AIMIL CIVIL DELHI

Red, Yellow, Green Light Session

Presenter :ASHHAR, TARUN, MAYANKAIMIL DELHI

Our Trends

FY 2010-11

FY 2011-12

FY 2012-13

FY 2013-14

FY 2014-15 (till 15th Sept)

0 100 200 300 400 500 600

Business Trend Civil Delhi

OECM Achd (Rs. In Lakhs)OBCM Achd (Rs. In Lakhs)Target

Year Target OBCM Achd (Rs./Lacs.) % OECM Achd

(Rs./Lacs.) %

FY 2010-11 295 358 121 348 118FY 2011-12 355 462 130 437 123FY 2012-13 450 443 98 427 95

FY 2013-14 485 494 102 498 103

FY 2014-15 (till 15th Sept) 570 180 32 133 23

Current FY Trends – Civil Ind.

Q1 Q2 Sept Oct Nov Dec Jan Feb Mar0

20

40

60

80

100

120

Aimil Business Trend-2014-15

Target OBCM Achd (Rs. In Lakhs)OECM Achd(Rs. In Lakhs)

Month Target OBCM(Rs./Lacs.)

% OECM (Rs./Lacs.)

%

Q1 109 90 82 44 41Q2

(Jul & Aug)72 65 90 61 85

Sept 32 45 141 30 94Oct 45 45 100 30 67Nov 55 60 109 60 109Dec 55 70 127 60 109Jan 42 80 190 60 143Feb 53 30 57 60 113Mar 37 20 54 95 257Total 500 504 101 501 100

Current FY Trends – Civil Imp.

Q1 Q2 Sept Oct Nov Dec Jan Feb Mar0

2

4

6

8

10

12

14

16Imported Business Trend -2014-15

Target OBCM (Rs./Lacs.)OECM (Rs./Lacs)

Month Target OBCM (Rs./Lacs.)

% OECM (Rs./Lacs)

%

Q1 10 4 44 1 15

Q2 (Jul & Aug)

13 6 46 4 34

Sept 8 7 88 6 79Oct 6 10 167 6 100Nov 13 10 77 10 77Dec 9 15 167 15 167Jan 8 10 125 15 188Feb 2 5 250 7 350Mar 1 3 300 5 500Total 70 70 101 70 100

Current FY Trends – Team PerformanceEngineer Target OBCM Achd

(Rs. /Lacs.) %

Rajkumar Prasad 170 59 35

Tarun Bissa 145 46 32Anil Kumar 145 65 45

Ashhar 40 5 13

Mayank Batra 70 10 14

Total 570 184 32

Rajkumar Prasad Tarun Bissa Anil Kumar Ashhar Mayank Batra0

20406080

100120140160180

ENGINEERWISE BUSINESS-2014-15

Target OBCM Achd (Rs. In Lakhs)

Current FY Trends – Distributor Performance

Distributor / Region Target OB(Rs./Lacs.) % CM

Contributed

Vibgyor Agencies, Uttar Pradesh 320 130 41 46

Commercial Equipment, New Delhi & Haryana 250 136 54 48

Hi-tech Scientific Corporation, Jaipur 220 66 30 23

S. Dhaddha Associates, Udaipur 160 44 28 15

HG Enterprises, Nepal 100 21 21 7

Vibgyor Agencies

Commercial Equipment

Hitech Scientific Corporation

S. Dhaddha Associates

HG Enterprises, Nepal

0 50 100 150 200 250 300 350

DISTRIBUTORS BUSINESS-2014-15

OB Achd (Rs. In Lakhs) Target

Current FY Trends – Segment Analysis (Civil Indigenous)

Segment OBCM Achd (Rs./Lacs.)

% Contribution

Contractors & Builders 59.43 35

Education 53.56 32

Cement Plants 27.96 17

Government 12.52 7

Others 6.57 4

RMC 5.23 3

Consultants/Specifiers 2.09 1

Test Houses 1.39 1

Ceramics & Refractories 0.25 0.15

Total 169

35%

32%

17%

7%

4%3%

1% 1% 0%

Segment wise Business-Aimil

Contractors & BuildersEducationCement PlantsGovernmentOthersRMCConsultants/SpecifiersTest HousesCeramics & Refractories

Current FY Trends – Segment Analysis (Civil Imported)

Educa-tion48%

Government19%

Cement Plants12%

Consultants / Specifiers8%

Contractors7%

Others 6%

OBCM Achd (Rs. In Lakhs)

Segment OBCM Achd (Rs./Lacs.) % Contribution

Education 4.82 48

Government 1.86 19

Cement Plants 1.24 12

Consultants / Specifiers 0.77 8Contractors 0.7 7Others 0.55 6

Total 9.94

Order Lost Analysis

Order Lost AnalysisDescription Value (Rs./Lacs.)

