Festo AG & Co.

KG
Localization & Sourcing in India

Topics
1. Festo AG & Co. KG
2. Market Analysis
3. Current status & Opportunities of Festo India

PP-PN\Vladimir Curilovic Erstellt: 23.10.2015

1
 Festo – your world-wide partner in factory and process automation

Vladimir Curilovic
2015-11-04
PP-PN\Vladimir Curilovic Erstellt: 23.10.2015
 Festo – your world-wide partner in factory and process automation

PP-PN\Vladimir Curilovic Erstellt: 23.10.2015

 Festo – your world-wide partner in factory and process automation

PP-PN\Vladimir Curilovic Erstellt: 23.10.2015

Maximum performance in production, logistics and service
Our goal: To make your supplies as reliable and
fast as possible.
Our solution: Various different production centres
Festo GPC, RSC and NSC.

Fast machining
Benefit from our excellent
order handling strategy
• Production on demand for more than 30,000
products
• Available around the clock for repairs or,
in the event of complaints, local product
development Procurement made
Customer solutions for specific requirements easy

• 300,000 customers in 176 countries from

more than 200 industrial sectors
PP-PN\Vladimir Curilovic Erstellt: 23.10.2015
 Europe, Asia, America – all over the world. we're there when you need
us In 200 industries
Delivery 12 – 24h local presence
world-wide Worldwide flexibility
after receipt of order

Fast international
availability of Festo
staff and products

Local and regional

know-how

Global synchronization
Long-term stable with your value creation
supplier chain
partnerships Consistent quality of
products and services -
world-wide
PP-PN\Vladimir Curilovic Erstellt: 23.10.2015
 Global network with production and logistics expertise
Festo production locations (Global Production Centres)

PP-PN\Vladimir Curilovic Erstellt: 23.10.2015

 Close at hand around the world – Festo in India

Primary business location in

Festo Bangalore
India
14 branch offices

30 sales engineers

35 authorised dealers

PP-PN\Vladimir Curilovic Erstellt: 23.10.2015

 Festo AG & Co. KG
Localization & Sourcing in India

Topics
1. Festo AG & Co. KG
2. Market Analysis
3. Current status & Opportunities of Festo India

PP-PN\Vladimir Curilovic Erstellt: 23.10.2015

1
 Project Roadmap India: Economic regions
Delhi
•Financial
Excerpt focused on biggest regions and •Telecommunications
industries •IT
Mumbai •Automotive
•international representative •Chemicals
offices •Energy
•Financial
•Chemicals
•Pharmaceuticals
•IT
•Automotive
Kolkata
•Energy
Pune •Tabacco
•IT •Food
•Automotive Hyderabad
•IT
•Biotech
Bengaluru •Pharmaceuticals
•IT
•Elektronics
•Biotech Chennai
•Machine tools •Financial
•Automotive
•Mechanical
•Textiles

PP-PN\Vladimir Curilovic Erstellt: 23.10.2015

 Project Roadmap India: Bangalore – Potential supplier base
Manufacturers in Bangalore
# Hits for searches on TradeIndia.com & IMTMA
120
108

100

80

60

38 37
40 30 30 30
21 22
20 13 12

PP-PN\Vladimir Curilovic Erstellt: 23.10.2015

 Project Roadmap India: Process Automation
PA relevant industries in India
Number of potential suppliers Excerpt
# Hits for searches on TradeIndia.com
700
595
600

500

400

300 262

200
119
100 64 74
54
22 36
18
0

PP-PN\Vladimir Curilovic Erstellt: 23.10.2015

 Project Roadmap India: Cost comparison
Estimates based on
•US Bureau of Labor (costs in countries) Hourly compensation costs
•IMF (regional differences in GDP) (Germany = 100)
100
100

