearney 23/3603/16

Indian component suppliers have to identify the growth levers specific to their business and develop/implement the appropriate restructuring strategy supported by institutional processes to overcome structural roadblocks

Increasing ownership of value chain (design, engineering, assembly,

testing, etc.)

Innovation - breakthrough in technology/product or

processes

Geographic expansion and/or scope expansion

(more products and systems)

1

2

3

Execution play - leadership in process cost

3

Global Indian

Component category : Drive train

•Financial performance•Scale•Scope•Typical growth strategy• • •

Growth drivers Benchmarks, Restructuring options

Restructuring options

Institutional support

Technology development

ACMA role

Export marketing

1

2

3

A.T. Kearney 23/3603/17

Project objectives, scope and deliverables

A.T. Kearney 23/3603/18

Project objective, scope and deliverables

Objective

Outline the strategic options for the restructuring of the Indian automotive component industry to exploit global opportunities, minimise take-over threat and garner investor support

Scope

The project scope would focus mainly on:• Global trends - success factors in the auto

component industry and emerging structures and implications for India

• Indian industry structure (size, tiering, etc.) and performance vs global standards

• Strategic options for different component groups

• Potential export areas and current roadblocks• Institutional roles required to support

individual strategic options for restructuring (export marketing, R&D, ACMA)

Deliverables

The project would have two deliverables• A report with the recommendations• Presentations to ACMA members on the

recommendations— Regional meetings— AGM (scheduled for September 2001)

A.T. Kearney 23/3603/19

Project approach, time-line, resources

A.T. Kearney 23/3603/20

Project approach

Conduct secondary

research on the industry and

map individual firm - its scale,

scope and performance

Conduct interviews

with selected OEMs,

suppliers, and industry

associations

Develop high level industry map of scale and scope by

parts categories

Conduct secondary research with global perspective (case studies in other markets Brazil, Spain, Thailand)

Restructuring options/strategies by component groups

Restructuring options/strategies by component groups

Structural and Performance

Benchmarking and strategic

growth options development for

identified component

groups

Segment automotive parts and

components into logical

and manageable

categories for analysis

Conduct primary research through

questionnaire (with ACMA

support) secondary

Domestic demand1Domestic demand1

12 weeks

Recommendations on institutional roles required (export

marketing, R&D, ACMA) restructuring

Recommendations on institutional roles required (export

marketing, R&D, ACMA) restructuring

1. We will use our database (based on projects with automotive clients in India) to estimate future demand, rather than project the demand afresh

Recommendations on export opportunities

and overcoming current bottlenecks

Recommendations on export opportunities

and overcoming current bottlenecks

Key DeliverablesKey Deliverables

A.T. Kearney 23/3603/21

We will segment automotive parts/components into logical and manageable categories for analysis

Example

EnginesEngines DrivetrainDrivetrain SteeringSteeringSuspensionSuspension SafetySafety Body WorkBody Work InteriorInterior Electrical & Electronics

Electrical & Electronics

Crankshafts

Cylinder head & liners

Pistons

Exhaust systems

Camshafts

Transmission

Transfer

Differential gears

Brakes

ABS

Drums & Discs

Seats

Airbags

Carpet & floor mats

Instrument panels

Wire harness

Climate control

Lighting & lamps

Relays & switches

Sensors & electronic control

Axles

Shocks & struts

Springs

Steering assembly

Steering column

Steering linkages

Pumps

Belts

Chassis, frame& panels

Bumpers

Glass

Exterior trim

Automotive parts and components

Automotive parts and components

Interior trim

Lining, pads & shoes

Restraint systems

Driveshaft

Clutch assembly

A.T. Kearney 23/3603/22

Export opportunities and current roadblocks would be analysed through a survey of current and potential customers

Survey Questionnaire

Company :Address :

