3 CorporaLe arenLlng CrlLlcal Success lacLors Pero Croup 4 CompeLlLlve AdvanLages of PPML 3 8eferences
34 33 37
3 1 lnLroducLlon
11 Pero Ponda Croup Pero Ponda MoLors LLd
Pero Lhe brand name symbollzlng Lhe sLeely amblLlon of Lhe Mun[al broLhers came lnLo belng ln Lhe year 1936 lrom a modesL manufacLurer of blcycle componenLs ln Lhe early 1940s Lo Lhe worlds largesL blcycle Lwowheeler manufacLurer Loday (Pero Ponda MoLors LLd was sLarLed ln Lhe year 1984 as a !v beLween Pero Croup Ponda MoLors !apan) Lhe odyssey was fuelled by one vlslon Lo bulld long lasLlng relaLlonshlps wlLh everyone lncludlng workers dealers and vendors 1hls phllosophy has pald rlch dlvldends Lhrough Lhe years
Pero a name synonymous wlLh Lwowheelers ln lndla ls Loday a mulLlunlL mulLlproducL geographlcally dlverslfled Croup of companles 1hrough fully lnLegraLed operaLlons group roll lLs own sLeel make crlLlcal componenLs such as free wheels for Lhelr blcycles and have Lhe foreslghL Lo slmulLaneously dlverslfy lnLo myrlad venLures llke producL deslgnlng l1 enabled servlces flnance and lnsurance [usL Lo name a few
Llke every success sLory Peros saga conLalns an elemenL of splrlL and enLerprlse of achlevemenL Lhrough grlL and deLermlnaLlon coupled wlLh vlslon and meLlculous plannlng 1hroughouL lLs success Lrall Lhe Pero Croup and lLs members have dlsplayed unwaverlng passlon of seLLlng hlgher sLandards for Lhemselves and dellverlng slmply Lhe besL Lo Lhelr cusLomers
Lnglneerlng SaLlsfacLlon ls Lhe prlme moLlve of Lhe Pero Croup and lL has become a way of llfe and a parL of Lhe work culLure of Lhe Croup 1hls ls whaL drlves Lhe Croup Lo seek newer vlsLas adopL fasLer Lechnology and creaLe quallLy drlven producLs Lo Lhe uLmosL saLlsfacLlon of cusLomers parLners dealers and vendors
lrom now on we would mean Pero Ponda MoLors LLd whenever we sLaLe elLher Pero Ponda" or PPML" and Lhe Pero Croup ln LoLallLy when we sLaLe slmply Pero"
4 1 1wo Wheeler lndusLry ln lndla
AuLomoLlve markeL ln lndla (007008) 1he auLomoLlve markeL of lndla ls domlnaLed by Lwo wheelers whlch consLlLuLe abouL Lh of Lhe enLlre markeL
assenger vehlcle 1604 Com m erclal vehlcle 303 1hree w heeler 378
1w o w heeler 7313
1he manufacLurlng faclllLles for all Lhese auLomoLlve players are well spread across Lhe counLry wlLh Lhe easL zone havlng Lhe leasL of parLlclpaLlon 1he followlng flgure shows Lhe spread 1he zones whlch are clrcled show Lhe presence of Lhe Lwo wheeler manufacLurers
3
uelhlCurgaonnoldaChazlabad Ludhlana Parldwar
lLampu !amshedpu 8a[koLPalol kolkaLa
Mumbalunenaslk Aurangabad
Pyderaba
Chennal 8angalore Posur
1here are many facLors whlch affecL Lhe lndla auLomoLlve lndusLry as a whole whlch ls analyzed ln Lhe followlng flgure 1hese facLors drlve Lhe lndusLry make lL compeLlLlve globally lndla ls slowly becomlng Lhe manufacLurlng hub for Lhe auLomoLlve secLor
CrowLh ln lncome levels Lasler flnanclng Lower lnLeresL loans lasL paced urbanlzaLlon (840 by 00) Mlddle class expandlng by 3040 mn every year oor publlc LransporL sysLem
ConLemp orary producLs ShorLer llfe cycle
new roducL Launches
lndlan AuLomoLlve lndusLry
lncreaslng Consumer uemand
LxporL CompeLlLlveness 8educed cosL Lo consumer lndla emerglng as a manufacLurlng hub
CosL CompeLlLlveness
AfLer analyzlng Lhe drlvers leL's Lake a look aL Lhe pro[ecLed sales ln Lhe auLomoblle secLor
oLenLlal vehlcle sales ln lndla ln 013 16 (ln mn)
087 01316 78 064 63
0
3 Cars
10 Cvs
13 1wo wheelers
0
3
30
1hree Wheelers
7
key lnslghLs lnLo Lhe pro[ecLlons are - Sale of moLorcycles ln lndla ls llkely Lo Louch 10 mllllon mark by 010 as per lrosL and Sulllvan reporL - 1he slze of Lhe lndlan auLomoLlve lndusLry ls expecLed Lo grow aL 13 pa over Lhe nexL decade Lo reach around uS$ 10 139 bn by 016 - 1he LoLal lnvesLmenLs requlred Lo supporL Lhe growLh ls esLlmaLed aL around uS$ 33 40 bn
now Lurnlng our focus lnLo Lhe Lwo wheeler lndusLry we flnd LhaL moLorcycles domlnaLe Lhe lndusLry
8 layers ln Lhe Lwo wheeler lndusLry ln lndla All Lhe manufacLurers ln Lhe auLomoblle lndusLry can be broadly classlfled lnLo Lhe followlng caLegorles Ma[or players are Pero Ponda MoLors LLd 8a[a[ AuLo LLd 1vS MoLor Company Ponda MoLorcycle ScooLer lndla LLd Mlnor players are Suzukl MoLorcycles lndla LLd ?amaha 8oyal Lnfleld (nlche SegmenL) new LnLranLs Mahlndra Mahlndra (Acqulred klneLlc MoLor Co LLd ln 008) MahabharaL MoLors (Wlll sLarL produclng 1vS branded wheelers ln Apr'09) CLher layers ManufacLurers of elecLrlc Lwo wheelers such as ?o 8lkes
9 8rlef ueLalls abouL Ma[or CompeLlLlon uomesLlc 1woWheeler MarkeL Share (006'07) 8A!A! Second largesL Lwowheeler manufacLurer and Lhe largesL Lhreewheeler manufacLurer ln lndla new producL launched (8a[a[ ulscover) ln 13cc caLegory ln !uly 08 lour new producL launches are proposed ln Lhls year lLself 8a[a[ AuLo has seen AugusL sales decllne by 37 lLs sales growLh was vlrLually flaL durlng Lhe AprllAugusL perlod
1vS 1vS ls Lhe Lhlrd largesL Lwowheeler manufacLurer ln lndla lL esLabllshed a manufacLurlng faclllLy ln lndonesla as well 1vS enLered lnLo a !v ln !un 008 wlLh MahabharaL MoLors of kolkaLa Lo lncrease presence ln easLern reglon 1vS launched Lhe lasL producL llame ln March 008 1vS MoLor has also seen sales sLagnaLe wlLh a growLh of only 113 beLween Aprll and AugusL Ponda MoLor Pas recenLly enLered Lhe lndlan markeL Lhrough lLs dlrecL subsldlary (ln addlLlon Lo lLs [olnL venLure Pero Ponda)
10 13 SLraLeglc lnLenL of PPML (vlslon Mlsslon)
vlslon/Mlsslon
Mlsslon Pero Ponda's mlsslon ls Lo sLrlve for synergy beLween Lechnology sysLems and human resources Lo produce producLs and servlces LhaL meeL Lhe quallLy performance and prlce asplraLlons of lLs cusLomers AL Lhe same Llme malnLaln Lhe hlghesL sLandards of eLhlcs and soclal responslblllLles
1hls mlsslon ls whaL drlves Pero Ponda Lo new helghLs ln excellence and helps Lhe organlzaLlon forge a unlque and muLually beneflclal relaLlonshlp wlLh all lLs sLake holders"
