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Caterpillar India
Caterpillar - takeaways from
15th Annual India Investor Conf.
Our takeaways from the management meeting today at our 15th Annual
India Investor Conference in New Delhi
„Experience so far… in India - steady state continues
„ Revenue for facilities from India have been on the rise; Units manufactured in
Tiruvallur facility have increased manifold
„ Good distribution network with TIL and GMMCO
„ Moving beyond outsourcing, India is emerging as a manufacturing hub for CAT
Outlook for Caterpillar India
„ One of the “Big 8 Imperatives” for CAT is to “Win in China… grow to leadership in
India, Asean and CIS”
„ Rich Lavin’s presence in Hongkong as an Executive Officer member
„ Shift to Low Cost Producer model
„ Focus on products for Less Regulated Countries
„ Investments underway to the tune of US$200mn
Pointers for future success – in Indian market
„ Understand the Indian customer
„ Recognize diversity in regional markets
„ Localize the business
„ Embrace the local capacity to innovate
„ Don’t under-estimate local competition
„ Take the long term view
Acquisitions
Electro-Motive Diesel: Progress Rail Services, a division of Caterpillar, has signed a
definitive agreement to purchase Electro-Motive Diesel (EMD).
Bucyrus International Inc: Biggest acquisition in the history of Caterpillar. Products and
services are highly complementary to Caterpillar product line and distribution footprint.
This is an opportunity for Caterpillar to participate more fully in mining industry growth.
MWM: Products and services are highly complementary to Caterpillar product line and
distribution footprint. This is an opportunity for Caterpillar to participate more fully in
mining industry growth.
Challenges:
1) Delay in coal mine expansion on 'no-go' zones for mining, 2) Capital convertibility,
Corporate Law compliance, 3) Transfer pricing, 4) Late entry, hence related issues -
Distribution network & Supplier collaboration, 5) Inflation, 6) Strategy of being a
“differentiator” narrowed down options, High premiums which puts pressure on the
whole positioning (market-share), 7) Infrastructure – including energy generation, 8)
Procedural delays, lack of transparency, 9) Higher logistics cost (who wins in
supply chain, also wins in Asia) and 10) Less mature supply chain network.
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
Caterpillar India
Caterpillar - takeaways from
15th Annual India Investor Conf.
Our takeaways from the management meeting today at our 15th Annual
India Investor Conference in New Delhi
„Experience so far… in India - steady state continues
„ Revenue for facilities from India have been on the rise; Units manufactured in
Tiruvallur facility have increased manifold
„ Good distribution network with TIL and GMMCO
„ Moving beyond outsourcing, India is emerging as a manufacturing hub for CAT
Outlook for Caterpillar India
„ One of the “Big 8 Imperatives” for CAT is to “Win in China… grow to leadership in
India, Asean and CIS”
„ Rich Lavin’s presence in Hongkong as an Executive Officer member
„ Shift to Low Cost Producer model
„ Focus on products for Less Regulated Countries
„ Investments underway to the tune of US$200mn
Pointers for future success – in Indian market
„ Understand the Indian customer
„ Recognize diversity in regional markets
„ Localize the business
„ Embrace the local capacity to innovate
„ Don’t under-estimate local competition
„ Take the long term view
Acquisitions
Electro-Motive Diesel: Progress Rail Services, a division of Caterpillar, has signed a
definitive agreement to purchase Electro-Motive Diesel (EMD).
Bucyrus International Inc: Biggest acquisition in the history of Caterpillar. Products and
services are highly complementary to Caterpillar product line and distribution footprint.
This is an opportunity for Caterpillar to participate more fully in mining industry growth.
MWM: Products and services are highly complementary to Caterpillar product line and
distribution footprint. This is an opportunity for Caterpillar to participate more fully in
mining industry growth.
Challenges:
1) Delay in coal mine expansion on 'no-go' zones for mining, 2) Capital convertibility,
Corporate Law compliance, 3) Transfer pricing, 4) Late entry, hence related issues -
Distribution network & Supplier collaboration, 5) Inflation, 6) Strategy of being a
“differentiator” narrowed down options, High premiums which puts pressure on the
whole positioning (market-share), 7) Infrastructure – including energy generation, 8)
Procedural delays, lack of transparency, 9) Higher logistics cost (who wins in
supply chain, also wins in Asia) and 10) Less mature supply chain network.
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