Current imports from India

Component category

ImportsYes/no

Value of imports

• Driven train products

• Suspension products

• Engine parts• •

Future imports from India• • • Roadblocks in importing from India

•Quality•Delivery•Commercial skills•Testing•Lack of marketing•etc. •

Yes/no

Global procurement

depts. in OEMs

Global procurement depts. in Tier

1 suppliers

Global OEMs

operating in India

Respondents1

1. Leverage A.T. Kearney’s global auto practice relationships with global OEMs and suppliers

A.T. Kearney 23/3603/23

Project time-line

Key Steps

1. Generate Segmentation Insights

2. Conduct Primary/Secondary Research and Interviews

3. Develop Domestic Demand Scenarios

4. Conduct Structural and Performance Benchmarking

5. Evaluate Restructuring and Export Options

6. Develop Insights on Institutional Roles Required

2 4 6 8 10

Weeks

12

A.T. Kearney 23/3603/24

Steering Committee

ACMA ATKZ. MominA. Bhattacharya

Project Management

ACMA ATK

Core Team

ACMA ATK

ATK Auto Experts

Vishnu Mathur• •

Project ManagerProject Manager

2 consultants2 member

• Dr. Gerald Weber• Steve Young

Project team

The project would be supported by the large core auto team of A.T. Kearney and the global database

and information specialists in different offices as appropriate

The project would be carried out under the direct

supervision of Zafar Momin (Vice President, and head of Automotive practice in Asia and Arindam Bhattacharya,

(Head of automotive practice in India).

The project team would be supported by Dr. Gerald Weber from our Stuttgart

office and Steve Young from London office.

A.T. Kearney 23/3603/25

Professional fees

Our professional fees for carrying out the project would be Rs. 90 lakhs

In addition, ACMA will have to bear all out of pocket expenses which typically is about 15% of the professional fees. We would also charge all applicable government of India taxes (currently at 5%).

A.T. Kearney 23/3603/26

A.T. Kearney qualifications

A.T. Kearney 23/3603/27

A.T. Kearney is one of the world’s leading high value added management consultancies

70 offices in 35 countries 70 years’ experience

Since 1926 in the USASince 1964 in EuropeSince 1966 in Italy

4,800 employees US $1,9 M revenues in 2000 Management consulting

subsidiary of EDS, since September 1995

MilanMoscowMunichNew DelhiOsloParisPragueRomeSeoulSingaporeStockholmStuttgartSydneyTokyoWarsawWellingtonZug

AmsterdamBarcelonaBeijingBerlinBrusselsCopenhagenDüsseldorfFrankfurtHelsinkiHong KongIstanbulJohannesburgKuala LumpurLisbonLondonMadridMelbourne

New YorkOttawaPhiladelphiaPhoenixPittsburghRichlandSan DiegoSan FranciscoSão PaoloSouthfieldTorontoWashington D.C.

AtlantaBaltimoreBostonBuenos AiresCaracasChicagoClevelandDallasDenverDetroitHoustonLos AngelesMexico CityMiamiMinneapolis

A.T. Kearney 23/3603/28

Finance &Economics

Manufacturing/Supply Chain

Strategy/PMI

SITP

Strategic Sourcing

TTE / BPRChange Management

Fu

ncti

onal

pra

ctic

es

Aerospace& Defense

Auto-motive

ChemicalOil & Gas

Consumer& Retail-

Health-care

Financialinstitutions

Trans- UtilitiesPublicSector

Telecom

Industry groups

Our global network of functional practices and industry groups enables us to develop and deploy expertise and know-how…

portation

Overview of A.T. Kearney

A.T. Kearney 23/3603/29

DistributionStrategy

Restructuring

Value creation strategy

Supply Chain Strategy

Post Merger Integration

Industrial Strategy

Implementation of strategies defined with the client in orderto achieve tangible results