MandaLe Pero Ponda ls a world leader because of lLs excellenL manpower proven managemenL exLenslve dealer neLwork efflclenL supply chaln and worldclass producLs wlLh cuLLlng edge Lechnology from Ponda MoLor Company !apan 1he Leamwork and commlLmenL are manlfesLed ln Lhe hlghesL level of cusLomer saLlsfacLlon and Lhls goes a long way Lowards relnforclng lLs leadershlp sLaLus"
Cb[ecLlve values 1he Pero Croup phllosophy ls 1o provlde excellenL LransporLaLlon Lo Lhe common man aL easlly affordable prlces and Lo provlde LoLal saLlsfacLlon ln all lLs spheres of acLlvlLy
1he group phllosophy clearly sLaLes whaL Lhe group ob[ecLlves are and sLresses Lhe focus on cusLomers provldlng rellable and affordable moblllLy for Lhe masses and oLher sLakeholders llke employees suppllers dlsLrlbuLors socleLy and envlronmenL aL large
AparL from belng cusLomercenLrlc Lhe Pero Croup provldes lLs employees wlLh a flne quallLy of llfe and lLs buslness assoclaLes (suppllers dlsLrlbuLors) wlLh a LoLal sense of belonglng Lhus sLrengLhenlng Lhe bond LhaL ls already deeprooLed
11 14 key MllesLones
?LA8 1983 1984 1983 1987 1989 1991
MllesLones !olnL CollaboraLlon AgreemenL wlLh Ponda MoLor Co LLd !apan slgned Shareholders AgreemenL slgned Pero Ponda MoLors LLd lncorporaLed llrsL moLorcycle Cu 100 rolled ouL 100000Lh moLorcycle produced new moLorcycle model Sleek lnLroduced new moLorcycle model Cu 100 SS lnLroduced 300000Lh moLorcycle produced 8aman Mun[al vldya Mandlr lnauguraLed A School ln Lhe memory of founder Managlng ulrecLor Mr 8aman kanL Mun[al new moLorcycle model Splendor lnLroduced 1000000Lh moLorcycle produced new moLorcycle model SLreeL lnLroduced Pero Pondas nd manufacLurlng planL aL Curgaon lnauguraLed 000000Lh moLorcycle produced new moLorcycle model C8Z lnLroduced LnvlronmenL ManagemenL SysLem of uharuhera lanL cerLlfled wlLh lSC
199
1994
1997 1998
1999
14001 by unv Polland 8aman Mun[al Memorlal PosplLal lnauguraLed A PosplLal ln Lhe memory of founder Managlng ulrecLor Mr 8aman kanL Mun[al 4000000Lh moLorcycle produced LnvlronmenL ManagemenL SysLem of Curgaon lanL cerLlfled lSC14001
000
by unv Polland Splendor declared World no 1 largesL selllng slngle Lwowheeler model Pero Ponda assporL rogramme C8M rogramme launched new moLorcycle model asslon lnLroduced
001
Cne mllllon producLlon ln one slngle year new moLorcycle model !oy lnLroduced 3000000Lh moLorcycle produced
1 new moLorcycle model uawn lnLroduced 00 new moLorcycle model AmblLlon lnLroduced AppolnLed vlrender Sehwag Mohammad kalf ?uvra[ Slngh Parbha[an Slngh and Zaheer khan as 8rand Ambassadors 8ecomes Lhe flrsL lndlan Company Lo cross Lhe cumulaLlve 7 mllllon sales mark Splendor has emerged as Lhe Worlds largesL selllng model for Lhe Lhlrd calendar year ln a row (000 001 00) 003 new moLorcycle model Cu uawn lnLroduced new moLorcycle model Splendor + lnLroduced new moLorcycle model asslon lus lnLroduced new moLorcycle model karlzma lnLroduced new moLorcycle model AmblLlon 133 lnLroduced Pero Ponda became Lhe World no 1 Company for Lhe Lhlrd consecuLlve year 004 Crossed sales of over mllllon unlLs ln a slngle year a global record Splendor Worlds largesL selllng moLorcycle crossed Lhe 3 mllllon mark new moLorcycle model C8Z* lnLroduced !olnL 1echnlcal AgreemenL wlLh Ponda renewed 1oLal sales crossed a record of 10 mllllon moLorcycles Pero Ponda ls Lhe World no 1 for Lhe 4Lh year ln a row new moLorcycle model Super Splendor lnLroduced 003 new moLorcycle model Cu ueluxe lnLroduced new moLorcycle model Clamour lnLroduced new moLorcycle model Achlever lnLroduced llrsL ScooLer model from Pero Ponda leasure lnLroduced 006 008 Pero Ponda ls Lhe World no 1 Lwowheeler co for Lhe 3Lh year ln a row Pero Ponda ls Lhe World no 1 Lwowheeler co for Lhe 8Lh year ln a row
13 8esource Analysls 1he resources LhaL PPML has are analyzed from varlous vlewpolnLs so as Lo ascerLaln wheLher lL has acLually achleved compeLlLlve advanLage by noL only uLlllzlng buL also sLreLchlng leveraglng lLs resources AddlLlonally we Lrled Lo exLrlcaLe Lhe lnLerllnkages beLween Lhe value chaln and Lhe resources of PPML lurLher we Lrled Lo esLabllsh whaL slack" PPML has ln Lhe resource pool Lo Lackle adverse slLuaLlons 1 llnanclal 8esources We begln Lhe resource analysls of Pero Ponda MoLors LLd wlLh Lhe break up of Lhe caplLal sLrucLure of Lhe flrm Lhe flnanclal comparlson of dlfferenL players ln Lhe Lwo wheeler segmenL 1he company ls 100 debL free wlLh Lhe break up of Lhe caplLal sLrucLure as follows
LCul1? SPA8LPCLuL8S (48) (6)
(6)
6 of Lhe shares are each owned by Pero Croup Ponda MoLors !apan whlle Lhe resL ls owned by equlLy shareholders AparL from Lhls Ponda MoLors !apan geLs a royalLy fee of 3 of Lhe conLrlbuLlon margln because of Lhe Lechnlcal know how provlded Lo Pero Ponda needless Lo say Lhls has been one of Lhe mosL successful overseas [olnL venLures by Ponda MoLors !apan 1here are no such schemes llke LSC's ln place Powever employees are free Lo Lake Lhe company's shares aL Lhelr own dlscreLlon lL ls lnLeresLlng Lo noLe LhaL ln splLe of Lhe global melLdown Pero Ponda's neL proflL has lncreased by 47 as ln Lhe flrsL Lhree quarLer as compared Lo lasL flnanclal year
14 now leL us Lake a look aL Lhe proflL loss accounL balance sheeL of Pero Ponda MoLors LLd compare Lhose wlLh LhaL of lLs maln compeLlLors le 1vS MoLors 8a[a[ AuLo 1he analysls ls done for flnanclal year 007 08 PMSl ls noL lncluded as lL ls noL llsLed 8Cll1 LCSS ACCCun1 PPML ACL 8A!A! 007 ACL 1vS 00700607 ACL CPAnCL
