Sivio Napoli

- Indian managers ordering non-std part glass

- Large increase in custom duries & unanticipated rise in transfer pricing
- Schindler European par tnot supporting well

Very formal culturehierarchy

Napoli has experience in developing standard elevator at a dramatic lower cost then
the factory line
Schindler has established market in India.. brand reputation
Taskmaster.. driving very hard, impulsive, impatient and over-communicative
Half monk and half warrior

Young guy .. knows company, people and produtts

Can handle different cultures, young and flexible trust generalist but not
specialist
Character of person is compatible with yours. Whether you have common set of
values.. high ethical standards, integrity, assuidousness to work and drive right
attitude and energy

Market
- Reulation n low tech manual elevators : 50%
- Getting enforced
- Fast growing cities .. hugh growth potential
- Better services, facility anf higher quality, safety and more technologicallu
advanced elevators.
1997 .. 5600 units sold vevry yrar , base : 40000
70% market residential .. 20% commercial , 4% hotels and 6% others
Revenue of industry : US$ 125 millin, service income
1990-95 : 17% unit growth, 27% value growth
1998 unit growth : 5% -> 8-12% subsequent
Mumbai and delhi 60% of indian market

Single speed elevators ( residential) 65%

Two speed (20%)
Variable frequency (13%) higher end commercial application
Hydraulic ( 2%)

Market value: Otis ( 50%), BBL (8.6%). Kone (8.8%), ECE ( 8.4%) and Mistubishi
Mistubishi premium elevators for hotels and commercial
Hundai elevators high end elvators 1%
23% proce sensitive low end regional player.. lack of technical expertise and lim
access of funds
26000 elevators 16000 maintenance contracts.. manufacture own components.
Spare parts fixtures at aging plant in Mumbai and state of art manufacturing in
Bangalore.. 70 service centres.. 85% high emd hotel and commercial segment
Engineering Production, Installation : 1/3 rd labor . 20% revenue
Service, repair, modernization and replacement : 2/3 rd , 80% revenue
5 star ..technical on call or on-site
Commercial building and hospital : 2 hours
Residential and commercial sector : 4-6 hours
Narroe product line and simple standardized elevators
S001 low rise segment S300P.. mid rise segment
Obj 50 units in 2008 and 20% market share in first 5 years
4 yr break even and double digut margin
Std product with customized sales and servicw
Account management
S001 75% sales
No-in house manufacturing, no centralized assembly, no logistic infrastructure..
approved local supplier
Safety related component from Europe.. logistic maintained by service provider
Basic installation process was outsourced
Maintenance contracts were in-house
Set-up local manufacturing network..
QA audit pass
Problem selling standard elevevator
Customization needed by market.. capability to provide customization is missing ..
further costly
Transfer pricing costly for indian subsidiary and high import tariff in India.
Impasses in passing capability to local supplier