ev intro

Electrotherm (India) Ltd.

Presentation Scope

• Electrotherm (India) Ltd Introduction Vision & Values

Initiatives

• Electric Vehicle Division Objectives Strategy Strengths Achievements

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ET - Introduction

Electrotherm (India) Ltd.• In 1983, Electrotherm (ET) was started by, Chairman &

CTO, Mr Mukesh Bhandari and our MD, Mr. Shailesh Bhandari, as a firm to service metallurgical equipment

• With his expertise in the field of ‘Power Electronics’ & the team he created, the small service setup soon became a designing & manufacturing unit to make small metal melting equipments

• In 1983, Indian metal melting industry was dominated by multinationals like Asea Brown Boveri, General Electric Company, PILLAR, etc.


• The company designed, developed, manufactured and sold metallurgical equipments (that were being imported during those days) to the customers at a very competitive price

• ET’s Value Proposition- Customize offerings, robust design, timely delivery & efficient after sales services –gave a competitive advantage to ET over Multinational companies

• Today ET stands amongst the foremost engineering companies manufacturing and supplying induction melting equipments to the world having its network at as many as 30 cities in India and also in 27 countries around the world including Africa, Bangladesh, Iran, Malaysia, Pakistan, South Africa, Turkey, Russia and other CIS countries

• More than 18 million tonne of Steel being produced in India is on the Induction Furnaces manufactured by Electrotherm

• ET not only manufactures capital equipment for metallurgical/ Steel Industry but expanded into execution of turnkey projects worldwide to setup steel & DRI Plants

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• In 2003, Considering the growth opportunities available in India, ET has decided to diversify into other businesses i.e. Steel making & Electric Vehicles.

• Diversification gave the company exponential growth for continuously five years. Electrotherm turnover has increased from 6.5+ Mn USD in 2003 to 450+ Mn USD in 2009-10, a CAGR of more than 90%

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Business Today, a leading business magazine in India has ranked – Electrotherm as the “India’s Fastest Growing Mid-size Company” for the year 2007 –08 and IncIndia rated it amongst the top 75 companies of the 500 mid size companies in 2009-10

Business Today June 2008 issue

Turnover (in m USD)

0

50

100

150

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250300

350

400

450

500

2003-04 2004-05 2005-06 2006-07 2007-08 2008-09

Year

(in

m U

SD

)

Electrotherm (India) LtdSTRATEGIC BUSINESS UNITS • Engineering, Capital and Projects Division

- Started in 1985, the first division of the company

- Manufactures induction furnace and other capital equipments

- Execution of turnkey projects in making iron and steel industries

• Special Steel Division

- Started in 2003-04

- Manufactures steel products such as TMT bars/Construction steel

- Production capacity of 150,000 TPA for TMT bars/Construction steel

• Electric Vehicle Division – Auto Division

- Electric vehicle division started in Feb’06

- Brand Yobykes

Electrotherm has started a new company ET Renewables to tap Solar market

Initiatives

ERP – Implementation

ConnEcT is project to build a system driven organization, we are implementing SAP at

each SBU’s

• KPMG, has been hired to formulate the HR policies and Organization structure

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HR Transformation

People First – The Appreciating Asset

Electric Vehicle Division (Auto)

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Journey from Steel to Wheels

The ‘power electronics’ involved in control of Furnaces finds application in electric two wheelers. This gives the company

distinct competitive advantage in Electric Vehicle market.

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• ET started working on development of hybrid electric bus in the year 2002

• In 2004 Electrotherm decided to enter the electric two wheeler market

• Brand name Yobykes

Electric Vehicle Division

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Creative Translation

YObykes is the economical, convenient, safe, environment friendly and suitable option available

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OBJECTIVES

• Yobykes to be an EV leader in Indian market with market share upwards of 25%

• Make market interventions to change supply side (Electric 2W manufacturers) from Pure Competition situation to (more than 100 players) to a four or five large player market

• Reach 0.25 million sales by 2014-15

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You can’t force

an idea that isn’t ripe.

And.

You can’t stop an idea

whose time has come!!