90

80

70

60

50

40

30

20 16.6
9.0
10 6.6 6.0
3.3 4.0 2.0 2.8 3.5 2.9 4.0
0

PP-PN\Vladimir Curilovic Erstellt: 23.10.2015

 Project Roadmap India: SWOT - Analyse
Strengths
Large market
High economic growth
Western legal system
(Common Law)
Large number of qualified
graduates
English as a common
business language
Opportunities
Growing middle class
Need for modernization in
the industry
High investment activity
of private sector
Low wages
Growing integration into
the global economy
Drive for ‘Make in India’
PP-PN\Vladimir Curilovic Erstellt: 23.10.2015
Weaknesses
Low per capita income
Inadequate infrastructure
Lack of skilled labor
Low labor productivity
Excessive bureaucracy,
regional differences in
regulations
“Black “ economy
Threats
Strong state influence on
the economy
Strong position of trade
unions and other
stakeholders
Speculative real estate
and real estate prices
High employee turnover
Terrorism
 Project Roadmap India

1.st Guideline:

In the region for the region!

2.nd Guideline

Use local supplier structure

and cost advantages

3.rd Guideline

Competence in stainless steel

PP-PN\Vladimir Curilovic Erstellt: 23.10.2015

 Festo AG & Co. KG
Localization & Sourcing in India

Topics
1. Festo AG & Co. KG
2. Market Analysis
3. Current status & Oppotunities of Festo India

PP-PN\Vladimir Curilovic Erstellt: 23.10.2015

1
 General facts GPC Bengaluru

• Build (year): 2012

Key facts
• Location size (m²): 16,000
• production area (m²): 6,400
• Overall output 2014 (m€): GPC:24.2; NSC:50.17
• Employees: 518 ( GPC :155 NSC:363)
• External Sourcing volume (m€): 9.09 (4.75 Series,
4.34 NPM)
• Buyers & SQE : 9 (2PM, 2NPM, 2 SQE,3 series )

PP-PN\Vladimir Curilovic Erstellt: 23.10.2015

 Festo India Sales trend

Export
Domestic

2013 2014 2015 2016 2017 2018 2019 2020

PP-PN\Vladimir Curilovic Erstellt: 23.10.2015 23

 1/3

Status FPU India: Actual trends on local procurement market

Macro economic condition

 Market showing positive trend with BSE sensex maintained around 25,000 points
despite the uncertainty in global economy

 GDP growth by 7.3%, Manufacturing sector grew by 7.1% against 5.3% last year

 Share of manufacturing sector GDP is low in India, approx 15%, compared to other
developed countries

 New government focusing on manufacturing and infrastructure sectors

 India partnered Hannover Messe 2015 to promote “make in India” campaign

PP-PN\Vladimir Curilovic Erstellt: 23.10.2015 24

 2/3
Status FPU India: Actual trends on local procurement market
Steel parts :
 India now is 3rd largest producer of steel
 Availability of raw material and skill to produce stainless steel makes India a good
investment options for steel finished products
 Piston rods, stainless steel castings and other steel parts can be realized at
competitive price for global requirement of FESTO

Brass parts:
 Suppliers available for Brass parts have capability to produce finish parts starting from
raw material from their captive extrusion/forged parts
 Suitable for screws and fasteners

Polymer Injection molding :

 Fast switching valve and tiger polymer parts successfully developed for GPC India
requirement
 Can take up high complexity parts for development

PP-PN\Vladimir Curilovic Erstellt: 23.10.2015 25

 Opportunity prioritization per region - India

Low
Standard
Parts Ready Now

Machined
Parts

Tube Fittings Al. Die

Polymer PartsCastings
Supply

Ready - Near
Term
Risk

Gasket Electronics
s

Ready – Longer
Hig Term
h
Immatur Well-
e developed
Supply market development
PP-PN\Vladimir Curilovic Erstellt: 23.10.2015
 Thank you for your
attention!
Do you have any
questions?

PP-PN\Vladimir Curilovic Erstellt: 23.10.2015

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