ANAND Group Corporate Presentation 2018
© ANAND. All rights reserved. www.anandgroupindia.com July 2018 LEADING PLAYER ACROSS TWO VERTICALS
AUTOMOTIVE HOSPITALITY
2 FACTS AT A GLANCE
16,000 BILLION US DOLLAR EMPLOYEES 1.4 REVENUE
JOINT 62 16 VENTURES LOCATIONS
TECHNICAL 19 8COLLABORATIONS COMPANIES
3 SIX DECADES OF BUILDING TRUST
2007 2007 Diversification into Takata* 1992/ 1993 luxury hospitality 1961 · Chang Yun India Gabriel India · Spicer SUJÁN Sher Bagh
2008 2005 Chang Yun Myutec MAHLE Filter 2009 1962 1996/ 1997 SUJÁN The Serai VGIL/ PCIL · Henkel · Faurecia · Behr · Mando(Brakes) 2012 · Valeo 2006 2013 Valeo Service · Federal-Mogul SUJÁN JAWAI 1966 Bearings Purolator · Mando (Suspension)
1998 2013 Haldex 2015 Mando (Steering) SUJÁN Rajmahal Palace
1961 - 1970 1971 - 1990 2000 - 2006 2007 - 2017 2003 2016 2017 1976 1978 1993 - 95 Deep C Anand Launch of ‘JAWAI Group companies recognised as GPTW** SNS ANAND Started Foundation - Land of the Foundation, School ANAND U & and ANAND Leopard’ book 20 years of partnership the CSR arm ANAND Farm Supervisory with Mando. Launch of Board #EBS: ABS and ESC
** Great Place To Work® #Electronic Braking System (EBS): Anti-lock Braking System (ABS) and Electronic Stability Control (ESC) # Now part of Joyson Safety Systems 4 LEADING THROUGH STRONG GOVERNANCE
Deep C Anand Foundation
Deep C Anand Chairman & Chief Mentor, DCA Foundation
ANAND Supervisory Board
Anjali Singh Jaisal Singh Aditya Narayan Rohit Arora Lorenzo Piaget Tejpreet Chopra Executive Chairperson, Chief Executive, Ex-President & CEO, Founder & Chairman, Partner, President & CEO, ANAND SUJÁN BHP Billiton India Silverskills Piaget & Associés Bharat Light Power ANAND Executive Committee
Deepak Chopra Sunil Kaul Mahendra K Goyal Manoj Kolhatkar Jagdish Kumar Chief Executive Officer Group President Group President Group President Group President Chairman, AEC Excellence in Aftermarket Business Development Chief Financial Officer Head Business Group I Manufacturing, Head Business Group III and Corporate Materials Head Business Group V Innovation & Technology Head Business Group IV Head Business Group II
Group I: Mando, Spicer, SUJÁN, Takata I Group II: Anand CY Myutec Automotive, CY Myutec Anand, Haldex, MAHLE Behr, MAHLE Filter Systems Group III: Anand I-power, Faurecia, Federal-Mogul Anand Bearings, Federal-Mogul Anand Sealings, Valeo Friction, Valeo Services, Faurecia I Group IV: Gabriel I Group V: Henkel Anand, Ansysco Anand/Anchemco Anand
5 DIRECTING THE FUTURE STRATEGICALLY
Vision To Create Value Sustainably Through Pursuit of Excellence and Good Governance
BE THE FIRST CHOICE BUILD & STRENGTHEN DEVELOP, FOR CUSTOMERS SUSTAIN STRATEGIC CORPORATE EMPOWER & PARTNERSHIPS GOVERNANCE & GROW PEOPLE CITIZENSHIP
ASPIRE ATTAIN CREATE INSPIRED ACHIEVE SUPERIOR AND DARE TO BE LEADERSHIP LEADERSHIP & PROMOTE BUSINESS INNOVATIVE IN TECHNOLOGY ENTREPRENEURIAL PERFORMANCE & SPIRIT GROWTH
Strategic goal is to achieve revenue of 2.2 Billion US Dollars by 2020
6 ANAND BELIEFS & BUSINESS PHILOSPHY
Growth • Be top 3 player in each segment • Aim to grow ahead of the market • Target > 8% Operating Margin