1he neL sales for Pero Ponda has lncreased by 436 whlle LhaL of lLs compeLlLors 8a[a[ AuLo 1vS MoLors has decreased by 677 1648 respecLlvely uurlng Lhls Llme Pero Ponda has been able Lo regaln lLs markeL share from a low of 44 Lo currenL levels of 36 1he LoLal revenue for Pero Ponda has lncreased by 44 whlle LhaL of lLs compeLlLors 8a[a[ AuLo 1vS MoLors has decreased by 9 1337 respecLlvely A1 for Pero Ponda has lncreased by 18 whlle LhaL of lLs compeLlLors 8a[a[ AuLo 1vS MoLors has decreased by 39 3 respecLlvely 1he reason for Lhls success of Pero Ponda has been due Lo Lhe adopLlon of a Lwo pronged sLraLegy llrsL lL lnLroduced producLs ln Lhe 130 cc segmenL along wlLh varlanLs of lLs exlsLlng producL porLfollo Also lL underLook a program called Lhe 8ural verLlcal" ln whlch lL focused lLself ln lmprovlng Lhe dlsLrlbuLlon neLwork ln Lhe rural areas so as Lo access Lhe unLapped markeL Looklng aL Lhe balance sheeL we flnd LhaL Lhe reserves surplus for Pero Ponda has lncreased by 13 whlle LhaL of lLs compeLlLors 8a[a[ AuLo has decreased by 73 for 1vS MoLors has lncreased by a meager 18 1he lncrease ln flxed asseLs for Pero Ponda
16 has been due Lo Lhe masslve lnvesLmenL ln green fleld pro[ecL a sLaLe of Lhe arL manufacLurlng faclllLy called Lhe 1he Shrlne of 1echnology" aL Parldwar Comparlng Lhe operaLlng raLlos we flnd LhaL PPML has been performlng beLLer Lhan lLs nearesL compeLlLors lC8 llnAnClAL ?8 00708 PPML neL roflL Margln (ln ) A1 / SALLS 804 8A!A! 78 1vS 086
AsseLs 1urnover 8aLlo
SALLS / 1A
484
39
03
hyslcal 8esources Pero Ponda has goL Lhree manufacLurlng faclllLles aL uharuhera Curgaon ln Paryana Parldwar ln uLLarakhand 1he producLlon capaclLy of Lhe flrsL Lwo planLs ls 6300 vehlcles per day whlle for Lhe Lhlrd planL ls 3300 vehlcles per day 1he cycle Llme for vehlcle producLlon ls malnLalned aL 18 secs lLs dlsLrlbuLlon neLwork ls conLrolled by reglonal offlces area offlces lncludes abouL 3000 dealers sLocklsLs SS's (Servlce Spare parLs) across Lhe lengLh breadLh of lndla 1he concepLs of Lean ManufacLurlng are applled ln all Lhe planLs Lo lmprove performance drlve down cosL
3 Puman 8esources 1he followlng model has been developed by Callup Lo undersLand Lhe lmporLance of a flL beLween a person Lhe organlzaLlon he ls worklng Lo Lhe performance of Lhe organlzaLlon
S Curve for Success Accordlng Lo Lhls model sLock prlce of a company depends upon lLs susLalnable growLh whlch ln Lurn depends upon engaged cusLomers engaged employees how Lhey are managed So lL becomes lmperaLlve Lo flnd Lhe rlghL flL beLween Lhe would be employee Lo Lhe organlzaLlon
1he followlng are Lhe sallenL feaLures of Pero Ponda managlng of human resource
8ecrulLmenL - - CrlenLaLlon - SLarL wlLh Mu speclflc Lo Lhe requlremenL and undersLandlng Lhe producLs uevelopmenL Learnlng - luncLlonal 8ehavloral lnpuL ln slngle program Lhrough consulLanL neLworklng use of l as one of Lhe Lool 8lghL llLmenL boLh culLurally and !ob based
19 SCML Cl 1PL unlCuL 8AC1lCLS A1 PL8C PCnuA MC1C8S L1u !olnL prayers exerclses 1he employees sLarL Lhelr shlfL by saylng [olnL common prayers followed by physlcal exerclses and dlscusslon on a Lheme for LhaL day As parL of Lhls Lhe employees geL LogeLher aL Lhe aLrlum Cne of Lhem acLs as a leader of Lhe gaLherlng All of Lhem reclLe a prayer whereln Lhey pray for Lhe well belng of Lhe world and freedom from paln fear mlsery 1hey pray for Lhe success of Lhelr work 1hls helps Lhem ln afflrmaLlon Lowards achlevemenL of Lhe company's LargeLs AnoLher leader leads Lhe gaLherlng for underLaklng physlcal exerclses whlch propel Lhem Loward beLLer physlcal menLal efforLs ln achlevlng Lhe company's LargeLs
Self managed Leam members 1he operaLor on Lhe assembly llne also underLakes quallLy checks and malnLenance acLlvlLles aparL from operaLlon relaLed acLlvlLles As a parL of Lhls Lhe operaLor ldenLlfles uslng prescrlbed sysLems Lhe quallLy check polnLs malnLenance check polnLs 1hese check polnLs help hlm ln lmprovlng quallLy and reduclng break downs 1hls resulLs ln havlng posL producLlon quallLy checks and scheduled overhauls whlch conslderably resulLs ln savlng Llme maLerlal manpower
CuallLy Clrcles Cross funcLlonal Leams work LogeLher Lo solve facLory relaLed problems uslng quallLy conLrol Lechnlques As a parL of Lhls Lhe employees volunLarlly form Lhelr Leams afLer Lralned by Lhe quallfled Lralners ln applylng Lhe above 1he Leam ldenLlfles and selecLs problems 1he soluLlons are presenLed Lo Lhe senlor managemenL for approval
4 1echnologlcal 8esources
1he company belleves ln Lhe concepL called World Class ManufacLurlng lLs ma[or lngredlenLs are shown ln Lhe flgure below
1he ulrecL Cnllne SysLem (uCL) ls slmllar Lo !l1 Pere Lhe vendors are selecLed for uCL caLegory based on a varleLy of parameLers such raLe of parLs belng defecLlve replaced ln warranLy ln order Lo remove boLLlenecks lmprove quallLy of work fully lnLegraLed roboLlc llnes are used such as ln Alumlnlum phase (for manufacLurlng cyllnder heads crankcase eLc) and ln weld palnL shops
llexlble manufacLurlng sysLem ls followed where ln any producL assembled ln any assembly llne
3 8epuLaLlon
Pero Ponda has Lolled hard for Lhe brand lmage lL now has 1hls has been achleved noL only by Lhe conLlnued excellence of lLs producLs servlces buL also due Lo Lhe several of Lhe followlng soclal envlronmenLal lnlLlaLlves LhaL lL has under Laken
SafeLy PealLh LnvlronmenL ollcy LxLenslve use of lnclneraLors effluenL LreaLmenL planLs sold wasLe dlsposable sysLems lL has also been awarded lSC 9001 lSC 14001 CPSAS 18001 cerLlflcaLlons
8alnwaLer harvesLlng sysLem lL has an exLenslve sysLem of raln waLer harvesLlng as ls shown ln Lhe followlng flgure
1
CS8 lnlLlaLlves AnoLher name for Lhe uelhl !alpur Plghway ls Lhe klller hlghway" 1hls ls because Lhls hlghway ls noLorlous for accldenLs ln order Lo Lake care of such casualLles Pero Ponda has opened 1he 8aman Mun[al Memorlal PosplLal" 1he hosplLal also caLers Lo Lhe needs of Lhe people of Lhe rural areas of Paryana Lhrough moblle dlspensarles eLc 1he 8aman Mun[al vldya Mandlr" was opened Lo provlde quallLy educaLlon Lo Lhe poor needy