Total Order lost Value 391.64Segment-wise

Cement 20Contractor 120.5Education 229.14Government 2Others 20

Competitor-wiseHeico 115.74AE&C 99Anton Paar 20ASI 15EIE 9Enkey 8Harris and Tarris 1Local Delhi 22.5Local Roorkee 44Scientific Supplier 13Techmark 20Testwell 24

5%

31%

59%

1%5%

Segment-wise Cement Contractor EducationGovernment Others

HeicoAE&C

Loca

l Roorke

e

Testwell

Loca

l Delhi

Anton Paar

Techmark ASI

Scientific S

upplier ESI

Enkey

Harris a

nd Tarris

0

20

40

60

80

100

120

Competitor-wise

Series1

Order Lost Analysis

REASON FOR ORDER LOSTValue(Rs./Lacs.)

Price 312.9Delay in getting Specifications 43.74Due to Specs. 15

not quoting complete Package 20

Price80%

Delay in getting specs. 11%

Due to Specs. 4%

Not quoting compelte Package

5%

Reason of Order Lost

Competition Analysis

Strengths

Good brand image, similar range of products. Considered No. 2 in Market after Aimil Customization facility. Servo and cyclic Testing range in indigenous. Technical capabilities equal or better than Aimil. Serious competitor in

customize and high end equipment Low price with good quality Quoting very cheap prices in Govt Tenders. NABL Accreditation, NSIC Regn, Manufacturing facility, in-house electronic and

software development team Offering high discount i.e. 25 to 35% in private engineering colleges Special focus on higher range of equipment i.e. Servo, Cyclic Triaxial, UTM

Hydraulic Actuators etc. Good promotion strategy e.g. gifts, colanders etc.

Weaknesses Expensive & less after sales support. Spares parts are costly. No fixed price and quality. Only one service Centre (Delhi), Average Delivery

time, Not active in Cement & RMC, No channel partner HEI

CO

Competition Analysis

Strategy to overcome

Need to improve our technical capabilities at affordable price

Very less price difference. Need to explain the difference between Aimil and Heico to customer.

We should work out our prices strategically depending on the case where Heico is involved.

Try to beat them by highlighting our R&D facility

Strategy to approach customer first

Regular visits

Provide special offer to customer like training, Extra Warranty, guest lecture by our technical expert on civil engineering

By promoting our after sales support strengthHEI

CO

Competition AnalysisEN

KAY

ENTE

RPRI

SES

Strengths

Low Price, less than 30% to AIMIL. Has a strong hold in Govt. segment like PMGSY (They go to the extent

of offering 30% to 40% discounted prices just to secure orders. Similar Range of equipment, Manufacturing facility, NABL Accreditation Registered with NSIC

Weaknesses

Poor after sales support Poor quality products No sales team Only one service center (Delhi) No Customization facility Not working in Private engineering college

Strategy to overcome

To convince customer on quality and long term value Try to beat them by highlighting our R&D facility and atleast 6 year

NABL accreditation. Refer the unsatisfied and blacklisted credentials of Enkay.

Competition AnalysisAS

EWStrengths 40% less price

Very good hold in L&T and using it as a reference

Quick sales support to the extent that they supply equipment on verbal order

Very Active in few contractors segment .

Fast delivery

Weakness Average quality

Does not have in-house calibration facility

Strategy to overcome

To convince customer (QC) on quality of equipment. Give the reference to unsatisfied customer of ASEW

Competition AnalysisO

THER

SName Strength Weakness Strategy to OvercomeTrading Corp of Rajasthan

Very low priceGood hold in bureaucrats and politicians

Poor quality, only trading

Trying to convert them as our sub-dealer

Allied Sales Very low price & active in Jaipur region.