Product Range

Strategy Implementation

Developing new products with higher speed, capacity to meet need of Indian consumer

xplorWith 24Ah & 33Ah


Developing new products with higher speed, capacity to meet need of Indian consumer

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250 W 500 W 750 W 1000 W 1500 W 1750 W

24 Ah

33 Ah

40 Ah

20 Ah YOsmartYO Electron

YO electron ER

YO Style

YO Speed

YO Exl

Motor Power

Bat

tery

Product Range

46 Ah YO Exl ER

YO Xplor

Manpower

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Mr. B. K.Vaishya Sr. VP - R & D BHEL

Mr Arun Pratap Singh VP & SBU Head - Auto TATA Motors

Mr Pounit Varshney GM - Sales & Marketing Yamaha

Mr R S Tyagi GM – Zonal Sales Hero Motors

Mr Shrikant Pathak DGM - Service LML - Piaggio

Mr C Balagopal DGM - South India Bajaj

Mr Mukul Mathur ZM - East India Force Motors

Mr. Ullas Kalele Plant Head Kinetic

Mr. Sunoj Nair Manager – International Business Yamaha

Mr Jitendra Patel ABM TAFE Tractor

Manpower

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Mr Manoj Bidani DGM - Vendor Development Hero Motors

Mr Kailash Sharva AGM – Design Hero Motors

Mr. Nitin Jain Manager – Sales (Gujarat) Kingfisher

Mr Girish Potdar Manager - Service & Spares Kinetic

Mr Subodh Mahulikar Sr Manager - Serivce & Spares Royal Enfield India

Mr. G Vishwakarma Sr. Manager - Prodn GM

Mr. CB Mishra AGM - Stores Hindustan Motors

Mr. Sanjay Bhatnagar Sr. Manager - Quality Kinetic

Mr Vijay Mathur ABM - Rajasthan Mahindra

Mr Rajesh Srivastava ABM - UP (East) Kinetic

Mr Sanjay Khare ABM- Maharashtra Scooters India

Mr B Nair ABM - AP Hero Motors

Manpower (Contd.)

Strengths

• ET is led by the Chairman who is also the CTO

• Strong in-house R&D team working to innovate and bring to market state-of-the-art products. (product improvements, new products, ARAI approvals)

• Strong organizational commitment towards electric auto products

• State-of-the-art manufacturing plant with installed capacity of 288,000 vehicles per annum.

• Investment in technology (motor/battery).

• National presence for electric two wheelers in an year’s time

Our Strength

• Top notch industry professionals from manufacturing, production, quality assurance, business development, sales, service, logistics becoming part of EV team

• A very strong service network to ensure total customer satisfaction at every stage

• Strong Alliance: Mudra, Indicia research, Kaizen Institute.

• Investing into training of dealer technicians and sales staff. (have trained more than 600 dealers/dealers’ staff )

• Strong dealer profile: auto and retail

Our Strength

• Setting up In house manufacturing of critical components (motor, battery, controllers)

• Have invested upfront into brand building and will continue to do so in the future.– Strong presence on TV and in print– Effective PR work– Auto Magazines– Neo wheels

Our Strength

Network

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• To achieve initial volumes• To ensure efficient and timely customer

support at doorstep • To gain confidence of being a National

Player • YOWorld • YOPoint • YOService • LGO

Build Strong pan India Distribution & Customer Support

Network

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Leading the revolution

Phase 1: GujaratQuickly grew it to about 26 dealers in a couple of months

Build Strong pan India Distribution & Customer Support Network

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Phase 2: Western & Central IndiaExpanded the network to about 120 YOworld across 8 states


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Phase 3: Pan IndiaThe only brand to have an All India presence


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Nationwide exclusive network of 200 YOworlds (3S)

Availability of workshop, spares after sales service is critical to the growth of this category


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Service Station equipped with Test equipments


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Trained more than 3000 – Local garage owners & puncture people for small checks and repair


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– Good showrooms

– Workshops

– Trained manpower

– Customer education

Provide a superior electric vehicle buying experience to the consumer

We have trained more than 1000 dealers/dealers’ staff in last 1 yr

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A superior electric vehicle buying experience to customer