Pero Ponda 1rafflc ark 8lde Safe rogram 1hls was lnlLlaLed Lo Leach people Lrafflc rules rldlng Lhelr vehlcles ln Lhe mosL approprlaLe manner Lo avold accldenLs
romoLlonal AcLlvlLles 1lme and agaln Pero Ponda has been assoclaLed wlLh Lhe ma[or sporLlng evenLs ln Lhe counLry llke golf crlckeL lL has sponsored reallLy shows llke M1v 8oadles Sa 8e Ca Ma a
6 Leadershlp
ur 8rl[mohan Lall Mun[al Chalrman Pero Ponda Croup ls one of Lhe besL known flrsLgeneraLlon enLrepreneurs ln lndla ur Mun[al sLarLed Pero group rlghL from Lhe scraLch along wlLh Lhree of hls broLhers afLer shlfLlng base Lo Ludhlana lndla from aklsLan afLer 1947 and bullL a buslness emplre of uS$ 3 bllllon ln a span of nearly slx decades comprlslng of 0 companles ln dlverse flelds lncludlng auLo parLs blcycles moLorcycles educaLlon 8C l1 sofLware eLc
lrom a modesL beglnnlng as blcycle componenL manufacLurer ln Lhe early '30s Lo world's largesL blcycle maker ln 1986 Llll daLe Lo world's largesL Lwowheeler maker ln 001 and conLlnulng Pero Croup has achleved much wlLhln Lhls llmlLed perlod of Llme Lhanks Lo Lhe guldlng vlslon and prlnclples of lLs foundlng faLher ur 8rl[mohan Lall Mun[al 1he core values LhaL he lnculcaLed from Lhe beglnnlng of hls academlc llfe as he aLLended Lhe Curukul sysLem of educaLlon gulded hlm Lhrough Lhlck Lhln 1he value seL whlch forms Lhe lnLrlnslc core of hls buslness phllosophy ls based on slmpllclLy honesLy hlghesL lnLegrlLy sense of falrness
ur Mun[al Lraversed Lhe road Lo success wlLh Lhe Pero group followlng Lhese prlnclples - - - - 1rusL Lhe lnsLlncLs" ueal wlLh people wlLh compasslon" 1hlnk ahead of Llme" Show oLhers Lhe way Lhrough hlghesL form of corporaLe clLlzenshlp"
1he examples for all of Lhe prlnclples [usL menLloned are easy Lo flnd ouL ur Mun[al never saLlsfled belng only a blcycle componenL manufacLurer moved up Lhe value chaln by becomlng a compleLe blcycle manufacLurer ln 1936 1hrough conLlnuous growLh and esLabllshlng a naLlonwlde supply dlsLrlbuLlon neLwork whlch was based on muLual LrusL and relaLlonshlp wlLhln 30 years of sLarLlng Pero Croup became Lhe largesL blcycle manufacLurer ln Lhe world and lL conLlnues Lo be so Llll daLe Pero Croup under Lhe able leadershlp of ur Mun[al ploneered blcycle exporLlng from lndla as early as ln 1963 1hough exporLs were lnlLlally llmlLed Lo Afrlca Mlddle LasL now Pero Croup caLers Lo Lhe uS
3 Luropean markeLs as well AdopLlon of key new Lechnologles and provldlng besLlnclass value performance are Lhe hall marks of Pero Cycles
AL a Llme when Lhe lndlan Lwowheeler lndusLry was known by Lhe rusLy 8a[a[ CheLak and oLher Lwo sLroke englne vehlcles ur Mun[al revoluLlonlzed Lhe lndusLry by brlnglng Lhe flrsL foursLroke moLorblkes Lo Lhe Lable lL was a brllllanL sLraLeglc move Slnce Lhese Lechnologles were noL lndlgenously avallable he collaboraLed wlLh Lhe Ponda MoLor Company of !apan and Pero Ponda MoLors LLd was formed ln 1984 as a !v beLween Ponda Lhe Pero Croup lL's one of Lhe besL success sLorles ln lndla as a collaboraLlve efforL beLween Lwo dlfferenL culLures and enLlLles 1he !v Lhrlved because Lhe roles of Lhe parLners were clearly demarcaLed by Lhe leadershlp Ponda Lo provlde Lhe Lechnologlcal lnpuLs and overall guldance Pero Croup Lo provlde Lhe manufacLurlng resources and fooL Lhe dlsLrlbuLlon efforLs
WlLh Lhls ur Mun[al ensured cheaper affordable moblllLy Lo Lhe mllllons of lndlans noL only Lhe four sLroke englnes gave beLLer mlleage buL Lhese are rellable less polluLlng machlnes whlch lmmedlaLely became Lhe darllng of Lhe masses and for CovL regulaLors as well Pe was aL Lhe forefronL of Lhe campalgn by Pero Ponda MoLors LLd llll lL ShuL lL lorgeL lL whlch broughL forLh Lhe valueofmoney aspecL of Lhese blkes and endeared Lhe masses 1he LesLlmony Lo all Lhese efforLs came ln 001 when Pero Ponda MoLors LLd became Lhe largesL Lwowheeler maker ln Lhe world wlLh a cusLomer base of over 0 mllllon 1hough wlLhouL Leamwork commlLmenL all Lhese achlevemenLs would noL have been posslble lL was Lhe vlslon and zeal of Lhe founder whlch pushed Pero Croup Lo rlse hlgher and hlgher and Louch Lhe horlzons
ur Mun[al ls noL known only by hls buslness acumen buL by hls phllanLhroplc acLlvlLles as well Pe spearheads CorporaLe ClLlzenshlp CS8 acLlvlLles of Lhe Pero Croup ln hls personal capaclLy he ls an acLlve 8oLarlan and he coordlnaLes varlous soclal lnlLlaLlves ln Lhe capaclLy of 8oLary ulsLrlcL Covernor
ln recognlLlon of hls conLrlbuLlon Lo lndlan lndusLrles and socleLy aL large he was conferred numerous awards and recognlzed Lhe lmporLanL among Lhese are -
8uslnessman of Lhe ?ear ln 1994 by buslness magazlne 8uslness lndla
4 -
naLlonal Award for ouLsLandlng conLrlbuLlon Lo Lhe uevelopmenL of lndlan Small Scale lndusLry ln 1993
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ln 1999 leaLured ln MosL Admlred CLC LlsL of Lhe magazlne 8uslness 8arons 1he ulsLlngulshed LnLrepreneurshlp Award from 1he Pu Chamber of Commerce and lndusLry ln 1997
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Slr !ehanglr Chandy Medal for lndusLrlal eace ln 000 by xL8l !amshedpur leaLured as LrnsL and ?oung LnLrepreneur of Lhe year ln 001 1he LlfeLlme AchlevemenL award for ManagemenL from All lndla ManagemenL AssoclaLlon ln 003
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8anaras Plndu unlverslLy varanasl conferred hlm wlLh a uocLoraLe degree of uocLors of leLLers Ponorls Causa ln CcLober 004
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Awarded adma 8hushan ln March 003 for hls conLrlbuLlon Lo 1rade and lndusLry ln 003
7 value Chaln Analysls
