Brief history of Cyient:

Revenues @Vertical BU’s:

Capabilities of Cyient across verticals:

Laying scalable and sustainable tracks for profitable growth in Cyient’s
Rail Transportation BU

Overview of Cyient:
 Cyient derives 34.7% of its total revenues from Aerospace & Defence (A&D) vertical, 50% of
which is contributed by its largest client (UTC Group).
 Communications business contributes 23.3% to total revenues, followed by Utilities &
Energy at 15.9% and Transportation at 11.2%.
 Cyient derives 54% of its revenues from Americas, followed by 27% from Europe, Middle
East, Africa and India followed by 19% from Asia Pacific.
 In terms of Business Segments, Cyient derives 89% of its revenues from IT Engineering
Services, and 11% from Design-Led Manufacturing.
 Under IT Engineering Services, Cyient offers Engineering Services to A&D, Transportation,
Medical, Semiconductor and Industrial & Energy Verticals as well as Data & Networking
Operation services to Communications and Utilities & Geospatial verticals.

Outlook for FY 2018 for Transportation BU:

In Q2FY18, Cyient was approved as a potential supplier for 2 rail operators in Europe and Australia
which means that Cyient provides services to all the Rail companies/corporations globally except
China Rail. Growth in this segment will be largely driven by momentum in Rolling Stock and
Signalling Solutions.

A to Z of Transportation vertical business opportunities:

Aerodynamics Life Cycle Assessment (LCA)

Brakes Noise
Cabin Persons with Reduced Mobility (PRM)
Chemical Risks Railway Dynamics
Crash Safety Rolling Stock
Cyber Security Safety Assurance
Diesel Signalling
Electromagnetic Compatibility (EMC) Telematic Application for Passengers & Freight (TAP & TAF)
Energy Train Control Management System (TCMS)
Energy Efficiency Vehicle Authorisation
Fire Safety (SRT) Wagon (WAG)
Infrastructure  

As stated above, the various domains and sub-domains constitute the transportation’s key modules.

Cyient’s revenues are largely driven by two modules – rolling stock and signalling systems.
Overview of white spaces for new growth opportunities & changing
landscape of rail transportation:
Next generation rail systems are characterised by

 Intelligent Infrastructure
 Predictive Maintenance &
 Data analysis

Internal transformation of the Railway manufacturing industry

 Industry 4.0 with automation of production, of the supply chain & collaborative workplaces
 Digital based design and/or production (Simulation, Collaborative design), virtualization.

Pressing urgency to enhance the Railway performance

 Signalling solutions for urban rail and Traffic management systems

 Energy management solutions which is a high political priority
 Digital based maintenance, with monitoring and diagnosing tools
 Cyber-security, physical security, and specifically video system
 Communication solutions
 Internet of Things and Big Data applications.

Improvement of end customer’s satisfaction

 Infotainment (internet on board);

 (Real time) passenger information solutions, new apps
 Seamless access to all travel services;
 E-ticketing and/or various rights to travel;
 Digital tracking/tracing applications (for freight and passengers).
Digitization and advanced analytics are shifting value - chain control
points, creating new business models:

Intelligent infrastructure and Predictive Maintenance products of Global Players:

Company Product
Thales Thalesman
Siemens OnTrack
Bombardier Orbita
IBM Smarter Rail Road
Via Telmetry Uweave
Balfour Beatty Asset View
Llyods Register GOTCHA
CDS Rail Asset watch
Struckton Rail POSS online monitoring
Indra Davinci System
Alstom Iconis
Invensys Avantis