People • Live by “Business is 90% people” • Attract and retain talent • Empower people and encourage accountability • Develop people for required skills and experience Mrs. Anjali Singh receives the prestigious Women Achievers Award from FICCI, 2016 Customers Partnerships • Become the preferred supplier of our customers • Build and sustain strategic partnerships • Provide value and exceed customer expectations • Exchange best-in-class management • Nurture strong and enduring customer relationships practices between partners Manufacturing & Technology • Strengthen “Unified corporate entity” • Achieve operational excellence through lean production Corporate Citizenship & Governance systems • Be always ethical • Develop supplier base through VSME* programme • Enhance fairness and transparency • Aim to spend 2% of sales in R&D • Strengthen CSR activities under SNS • Develop innovative processes and products to stay Foundation competitive • Ensure robust strategic planning and QUALITY execution • Foster a culture of quality • Strengthen governance through ANAND • Deploy world-class quality standards, tools and systems Supervisory Board *VSME: Visionary Small and Medium Enterprise 7 BEING CLOSE TO CUSTOMERS
CHQ and ABC's*
Delhi (CHQ) Kolkatta Chennai Mumbai
ANAND Automotive Plants
Bangalore Lucknow Chakan Neemrana Chennai Noida Dewas Pantnagar Gurugram Parwanoo Hosur Sanand Jodalli Satara
ANAND SUJÁN Warehouses presence in Properties India’s Auto Hubs Jaipur Ahmedabad Indore Jaisalmer Bangalore Kochi Jawai Bandh Chennai Kolkata Ranthambhore Delhi Lucknow Guwahati Pune
*CHQ: Corporate Headquarters ABC's: ANAND Business Center 8 PARTNERSHIP BASED MODEL
JOINT VENTURE PARTNERS TECHNICAL COLLABORATIONS CY Myutec, Korea Bluetech Holdings Ltd., Hong Kong Dana Incorporated, USA KONI BV, The Netherlands Elewana Collection, Kenya KYB Corporation, Japan Faurecia Clean Mobility, France KYBSE, Spain Federal-Mogul, USA LIQUI MOLY GmbH, Germany Haldex AB, Sweden Seiken Chemical Industry Company, Japan Henkel Teroson GmbH, Germany Sunrise MSI, Japan Joyson Safety Systems, USA Yamaha Motor Hydraulic Systems, Japan MAHLE Behr Holding GmbH, Germany MAHLE Filtersysteme GmbH, Germany Mando Corporation, Korea Valeo, France
9 AUTOMOTIVE PARTNERING WITH GLOBAL LEADERS
JV PARTNERS HEADQUARTERS REVENUE* EMPLOYEES* BUSINESSES CY Myutec Korea KRW 135 500 Synchroniser rings for transmissions Billion Dana USA $ 7.2 30,100 Driveline, Sealing and Thermal-management Billion technologies Faurecia France €16.9 1,09,275 Seating, Interior systems and Emissions control Billion Federal-Mogul USA $ 7.4 55,000 OE: Pistons, bearings, seals, gaskets, ignition coils, Billion etc. Aftermarket: Wipers, brake friction, chassis components etc Haldex Sweden SEK 4.4 2,100 Brake and suspension systems for commercial and Billion off-highway vehicles Henkel Germany € 20 53,000 Adhesive Technologies, Laundry & Home Care and Billion Beauty Care Joyson USA $7.9 50,000 Safety systems, airbags, child restraint systems, etc Billion MAHLE Germany € 12.3 77,000 Engine systems, filtration, electrics/mechatronics and Billion thermal management Mando Korea KRW 6010 11,855 Brakes, suspension and steering. Halla Group: Logistics, Billion transportation, construction, heavy industry etc Valeo France € 18.7 81,800 Comfort and Driving Assistance Systems (interior Billion controls and electronics, driving assistance), Powertrain Systems (electrical, electronic, transmission and engine system), Thermal Systems, Visibility Systems and Valeo Service (aftermarket)
*Source: From available sources on company website 10 AUTOMOTIVE CUSTOMER PRESENCE
50+ OEM Customers across Two Wheelers, Three Wheelers, Passenger Cars, Commercial Vehicles Railway Segments and Engine Components