lL ls qulLe obvlous LhaL Pero Ponda possesses some compeLlLlve advanLages over compeLlLlon enabllng Lhem Lo be Lhe largesL Lwowheeler maker ln Lhe world for Lhe 7Lh year ln a row and commandlng a hefLy markeL share of 3 of lndlan Lwowheeler markeL (8ef Annual 8eporL '07'08 PPML) and conLlnulng Lo grow aL a healLhy raLe of 13 (A1) amld worsenlng flnanclal crlsls and deepenlng of recesslonary lnfluences We aLLempL Lo ascerLaln Lhe compeLlLlve advanLages LhaL PPML has by analyzlng lLs value chaln rlmary AcLlvlLles lnbound LoglsLlcs lrom early days PPML Lrled Lo have close lnLegraLlon wlLh suppllers as vendor managemenL ls crlLlcal for lLs operaLlon for Lhe slmple facL LhaL 73 of producLlon cosL ls due Lo maLerlal componenLs 1hus lL ls essenLlal for PPML Lo ensure LlghL conLrol reducLlon of loglsLlcal cosL and/or LransacLlon cosL when procurlng componenLs AddlLlonally reducLlon of lnvenLory wlll be an added boon so LhaL worklng caplLal requlremenL wlll be less
WlLh Lhese alms PPML adopLed !usL ln 1lme" (!l1) manufacLurlng phllosophy whlch demanded close coordlnaLlon beLween lLs manufacLurlng faclllLles and Lhe vendors and
3 anclllary unlLs lor example 100 anclllarles are seLLlng manufacLurlng bases ln Parldwar near Lhe newly sLarLed PPML planL Lo ensure lnLegraLed supply chaln All Lhese vendors wlll be connecLed Lo Lhe maln planL by conveyors Lo prevenL chances of Llme maLerlal loss due Lo mulLlple handllng LfforLs are afooL Lo exLend Lhe !l1 beyond shop floor ln Lhe operaLlonal sLraLeglc declslons of Lhe vendors as well llke producLlon plannlng capaclLy expanslon eLc ln Lhls respecL PPML has succeeded ln esLabllshlng onllne realLlme connecLlvlLy beLween lLs operaLlon and LhaL of 7 of lLs 300 plussLrong vendor base (ln 007'08) All Lhese lnlLlaLlves have helped Lo reduce LransacLlonal loglsLlcal cosLs and save 8s 343 per vehlcle ln 007'08 uurlng 00809 PPML plans Lo work wlLh vendors Lo develop new vendor producLlon faclllLles 3rd arLy LoglsLlcs (3L) servlce provlders have also been ldenLlfled for Lhe Parldwar planL lf 3L ls sLarLed Lhls wlll be a flrsL for any Lwowheeler company ln lndla
CperaLlons As was belng descrlbed above PPML ls probably Lhe only lndlan company Lo have Lruly masLered Lhe arL of !l1 manufacLurlng PPML also follows Lean ManufacLurlng uses hlgh degree of auLomaLlon levels (full auLomaLlc roboLlc operaLlon ln weldlng and some oLher speclflc areas) Lo ensure hlgh efflclency low lnvenLory producLlon wlLh usual beneflLs llke lncreased cash flow reduced cash operaLlng cycles and Lhus lmproved worklng caplLal condlLlons 1hese fully equlpped planLs where Lhese manufacLurlng concepLs have been applled durlng planL layouL deslgn commlsslonlng phases are Lhe unlque Langlble asseLs LhaL PPML has
PPML has Lhree manufacLurlng faclllLles aL uharuhera Curgaon and Parldwar (newesL) wlLh annual producLlon capaclLy of 43 mllllon unlLs WlLh employee sLrengLh belng ln Lhe range of 430 Lhe producLlvlLy per employee ls very hlgh lurLher Lhe concepLs of Lean ManufacLurlng !l1 lnLegraLed Supply Chaln have been applled from Lhe sLarL ln Parldwar planL maklng lL hlghly efflclenL
1echnologlcal knowhows deslgn lmprovemenLs eLc for Lwowheelers are provlded by Ponda afLer Lhe lnlLlal deslgn requlremenLs as espoused by cusLomers and markeL Lrends puL ln a sLrucLured form by Pero Ponda 8u Leam ln lndla
CuLbound LoglsLlcs
6 PPML feeds Lhe demand ln lndla exporLs 93000 blkes Lhrough lLs well esLabllshed dellvery channels from Lhe 3 planLs 1he efforL ls Lo provlde for mlnlmum walLlng perlod or raLher fllllng Lhe reglons as per Lhe demand forecasLs and markeL Lrends
MarkeLlng Sales MarkeLlng arm of PPML sLarLed Lhe hugely successful llll lL ShuL lL lorgeL lL" campalgn years ago Lo plLch for lLs beLLer fuel efflclency and Lhus lower ownlng cosL lL has been a consLanL sLrlve for PPML's markeLlng efforLs (ln adverLlsemenLs ln promos) Lo focus Lhe value for money and rellablllLy of lLs producLs and Lhus aLLracLlng new cusLomers and reLalnlng cusLomers as well 1o ensure cusLomer loyalLy PPML has come up wlLh Pero Ponda assporL rogram whlch glves speclal prlvlleges Lo lLs cusLomers PPML does noL lndulge ln prlce wars ln an efforL Lo malnLaln Lhe percepLlon of endurlng quallLy among presenL poLenLlal cusLomers Cf laLe Lhere were complalnLs from cusLomers LhaL PPML ls noL dynamlc enough Lo presenL newer flashler more powerful blke models ln Lhe premlum segmenL LhaL compeLlLors llke recharged 8a[a[ ls offerlng AnoLher complalnL was LhaL many of Lhe varlanLs offered by PPML have llLLle or lnslgnlflcanL producL dlfferenLlaLlon whlch can [usLlfy Lhe prlce dlfference PPML has pald heed Lo Lhese sLaLed unsLaLed needs of lLs cusLomers and lmproved Lhe 4's (roducL rlce lace romoLlon) lLs offerlngs now are well accepLed ln Lhe markeL
PPML has roped ln popular hearLLhrob PrlLhlk 8oshan as lLs brand ambassador Lo glve lmpeLus Lo lLs markeLlng efforLs lL has been a consLanL endeavor of PPML Lo caLer Lo boLh urban and rural markeLs wlLh slmllar zesL wlLh adverLlslng campalgns and promoLlonal evenLs clearly focuslng on Lhe Lwo markeLs Par Caon Par Angaan" ls Lhe recenL rural connecL lnlLlaLlve Lo cover 3360 vlllages wlLh a populaLlon of 3000 or more by 300 speclally Lralned rural sales execuLlves
PPML has a consclous sLraLegy of peneLraLlng new markeLs and unrepresenLed LerrlLorles Lhrough lLs dlsLrlbuLlon neLwork whlch ls made up of dealers auLhorlzed represenLaLlves sLocklsLs and SSs ln March 001 Lhe company had 86 such cusLomers polnLs ln lndla 8y March 008 Lhls number wenL up Lo over 3300 Cn an all lndla basls 30 dealers 130 SSs 67 dealers and 43 clLy work agenLs were added wlLhln Lhls perlod
7 1he dlsLrlbuLlon neLwork of PPML ls boLh wlde deep rooLed lL ls based on boLh muLual LrusL relaLlonshlp beLween PPML lLs dlsLrlbuLors and PPML's phllosophy of ensurlng lLs parLners Lo grow wlLh lLs own growLh 1rusL loyalLy of dlsLrlbuLlon neLwork ls very lmporLanL ln malnLalnlng Lhe leadershlp poslLlon ln Lhls hlghly compeLlLlve lndusLry ln facL PPML's sLrengLh ln Supply Chaln dlsLrlbuLlon neLwork ls one of Lhe unlque lnLanglble resources LhaL lL has superlor brand lmage rellablllLy percepLlon of lLs brand ls Lhe ouLcome of Lhese lnLanglble Langlble key asseLs
