SDM Presentation FINAL

8/6/2019 SDM Presentation FINAL

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DISTRIBUTION SYSTEM OF TATA GREEN BATTERIES IN HARYANA

By:- Akshat JainRohan Kohli

Varun Gupta

Vikas Juneja



TATA Green Batteries are brought to you by"TATA AutoComp GYBatteries Ltd." (TGY) ± a joint venture betweenTATA AutoComp Systems Ltd, and GS Yuasa International (GYIN) - Japan,one of the world's largest automotive battery manufacturers.

GS Yuasa International (GYIN) is the world leader in Two Wheelerbatteries and Asia's number one in Four Wheeler batteries. TATA Green

Batteries, by their sheer design and use of state-of-the-art technologyare built to deliver highest performance for all kinds of vehicles� Bikes,� Three-wheelers,� Cars,� UV's (Utility Vehicles)� Trucks and Tractors

� Inverters90% recyclable is applied to all the segments. The state of the artplant is located in Ranjangaon, Pune in Maharashtra.

COMPANY PROFILE:



TATA Green Batteries Range of Products

PC/ UV Range

2W Range

Inverter RangeCV Range

Tractor Range



Why TGYs Battery is Superior?

Sl.No Features for Indian Conditions Exide Amaron TGY

1 Long Shelf life >=90days. X ¥ ¥

2 High Cranking Power X ¥ ¥

3 Optimum Reserve Capacity X X ¥

4 Corrosion resistance Grid X ¥ ¥

5 Higher Service Gravity as standard ¥ ¥ ¥

6 Vibration Resistance ¥ X ¥

7 Spill Proof X X ¥



The Story of GREEN

A colour is an unusual name for a battery.

And without working too hard, it smartly captures the following story beautifully:-

In an environment where automobile & related products are seen as notso eco-friendly, it makes sense to embed that into the brand nameitself!

y Values: Life, Ecology, Motion, Energy, Power, Technology

y

Personality: Caring & Warm (in line with mother brand, TATAsimage)

y S ymbol: Mother Nature

<< This was the inspiration for the logo and brand name >>



TGY ± CFA PAN INDIA NETWORK:

North:

Delhi, Faridabad, Ludhiana, Jaipur,Ghaziabad, Lucknow.

WEST:

Ahmedabad, Mumbai, Pune, Indore

Cochin, Hyderabad, Bangalore,

Chennai

EAST:

Kolkata, Patna, Ranchi, Cuttack,

Guwahati

SOUTH :

Cochin, Hyderabad, Bangalore,

Chennai

Source: Company personnel interview.



FACTORY

CFA

FRANCHISEE

RETAILER

CONSUMERS

EBO120

nos

380 Nos

nos

19 nos

4528 nos

TGY DISTRIBUTION NETWORK :



The major battery players in the organised sector areExide, Amaron, Tata Green and Luminous.

Every company has a unique distribution system:

� EXIDE:- Direct Dealer Model� AMARON:- Distributor Model� TATA GREEN:- Mix Model� LUMINOUS:- Distributor Model

BATTERY MARKET DYNAMICS



HIRERARCHY LEVELS



MARKET SHARE OF VARIOUS PLAYERS:

Brand Market Share %age

Ex

ide 40-45%

Amaron 15-20%

SF (Exide Brand) 20-25%

TGY 10-15%

Others 10-15%



VISIT REPORT OF Faridabad/GURGAON, HARYANA

� CFA LOCATION : 14/5 Mathura Road, Faridabad

� Franchisee/Distributor Name : S S Batteries, Rajeev Chowk

S S Batteries ±

� Exclusive for TATA Batteries

� High Reach ± Has network of 25 dealers

� Major PC-UV driven market.

� Cater to complete Gurgaon and Mewat Dist.� Good counter sale i.e. self-out let where dealer is not available

� Financially sound

� Payment Terms with TATA :Cash & Carry

� Payment Terms with Dealers : 30-45 days credit

� Has sales force of 2 people and 1 service person.

� Market coverage is done on TATA Ace ± Service & Delivery� Complaint Ratio% - 4% to TATA.

� Monthly volume ± Counter sale of 50 batteries & distribution of 450+

� Avg. Margin ± 10%

� Major Market Competitor ± Amaron / Exide

� Company Policy ± Distributor not fully satisfied with

company policies



We also visited the EBO (Exclusive Brand Outlets)

� EBO : Deep Battery Services, Jail Road

� EBO : Uniforce Energy, Mata Road

These are multi-brand outlets - other batteries include Amaron, Exide, and

other local brands.

� It can only retail (counter sale) and no distribution allowed.

� Direct billing from Company (CFA).� Avg. Margin 4-5%

� Payment terms : Cash & Carry

� Complaint: 3%

� Monthly volume : 100+ batteries

�



Grievances of Distributor

� Appointment of EBO without any margins benefit

� Pricing Strategy as against competitors

� Stock Availability (Supply Chain problem with CFA)

� No Credit given by company

� Target based schemes

� Fixed monthly targets to get the incentives� Commercial & Inverter Batteries are very costly,

Counter by Local Sales Rep. (Mr. Manoj Mishra) Gurgaon Region

� Distributor working below-potential

�Ego of Distributor � Sales target not met due to funds problem

� Monthly schemes on all segments to counter the prices of

competitors for Dealers and Distributors

Gurgaon is a major PC-UV market and prices of

PC-UV are highly competitors.



ACTIVITIES DONE BY COMPANY TO PROMOTE SALES

AT LOCAL LEVEL

� Service Camp

� Dealer meet

� Mechanic Meet

�Local cable advertisements.� Local Newspaper advertisements .

� Dealer & Distributor Merchandising

� Wall & Shutter painting



CHALLENGES & SuggestionS

� Channel conflict between EBO & Distributor

� Commission should be given to the existing Distributor before

appointing any EBO (Exclusive Brand Outlet)

� Targets to each and every distributor should be mutuallyagreeable.

� Stock Availability at CFA level and distributor level should be

maintained and monitored.

�Credit Policy should be modified



Thank You!

SDM Presentation FINAL

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