11 AUTOMOTIVE PRODUCT PORTFOLIO
EMISSION CHASSIS POWERTRAIN CONTROL
THERMAL SAFETY MANAGEMENT
12 AUTOMOTIVE PRODUCT PORTFOLIO
• Chassis • Safety HENKEL ANAND INDIA
JV: HENKEL TEROSON GmbH, GERMANY TC: SUNRISE MSI, JAPAN TAKATA INDIA SEALANTS, ADHESIVES, JV: JOYSON SAFETY SYSTEMS, USA COATINGS &NVH PRODUCTS
SEAT BELTS, AIRBAGS & STEERING WHEELS
GABRIEL INDIA
TC: KYB CORP. , JAPAN; YAMAHA MOTOR HYDRAULIC SYS- TEMS, JAPAN; KYBSE, SPAIN and HALDEX INDIA KONI BV, THE NETHERLANDS MANDO AUTOMOTIVE INDIA JV: HALDEX AB, SWEDEN SHOCK ABSORBERS, JV: MANDO CORPORATION, KOREA STRUTS, FRONT FORKS, SELF-SETTING AUTOMATIC BRAKE GAS SPRINGS, HYDRAULIC BRAKES, ADJUSTERS, MANUAL SLACK COOLANTS & BUSHKITS ELECTRIC POWER ADJUSTERS, CONDENSOR-CUM- STEERING SYSTEMS, SEPARATOR, ABS & OTHER SHOCK ABSORBERS AIR BRAKE PRODUCTS and STRUTS
JV: Joint Ventures TC: Technical Collaborations 13 AUTOMOTIVE PRODUCT PORTFOLIO
• Emission Control • Thermal Management
FAURECIA CLEAN MOBILITY
JV: FAURECIA CLEAN MOBILITY, FRANCE MAHLE BEHR INDIA EXHAUST MUFFLER ASSEMBLIES, CATALYTIC CONVERTERS, JV: MAHLE BEHR HOLDING GmbH, INSTRUMENT PANEL GERMANY REINFORCEMENT ASSEMBLIES (IPRT) AIR CONDITIONING, ENGINE & DOOR SIDE COOLING SYSTEMS, VISCO FANS IMPACT BEAMS (SIB) & EXHAUST GAS RECIRCULATION COOLERS
14 AUTOMOTIVE PRODUCT PORTFOLIO
• Powertrain (1 of 2) FEDERAL-MOGUL ANAND SEALINGS INDIA
JV: FEDERAL-MOGUL CORPORATION, USA
GASKETS, HEAT SHIELDS & OIL SEALS
FEDERAL-MOGUL ANAND BEARINGS INDIA
JV: FEDERAL-MOGUL CORPORATION, USA
BI METAL COPPER LEAD & ALUMINUM TIN BEARINGS, BUSHES, FLANGES & THRUST WASHERS
ANSYSCO ANAND AND ANCHEMCO ANAND MAHLE FILTER SYSTEMS INDIA TC: LIQUI-MOLY, GERMANY; SEIKEN ANAND I-POWER CHEMICAL INDUSTRY COMPANY, (Formerly Perfect Circle India JV: MAHLE FILTERSYSTEME JAPAN; BLUETECH HOLDINGS LTD., Limited) GMBH, GERMANY HONG KONG VALVE COVER MODULES, AIR JV: FEDERAL-MOGUL RADIATOR COOLANTS, INTAKE MANIFOLDS SYSTEMS, CORPORATION, USA PVC ADHESIVES, AIR CLEANER MODULES, SEALANTS, ENGINE FUEL & OIL FILTER MODULES, PISTON RINGS & CAST IRON OILS, LUBRICANTS & OIL MIST SEPARATORS & SPIN-ON COVERS/PLATES CAR CARE PRODUCTS OIL FILTERS
15 AUTOMOTIVE PRODUCT PORTFOLIO
• Powertrain (2 of 2)
SPICER INDIA
JV: DANA INCORPORATED, USA
AXLES, DRIVE SHAFTS & DRIVETRAIN COMPONENTS
VALEO FRICTION MATERIALS INDIA VALEO SERVICE INDIA AUTO PARTS
JV: VALEO, FRANCE
NON-ASBESTOS, SOLVENT & LEAD-FREE CLUTCH FACINGS
WIDE RANGE OF AUTOMOTIVE PARTS FOR AFTERMARKET
ANAND CY MYUTEC AUTOMOTIVE CY MYUTEC ANAND
JV: CY MYUTEC, KOREA
HIGH PRECISION SINGLE CONE & MULTI-CONE SYNCHRONIZER RINGS OF BRASS & STEEL
16 AUTOMOTIVE GABRIEL, THE FLAGSHIP COMPANY
Established in 1961
Total revenue of INR 18,140 Million & Profit before tax of INR 372 Million (7.6%) during 2017-18
Publicly listed entity
Pioneer of Ride Control Products in India
Product range: Shock Absorbers, Struts, Front Forks, Seat Dampers, Cabin Dampers
Market leader in India
7 manufacturing plants and 4 satellite facilities
Strong R&D with over 58 patents filed till date in products and processes
Recognised for its HR practices; Ranked 52nd amongst “India’s Top 100 Great Places to Work for” in 2017 by Great Place to Work®. Recognised third year in a row
17 LUXURY HOTELS PROPERTIES & EXPERIENCES
A collection of iconic and experiential properties
18 LUXURY HOTELS GLOBAL RECOGNITION
SUJÁN has established itself on the global high-end luxury tourism scene and has won prestigious accolades.