Servlce PPML has consLlLuLed one Lhe besL afLersales servlce neLwork ln Lhe lndusLry AparL from lmprovlng Lhe quallLy of servlce and easy avallablllLy of spare parLs PPML has also focused on cleanllness and oLher aesLheLlcs of Lhe servlce sLaLlons and added amenlLles such as alrcondlLloned walLlng area lnLerneL browslng and coffee shops eLc Lo enhance Lhe lnhouse experlence of Lhe consumers aL Lhose cusLomer LouchpolnLs"
1o ensure LhaL mllllons of cusLomers ln Lhe rural areas are noL lefL walLlng for adequaLe servlce as lL ls lmposslble for PPML Lo lnLroduce servlce sLaLlons aL every nook corner of Lhe counLry moblle servlce sLaLlons are regularly arranged wlLh prlor lnLlmaLlon Lo publlc abouL Lhe rouLe LhaL Lhe moblle workshop would Lake when passlng Lhrough LhaL reglon so LhaL consumers can come and geL Lhelr Lwowheelers servlced All Lhese acLlvlLles are almed Lo lncrease Lhe cusLomer loyalLy and Lhus reLalnlng cusLomers
1he value acLlvlLles done by PPML ln lLs value chaln (boLh prlmary supporL acLlvlLles) are glven ln llg lA1 1he unlque value acLlvlLles of PPML LhaL ls aL Lhe hearL of lLs compeLlLlve advanLages are shown ln llg lA
vlrLual value Chaln All Lhe acLlvlLles LhaL PPML ls dolng ln lLs hyslcal value Chaln (vC) are belng augmenLed mulLlfold by lLs efforLs ln esLabllshlng and lmprovlng Lhe vlrLual value Chaln (vvC Lhe flow of lnformaLlon across lLs value acLlvlLles) lor example PPML has lmplemenLed SA L8 package for all necessary modules llke producLlon maLerlals flnance markeLlng asseLs quallLy sales and dlsLrlbuLlon so LhaL only slngle verslon of rlghL lnformaLlon ls avallable wlLh everybody aL any Llme lL reduced dupllcaLlon of efforLs across many funcLlonal areas
8
Su C 81 AC 1l vl 1l LS
lnfrasLrucLure
AdmlnlsLraLlve legal and accounLlng Lasks managed sysLemwlde uevelop new vlrLual Leams unlon relaLlons oversee workers lnvesL ln new SLreamllne Lurnaround Llme eng deslgns wlLh suppllers Lo blke models new facLorles shlp parLs L ll SLreamllne Source parLs orderlng and componenLs documenLaLlon parLner wlLh sysLems key suppllers AdopL fasLer means Lo order and recelve componenLs lnbound LoglsLlcs Make and assemble componenLs lnLo auLos CperaLlons Cversee suppller managemenL personnel Cversee personnel lnvolved ln dlsLrlbuLlon Cversee markeLlng personnel Cversee servlce personnel
Puman 8esource ManagemenL 1echnology uevelopmenL
SLreamllne Work wlLh shlpplng Llme dealers Lo webbased lmprove selllng lnvenLory Lracklng producL mlx 8uy medla urchase Llme work capaclLy on rallroads/Lrucks wlLh adverLlsers Shlp Lo dealers uslng rallroads/ Lrucks dellver CuLbound LoglsLlcs
AfLer sales AdverLlse promoLe producL servlce Spare Lo publlc work parLs avallabllLy wlLh dealershlps MarkeLlng / Sales Servlce
llg lA1 Pero Ponda's 8uslness SysLem (value AcLlvlLles Mapped ln Lhe value Chaln)
lurLher PPML has been able Lo connecL realLlme wlLh 7 of lLs vendors 1hls ensures seamless flow of lnformaLlon abouL Lhe producLs componenLs beLween lLself and lLs collaboraLors beyond Lhe physlcal boundarles maklng Lhe whole process much more lnLegraLed robusL as lf Lhe same sysLem ls belng used across locaLlon planLs lrrespecLlve of Lhe ownershlp SlgnlflcanL reducLlon of LransacLlon cosLs can be achleved ln Lhls manner 1hese aspecLs are essenLlal facLors of lLs successes ln applylng Lhe !l1 manufacLurlng phllosophy uealer ManagemenL SysLem C8M are oLher examples of vvC for PPML 8y managlng vC vvC LogeLher ln concerL PPML ls able Lo explolL lLs value chaln much more effecLlvely
9
Su C 81 AC 1l vl 1l LS
lnfrasLrucLure
AdmlnlsLraLlve legal and accounLlng Lasks managed sysLemwlde
Puman 8esource ManagemenL 1echnology uevelopmenL
no formal labour unlon employee loyalLy
no formal no formal labour no formal labour no formal labour labour unlon unlon employee unlon employee unlon employee employee loyalLy loyalLy loyalLy loyalLy SLreamllne uealer mgL Lo shlpplng Llme lmprove selllng lnvenLory Lracklng producL mlx SA L8 SA L8 lmprove servlce Lurn around Llme wlLh spl 1ools Lackles Source spare parLs Lools parLner wlLh key suppllers AfLer sales servlce (largesL neLwork) Spare parLs avallabllLy Servlce
Cnllne realLlme new deslgn Lech from connecLlvlLy Ponda new wlLh vendors facLorles SLreamllne orderlng documenLaLlon sysLem SA L8 Source parLs componenLs parLner wlLh key suppllers
rocuremenL
8lMA8? AC1lvl1lLS
8uy medla urchase Llme work capaclLy on rallroads/Lrucks wlLh adverLlsers Campalgns AdopL fasLer !l1 Lean Mfg Shlp Lo dealers uhak uhak Co" means Lo order 1CM (lnlLlaLlng) uslng C8M PP recelve World class mfg rallroads/ componenLs !l1 AuLomaLlon Lrucks dellver assporL lnbound LoglsLlcs CperaLlons CuLbound LoglsLlcs MarkeLlng / Sales
llg lA Pero Ponda's CompeLlLlve AdvanLages Lhrough value AcLlvlLles vlrLual value Chaln (8ef LxplolLlng Lhe vlrLual value Chaln ! l 8ayporL ! ! Svlokla)
8 Slack
Slack" ls deflned as LhaL cushlon of facLual or poLenLlal resources whlch allow an organlzaLlon Lo adapL successfully Lo lnLernal pressures for ad[usLmenL or Lo exLernal pressures for change ln pollcy as well as Lo lnlLlaLe changes ln sLraLegy wlLh respecL Lo Lhe exLernal envlronmenL
Among oLher lndlcaLors of slack based sLraLegles one ls Lhe lncrease ln worklng caplLal as a percenLage of sales lor Pero Ponda peak selllng perlod ls SepL Lo nov ln Lhe year whereas Lhe lean perlod ls !un Lo Aug uurlng Lhe peak seasons lL sells around 03 mllllon Lwowheelers ln a monLh whlch ls around 01 mllllon more Lhan lL can produce ln a monLh wlLh all
30 3 planLs runnlng ln Lhelr full capaclLy Larller when Parldwar planL was noL commlssloned Lhe supplydemand mlsmaLch was even more acuLe ln order Lo smooLhen Lhls flucLuaLlon ln demand and also Lo ensure LhaL Lhls cycllcallLy doesn'L lmpacL Lhe operaLlons of Lhe planLs PPML has a sLraLegy ln place whlch can be summarlzed as LhaL PPML conLlnues Lo operaLe Lhe planLs durlng lean seasons aL hlgh capaclLy Lo bulld up a reasonable lnvenLory 1hls lnvenLory lncreases lLs worklng caplLal conslderably ln LhaL perlod and acLs as a buffer when demand surges
