Grundfos Russia Presentation

Transcription

1 DI Business Conference Grundfos Russia Presentation 30 October 2008, Copenhagen, Denmark

2 Be on the market

3 Russia - GRUNDFOS in Russia The first delivery to USSR The GRUNDFOS Trade Mark was established in USSR Rep. Office of GRUNDFOS G.m.b.H in Moscow The GRUNDFOS representative in St. Petersburg in Rostov-on-Don and N. Novgorod in Ekaterinburg, Novosibirsk & Kazan The OOO GRUNDFOS-Servicecenter was established in Moscow; the stock and head office were opened The first GRUNDFOS pumps with Russian motors were assembled in Moscow; Rep. Office in Omsk Rep. Offices in Ufa and Saratov The new stock & service facility (Alfa-Laval); Rep. Offices in Krasnoyarsk, Irkutsk & Samara GMO Acceleration Plan ; GMO/GEF integration project; Manufacturing project in Russia The Rep. Office in Volgograd; completed GMO/GEF integration project; Start up the GMRI building construction (Istra) Rep. Offices in Perm & Minsk; Belarus - completed sales transfer project GMO/GPO-export 2005 GMRI Grand Opening; The first CR pumps were assembled; 2005 GMRI Grand Opening; The first CR pumps were assembled; Rep. Offices in Tumen & Petrozavodsk; GMA Board visit to Russia in October SAP (SAPFIR) project was successfully completed in GMO/GMR; full GMR operations & assembly expansion; new Rep. Office in Krasnodar; Russian Satellite Academy was opened; GMO passed EUR 100 mln in sales new Rep. offices in Kursk, Chelyabinsk, Kemerovo, Khabarovsk; local stock in Kinel/Samara; BE project in GMO; U2/SAP upgrade project; GMO Acceleration Plan First BE cross-company assessment (303 points); new Rep. offices in Yaroslavl, Khabarovsk, Kemerovo, Vladivostok & Archangelsk; outsourced local stock in Novosibirsk

4 Adjust to the local needs

5 Grundfos product range

6 Accept the difference

7 New products

8 GMO Flow in % Energy saving o Operating hours % 100

9 Cost of ownership Purchase Cost Running Costs

10 Flexibility

11 Look for opportunities

12 Business areas Original Equipment Manufacturing Domestic Building Services Commercial Building Services Wastewater Services Water Services Dosing Industrial End-user Market

13 GMO Sales Development ( ) GMO Acceleration Plan m EUR 180 GMO Acceleration Plan It is our mission - to successfully develop sales of Grundfos pumps and pumping systems and doing so to be a leading pump company both on the Russian and our Export markets, contributing to better quality of life and a healthy environment , ,4 Add. Sales A.B. B. O.B Import / Home Full GMO/GEF integration Belarus integration Re. Est Set up of local production GMR development GMO/Alldos integration

14 Be prepared for a strong competition

15 Russia - Served Pump Market Russian producers in year 2007: 1.6 mln pumps: 0.34 mln industrial pumps, 1.26 mln domestic pumps, including 0.97 mln vibration well pumps Total Russian served market (pumps only): (sales related to Grundfos pump types only) 2007 est. EUR 870 mln GRUNDFOS 16% (Price index 1.0) Russian Producers 44%6 (incl. 6% CIS 5) (Price index ) 2007 Others Producers 40%

16 Strengthen the Brand

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18 Adjust organizational set up team work

19 GMO Existing Matrix Organization Finance, IS & Admin. Service HR & Academy Secretariat & Travel

20 Invest into regional development

21 GMO Sales Development (GMO Regional Chart) Belarus 3.3% Central Reg. 51.2% Region: Belarus Area: 0.21 mln km2 Population: 9.9 mln Cities: 44 Capital: Minsk Region: Nord-West Area: 1.85 mln km2 Population: 14.8 mln Cities: 153 Capital: St. Petersburg Region: Ural Area: 3.06 mln km2 Population: 14.5 mln Cities: 133 Capital: Ekaterinburg Ural Reg. 6.6% Privolzhje 9.9% Distribution by Regions 2007 GMO Siberia &Far-East 9.0% Region: Far-East Area: 6.52 mln km2 Population: 7.5 mln Cities: 68 Capital: Khabarovsk South Reg. 11.3% North-West Reg. 8.7% Regional Structure: GMO Head Office Moscow RHO s in 7 cities: Moscow St. Petersburg Rostov on Don Samara Ekaterinburg Novosibirsk Minsk RO s in 17 cities: Saratov Ufa Kazan N. Novgorod Omsk Krasnoyarsk Irkutsk Volgograd Perm Petrozavodsk Tumen Krasnodar Arkhangelsk Kursk Chelyabinsk Kemerovo Khabarovsk Region: Center Area: 0.65 mln km2 Population: 37.5 mln Cities: 300 Capital: Moscow Kinel reg. stock Region: South Region: Privolzhje Region: Sibiria Area: 0.59 mln km2 Area: 1.07 mln km2 Area: 6.77 mln km2 Population: 21.8 mln Population: 32.4 mln Population: 21.4 mln New RO s Cities: 132 Cities: 192 Cities: 133 in Year 2008: Capital: Rostov on Don Capital: N. Novgorod Capital: Novosibirsk Yaroslavl Vladivostok

