Daimler Banker's Day India Dec. 4, 2012

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Daimler Banker's Day India Dec. 4, 2012 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) Daimler India Commercial Vehicles Pvt. Ltd. Indian market entry fulfils 4 strategic targets for Daimler Trucks Access to Indian market Indian low-cost export hub Potentially market entry e.g. into LDT/HDT segment FY0 2 FY0 3 FY0 4 FY0 5 FY0 6 FY18e Significant market share in Low-cost export hub to emerging markets growing Indian market (focus on new business) Sourcing Excellence centres Usage of low cost base Low cost services for Cost Planning, for Daimler overall Computer Aided Engineering & IT 2 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 3 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 . 6 cylinder . 80kW ~ 125kW . 170kW ~ 205kW . Fuel efficient for last mile distribution . Long service intervals reduce service cost 4 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 Articulation track Pot Hole Track . High speed test track High Speed Water through . Rough road track 24/7 Gradeability Test Tracking Turning cycle . Articulation track Elevated Curves . Water-through track 5 Daimler India Commercial Vehicles Pvt. Ltd. DICV’s Supply Chain is on track to localize 85% of % of material value at SoP Region total Donaldson India Southern Autocast Tamil Nadu 41% Camshaft Minda Acoustic Air intake NRB Local India Rest 44% Sundram Clayton Horn Hi Tech Gears Bearings TM housing Import 15% Gears KLT Autom. Caparo Eng. India Frames Delhi Sub assembly oil pan Craftsman IJL Bhavani Industries Avtec Cyl. block & head mchg. Lights, Headlamps IJL Hubs, Sleeves 4D34 engine Motherson Autom. Gabriel India Dashboard Pithampur Shock absorbers Rajkot Hanil Autom. India Kalyani Forge Trims Con rod Mumbai Rane (Madras) Bharat Forge Pune Steering system I-Beam, Crankshaft Brakes India Dana Spicer India Brakes system M.S. Autotech Propeller shaft Hospet C.I.W American Axles Manuf. Coimbatore Asahi India Glass Axles Kirloskar Ferrous Hosur Chennai Glass Cyl. gead & block cast. Dynamatics Techn. JBM Harita Modine Castings Harita Seating Systems Ltd. Bumper Seating Cooling systems 6 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 Front Axle Rear & TAG Axle Transmission Engine Frame Cab 2523R (VL4 6.6) (RS4 440 & NR4) (G85 SAE2) (OM906 230hp) (2523R) (Sleeper Cab) 85% 86% 94% 80% 63% 96% 99% AAM (KTO parts from AAM (KTO parts from In-house assy, all In-house assy, all KLT (KTO parts from In-house assy DAI network) DAI network) parts bought out parts bought out DAI network) MS Autotech Entire Vehicle Front Axle Rear Axle Transmission Engine Frame Cab 914R (IF 3.6) (AAM design) (MO36S6) (4D34i) (914R) (Day Cab) 85% 92% 100% 90% 74% 96% 99% In-house assy, all KLT (KTO parts from In-house assy AAM AAM parts bought out AVTEC DAI network) MS Autotech Localization levels % 7 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 • 176.000 sqm of covered plant area. • Annual production capacity of 36.000 units per year, scalable to 72.000. • 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 8 Daimler India Commercial Vehicles Pvt. Ltd. Latest technology & uncompromised Daimler standards ascertain highest precision & superior quality T/IC /Aug 2012 9 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 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 11 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 12 Network Daimler India Commercial Vehicles Pvt. Ltd. 19 Dealerships ready in Oct 2012. Plan to have 109 locations, covering 89% of TIV, ready by Jan 2014 Location Readiness Plan 1 Oct’12 19 2 Jan’13 57 3 Jun ‘13 80 Indore Rajkot Ahmedabad 4 Total Jan ‘14 109 Veraval Jamshedpur Vapi Balasore Mumbai Behrampur Pune Vizag Hyderabad Chitradurga Chennai Bangalore Salem Kochi Madurai Tirunelveli Areas under prospecting 13 Daimler India Commercial Vehicles