MarketingStrategy

Growth / Merger-Acquisition strategy

Financial Strategy

Our fields of capabilities

Overview of A.T. Kearney

E-Services

A.T. Kearney 23/3603/30

A.T. Kearney is the global leader in automotive industry management consulting

A.T. Kearney has become the largest management consultancy in the automotive industry, because we help clients get results• Over 400 assignments in the last 3 years• Identified over $ 8 billion in tangible profit impact through revenue enhancement, cost reduction and balance sheet improvements• Helped leaders to grow their business globally

Proprietary, proven databases help us understand our clients' business faster and in greater detail• Manufacturing database - over 400 plants• Database of best practices in procurement and database of 20,000 suppliers world-wide

Customized approach base on deep understanding of global automotive industry issues and proven methodologies help us deliver superior value An approach of the automotive sector combining strategy, operation improvement, strategic information technology and change management Distribution economics and effectiveness

• New brand product development and design• Brand management• Operations and logistics efficiency improvement

The automotive practice

A.T. Kearney 23/3603/31

USA

Canada

Mexico

BrazilArgentina

FranceGermany

UKSpain

Sweden

China

KoreaJapan

Singapore

Italy

South Africa

IndiaMalaysia

Czech RepublicPoland

Australia

RussiaTurkey

A.T. Kearney is the global leader in automotive industry management consulting (cont'd)

With over 400 professionals who specialize in automotive consulting, A.T. Kearney has the largest automotive management consulting in the world• West/East Europe: 40%• North/South America: 40%• Asia: 20%

Numerous professionals with consulting and automotive background

Managed as a fully integrated global practice to provide the best mix of people for a given assignment• Teams are routinely global• Offices often exchange consultants

Serves the world's leading global manufacturers and suppliers• 8 of the top 10 vehicle manufacturers• 5 of the top 10 component manufacturers• 4 of the top 10 motorcycle manufacturers• 3 of the top 5 construction and farm equipment manufacturers• 2 of the top 5 vehicle financing companies


A.T. Kearney 23/3603/32

Web pages(www.atkearney.com/automotive)

• Web pages dedicated to the Global Automotive Practice

Consulting for institutional

organizations

• Study on the 3 liter vehicles for the European Community

• Strong relationships with organizations in the Automotive industry

Research & Development

• Active cooperation with major Universities

- Study on the future Marketing and Distribution trends in the Automotive Industry

University of Michigan

A.T. Kearney is actively contributing to the research on the current Automotive Industry’s issues

Publishing

• Forum of the Automotive Practice

• "White papers" on the current trends in the Automotive industry

• Articles

Conferences

• Sponsoring and participation to

- Automotive News Conference

- Financial Times Conference

- Handelsblatt Conference

- Conférence Automobile "Les Echos"


A.T. Kearney 23/3603/33

Cars and light trucks

• Audi• BMW• Chrysler / Daimler-Chrysler• Daewoo• Fiat Auto• Ford Motor• General Motors• Honda• Hyundai• Maruti• Mazda• Mitsubishi• Nissan• Opel• PSA• Porsche• Proton• Renault• Rover• Saab• Suzuki• Seat• Toyota• Volkswagen• Volvo

Heavy trucks and industrial vehicles

• Allis Chalmers• Ashok Leyland• Bedford Trucks• Clark Equipment• Claas• Caterpillar• DAF Trucks• Deere & Company• Fiat Allis• Freightliner• Fruehauf• Harnischfeger• Hino Motors• Isuzu• Iveco / Pegaso• Jungheinrich• J.I. Case• Kässbohrer• KHD• Leyland DAF• MAN• Massey-Ferguson• Navistar• New Holland• Oshkosh Motor Truck• RVI / Mack Truck• Scania • Steyr-Daimler-Puch• White Motors

Part Manufacturers

• Allied Signal• Allison

Transmission• AMP• Asahi• Autosense• Bendix• Benkelu• Bethlehem Steel• Boge• Borg Warner• Bosch• Bridgestone/