22 GMO Regional Offices Development New office Belarus, Minsk Old office Moscow New rented office St. Petersburg New office Rostov on Don New rented office Moscow New rented office Istra New rented office Novosibirsk

23 Learn from customers, keep & strengthen partnership, build up a trust

24 Russia - GMO Customer Analysis (Outlook for the Year 2007) Group B 20% Group C 5% ABC Customer Analyses GMO 01 12/2007 Group K+A 75% CSS July % (100) GMO Others 1.9% 100% Installer 0.7% Distribution Channels Split GMO 01 12/2007 Wholesaler 65% 75% Ind. OEM Contractor 1.4% 31% Corporate Image Index 81% Customer Loyalty Index 85% Customer Satisfact. Index 76%

25 be ready to support and coach them

26 GMO Sales by Distribution Channels (Outlook for the Year 2007) Development of the dist. channels Price management Promotion/differentiation/branding Market intelligence Dedicated sales staff Strong price competition Market shares Replacement Parallel/Grey import/copy cats Professional 12% MISC 2% Trade 37% Trade Industrial Professional Sales per Dist. Channels 2007 Industrial 49% Development of the indust. dist. channels Focus on pot. application areas System designers, Key players, Ind. end-users Promotion/KAM Market knowledge Dedicated sales/service forces OEM Strong competition Time/Availability/Delivery Local modification Development of the prof. dist. channels Prof. project sales set up Strategic alliances Branding/KAM Market knowledge Dedicated sales/service forces Project support & cooperation Finance Strong competition/low margin Local need/flexibility

27 VAS as a competitive advantage

28 Russia - GMO Service Activity Main Activities: Basic Facts 2007: Service network 87 in 52 cities, including 23 professional service partners Moscow 17 service partners More than 1 service partner in 15 cities Total trained service partners staff 170 STS - Service training system Information & technical support Service network development Spare parts availability Pump audit promotion / local equipment for pump audit Service website for partners Service partner database Quality control

29 Staff development and motivation

30 Russia GMO HR Activities (Outlook for the Year 2007) HR: Corporate values via personal values Intensive recruiting efforts Poul Due Jensen Academy (in Denmark) Russian Sat. Academy (TPA, GPA, Awareness courses, Service & Customer courses) External/internal technical & skills training, professional training for staff - sales, service, administration, IT, HR, accounting GMO potentials program Employee Development Dialogue Employee Motivation Survey BE project English courses - in Moscow & in the regions Corporate events / Team building / Company day GMO & GMR CSR support to abandoned kids, personal contributions from staff supported by company (joint efforts with GMR) 35% of employees participate in the program Talent management program GMO Response rate 91% Satisfaction & Motivation Loyalty

31 Support the growth

32 Russia GMR Development p (GMO/GMR cooperation)

33 Get closer to the customers

34 Russia GMR DC & Regional Stocks Development (GMO/GMR cooperation) GMR DC: Full DC operation GMH - 19% GEF - 5% GWP - 37% GBJ - 37% GPC - 1% DAB - 1% Increasing products availability Door to door service Regional stocks development

35 Invest into infrastructure

36 GMO Russia - GMO / GMR Development p (New Construction Projects - Conceptual Design) U TILITY BU ILD ING G OO DS IN I EXTEN SION PRO DU CTION BUILDING II III D ISTRIBU TION C ENTER G OO DS O UT III EXTE NSIO N A DM INISTRATIO N BU ILD ING I II SCAL E L INE GRUNDFOS MANUFACTURING GMR MASTERPLAN PROPOSAL RUSSIA

37 Russia GMO Key Transitional Dimensions (Outlook: ) Static, traditional, strong vertical structure, short-term tasks and result oriented Organizational set up Flexible, adaptable, long-term, customer, value and future oriented External focus of control direction & regulation must be imposed by an external force Change management/ Staff development Internal focus of control personal freedom & autonomy, ability, responsibility, commitment Price competitive approach, exclusivity, privileges, personal advantages Customers growth & Selection concept Service competitive approach, long-term partnership, business competence Closed, private, censured, privileged communication. Communication platform & KAM development Open, honest, transparent communication networks, focus on customers Pragmatic approach, past oriented, product oriented Competence & Market knowledge Innovative approach, multi-perspective, market oriented

38 Russia Business Excellence

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