Pvt. Ltd. DICV completed tying up with leading financiers, BharatBenz Financial continues to be the first option Financing Share India Financing Mode DICV Financing Mode Indian CV OEM Truck OEM’s secure business with Sales facilitation for commercial DICV established BharatBenz Financial and tied captive and engage with financers vehicles largely through loans up with leading commercial vehicle financers through tie ups 1. Captive to be 1st choice 25% About 95% commercial financer for commercial vehicle sales vehicles are financed by 2. Truck manufacturers directly loan in India 70% tie up 3-4 strategic commercial vehicle financers 5% of the commercial 3. Coverage of other portfolio vehicles are perceived to through mostly regional relations with relevant be directly paid in cash 5% Cash … financers Same Financer Terms as Tata Motors 14 Daimler India Commercial Vehicles Pvt. Ltd. More than 500 vehicles delivered, first customers satisfied with high confidence in BharatBenz “Very comfortable for drivers. I will not like to “Thrilled. I did not expect comment on mileage now. I this performance. I am am sure it will deliver better getting about 15% lower fuel than my Tata fleet, is it 8% or bills now” Sanam Dhir 16% is the only question” Byram Dhalla Dhir Roadlines, Mumbai – BD Dhalla Logistics, Fleet owner 300 vehicles No of BharatBenz Mumbai – Fleet owner of 150 vehicles, No of BharatBenz Vehicles: 2 nos. longest established transporter in Mumbai Vehicles: 2 nos. “Now comes the real Benz, I used to “Vehicles are very good and drive one like a king till the end of delivering higher mileage. 90s.Now although I am bit old but My drivers are very happy yes I will definitely like to enjoy the and are not wanting to drive drive as soon as possible. When you other vehicles” are going to give the same in the HR Khurana A passionate fan market?” Sheetal Parivahan, Mumbai – No of BharatBenz of Benz trucks Pioneers in refer operations Vehicles: 2 nos. in India 15 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 2 Indian low-cost export hub Additional Volumes and earnings by selling Additional earnings Trucks & Spares Potentially market entry e.g. into LDT/HDT 2nd Layer or complimentary product for DAI Low Cost Trucks segment to address low cost segments FY0 2 FY0 3 FY0 4 FY0 5 FY0 6 FY18e Pillar to cover possible downturns in Risk Aversion domestic market 3 Sourcing 4 Excellence centres Technology Test ground for future technology Cost IT support Design adaptation Planning Services Services introduction in domestic market DICV Image Built up DICV image outside India Import Duty exemptions on import of Capital Export Benefits goods and raw materials Export opportunities for DICV in relevant export markets through introduced and existing DAI sales networks and strong global brands 16 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 2 Indian low-cost export hub Potentially market entry e.g. into LDT/HDT segment In-house Business & FY0 2 FY0 3 FY0 4 FY0 5 FY0 6 FY18e Reduced Cost Technical Expertise 3 Sourcing 4 Excellence centres Cost IT support Design Planning Services Services Global Process Center of Excellence Implementation 17 Daimler India Commercial Vehicles Pvt. Ltd. DICV with a good mix of experienced employees from multicultural groups, driving professional experience DICV Headcount ramp-up White Collars (ExPats + Indians) 1,900 240 Blue Collars (incl. FLS*) 470 1070 230 360 300 830 150 150 2008 2009 2010 2 011 10/12 Total Age Diversity Regional/Gender Diversity Female Industry Diversity white collars, in %age Established Auto 7% Freshers 32% OEMs Components 26% North: 12% 53% 13% 7% 21% 93% 11% Male Other OEM & 5% West: 12% East: 8% Industry 3% 1% 27% 18-24 25-29 30-34 35-39 40-44 45-49 >50 South: 68% Split for WC :1070 * Front line supervisor 18 Daimler India Commercial Vehicles Pvt.
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