Silvio Napoli at Schindler India (A)
* Schindler plans to open a company’s subsidiary in India. * Investment Plan - $ 10 million.
* Products – Core, standardized with no allowance for Customization. * 3 challenges
* 2nd time in 2 months, Napoli’s Indian Managers submitted an order for a non standard product. * Cost pressure – 1) large increase in custom duties on imported elevator components, 2) unanticipated rise in transfer prices for the ‘low-cost’ components and materials imported from Schindler’s European factories. * Napoli’s requests for parts lists, design specs, and engineering support were not forthcoming from Schindler’s European plants. India Explorations
* 1925 - First elevator installed.
* 1958 - Long term agreement with ECE.
* 1985 – Terminated agreement with ECE and entered into a technical agreement with BBL, 12% equity stake in BBL. BBL became 2nd top player in 2000 decade 10-15% share. * 1996 – Collaboration with BBL ended and Schindler began considering options to establish its own operation in India. Indian Entry Project
* Napoli worked with BCG to narrow down list of 34 potential partners to 8 candidates – concluded that no ideal partner. * Napoli spent 9 months to analyze market size, legal environment and competitive situation in the Indian elevator market. Forming Schindler India
* MK Singh – Managing Director
* TAK Mathhews – Head Field Operations (9 yrs at OTIS, no 1 Elevator manufacturer in India) * Ronnie Dante – GM for Engineering (24 yrs at OTIS)
* Pankaj Sinha – Head HR
* Jujudhan Sinha – CFO
India Business plan
* 2 basic elements
* Focus on line of standard products
* Outsource key manufacturing and logistics functions Indian Elevator Market
* 50% demand for low-tech manual elevators, typically fitted with manual doors. * At the top end of market – small but growing demand for top-quality, high rise...
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