DESTINATIONS
Mr. Jaisal Singh, Chief Executive, SUJÁN, SUJÁN JAWAI Team receiving the ZEISS The places to be in 2018 receiving the award from Condé Nast Wildlife Conservation Award, 2018 Traveller, 2017
‘JAWAI-Land of The Leopard’ Book Launch SUJÁN Team receiving the Outlook Traveller by Rajasthan CM Vasundhara Raje in Bikaner Award, 2017 House, New Delhi, 2016 ACCOLADES • The Gold List - Condé Nast Traveler, 2018 • The Gold List - Condé Nast Traveler, 2017 • Top 100 Hotels in the World - Tatler, 2016 • Andrew Harper Annual Grand Awards, 2016 • The Gold List - Condé Nast Traveler, UK & USA, 2016 • The Hot list - Condé Nast Traveller, UK & USA, 2015 • Most Beautiful Hotels in the World, Hotels by Design Guide, House & Garden, 2015
19 ANAND GROUP CORPORATE
BUSINESS DEVELOPMENT AFTERMARKET HUMAN RESOURCES
OPERATIONS, EXCELLENCE IN TECHNOLOGY & INNOVATION INTERNAL AUDIT, CORPORATE MANUFACTURING & SERVICES, FINANCE, TAX & LEGAL CORPORATE MATERIALS
CORPORATE CORPORATE SOCIAL MANAGEMENT & COMMUNICATIONS RESPONSIBILITY GOVERNANCE
20 BUSINESS DEVELOPMENT
Customer Relationships • Leveraging automotive industry network built across five decades • Holding Customer Technology Days • Conducting customer satisfaction surveys
Business Intelligence • Market intelligence & analysis – Market, Regulatory, Customers, Competitors • Identifying new business opportunities
Voice in the Industry • Membership and representation in industry associations* (ACMA, FICCI, CII, etc.) • Visibility in industry publications and presence in trade shows and exhibitions
AUTO EXPO 2016 *ACMA: Associate Chartered Management Accountant FICCI: The Federation of Indian Chambers of Commerce and Industry CII: Confederation of Indian Industry 21 BUSINESS DEVELOPMENT - LEVERAGING WITH KEY CUSTOMERS ACROSS THE GROUP
Technology Days and Auto Expo are an integral part of customer connect and branding for ANAND Group companies.
Auto Expo 2018
Auto Expo 2018 Tata Motors Tech Day 2018
Mahindra Electric Tech Day 2017 Mahindra Tech Day 2017 Maruti Suzuki Tech Day 2017 Daimler Tech Day 2016
22 BUSINESS DEVELOPMENT GARNERING CUSTOMER APPRECIATION
Winning ANAND Group companies at third summit of the ACMA of India Centre for Technology (ACT)
Gabriel India Team receiving the award Mando Automotive India Team ANAND Group was conferred with the prestigious ‘Business Partner of the Year- from Suzuki Motorcycle India receiving the award from Hyundai Automotive Division’ award by Mahindra
MAHLE Filters System (India) receiving MAHLE Behr India team receiving the Anand CY Myutec Automotive Team Spicer India Team receiving the Golden the award from Honda Motor India award from General Motors receiving the award from Tata Motors Peacock Innovation Management Award
23 HUMAN RESOURCES NURTURING AND GROOMING OF TALENT
ANAND is an HR Innovator, being at the forefront of HR Practices for decades
OE Model - Pioneered the “Operating Engineer” Model, which has enabled ANAND locations being manned by educated work force and being union-free Developing Leadership from within - Most of ANAND’s senior management today has grown within the Group • At ANAND, every leader is provided with the right platform to exhibit their true capabilities. Potential leaders across levels are groomed through the ANAND Career Mobility – Cross-fertilization of skills and Leadership Development Programmes growth opportunities across ANAND companies (ALDP) to become effective business and JV Partners leaders. Hiring Talent – We hire talent from premium • Talent management programmes are institutes supported through mandatory mentoring and coaching programmes
World of Opportunities – ANAND people are sent overseas for training to JV partner locations, as well as to Oxford University
24 HUMAN RESOURCES EMPOWERING A DIVERSE WORKFORCE
Employing women on the shop floor ANAND strongly believes in the empowerment of women Currently 15% of the workforce are women, with the target being 30% Some locations have up to 95% women on the shop floor Accommodation facilities and amenities provided to encourage women to seek employment
Wide spread reach and diverse workforce With presence in 62 locations across India, ANAND employs talent from diverse backgrounds and geographies It is this diversity that supports our basic ethos of inclusive growth, reflected across management levels
