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
A.T. Kearney 23/3603/3
The Indian component industry
A.T. Kearney 23/3603/4
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
A.T. Kearney 23/3603/5
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
A.T. Kearney 23/3603/6
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?
A.T. Kearney 23/3603/7
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
A.T. Kearney 23/3603/8
Global trends
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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
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The challenge
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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
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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)
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Project approach, time-line, resources
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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%).
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A.T. Kearney qualifications
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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
The automotive practice
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"
The automotive practice
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
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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
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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
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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
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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
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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
A.T. Kearney 23/3603/42
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
A.T. Kearney 23/3603/43
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
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