A Walk - through

Charging
Ahead
Since 2014
Road map to GCC Region – Automotive Batteries
Automotive Battery - A Market Understanding
Market scenario  Auto market scenario
 Market penetration and opportunity assessment

 Estimating the market size of Automotive batteries

Market size
Estimation  Assessing key growth factors like Drivers & Challenges.
 Break-up of market by products, category, region and application in key
markets
Market  Competition analysis of players active in this business across markets
Assessment  Business models and best business practices across key market players

Usage and  Product usage scenario and purchase practices across end
Purchase
users
behavior
 User’s needs, need gaps and key expectations

Opportunity
 Partnerships, model, delivery, people
 Key success factors for a new player
Exports –Trends
Pulled in two opposing directions

Strengthened by:

Upward
 Dollar Appreciation
 Decrease in the Lead
Weakened by: Pricing

Downward
 Rupee Appreciation
 Higher Import
duty(Anti dumping)
 Increase in lead
pricing
 Ocean Freight
/Logistics going up
 Triggers Search Consider Choose

 European companies get • 3 key sources of information • Competitive Price Offer • Final choice driven by
good momentum. looked by the Importer: - Price considerations
• Packaging like Look & Feel - Brand reputation
 The Anti dumping duty to • Background of the - Prior experience with
(Carton box)
be introduced by GCC Manufacturer brand
Council wef Oct 22 . As a - Peer recommendation
• Technical USP(Product &
consequence, Indian and • Check largely about Features)
Turkish brands who were - Ranges/part numbers • Consumers continuously
selling sizeable quantities - brand value attempt to optimize value for
• Comfort level during money
in GCC, will lessen.
communication.
• Several people contacted –
 The BRP of automotive
After going through
batteries in the GCC company website.
region is estimated @
10.3 Mn .Out of that the 3
manufacturers in GCC
MEBCO, National
Batteries & Reem
batteries combined
capacity is only 5 to 6 Mn.
So remaining 4.3 to 5Mn
vacuum will be filled by
mainly European at
premium & Regular level
then Chinese at economy
level.
Volume of Sales per year of various brands
Sl.N
o Country Vehicle Parc BRP per year
KSA
1 KSA (Kingdom Of Saudi Arabia) 10 Mn 6.6 Mn
2 Emirates (Dubai ) 3.6Mn 2.4 Mn
Sultanate
3 Kuwait 2 Mn 1.8 Mn
Of Oman
4 Oman 1.6Mn 1.5 Mn
5 Qatar 1.6Mn 1 Mn
6 Bahrain 0.8 Mn 0.58 Mn
Total Vehicle Parc &BRO per year 19.6 Mn 13.88 Mn

 In the KSA region MEBCO under brand name
AC Delco is doing well in the GCC Region.
The manufacturing capacity is more than 3
Mn.
 National Battery Company, KSA has a
manufacturing capacity of 1 Mn
 Reem Batteries, Oman with a capacity of 1
Mn.
 With the likely introduction of Anti dumping duty of
GCC council, we can expect notable transformation of
some of the new brands entering from
Europe/Tunisia/Malaysia/Bangladesh.
 Amaron from India with lower import & Anti dumping
duty will grow stronger.
 Most of the Indian &Turkish brands will totally
disappear from the GCC region.
Key Factors
 Population
 GDP
 Political Stability
 Minimal/No local manufacturing
companies
 Import Duty
 Currency Stability
 Freight cost
 % Market share for Dry
 Charge Vs MF
 Certification & Testing Standards
of Partners
 ISO 9001: 2008 (Quality) Tubular Batteries
 ISO 14001:2004 (Environment)  CECRI – Solar Batteries tested as per
 OHSAS 18001:2009 (Health & Safety) IS13369 & IEC61427
 Approved by – TPCB (Pollution Control  MNRE - Tested as per IS13369 Standards
Board)  Tested as per Indian IS14257 & JISD5301
standards
Required Quality Certification In GCC Region for Battery Import

Kingdom Of Saudi Arabia

Emirates

Sultanate Of Oman
(DGSM Approval)
Market Needs
 Reputed Brand  Manufactured by the best
 Moderate Cost  OEM endorsed companies
 High Quality  JIS & DIN all ranges
 No premature failure
Export Strategy
 Focus on specific countries to be a meaningful player in that
market
 Explore multi-distributor system in countries with high
potential & limited presence
 Build a strong retail network in line with the country’s battery
potential
 Advertising/Promotion campaign, create brand awareness
and improve brand image in focus countries
 Explore private label business in select countries
 Brand registration in select countries to protect Amco brand
 New product – To study potential and present business case
Going Global -Strategy # 1 under Plan A -
Identifying suitable trade partners in each country for Automotive Batteries

