Banker s Day India. Marc Llistosella, CEO and Managing Director of DICV. Daimler India Commercial Vehicles Pvt. Ltd. T/I Llistosella, December 2012

Transcription

1 Banker s Day India Marc Llistosella, CEO and Managing Director of DICV Daimler India Commercial Vehicles Pvt. Ltd. T/I Llistosella, December 2012 Datum (Tag.Monat.Jahr)

2 Daimler India Commercial Vehicles Pvt. Ltd. Indian market entry fulfils 4 strategic targets for Daimler Trucks Access to Indian market Potentially market entry e.g. into LDT/HDT segment Indian low-cost export hub FY02 FY03 FY04 FY05 FY06 FY18e Significant market share in growing Indian market Sourcing Low-cost export hub to emerging markets (focus on new business) Excellence centres Usage of low cost base for Daimler overall Low cost services for Cost Planning, Computer Aided Engineering & IT 2

3 3 Daimler India Commercial Vehicles Pvt. Ltd. Product development combined the best of two worlds German DNA and Indian Engineering Thorough studies of trucking conditions in India Mapping of road data for usage profiles Face-to-Face talks with drivers, fleet owners, customers and experts Matching of demand with existing Daimler platforms Based on the findings, decision for two platforms was taken Mercedes-Benz Axor Mitsubishi Fuso Canter/ Fighter All Parts adapted to market requirements and production capability Local Sourcing as much as possible Import mineralized to bare essential

4 Daimler India Commercial Vehicles Pvt. Ltd. The result: A range of modern vehicles from 9-49 tons, delivering best Value for Money, driving the change Light Duty Heavy Duty 9 Ton 12 Ton 16 Ton 25 Ton 31 Ton 40 Ton 49 Ton Powered by World Class Engines 4 cylinder 80kW ~ 125kW Fuel efficient for last mile distribution 6 cylinder 170kW ~ 205kW Long service intervals reduce service cost 4

5 Daimler India Commercial Vehicles Pvt. Ltd. More than 6.5 Mio km on the state-of-the-art test track and Indian roads make reliability certain from day one Noise Tracking High Speed Articulation track Pot Hole Track High speed test track Water through Rough road track 24/7 Tracking Gradeability Test Turning cycle Articulation track Elevated Curves Water-through track 5

6 Daimler India Commercial Vehicles Pvt. Ltd. DICV s Supply Chain is on track to localize 85% of material value at SoP Donaldson India Minda Acoustic Air intake Horn Hi Tech Gears NRB Bearings Gears Caparo Eng. India Delhi Sub assembly oil pan Bhavani Industries Avtec Hubs, Sleeves 4D34 engine Gabriel India Shock absorbers Kalyani Forge Rajkot Pithampur Con rod Mumbai Bharat Forge Pune I-Beam, Crankshaft Dana Spicer India Propeller shaft American Axles Manuf. Axles Kirloskar Ferrous Cyl. gead & block cast. Harita Seating Harita Seating Systems Ltd. Local Hospet Hosur Coimbatore Chennai Region Tamil Nadu India Rest Craftsman Cyl. block & head mchg. Modine Cooling systems % of total 41% 44% Import 15% JBM Bumper Southern Autocast Camshaft Sundram Clayton TM housing KLT Autom. Frames IJL Lights, Headlamps Motherson Autom. Dashboard Hanil Autom. India Trims Rane (Madras) Steering system Brakes India Brakes system M.S. Autotech C.I.W Asahi India Glass Glass Dynamatics Techn. Castings IJL 6

7 Daimler India Commercial Vehicles Pvt. Ltd. 85% localization target will be achieved by end of 2012 once testing of local parts is finalized Entire Vehicle 2523R Front Axle (VL4 6.6) Rear & TAG Axle (RS4 440 & NR4) Transmission (G85 SAE2) Engine (OM hp) Frame (2523R) Cab (Sleeper Cab) In-house assy 85% 86% AAM (KTO parts from DAI network) AAM (KTO parts from DAI network) 94% 80% 63% 96% 99% In-house assy, all parts bought out In-house assy, all parts bought out KLT (KTO parts from DAI network) MS Autotech Entire Vehicle 914R Front Axle (IF 3.6) Rear Axle (AAM design) Transmission (MO36S6) Engine (4D34i) Frame (914R) Cab (Day Cab) In-house assy 85% 92% 100% 90% 74% 96% 99% AAM AAM In-house assy, all parts bought out AVTEC KLT (KTO parts from DAI network) % Localization levels MS Autotech 7

8 8 Daimler India Commercial Vehicles Pvt. Ltd. The DICV plant has become the home of Daimler truck manufacturing excellence in India for India 400 acres of land sqm of covered plant area. Annual production capacity of units per year, scalable to High level of automation to pass on cost benefits down the value chain. One of only three worldwide Daimler Truck plants to produce engines and trucks

9 T/IC /Aug Daimler India Commercial Vehicles Pvt. Ltd. Latest technology & uncompromised Daimler standards ascertain highest precision & superior quality

10 Daimler India Commercial Vehicles Pvt. Ltd. Production facility incorporates state-of-the-art machinery and high level of automation 16 robots in Cab-in-white/ 38% automation 100% automated Paint shop with 2 coat Mitsubishi Kawasaki paint process Engine production in line with Rastatt and Manheim plants 100% of the engines produces are tested on load and non load benches Filtered air-ventilation provides dust free engine production area 10