Firestone• Champion

Spark Plugs• Continental• Cummins• Delco• Delphi• DRU• DSM• Eaton• Eicher

Goodearth• Excel• Fagor• FIAMM• Fichtel &

Sachs• Freudenberg

• Fuji Tekko• General Electric• Giraldini• GKN• Goodyear• Happich• Hella• Herberts• Ishikawa• ITT Automotive• Kelsey Hayes• Knorr Bremse• Krupp-Hoesch• Lucas• Magneti Marelli• Mann + Hummel• Microlite• Midas• Monroe• Perkins• Pirelli• Piregrine• Renk• Rockwell• Schade• Siemens AT• SKF• SPX• Tenneco• Teves• Thyssen

Selected A.T. Kearney Automotive clients

• TRW• Tushin• Valeo• Varta• VDO-

Haussemann• Vegla• Visteon• ZF

Selected A.T. Kearney clients in the automotive industry

A.T. Kearney 23/3603/34

Our client list includes the leading vehicle manufacturers and suppliers, most of whom we serve globally

North America• Allison Transmission• Caterpillar• Cummins Engine• Delphi• Detroit Diesel• Ford• General Motors• Honda• ITT Automotive• John Deere• Saab

Latin and South America• Allison Transmission• BMW• General Motors• Mercedes-Benz• Renault

Europe• Fiat• Ford• Mercedes-Benz

• Opel• Porsche• PSA• Renault

• Saab• Vauxhall• Volvo

Asia-Pacific• PT Astra• Caterpillar• Daewoo• General Motors• Honda• Ingersoll Rand• John Deere• Komatsu• Mitsubishi• Nissan Diesel• Proton• Saturn• Subaru• Toyota• TRW• UMW• Volvo

Selected A.T. Kearney Automotive clients

A.T. Kearney 23/3603/35

Global Automotive Practice consulting areas of focus

Market, customer and distribution

Manufacturing, supply chain and

sourcing

Organizational effectiveness

Information technology

Strategy

• Strategy setting

• Portfolio analysis

• Shareholder value creation

• Globalization and regionalization strategies

• Business unit strategy

• Strategic alliances

• Transfer pricing strategy

• Market/product assessment

• Market entry strategy

• Distribution strategy and effectiveness

• Distribution network restructuring

• Distribution and dealership economics

• Aftermarket strategy

• Customer segmentation satisfaction and retention

• Database marketing

• Product development and design

• Competitor profiling

• Organizational design

• Business process reengineering

• Revenue enhancement

• Merger integration

• Top management structure/role

• Cost reduction/ reconfiguration

• Sales force management

• Process management

• Global IT strategy, architecture and implementation

• Data warehousing

• Electronic links with suppliers

• Management information systems

• Productivity improvement

• Outsourcing

• Manufacturing and assembly benchmarking, reengineering and cost reduction

• Supply chain and logistics cost reduction, effects and re-engineering

• Global strategic sourcing

A.T. Kearney service offering for car and truck manufacturers

A.T. Kearney 23/3603/36

A.T. Kearney’s services for car and truck manufacturers are covering the whole value chain

ClientServices

Marketing, Sales and Networks

Logistics / Distribution

ManufacturingPurchasingR&DStrategy

• Value creation• Internal/External

growth strategy• Company

evaluation in a context of merger / acquisitions

• New market entry strategy

• Optimization of product portfolio

• Services strategy (technical, financial, ..)