Innovative proto-typing and trial runs by UNIFE- European Rail Industry

to implement futuristic solutions like
 Smart sensors and smart running gear components
 3D metal printing, energy harvesting solution
 Modular cloud-based open data management platform
 Advanced visual and rule-based data analytics
 Satellite-based Signalling, future railway monitoring system
Run2Rail Explores an ensemble of
technical developments for
future running gear, looking
into ways to design trains
that are more reliable,
lighter, less damaging to the
track, more comfortable and
less noisy.
ETALON Energy harvesting for
signalling and
communication systems to
adapt energy harvesting
methodologies for trackside
and on-board signalling and
communication
IN2DREAMS Intelligent solutions 2ward
the Development of Railway
Energy and Asset
Management Systems in
Europe - focusing on the
management of energy-
related data and focusing on
the management of asset-
related data.
Astrail Satellite-based Signalling and
Automation Systems on
Railways along with Formal
Method and Moving Block
Validation
SMaRTE Smart Maintenance and the
Rail Traveller Experience - to
consider human centred
design in identifying aspects
of the customer experience
which could be improved and
simplified through
information and mobility
support
NGTC Next Generation Train
Control
Capacity4Rai New Concept for Railway
l infrastructure and operation:
adaptable, resilient and high
capacity
Smart sensors and smart running gear components with
self-diagnosing capability; - use of novel materials and
manufacturing methods in combination with intelligent
active suspensions to enable nonconventional running
gear concepts; - identification of efficient fabrication
processes for the running gear (3D metal printing,
automated tape layering of composite materials); -
assessment of existing off-the-shelf technology for active
control coming from other sectors; development of a
novel and comprehensive methodology for predicting the
transmission of noise and vibration from the running gear
to the carbody.
Contribute to the reduction of costs, providing an energy
harvesting solution for Smart Radio connected wayside
objects and implementing an offboard radio
communication system with object controllers.
Develop and demonstrate a modular cloud-based open
data management platform (ODM) facilitating ubiquitous
support of both energy and asset services.study and proof
the application of smart contracts in the railway
ecosystems, by addressing also legal and regulatory
implications, and advanced visual and rule-based data
analytics, including metrics for performance assessment.
Contribute to enhancing the signalling and automation of
the railway system leveraging innovative solutions that
exploit cutting edge technologies already present in
sectors different from the rail, such as the avionics or the
automotive sector.
To improve current railway train maintenance systems,
through the integration of predictive data analysis
algorithms and online optimization tools within an
improved Condition Based Maintenance (CBM) strategy,
to understand the current and future needs of passengers
from the railway, and other transport systems
characterised by rapid advances in technology and
demographic change.
To analyse the commonalities and differences of required
functionality for both ETCS and CBTC systems. The target
of the project is to propose reasonable evolutions of
future train control systems benefiting from the effective
experiences from both domains (urban and mainline).
Aimed at paving the way for the future railway system,
delivering coherent, demonstrated, innovative and
sustainable solutions for track design, freight, operation
and capacity as well as advanced monitoring
Virtuous cycle that drives the flywheel of revenues for Rail Business Unit:

Cyient has done multiple acquisitions in the past to drive inorganic growth in other verticals.

To drive exponential sales in transportation vertical, acquisitions related to some of the next gen
capabilities like 3D metal printing, energy harvesting solution, Satellite-based Signalling etc are to be
explored to augment complimentary capabilities.

Considering the DLM’s (Rangsons) post acquisition challenges, a mix of partnerships and acquisitions
should be explored as current technologies are quite dynamically evolving.

The way forward:

Strengthen Service business:

To capture growth potential, need to increasingly focus on strengthening their service offering incl.
big data solutions to gain market shares in service from rail operators

Prepare for new customers:

Tailor their sales activities to a more heterogeneous customer landscape incl. growing base of
financial investors, leasing companies and private rail companies

Focus on cost efficiency:

OEMs need to produce the basic vehicle at lower cost to ensure price competitiveness and remain
profitable in light of intensified competition, shifting growth regions and increasingly cost conscious
customers. Hence Cyient should focus on innovative cost efficiency measures leveraging technology.

Leverage Partnerships:

Evaluate opportunities for further consolidation across and beyond the industry in order to form
scalable ecosystems or profitable partnerships

Note:
The suggestions and ideas are primarily based on preliminary research leveraging third party
analysis and competitor strategies. However extreme care has been taken to suggest framework
that is sustainable, scalable and has stickiness in revenues.