11 11 Daimler India Commercial Vehicles Pvt. Ltd. Flexible production process allows assembly of 17 different models from two brands on two lines Lean manufacturing according to Daimler Truck Operating System (TOS) Fishbone concepts routes 65% of material Just-in-time and Sequence to the line, cutting inventory costs 6 Quality inspection gates in assembly line An integrated training facility and learning islands along the line, guarantee for skilled workers

12 12 Daimler India Commercial Vehicles Pvt. Ltd. BharatBenz dealerships to be benchmark setups in the Indian CV industry Front View Side View 3S Setup Frontage Customer Handling Area 12 - bay functional workshop

13 Rajkot Ahmedabad Network Indore Daimler India Commercial Vehicles Pvt. Ltd. 19 Dealerships ready in Oct Plan to have 109 locations, covering 89% of TIV, ready by Jan Location Readiness Plan Oct Jan Jun Total Jan Veraval Vapi Mumbai Pune Chitradurga Bangalore Kochi Jamshedpur Balasore Behrampur Vizag Hyderabad Chennai Salem Madurai Tirunelveli Areas under prospecting 13

14 Daimler India Commercial Vehicles Pvt. Ltd. DICV completed tying up with leading financiers, BharatBenz Financial continues to be the first option Financing Share India Sales facilitation for commercial vehicles largely through loans Financing Mode DICV DICV established BharatBenz Financial and tied up with leading commercial vehicle financers Financing Mode Indian CV OEM Truck OEM s secure business with captive and engage with financers through tie ups About 95% commercial vehicles are financed by loan in India 25% 70% 1. Captive to be 1st choice financer for commercial vehicle sales 2. Truck manufacturers directly tie up 3-4 strategic commercial vehicle financers 5% of the commercial vehicles are perceived to be directly paid in cash 5% Cash 3. Coverage of other portfolio through mostly regional relations with relevant financers Same Financer Terms as Tata Motors 14

15 Daimler India Commercial Vehicles Pvt. Ltd. More than 500 vehicles delivered, first customers satisfied with high confidence in BharatBenz Sanam Dhir Dhir Roadlines, Mumbai Fleet owner 300 vehicles Very comfortable for drivers. I will not like to comment on mileage now. I am sure it will deliver better than my Tata fleet, is it 8% or 16% is the only question No of BharatBenz Vehicles: 2 nos. Byram Dhalla BD Dhalla Logistics, Mumbai Fleet owner of 150 vehicles, longest established transporter in Mumbai Thrilled. I did not expect this performance. I am getting about 15% lower fuel bills now No of BharatBenz Vehicles: 2 nos. HR Khurana Sheetal Parivahan, Mumbai Pioneers in refer operations in India Vehicles are very good and delivering higher mileage. My drivers are very happy and are not wanting to drive other vehicles No of BharatBenz Vehicles: 2 nos. A passionate fan of Benz trucks Now comes the real Benz, I used to drive one like a king till the end of 90s.Now although I am bit old but yes I will definitely like to enjoy the drive as soon as possible. When you are going to give the same in the market? 15

16 Daimler India Commercial Vehicles Pvt. Ltd. As centerpiece of DICV s strategy, exports offer multiple chances to target significant markets Strategic Target DICV DICV-Export Chances 1 Access to Indian market Potentially market entry e.g. into LDT/HDT segment 2 Indian low-cost export hub Additional earnings Low Cost Trucks Additional Volumes and earnings by selling Trucks & Spares 2nd Layer or complimentary product for DAI to address low cost segments FY02 FY03 FY04 FY05 FY06 FY18e Risk Aversion Pillar to cover possible downturns in domestic market 3 Sourcing 4 Cost Planning Excellence centres IT support Services Design Services Technology adaptation Test ground for future technology introduction in domestic market DICV Image Built up DICV image outside India Export Benefits Import Duty exemptions on import of Capital goods and raw materials Export opportunities for DICV in relevant export markets through introduced and existing DAI sales networks and strong global brands 16

17 17 Daimler India Commercial Vehicles Pvt. Ltd. Provide Global Support from DICV Shared Services Chennai Center to other Daimler Trucks locations Strategic Target DICV Objectives 1 Access to Indian market Potentially market entry e.g. into LDT/HDT segment 2 Indian low-cost export hub FY02 FY03 FY04 FY05 FY06 FY18e Reduced Cost In-house Business & Technical Expertise 3 Sourcing 4 Excellence centres Cost Planning IT support Services Design Services Global Process Implementation Center of Excellence

18 Daimler India Commercial Vehicles Pvt. Ltd. DICV with a good mix of experienced employees from multicultural groups, driving professional experience Age Diversity white collars, in %age 3% White Collars (ExPats + Indians) Blue Collars (incl. FLS*) 26% % % % % % >50 DICV Headcount ramp-up Regional/Gender Diversity North: 12% West: 12% South: 68% Female 7% 93% Male East: 8% /12 * Front line supervisor Industry Diversity Established OEMs 1, Total Auto Components Freshers 53% 13% 7% Other OEM & Industry 27% Split for WC :

19 19 We are ready Daimler India Commercial Vehicles Pvt. Ltd. DICV Team, 2012

20 20 Daimler India Commercial Vehicles Pvt. Ltd. Power Ahead