25 HUMAN RESOURCES DEVELOPING RESOURCES THROUGH ANAND U
‘ANAND U’ is the ANAND Corporate University that covers the HR development needs of Group companies
ANAND U has been contributing towards people development since 1991
ANAND U offers training support and guidance through three academies • Leadership Academy • Operational Excellence Academy • Development Academy
It is focused on four major areas of people development: Operational Excellence, Talent Development, Technical Interventions and Development of Operating Engineers
Training modules • Classroom for face to face • E-learning • Engaging with internal and external faculity
“BUSINESS IS 90% PEOPLE” MR. DEEP C ANAND
26 OPERATIONS PURSUING EXCELLENCE IN MANUFACTURING
Visionary Leaders For Manufacturing (VLFM) - VLFM programme was started by CII in partnership with Japan International Co-operation Agency (JICA). Through VLFM, ANAND Senior Managers are given unique leadership perspectives. (70 managers trained in VLFM since 2007)
Visionary Small And Medium Enterprises (VSME) - VSME is a programme under the VLFM umbrella, focused on Tier 1 and Tier 2 suppliers. It aims to achieve a win-win relationship between customers and suppliers and also to improve manufacturing (quality, cost, delivery) of suppliers. (Dedicated teams of ANAND engineers has helped around 500 suppliers since 2009)
ANAND House of Quality Culture (AHQC) - Groupwide initiative to improve quality in all that we do
ANAND Heijunka Production System (AHPS) - Moving plants from traditional manufacturing to world class practices
Specialized Training for Operating Engineers (STOE) - 15 % OEs trained through various technical training programmes to specialize in areas of interest e.g. maintenance
Safety of all employees is of paramount importance across all Group companies
27 CORPORATE SOCIAL RESPONSIBILITY HAVING AN IMPACT IN COMMUNITIES NEAR-BY
SNS Foundation (SNSF), the CSR arm of the ANAND Group was founded in April 1976.
SKILL DEVELOPMENT COMMUNITY CONSERVATION • 32,000 students • Touched 7 villages of 10k trained across 10 + population trades (70% females) • Benefits 1500+ students • Annually 2000+ youth across 11 schools with are trained better infrastructure & • Fostered 600+ teaching entrepreneurs • Health care for village • Partnership with 6 residents & livestock certifying organisations 5000+ humans & 70000+ livestock treated
EDUCATION HEALTH AND RURAL • Touched 1.5 Lakh school DEVELOPMENT students with better • Touched 7 Lakh infrastructure & teaching people in unserved & inputs underserved areas with • Benefitting 21,000+ health services students annually • Access to INR 14 cr • Partnership with micro credit for 850+ 9 polytechnics for women self-help groups engineering scholarships • Nurtured rural women: to high-school female 140+ group & 3000+ students individual enterprises
28 MANAGEMENT & GOVERNANCE PURSUING ORGANISATIONAL TRANSPARENCY
Ethics - Ethics forms a very important component of ANAND Group's belief and its practices. Employees, suppliers and vendors are encouraged and guided to maintain the highest level of ethical practices • Group Ethics Committee • Anonymous hot line facility through KPMG
Prevention of Sexual Harassment - This is taken very seriously at ANAND. A committee oversees activities related to educating employees and evaluating complaints
360 Degree Feedback – ANAND is well known for its practice of transparency and formal feedback. It was one of the first companies to establish 360 degree feedback across all levels
Open Discussions - We encourage open discussions and dialogue as the main means to sort out differences and improve functioning
29 LIVING THE “ANAND WAY”
We drive ANAND as a UNIFIED CORPORATE ENTITY We ASPIRE to be a WORLD-CLASS organisation We ENCOURAGE organisational transparency We value INTEGRITY We encourage INNOVATION We nurture TALENT We support continuous EDUCATION We build TRUST and EMPOWER PEOPLE We PRACTICE open and HONEST COMMUNICATION We RECOGNISE and reward ACHIEVEMENT We are an EQUAL opportunity employer We are committed to SOCIAL RESPONSIBILITY
30 DRIVING WITH YOU SINCE 1961
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