Poor quality

Educate customers the value of the Aimil Equipment.

To work on lesser margin.

Educate customer to replace equipment against buy back policy

Scientific Suppliers

Very low price and can also supply the other lab equipment.

Poor qualityNo after sales support

FIE Strong brand image in low cost UTM Only have mt lab eqpt.

ASI, Delhi 1. Low price2. Supplying UTM from long time

Only have mt lab eqpt.

CISCO, Delhi 1. Low price 30-35% less Poor quality

Testwell Rajco, Delhi

Similar Range of equipmentManufacturing facilityLow price/Quick Delivery High discount & prices are 30-40% cheaper than us.

Low quality

Local Supplier Roorkee

Very low priceFast deliveryGood hold on some private colleges

Inferior SpecificationsNo Accreditation

Hurdles we faced

Civil Indigenous Low Prices and High discounts offered by the Competitors. We have got very poor image regarding delivery and quick service support. Many

contractor do not send us the enquires when they require material immediately Competitors are offering complete package to pvt. engineering college Dealyed and very expensive after sales service (Post warranty) Lack of service engineer for DAQ & Geostar. Not getting specifications on time for special equipment – It helps competitors to

enter into our customer’s area. Lot of complaints were faced in our most premium product - CTM 30 to 40 days credit policy in private contractor Not able to breakthrough in PMGSY project because of price war

Civil Imported Multiple distributorship of Proceq These products are not mandatory as per IS standards , so it gets difficult

to convince the customer. Unavailability of Demo equipment.

Suggestions to Combat Hurdles

We should increase the warranty of our all capital equipment from 1 year to 2 years Standardize the response time and resolution time for CSG (Most important) Merge target of CSG with sales team and let sales team handle CSG team We should prepare a technical comparison sheet between Aimil and others Once in a year we should organize a free training camp for private engineering

colleges Special pricing for big orders We should prepare a short corporate video and working of capital equipment/

software related items (by professionals) that we can show to customer in our laptop or mobile.

Separate technical team to help us in technical specification and pricing. Avoid delays in providing specifications and prices for new/customized products by

bringing into regulation a better coordination between our different teams. Standard Pricing for calibration, AMC etc.

Opportunities Ahead – Segment wise

Opportunity RemarksConstruction DMRC, Third Phase In touch with different contractors working in

DMRC.(ITD,L&T,PARTIBHA JMC Project etcConsultant Consultancy companies (Like,Flsmidth and

chanderpur works pvt ltd)Cold Call Required

Construction PrembariPul to Azadpur Corridor project In touch with contractors(Simplex)Construction Delhi outer bypass. Vikaspuri to Meera Bagh. In touch with contractors(Simplex)

Construction Housing Project in Gurgaon In touch with contractors(Simplex,DLF and L&T Roads Kithal Haryana border to Rajisthan border( 4 line

highway 160km) 4000 cor.Awarded to IRB infra

Education New private Engineering University Cold Call will be done Ansal University. G.D Goenka Universty, SRM University, K.R Mangalam University, IMT University Etc

Research and Development

NCCBM Received Tender enquiry with our specification ( Value to tender Appaox 80lakhs) IIT Delhi special flexure and compression testing machine for established soil , concrete and asphalt ( Approx value 12 to 15 Lakh) NITK Rut Shaper and tester Value( appox. 15lakhs)

In touch with the end user as well as purchase dept. for the same In ouch with the end user, working on the technical speciation for the same for tender purpose . submitted our technical specification along with price to end user. Tender will be come in next month

Close watch on big projects..

ACTION PLAN TO IMPROVE PERFORMANCE

Contd…

Hydro Power Geotechnical Lab in THDCApprox. Value-30 to 40 Lakhs

We have submitted our technical specification along with price. Tender will be come in next month

Contractor L&T DFCC Project approx. 70 Lacs. Negotiation stage

Government PMGSY, Uttarakhand – 1 cr. Spec. are locked. Waiting to publish tender.

PMGSY Rajasthan Spec. are locked. Waiting to publish tender.