• Restructuring• Brand management• Profitability

improvement• Make or Buy policy• Definition of

partnership/joint ventures

• R&D portfolio management

• Simultaneous engineering

• Development process reengineering

• Joint supplier development

• Platform program management & definition

• Complexity reduction

• Modular development

• Technical data management

• Standardization policy

• Key competencies identification

• Global purchasing• Strategy per

commodities• Suppliers

differentiated management

• Supplier performance assessment

• Process Reengineering

• Best Practice development

• Benchmarking• Industrial layout

definition• Plant productivity

improvement• Lean manufacturing• Automatization

• Logistics strategy• Stock level

reduction• Transportation

costs reduction• Delivery time

improvement

• Relational Marketing

• Marketing of second-hand vehicles

• Remarketing of buy back vehicles

• Marketing of spare parts

• Brand diagnosis• Development /

reorganization / recapitalization of dealers ’ network

• Sales efficiency improvement

• Network profitability improvement

• Development of customer loyalty

• Development of new services

• Review of operational standards

Support functions: Human Resources, IT, Administration, Infrastructures

• Change management• Organization and management of IT

• SG&A reduction• Organization of support departments

• Definition of employees’ assessment and incentives policy

A.T. Kearney service offering for car and truck manufacturers

A.T. Kearney 23/3603/37

A.T. Kearney India has completed over 30 engagements in India in the last 3 years, and has built extensive experience in the automotive industry

Indian oil and gas public sector enterprise

Indian private bank

A.T. Kearney Client

Korean consumer electronics company

US motor cycle and apparel manufacturer

US automobile manufacturer

Project completed in India

• Market entry and sales & distribution strategy

• Market assessment and entry strategy

• Market assessment and entry strategy

• Corporate vision and strategic plan development

• Process reengineering and IT systems improvement

• Business restructuring strategy for growthLeading component supplier

A sample of client engagements in the past three years

US apparel manufacturer • Market assessment and entry strategy

Indian family owned conglomerate • B2C portal launch strategy

Indian industrial enterprise • B2B chemicals exchange launch strategy

Indian telecom and IT company • Software sector growth strategy

Indian industrial enterprise • IT-enabled outsourcing business strategy

Multinational FMCG company

Leading two-wheeler manufacturer

• Distribution network optimization strategy

• Strategic sourcing, procurement transformation• Recommendations for development of auto industry

Society of Indian Automotive Manufacturers

Leading passenger car company • New business strategy, Customer service improvementLeading commercial vehicle

manufacturer• Strategic sourcing, Supply chain,

manufacturing strategy

Indian petrochemicals company • Supply chain optimization

Indian family owned conglomerate • E-business opportunities assessment and entry strategy

Sample

A.T. Kearney 23/3603/38

Similar industry studies in India

‘Recommendation for development of Indian Automotive Industry for Society of Indian Automotive Manufacturers (at that time AIAM)• The study covered industry wide issues and specific issues and challenges faced by competitive commercial vehicle,

passenger cars, two-wheelers, and component segments• ACMA representative were members of the task force and interacted with the project team

Study on Foreign Direct Investment in India (later published as a white paper)

A.T. Kearney 23/3603/39

Selected CVs

A.T. Kearney 23/3603/40

Zafar Momin — Vice President, Director of Asian Automotive Practice

Education• Northwestern University, Kellogg Management School MBA• Purdue University M.S. / B.S. Mechanical Engineering

Industry Experience• United Technologies Corp. General Management, Southeast Asia• General Motors Corp. Product development, manufacturing, marketing• Ford Motor Company Business planning

Selected Consulting Experience• Over 14 years of management and consulting experience - the last 8 in Asia• Representative automotive experience includes:

— For one the world's largest automobile OEMs, completed an Asia Pacific study which involved detailed analysis of distribution channels and related economics of automotive dealers in Japan and the rest of Asia, assessment of competitive strategies, and success factors in various Asian markets

— For a large Asian automotive OEM, developed an innovative vehicle market-entry strategy for the US market built around target marketing and e-commerce applications

— For the after-sales division of a major OEM, developed an Asia-wide parts distribution strategy based on the economics of transport logistics, inventory and financial profitability. Developed and implementing web-enabled systems program across Asia

— For a large Indonesian group, developed a business process model and IT plan for the automotive business. Identified cost savings and top-line opportunities in manufacturing and distribution

— For a large automobile manufacturer, identified and implemented a cost reduction program which saved over $4 million per year in manufacturing costs for a leading car model