How to achieve:
 Select the leading trading business house who are prepared to grow with the so called
brand of batteries.
 Based on the performance criteria long term business association will be promised.
 Offer the required marketing program suitable to that county.
 Explore OE showrooms having vehicle dealerships / tyre ,Lube & spare parts selling
importers, Tyre company importers, Big trading house preferably having vast network
and having internal consumption.
 Visit the market once in 3 to 6 months to develop the product.
Going Global -Strategy # 1 under Plan B
Identify suitable Master Distributors in the entire GCC for Automotive Batteries.

Strategies:
 Identify a Master Distributor to look after all the GCC region after the required due
diligence.
 The shortlisted Master Distributor need to have good financial back up and quality
manpower.
 The manufacturers need to provide minimum 15% margin to sustain the business for
the Master Distributor.
 The Master distributor needs to have a base office preferably in Dubai. The batteries
booked by him from various countries will get dispatched directly from the plan and the
modus operandi will by switch BL.
Strategy No 3: Private Label Program for GCC Export
Market

Our Approach :
 Big trading house will be open to “private label program”

 Need to ensure minimum product off - take guarantee in a Year.

Matching Trade Expectations
Product Price
 Long life  Competitive vis-à-vis competition
 Good – Better - Best Category  Higher profitability

Promotion Other Support

 BTL( Service Campaigns)  Marketing
 Display Stand / Glow sign Board /  Training the sales team
POP/Brochures etc.
 Schemes & Marketing Programs
Our Strengths
 Establish a brand with high recall, Innovative
marketing & sales promotion
 Experienced manpower, having sound knowledge
of the market
 Excellent back-up of good infrastructure, Logistics
& backend team
 Adequate finance for travel, manpower and
marketing
 Going forward, we shall have one service person
for stock, health check up & training programs
 Brand presence of Shivaram across the globe

Track record of establishing

many repute brands in GCC/ East Africa/
Latam since 2014.

Exported for brand Amco, Sakthi, Elito

(Amara raja product)
JC SMF VRLA batteries & Panna Batteries,
Bangladesh.

Last 7 years sales revenue $4Mn

(100 + containers)
Roll out in more than 15 countries.
Classification & Positioning
There are 3 Major Classification of Brands

 Premium Brand Or Plus 1 Brands – Example - Ac Delco, Amaron, Exide (High quality
Product, Durability-Performance in terms of warranty period and price for the elite class or
brand conscience end users)

 Utility Or Value Based Brand - Affordable to the Middle Class Segment. Solite, Platinum,
Delkor,Sebang,3k,Infinity,Asimco,SBK,Ranger

 Low Priced Brand – Example -

Zeetex,Easten,Bekon,Crestal,Jupiter,Luch,Globatt,Volta,Datex,Crank Etc
World Class Process Check
 Best Quality Raw Materials:
 Lead Purity: 99.994%
 Selenium/Calcium /Antimony high quality Grids (Strong bonding )
 CCA/RC/Charge acceptance/ charge retention /HLE/LLE need to be the best compared to
competition or at par with some repute brands.
 High quality Sulphuric Acid and Distilled water.
 Manufactured according to international standards.
 Wide range of batteries including all types of automotive, Tubular and imported SMF
Batteries.
 Customer Friendly and Efficient After Sales and Replacement Process
Battery Life Expectation
 Warranty will be sold out for all Exports and will be handled by Importers/Distributors

 Discount of 2% warranty cost is included in the pricing considering the warranty

 We have to ensure the battery has a minimum life of 18 months, for a 12 month
warranty offered in the market
 The upcoming trend is because of the intense competition started by manufacturers
offering back to back warranty to the importers
 Assurance to be given that manufacturers will be responsible for any manufacturing
defect against the supply of batteries
Battery Shelf Life & Battery Service
 The average battery shelf life experienced by the dealer’s in the market is 3 to 6
months irrespective of Conventional or Maintenance Free batteries.

 The average battery service life is 15 to 18 months as reported by the dealer. In some
cases (Premium segment)the battery life is gives service up to 24 to 36 months if
maintained and serviced periodically as per the producer’s recommendation.