Good showrooms

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Good showrooms


Brand building

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• Creating a national level brand with inputs from Mudra Communications, 2nd largest Indian Brand Consultant

• Strong presence on TV and in print ( brand investments before sales ) ( drive small players out )

• Research based market segmentation & promotions

• Effective Below the line promotions

• Effective PR work

• Auto Magazines

• Neo wheels

Building India’s No. 1 EV Brand

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TV campaign• NO Petrol - YObykes

Introduction of YObykes as india’s 1st EV Runs 700km in Rs 50

• NO Petrol – YOSmart A story of a mother, kid and YOsmart – one of the key TG for

YOsmart Differentiate YObykes from other EV players Start building sub brand – YOSmart

• NO Petrol – YOSpeed To address the issues & apprehensions regarding – speed,

sturdiness, capacity etc Re-emphasis the NO Petrol Plank

Building India’s No. 1 EV Brand

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Consumer Education: Explain all merits. Address all apprehensions


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Title for the school event

Taking product to the customers


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Contest form

Taking product to the customers


International Business

Stepping into International business

• Early 2008 –stabilization of domestic YO business propelled IB option to be explored.

• Country mapping started from end 2007

• Similar economy with inherent value proposition of YObykes was the key driver in identification of countries.

• Neighboring countries were the automatic choice to start with.

International business plan• Exports to Nepal and Bangladesh

started• Srilanka is due to start in June,2009• Africa and Europe are considered to be

the next destination- to be operational in Kenya and Tanzania by Sept. 2010

• Ethiopia, Ghana, Ivory Coast, Egypt, Sudan, Algeria, Morocco, South Africa and Uganda would be operational by Sep 2010

Showroom at Nawalparasi, Nepal

IB Plan(contd)• Potential Country partners are being

identified in Ireland, France

• Turkey, UK, Italy, Netherlands, Romania, Bulgaria and CIS countries- are identified in the first phase, time line to start with Nove,2009 and to be operational in all these countries by September 2010

Siemens OLMS

@Bangalore International Airport

McDonalds

Testimonials

Testimonials

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Achievements • YObykes is India’s largest selling electric two wheeler brand with

more than 75000 satisfied customers

• Largest Sales and Customer Service network of more than 200 YOWorld (Sales, Service Spares Facility) and 300+ touch points

• State-of-the-art manufacturing facility with capacity to produce 2,88,000 units per annum at Kutch in Gujarat

• In-house production of key component as well as in-house R&D facility provides - core competency to develop newer, better products as per market requirements

• Experienced set of professionals from Automotive Industry and Electronics Area

• Received ‘Overdrive - Automotive Product of the Year 2007’ award

• Only electric two wheeler manufacturing company to receive the prestigious membership of ‘Society of Indian Automobile Manufactures’ (SIAM) and founding member of Society Of Manufacturers Of Electric Vehicles (SMEV )

Fork Lift Business in India

• Currently the volume in India is around 6000 nos

• It is expected to grow at 20%

• Godrej and Voltas own the 75-80% of the market

• There is a potential for new player to enter the market and make a dent

Why Electrotherm

• Electrotherm hs understanding of industrial business

• Has more than 3000 probable customers in its portfolio

• Has best understanding of Electric vehicles in the Indian market

• Has infrastructure available of supporting EVs

Business Case

Year 2011-12 2012-13 2013-14 2014-15 2014-15 2015-16

Forklift Market in India 6000 7200 8640 10368 12441.6 14929.92

ETLift Sales 300 504 864 1348 1866 2239

5.00% 7.00% 10.00% 13.00% 15.00% 15.00%

ETLift (Turnover in M USD) 6.7 11.2 19.2 30.0 41.5 49.8

Net Profit (in M USD) 0.33 0.56 0.96 1.50 2.07 2.49

PV of the earnings (@10%) $0.30 $0.46 $0.72 $1.02 $1.29 $1.40

PV of Total Earnings (in M USD) $5.20

Investment in Lift Business (in M USD) 0.1

NPV (in M USD) $5.10

Jaijaijai

ev intro

Education

south africa

electric vehicles

higher speed

steel

yobykes

company

amp

electric