Contd…

New Strategies that we will Employ

Road Show Mailer campaign Focus on creating market for customized products Educate colleges/institutes for up gradation of existing equipment Provide combo offers to customers from private sectors (eg. along with 1 CTM-6 cubes of

150mm free (adjust the cost of the cube in CTM) Initiative for providing training, seminars, presentations to students and faculties from the

colleges Collaboration with colleges to provide lab training to students-in return of a minimal fees. Special focus on defense customers(DRDO, MES etc) 2 to 3 days Free training on purchased equipment and one guest lecture by expert of civil

engineering Trying to get our specifications locked in as much government tenders as possible-to improve

our chances of winning the tender. Eg; PWD U.K., PWD Rajastahn, PWD U.P, MES, NIT Uttarakhand, THDC, MCG, GEC Jhalwar, CET Bikaner, CTEA Udaipur, MNIT Jaipur, DTU, Kurukshetra University, BHU, IIT Kanpur GPR etc.

Increasing focus on private consultants who are related with testing etc.

New Applications/Products/Industries we plan to venture into

Small type drilling ring for use in soil as well in rock for up to 2 m depth, dia 100- 150mm (Presently requirement from TATA Projects and snow fountain.

New application/Industry – AAC Blocks, Electronics Test Laboratory for battery testing, Telecom, Refractory Tile.

Products – Servo CTM, Wheel Rut tester and Visco 2000 Focus on Private Consultants By promoting our new/customized products Focus on Customers from Power Sector Increasing focus on government departments like PWD etc. in the Uttarakhand

(due to last year’s disaster they are under tight scrutiny form the governing bodies)

Our Success Stories

New order from MES, Lucknow and for small value

We have succeeded to lock-in our specification in PWD Lucknow. Tender worth Rs. 50L tender is about to come.

Also tender is expected in the same line from MNIT, GEC Jhalawar, CTEA Udaipur, CET Bikaner.

Persuaded UPES-Dehradun to upgrade their existing equipment to computerized ones with DAQ and Software.

Grabbed order from Modern Institute of Technology where the competitor was Heico.

Our Special Achievements

Got our specifications locked in premier research institute like IIRS-Dehradun, NIT-Uttrakhand, THDC-Rishikesh

Given idea to our Branch Manager to develop Whatsapp Group for cross selling opportunities that helped entire branch to improve getting leads.

Got one order from IITD stone polishing machine on our specifications

We have succeeded to grab first order of DSR, Malvern from IIT Roorkee.

Orders from New Segments /Applications/Products

Development alternatives, NGO : Bricks manufacturer Aqua proof Minerals: water proofing IIT Delhi - stone polishing machine for different application

Strategies Which Worked

Work done as per KPI sheet planned.

Received order from IIRS as per our specifications locked in.

Educated customers for upgradation of labs.

Visited all labs of DFCC project and convinced them for Aimil and started getting the orders.

Focused on Private Engineering Colleges in Q1 & Q2.

Participated in a tender without our margin for DSR.

Plans Ahead

Implementation of KPIs as planned Work closely with the concerned officials for upcoming projects. Organize Road Show in Nepal and UP. Arrange to provide best service and after sales support to Key accounts E-mailers Give package deals on NDT equipment. Planning to offer free service to customers in a particular region twice an year

(only charge the price for spare parts) Will attend seminars etc. so as to increase contacts and product awareness. Will send e-mailer to customer and do rigorous presentation in private

engineering colleges.

Forecast

Year Indigenous Imported (JS)

Geophysical (LDM)

Consultancy Services Total

2014-15 Expected Closure 500 40 30 0 570

2015-16 570 45 34 0 6492016-17 650 50 38 0 7382017-18 735 55 45 0 835

2014-15 Expected Closure

2015-16 2016-17 2017-180

100200300400500600700800900

570649

738835

FORECAST

Total

Support Required from NM, AM, CSG, Engineering & CPU

NM - Prepare separately technical spec. of all indigenous items incorporating USP. Pricing strategy for different segment. More product training.

Engineering: should encourage customized products, quick response, descriptive tech specs

CPU: quick deliveries and inform customer in advance delay delivery date. Coordinate for road permit also. Systematic Pre-dispatch inspection facility, accuracy in order acknowledgement and mange all post sales activities.

AM – Involvement in distributor meeting, timely finalization of blue pages, release of incentives, resolve delivery & quality issues as early as possible etc.

CSG: Quick service and response to customer.

We will back On

26.9.2014