Material Handling Equipment

Understanding of the Case

Where we are Our Goal

Indian Market Leader with 37% MS Leaner supply chain with capacity
1800 units p.a. expansion
INR 480 crores 2800 units p.a. by 2020
Service contribution of INR 25 per INR 625 crores by 2020
INR 100 revenue Service contribution of INR 37 per
Challenged by incoming global INR 100 revenue
players Indigenization of critical parts
Scouting for a new OEM partner

Key Focus Areas

Extended Dealer
Market
and Service Network Leasing as an LOB
Availability
to business

Renowned Clients with Competitive Prices with

Exports as a driver
Multiple Businesses Latest Technology

Focus on
Warehouse Frugal Cost
Lean Supply
Capabilities Structure
Chain
 Analysis and Understanding the Market and Various Factors

The Focus of the GoI to target a growth of

Factors Manufacturing 25% construction to FDP from the current
16%

Category Share of CAGR

Distribution Warehousing Growth
Logistics
Industry/Retail 55% 6%
Manufacturing
Agri-Warehousing 15% 6%
Cold Storage 16% 10%
Container 14% 20%
Warehousing

Lack of legislation regarding human labor

Psyche of
Tri-Lever for load lifting and lack of aspiration for the
Labor low level labor

Key Drivers Key Challenges

Growth in % contribution to GDP from Govt. focus on employability
manufacturing High Cost of Capital
GST and growth in distribution logistics Availability of labor
Distribution Psyche of Global competitive practices Lack of standardization of pallets
Logistics Labor

Source: Indian Warehousing Industry : An Overview EY, 2017

 Revenue Contribution and Customer Segment Wise Analysis

Industrial Segments Forecasted Growth Key Insights:

Automobile 10% Automobile, Paper &

Packaging and 3PL are
General Engineering 8-10% the fast growing sectors
Paper and Packaging 15.44% with MHE being critical
to their operations.
3 PL 8.43%
Hence focus should be
Pharmaceutical 15.92% on building customer
Textile 16% relations in these
industries
Chemical 8%
Retail 13%

Impact of Drivers Automobile Paper & Packaging 3PL Pharmaceutical Textile Retail

Criticality to Operations

Uptime

Price Sensitivity

Source: Team Analysis, GB MHE Company Reports

 Competitor Mapping

Parameter

L M H L M H L M H
Technology superiority

Customization

Channel Distribution network

Touch points

Pricing

Portfolio depth

Brand Image
Source: Team Analysis, Company Reports
 SWOT Analyses

Service Technological competency

Reach Aesthetics
Service Network International presence
Trained man power Presence on digital platforms
Parts availability High fixed cost structure
Customer centric policies Brand recognition in international
Product offering market
Product portfolio Different levels of dealer maturity
Customized Solutions
Multi segment product
offerings
S W
Price
High brand recognition in domestic
market

Consolidation of warehouses post GST Entry of international brands

Growth in retail sector Struggle to maintain capacity with
Government support for infrastructure respect to market growth rate
development Price undercutting by competitors
Growth within ASEAN markets Increasing cost of labor
Shift in preference towards electric
trucks
O T
Make in India
Change in customer perspective;
auxiliary equipment to productivity
enhancer
Customers buying 100% spares from
OEM
 Our Strategic Alternatives

Win through Service

and Spares

Reduction of the Focus on Iran and

Costing Structure ASEAN

Target SMEs and Hiring Be a Complete

Business growth Solution provider for
warehousing
GODREJ UPLIFT
 Dealer connects
L To Client

E Breakdowns
Service Request
Planned Registration
G Maintenance Check clients
START Spare Parts coverage under STOP
A Issue registered
Service Executive
service contract
Send service
Forklift
C Maintenance Issue
Notified
Dealer Notified
engineer within FRT
Place PO

Y Service Delivered
Connect to
Call Centre

Owner
P
Service
R Executive
O
Management
P
Dealer
O Godrej
S Uplift
E
D Shop floor MHE
 Fleet
Usage Management
Statistics Diagnostics

Cloud
Database

Mobile Interface
Client Dealer/ Dashboard
Service Executive
IoT Enabled Forklift
 GODREJ Uplift- A mobile service van

Uplift

Challenges Faced Benefits Forecasted

1.More complaints addressed per trip/day

2.Non-dependence on client end toolkits
1.Complaints serviced per trip/day
3.More resolutions during FRT
2.Inability to carry extensive toolkits
4.Reduced dealer network and increase
3.Complaints resolved in first visit
coverage per dealer
4.Skill deployment
5.Strategic Push for AMCs/CMCs
 Benefits & Challenges

Benefits Challenges

Uniform Service Experience

Minimize Client Hassle

Problem resolution within FRT Additional Investment

Effective use of service executives

Training the Dealers

Reduced Downtime
Retrofitting the existing
forklifts with the new system
Insights in customer utility patterns

Increased contribution of
service towards revenue
GODREJ JOINT SOLUTIONS
 Requirement gathering
JOINT-
STANDARDIZATION SELLING
&
PALLETIZATION
Customized offering

Sales pitch

Project execution & Monitoring

Service by respective divisions

GST HUL, GSK & Johnson &

Johnson are
consolidating their
The new facilities will
cover about 500000 sq.
DHL has made
investments to double
feet of space its warehousing space
warehouses

Source: EconomicTimes Report

LEASING as an LOB
 Suresh is the owner of He does not have the
an MSME who needs a capital to buy a forklift
forklift to address the and needs someone to
peak in operations for a rent a forklift on short
short period notice

Suresh gets on to the

Dial-A-Forklift
Dial-A-Forklift USSD based mobile
A call from the service to avail the
dealer/company is service
arranged to address his
*XXXX# needs

Suresh uses the forklift

and saves money,
time and effort.
A dealer/company His experience is
representative recorded pertaining to
completes formalities of the service
the rental agreement

What is it Target Customers Benefits

A mobile USSD number based 1. Ultra short lease (< 1 month) 1. Catering to a growing volume based segment
rental service for forklifts for ultra 2. Low volume requirement 2. Additional revenue opportunities for dealers
short rental periods 3. Immediate requirement 3. Rolling stock at dealerships
4. MSME/SMSE segments 4. First mover advantage
GODREJ MHE Digital Marketing Footprint
 Marketing in the Digital Space

60%
25%
 Our Digital Footprint and Performance

Keyword: Forklifts Keyword: Material Handling Equipment

Performance: 19th on the list of related searches Performance: 15th on the list of related searches

Key Recommendations:
1. In an industry where digital interaction is low key,
we need to leverage this to win in the market
2. PPC Spends of INR 5000 per day can help us
reach 375 clicks and more than 2000 impressions
on Google Search

Source: Google Trends, Adwords Analysis, Quintly Suite

Managerial Implications
 Our Major Recommendations

Win through
Service and
Spares

Target SMEs Be a Complete

and Hiring Solution provider
Business growth for warehousing
THANK YOU