 However the battery’s service life totally depends on the applications where the batteries
are used and put in service. Road conditions, Climatic conditions, Vehicle conditions,
Battery technician nature of handling the batteries for fitment, Periodic maintenance in
case of Conventional & Hybrid batteries, etc. too affect the same
Understanding The Market
 Major Brands Market Scan - Sample

Korea S.Africa

Indonesia Germany

Thailand Italy

India Kenya

Japan Malaysia
Philippine
KSA s
USA Turkey

Need to do a market scan to understand the various battery players & the business model
Low Cost Brands

AZB
Batteries
Fast Moving Parts

Need to understand the fast moving part numbers of the country we are in, to help to plan the sales
forecast for production.
Market Dynamics Understanding
Each country is highly cluttered with
more than 20 importers of various
battery brands and more than 50
brands under Good-Better-Best
Category.
Each country will also have around 15
car OEMs who will have Tire, Oil and
Battery divisions to cater to their in-
house requirement and distribution.
Price Understanding in Bahrain Market: a study
Brand Positioning
Market Penetration - Continuous Learning Process

 Analyzing Potential markets across the globe.

 Product range and fit.

 Business model & strategies of top 3 battery players in the country

 Distributor business model

 Effective Advertising medium in the country for Auto batteries

 Understand Promotion activities/Trade schemes by competition.

Shivaram Associates – Continuous Learning Process
 Procedure manual for Exports
 Selection criteria for Appointing Distributors
 Distributor Agreement format
 Identification of Potential markets
 Product Mix & Pricing.
 Process for After sales service
 Process for Product launch.
 Market Information System for Exports
 Brand guidance for Exports promotion.
 Franchisee docket for Exports
 Performance Evaluation for Distributors
 Process for PL & OEM development.
 NPD for Exports
Shivaram Associates – Continuous Learning Process

 Country Profile  Competition Data - Sales volume, Market share,

Product mix, Network, promotions, strategy
 Country's Macro Economic Indicators.
 Local Manufacturers data.
 Country's Regulatory Environment
 Sources for valid market information.
 Country's Automotive market Information.
 PEST & SWOT Analysis
 Market Size - Vehicle parc, BRP, Product fit,
Dry/MF mix, JIS/DIN mix etc.  Opportunities for PL and OEM business

 Market Attractiveness - Tariff, Retail pricing,

consumer behavior, local competition, etc.
Hofstede for Exports
Landed cost working

CIF Price
Existing Business

30% to 35%mark up ( Ocean freight, port clearance, Import duty,

Distributor price
warranty provision + Marketing +local
freight+miscelaneous+Importer margin.

Retailer price Retailer margin@ 15%

Consumer 100 landed cost becomes 160% by the time it reaches the customer.
Target Competition
Market batteries are usually
SMF Sealed look & Feel
Competitive classified as Good-Better-Best.
Pricing Our product ranges fall in Better &
Best categories.

JIS & DIN ranges.

Adequate part
numbers & it
meets with
International Third Party inspection Saber
standard norms Saleem program - Each product
registration cost @SR2100 &
document cost certificates 840
for countries like Saudi Arabia.

Pallet Optimization
Country/market visit for growth
Key to Success
 The market has been growing every year. It
welcomes high quality, branded batteries
from India. Hence it is the right time to
spread our wings
 Most players in the industry have healthy
growth in revenues and invest in latest
technologies
 Our Technology and Brand name are
respected by the automotive Industry
 We need to capitalize the extensive
product range that caters to the rigorous
demand of the various Japanese, Korean
and European car applications
 Handpick the best Battery Premium
Outlets that are willing to grow with us on
a long term
 We need to ensure batteries are supplied
with a guaranteed life of 18 months
 Deliver products promptly and offer world
class service
Various Battery Brands

We have more than 50 brands presently in Kuwait market

Customer (Trade) Recall - Continuous
Learning Process
 Understand the Trade Behavior.

 Product differentiation in comparison with competition.

 Competition activity on Trade, BTL, Schemes etc.

 Understand peak business seasons for the country.

 Distributor's Credit policy to Retailers.

 Trade expectation from secondary and tertiary market.

 After sales service and Warranty policy.

38
Potential Unlimited
Contact Us Address:
Shivaram Associates
North Avenue, GRN Chitakala
Srinagar colony, Saidapet
Chennai-600015

vidya@shivarramassociates.com

+91 98805 59559

www.shivaramassociates.co.in
Thank You