— For a major Japanese OEM, assessed and recommended Asia Pacific organization strategy— Identified over $100 million in structural cost reduction opportunities for a major auto OEM

A.T. Kearney 23/3603/41

Dr.-Ing. Gerald Weber - Vice President, Germany

Education• Fraunhofer Society, Institute of Production Technology and Automation, IPA Stuttgart - doctorate in

engineering• Stuttgart University - graduate engineer, mechanical engineering, production technology, plant management• Tool-maker

Summary of experience• Over 18 years of very broad scale Automotive Operations Experience primarily in Manufacturing, Logistics

and product development with a global scope Prior Industry experience

• General Site Manager Volkswagen Plant, Wolfsburg• Technical Vice President SKODA a.a.s, Czech Republic

and Member of the Board• Exec. Director of Central Manufacturing Volkswagen Group, Wolfsburg

Planning “Powertrain Operations”• Assistant Director, Technical Autolatina, Sao Paulo, Brazil

and Industrial Planning (Volkswagen/Ford)• Plant Manager Volkswagen, Taubate, Brazil• Head of Logistics, logistic planning and AUDI AG, Neckarsulm and production

methods planning Selected Consulting experience

• Projects in Research Institute (IPA) in German and Swiss industry, primarily in Automotive• Since two years senior professional and Vice President with A.T. Kearney in its Global Automotive

Practice, primarily responsible for manufacturing and operations strategy for OEMs and suppliers; e-business implementations in procurement,supply-chain and engineering

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Steve Young - Vice President, London Summary of experience

• Steve is Vice President and joint Head of A.T. Kearney’s European Automotive Practice, working with OEMs and suppliers in marketing strategy, operations, sourcing and distribution. Steve has particular expertise in supply chain issues, including the application of lean distribution in the industry.

Prior work experience• British Leyland, Senior Industrial Engineer• Ford Motor Company, Production Management and Industrial Engineering• Edwards High Vacuum (BOC), Production Manager

Areas of expertise• Strategy • Operational cost reduction• Supply chain management • Marketing• Business process reengineering • Strategic Sourcing

Selected Consulting Experience - Vehicle Manufacturers• World Class” Benchmarking of key European suppliers on behalf of a major vehicle manufacturer • Platform strategy for global automotive leader’s European operations• European logistics strategy for inbound materials for a leading car company• Cost reduction study on distribution of finished vehicles in four European markets• “Lean distribution” planning and implementation for a leading European car manufacturer• Evaluation of potential acquisition of a specialist car manufacturer, including market and investment forecasts• Market entry strategy for a European car manufacturer into an East European market• Prioritisation of key international mature and emerging markets for a premium car manufacturer• Evaluation of sourcing opportunities in Central Europe for a global auto manufacturer• Development and implementation of a global integrated supply chain for a leading agricultural and

construction equipment manufacturer

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Dr. Arindam Bhattacharya - Principal, New Delhi

Education• Eng Doc (Warwick University, UK), M.Sc. (Warwick University, UK)• MBA (I.I.M. Ahmedabad), B.Tech. (Hons.) (I.I.T., Kharagpur)

Areas of Expertise• Business strategy • Process re-engineering• Manufacturing improvement• Supply chain management

Summary of Experience• Over 11 years of consulting experience• 4 years of industry experience in industry in manufacturing and TQM implementation

Select Consulting Experience• Led the team which carried out industry competitiveness study for the Association of Indian Automotive

Manufacturers• Led the team which is developing new revenue generation initiatives for India’s leading auto firm• Led the team which developed the business plan for an innovative automotive product for a multilateral finance

body• Managed the team which carried out supply chain integration and strategic sourcing at a large commercial vehicle

company• Managed the team which carried out strategic sourcing, inbound supply chain re-design and procurement

transformation assessment at leading two-wheeler firm• Led the team that developed the strategy to restructure one of India’s leading component manufacturer

Proposal by at Kearney2

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