9 SLreLch Leverage of Lhe 8esources
When Pero Ponda enLered Lhe Lwowheeler markeL ln '80s lL was shaped very much by Lhe regulaLory bureaucraLlc forces and has been domlnaLed by sLroke scooLers blkes manufacLured by 8a[a[ AuLo and some oLher companles 1he 4sLroke Lechnology Laken up by Pero Ponda was looked aL wlLh skepLlclsm even Lhough lL promlsed hlgher powerLowelghL raLlo hlgher efflclency (and Lhus beLLer mlleage) and less polluLlon 8uL Pero Ponda asplred Lo be Lhe largesL player ln Lhe lndusLry Lhe gap beLween Lhe asplraLlon reallLy belng huge
1he promoLers of Lhe !v boLh Pero Croup Ponda of !apan had a loL of falLh confldence on Lhe evenLual success of Lhls sLraLeglc alllance even Lhough lL faced a loL of challenges llke a vlolenL sLrlke whlch affecLed lLs producLlon faclllLles ln 1987 Lven Splendor when lL was launched lnlLlally had many Lechnlcal problems 8uL lL sLreLched leveraged lLs resources Lhe suppller dlsLrlbuLlon neLwork (lnlLlally based on Lhe rellable loyal dlsLrlbuLlon channel of Pero Cycles whlch ls a group resource) and Lechnologlcal superlorlLy of Ponda englnes deslgn Lo brldge Lhe gap beLween lLs asplraLlon levels currenL reallLy and evenLually succeedlng becomlng Lhe largesL player ln Lhe lndusLry
1he Pero Croup as a whole has flrm bellefs ln lLs capablllLy of successfully borrowlng exLracLlng knowledge from numerous Lechnlcal/sLraLeglc alllances !vs LhaL lL has formed over Lhe years as means of resource accumulaLlon ln lLs pursulL of leveraglng resources AparL from Lhe mosL celebraLed !v wlLh Ponda lL has esLabllshed such alllances wlLh numerous oLher companles As an underlylng Lheme ln all Lhese acLlvlLles we can see a general Lrend emerglng (l) verLlcal lnLegraLlon Lhls ls common for mosL relaLed dlverslflcaLlons (ll) ulverslflcaLlon lmporLance ls glven here for rlsk mlLlgaLlon
31 opporLunlLy grabblng by movlng ln unrelaLed buL hlgh growLh areas ln Lhe nexL few paragraphs some of Lhese are dlscussed
(A) 1echnology 8elaLed arLnershlps/ Alllances and !olnL venLures -
Pero enLered a [olnL venLure for Lechnlcal and flnanclal parLlclpaLlon wlLh one of Lhe worlds largesL auLomoLlve makers Ponda MoLor Company LlmlLed of !apan ln 1984 for Lhe manufacLure of 100cc moLorcycles ln lndla
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Peros quesL for a lowbudgeL fuelefflclenL and envlronmenLfrlendly Lwowheeler led Pero MoLors Lo enLer lnLo a 1echnlcal CollaboraLlon wlLh SLeyr ualmler uch of AusLrla ln 1987 for Lhe manufacLure of Lhe 63cc orschedeslgn mlnlmoLorcycles
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Mun[al Showa LlmlLed was formed ln 1echnlcal and llnanclal CollaboraLlon wlLh Showa CorporaLlon !apan Lo deslgn develop and manufacLure of fronL forks shock absorbers sLruLs and gas sLruLs
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Sunbeam AuLo LlmlLed has seLup a sLaLe of Lhe arL plsLon manufacLurlng faclllLy ln Lechnlcal collaboraLlon wlLh M/S Ponda loundry Company LlmlLed of !apan Lhe
3 ploneers ln Lhe world for manufacLurlng hlghsLrengLh llghLwelghL plsLons used ln llghL powerful fuelefflclenL englnes -
Mun[al AuLo lndusLrles LlmlLed has a [olnL venLure wlLh Lhe SLaLeowned Cu[araL lndusLrlal lnvesLmenL CorporaLlon Lo caLer Lo Lhe needs of Lhe overseas markeL
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Pero Cycles C8 ulvlslon was seL up ln consulLaLlon wlLh MLCCn Aslas largesL englneerlng consulLanLs and ln 1echnlcal CollaboraLlon wlLh Wean unlLed uSA
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Pero Cycles Cold 8olllng ulvlslon has also enLered lnLo a Lechnlcal collaboraLlon wlLh kawasakl SLeel CorporaLlon !apan for Lhe lmprovemenL of producLlon yleld ellmlnaLlon of defecLs reducLlon of cusLomer reLurns and enhancemenL of malnLenance operaLlons agalnsL cerLaln predeLermlned LargeLs
(8) l1/l1LS 8elaLed Alllances Mun[aleSysLems Lhe LnLerprlseorlenLed and SofLware SoluLlons dlvlslon of Pero CorporaLe Servlce LlmlLed ls a mlcrosofL gold cerLlfled parLner lL ls lSC 9001000 cerLlfled and ls Loday a dedlcaLed and Lhe mosL preferred soluLlon cenLer for mlcrosofL buslness soluLlon
navlslon ln Lhe manufacLurlng secLor lL has Lo lLs credlL many sucessfully compleLed pro[ecLs ln varlous lndusLrles llke auLomoblles swlLchgears pharmaceuLlcals Lradlng lndusrlal goods manufacLure educaLlon servlces l1 enabled servlces eLc Pero Mlndmlne Lhe Lechnology based learnlng soluLlons provlder and Lralnlng dlvlslon of Pero CorporaLe Servlce LlmlLed ls one of Lhe largesL and premler Lralnlng powerhouses ln Lhe counLry focussed on bulldlng 8C/CusLomer Servlce rofesslonals ln Lhe secLor of Alrllnes AuLomoLlve 8C lMCC l1 and harma lL has alllance wlLh Lwo companles ln order Lo faclllLaLe Lhe successful Lralnlng of sLudenLs and professlonals ln globally undersLood 8uslness Lngllsh -
uynLd CorporaLlon whlch provldes quallLy courseware by comblnlng proven classroom Leachlng skllls wlLh Lhe besL of mulLlmedla Lechnlques
Perol1LS Lhe 8C and ConLacL CenLre soluLlons provlder of Pero ManagemenL Servlce LlmlLed has a sLraLeglc alllance wlLh ACS lncorporaLed uSA a leadlng 8C and l1 servlces company WlLh revenues of uS$ 433 bllllon ACS ls a lorLune 300 company wlLh
33 more Lhan 30000 people ln nealry 100 locaLlons around Lhe world WlLh Lhls alllance Perol1LS can provlde onshore and nearshore soluLlons ln Lhe cusLomer acqulslLlon and cusLomer lnLeracLlon segmenL of Lhe 8C lndusLry Perol1LS and ACS offer a compleLe range of servlces Lo cllenLs from Lhelr onshore nearshore and offshore cenLers across Lhe unlLed SLaLes Canada ArgenLlna and lndla ACS lnc alms aL lncreaslng cllenLs prosperlLy Lhrough CusLomer Care SoluLlons LhaL exceed lndusLry norms ln Servlce and value (C) roducL Lnglneerlng 8elaLed Alllances -
Pero Clobal ueslgn ls Lhe largesL CerLlfled Lnglneerlng rovlder (CL) of 1C from lndla Pero Clobal ueslgns alllance wlLh 1C enables Lhe developmenL of ellLe corps of englneerlng professlonals an opporLunlLy Lo work dlrecLly wlLh 1C and lLs cusLomers and Lo galn experLlse as a ro/LnClnLL8 LxperL LhroughouL 1Cs Worldwlde CusLomer 8ase lL also enables Pero Clobal ueslgn Lo provlde hlgh quallLy Legacy uaLa Converslon Servlces
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Pero Clobal ueslgn ls Lhe excluslve represenLaLlve of orsche ueslgn CesmbP (sLudlo) ln lndla
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Pero Clobal ueslgn has a buslness agreemenL wlLh 1argeL ueslgn a leadlng lndusLrlal and auLomoblle deslgn company ln Cermany
PorlzonLal / verLlcal lnLegraLlon Cver Lhe years Lhe Pero group has dlverslfled lnLo dlfferenL buslnesses ln whlch a paLLern of verLlcal lnLegraLlon can be observed A conslderable level of verLlcal lnLegraLlon ln lLs manufacLurlng acLlvlLles has been ample ln Lhe Croups growLh and led Lo Lhe esLabllshmenL of Lhe Pero Cycles Cold 8olllng ulvlslon Mun[al and Sunbeam CasLlngs Mun[al AuLo ComponenLs and Mun[al Showa LlmlLed amongsL oLher componenLmanufacLurlng unlLs 1he lnLegraLlon of Lhe auLomoLlve buslness of Lhe group sLarLed wlLh Lhe seLLlng up of Ma[esLlc AuLo LlmlLed where Lhe flrsL lndlgenously deslgned moped Pero Ma[esLlc wenL lnLo commerclal producLlon ln 1978 1hen came Pero MoLors whlch lnLroduced Pero uch ln collaboraLlon wlLh global Lechnology leader SLeyr ualmler uch of AusLrla Pero Ponda MoLors was esLabllshed ln 1984 Lo manufacLure 100 cc moLorcycles
34 3 CorporaLe arenLlng CrlLlcal Success lacLors Pero Croup We have already sLaLed LhaL many of Lhe group Lechnlcal/sLraLeglc alllances and !vs are almed aL lncreaslng Lhe verLlcal lnLegraLlon of Lhe buslnesses lrom Lhe corporaLe parenLlng concepLs also Lhese lnlLlaLlves are falllng mosLly ln Lhe PearLland zone (shown below) le Lhese relaLed dlverslflcaLlons are helped by accumulaLed compeLencles of Lhe group as well as complemenLlng Lhe core buslness as well 1he followlng arenLlng llL MaLrlx shows how ma[or Pero group companles are placed
1he unrelaLed dlverslflcaLlons lnLo l1/l1LS arena should fall ln Lhe 8allasL zone 8uL none of Lhe buslness venLures are elLher ln Allen 1errlLory or ln value 1rap caLegory
33 1he followlng Lable shows CrlLlcal Success lacLors as we found ouL for Lhe Pero Croup for lLs dlverslflcaLlons ln varlous buslnesses CrlLlcal Success lacLor PealLhcare LqulpmenLs 8lcycle arLs AuLomoLlve arLs
Core CompeLency of ManagemenL 1hrusL on CuallLy Pero Ponda does noL sell Lhe cheapesL blkes ln Lhe lndlan markeL lnsLead Lhe company's producLs command a premlum as Lhe consumers belleve LhaL LhaL Lhey offer beLLer value for Lhelr hardearned money 1hls has been posslble by Lhe managemenLs relenLless LhrusL on quallLy ln a counLry where focus on quallLy ls percelved Lo be less lmporLanL Lhan achlevlng cosL leadershlp and volume sales Lhe company has been exemplary ln lLs efforLs Lowards malnLalnlng Lhe hlghesL quallLy sLandards 1he focus on quallLy ls clearly vlslble from Lhe varlous pollcles of Lhe managemenL such as llnklng a ma[or componenL of Lhe worker's wages wlLh facLors such as quallLy and producLlvlLy
8uL lL has Lo be kepL ln mlnd LhaL Pero Ponda has achleved and conLlnue Lo achleve and provlde lLs cusLomers producL and servlces of such hlgh quallLy aL comparable or aL lower cosL
36 Lhan lLs compeLlLors by vlrLue of lLs dlllgenL followlng of Lean ManufacLurlng oLher World Class ManufacLurlng concepLs locus on ConLlnual lmprovemenL 1he managemenL has been successful ln leveraglng Ponda's vasL producL and Lechnology range and Lhe producL offerlngs of Lhe company are a reflecLlon of Lhe ablllLy of Lhe managemenL Lo explolL Lhe compeLencles of lLs !v parLner Lo Lhe fullesL lor example Lhe company was Lhe flrsL Lo lnLroduce fuel ln[ecLlon for Lwo wheelers ln lndla
8ulldlng Long 1erm 8elaLlonshlps wlLh Channel arLners 8elng aL Lhe helm of Lhe lndlan Lwo wheeler lndusLry and susLalnlng Lhe pole poslLlon calls for an efflclenL supply chaln 1he managemenL has been able Lo llve up Lo Lhls challenge Lhrough lLs ablllLy Lo bulld long Lerm relaLlonshlp wlLh over a large no of dealers suppllers oLher channel parLners 1he focus has been Lo creaLe a susLalnable buslness model LhaL leads Lo a wlnwln proposlLlon for all Lhe members of Lhe value chaln 1he Mun[als have gone much beyond Lhe convenLlonal deflnlLlon of anclllarlsaLlon maklng lL a polnL Lo exLend Lechnlcal and managerlal supporL Lo Lhese anclllarles 1hese anclllary unlLs are manned by frlends relaLlves ex employees or close assoclaLes of Lhe Mun[al famlly slnce Lhe Croup paLrlarch Mr 8rl[mohan Lall never wanLed Lo march alone
uomaln knowledge 1he managemenL posses lndepLh knowledge of Lhe lndlan markeL 1he comblnaLlon of Lhls knowledge and Lhe suppller neLwork along wlLh Ponda's experLlse over 4sLroke Lechnology has greaLly conLrlbuLed Lo Lhe success of Lhe !olnL venLure 1hls also helps Lhe company Lo Lhlnk ahead of lLs compeLlLors and come up wlLh producLs for saLlsfylng Lhe ever changlng consumer needs
Clobal Cearlng Managlng Alllances Cver Lhe years Pero Croup has sLrengLhened lLs [olnL venLures forged proflLable relaLlonshlps wlLh lLs parLners and allled lLself wlLh some of Lhe besL players ln Lhe markeL 1echnology asslmllaLlon Lhrough wlde sourclng has been and wlll conLlnue Lo be an lnLegral parL of Lhe progresslon of Lhe Pero Croup
ln a nuL shell Lhe ma[or reasons behlnd Pero Ponda's success are - vlslonary Leadershlp
3 8eferences l LxplolLlng Lhe vlrLual value Chaln by ! l 8ayporL ! ! Svlokla ll SLraLegy as SLreLch Leverage by Cary Pamel C k rahlad lll wwwherohondacom lv wwwherogroupcom v wwwbuslnessweekcom vl wwwlndlaLodaycom