Beacon newsletter for october 2013 from simcon club
Sydenham Institute of Management Studies, Research and Entrepreneurship Education
B E A C O N
A MONTHLY NEWSLETTER FROM SIMCON - SIMSREE CONSULTING CLUB
1.GUEST LECTURE BY MR. V. SARANGAPANI
23rd October 2013
SIMCON (SIMSREE Consulting Club) blazed its trail by helping students to get a better perspective of
management consulting as a career option, its opportunities and expectations.
GUEST LECTURE BY
MR. V. SARANGAPANI
PAGE 2 ABOUT
AUTOMOBILE INDUST RY ANALYSIS
The guest for the lecture was Mr. V Sarangapani,
Executive Director of Bombay Management Association (BMA) and an advisor for Micro Technologies
(India). He has over 36 years of experience which
includes 28 years in TCS. With an experience of over
18 years in management consulting, he is one of the
best persons to inspire students. The lecture opened
new dimensions for students aspiring to be
Mr. V. Sarangapani addressing the students
Mr. Sarangapani started the lecture by talking about his journey in consulting. He mentioned about his
learnings from clients, situations and experiences and also emphasized on the need of continuous learning
in the consulting field. The most important thing he learnt from his experience is:
“When any new technology comes in, you should absorb it without resistance and use it to reduce efforts”.
When talking about the history of consulting, he cited Chanakya as an ideal consultant.
According to Mr. Sarangapani, an organization needs a consultant to bring in outside expertise and have a
third person’s view. He also mentioned five important skills required for success in consulting. They include
analytical thinking, ability to conclude with pros and cons, timeliness, ability to learn and most importantly
openness to your mistakes and learning through those. He took us through consulting process and steps.
This helped us to understand do’s and don’ts of the consulting field. The most effective part of his lecture
was the relevant and engaging examples for every situation and fact which he mentioned.
Mr. Sarangapani also told us about BMA and how it is working for emerging corporates. In the questionanswer session, he briefed about various areas of consulting and difference between those. Lastly, he
advised upcoming consultants:
“Experience life and situations. Use the opportunities and give your best of it. Change according to
situation. Don’t get stuck to core competence only”.
It was indeed a great start for SIMCON team 2013-15 and we thank Mr. V Sarangapani for making it
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Automobile Industry Analysis
The automobile industry has emerged as a sunrise sector in the Indian economy. It embarked on a new journey in 1991 with
de-licensing of the sector and subsequently opening up for 100% FDI through the automatic route. The automobiles production
has increased at a CAGR of 13.2% over FY05-12 while the automobiles export volumes increased at a CAGR of 22.4% over the
same period. The Ministry of Heavy Industries & Public Enterprises has come up with a Automotive Mission Plan 2006-2016
that envisages the automobiles sector to be worth USD 145 billion in 2016 contributing around 10% to the GDP and providing
an additional employment of 25 million. But owing to the recent sluggish economy, the Society of Indian Automobile
Manufacturers (SIAM) has revised the estimates to USD 111 billion by 2016.
Greater availability of credit & financing options
Rising incomes, growing middle class and a young
Strong growth in exports as well
2. Rising investments
Rising investments from foreign and domestic players
Large pool of skilled manpower and a growing technology
base will induce greater investments
Strong projected demand making returns attractive
4. Innovation opportunities
Goal of establishing India as an auto manufacturing hub
Government has set up a technology modernization fund
with a focus on the Research & Development activities
Tata Nano and the upcoming Pixel have opened up the
potentially large ultra low cost car segment
Innovation is likely to intensify among engine technology
and alternative fuels
Policy support in the form of sop, taxes & FDI encouragement
Automobile market segmentation
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Market segmentation in 2012 was as follows:
Major Market Players
The passenger vehicle market, which constitutes around 80% of automobile sales, has immense growth potential.
Anticipating the future market potential, the production of passenger vehicle is forecasted to grow around 10% till 2012-13.
Some of the major players and their market share is shown in following graph.
Indian Government Policies for Automobile Industry
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1. Auto Policy 2002
a) Automatic approval for foreign equity investment up to 100% with no minimum investment criteria
b) Encouragement to R&D by offering rebates on the R&D expenditure spent by the companies
2. Automotive Mission Plan (AMP) 2006-2016
a) AMP’s vision is to make India a preferred destination for design and manufacturing of automobiles and to
achieve market size of USD154 billion by 2016
b) Setting up of a technology modernisation fund focussed on SMEs
c) Automotives training institutes, auto design centres, special auto parks also established
3. National Automotive Testing and R&D Infrastructure Project (NATRIP)
a) Set up at total cost of USD 388.5 million to enable the industry to implement global standards
b) Nine R&D centres of excellence with focus on low-cost manufacturing and product development solutions
4. Ministry of Heavy Industries & Public Enterprises
a) Worked towards reduction of excise duty on small cars and the increase of budgetary allocation for R&D
b) Weighted increase in R&D expenditure to: 200% from 150% (in-house); 175% from 125% (outsourced)
5. Union Budget FY13
a) Excise duty on large premium cars increased from 22% to 27%
b) Increased custom duty on cars and MUVs valued above USD 40,000 to 75% from 60%
c) 5 year extension on deduction of R&D expenditure under Income Tax Act
6. Other policies
a) Government is planning to introduce fuel-efficiency ratings for automobiles to encourage sale of cars that consume less fuel
b) National Electric Mobility Mission Plan (NEMMP) aims to push the supply of vehicles powered by electricity over
the next 8 years with an expected demand of 5-7 million electricity-operated vehicles by 2020
Foreign investment policies 100% foreign direct invest-
Incentives from government for alternate energy vehicles
Growth in urbanization and growth of tier 2 cities in-
Indian customers are educated and well informed so
Environmental :Global warming and increasing level of pollution make
Bharat stage emission standards are instituted by
government of India , progressively stringent
norms are being rolled out for the industry.
Awareness about environment in people increased the
sale of green vehicles.
Mechatronics in automobile increased sophistication.
automobile industry evolve continuously.
Technological advancement leads to more safe,
comfortable and fuel efficient vehicles.
they choose value for money and fuel efficient vehicles.
Inflation and recession directly affect the demand.
Technological :creased sales of passenger vehicles
Availability of finance and credits increased sale of
Establishment of automobile hubs, SEZ , etc is
helping automobile industry.
Consulting World News
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Cognizant buys France based Equinox
Cognizant Technology Solutions Corp on 2nd October announced that it had acquired France-based Equinox Consulting, a financial
services consultancy, for an undisclosed sum. The company expects around $40 million annualised revenue from the acquisition but declines to
share financial details of the deal. The company has made seven such buyouts in the last three years of which three have been in consulting
related. Equinox Consulting provides business consulting services across investment banking, asset management, retail banking, insurance, and
specialised financial services. The company is known for its regulatory consulting expertise. The acquisition will also add to the company’s
existing presence in the financial services and insurance sector — the largest industry segment for Cognizant — which contributed around 42
per cent to its top line.
FMC appoints Grant Thornton for forensic audit of MCX
The Forward Markets Commission (FMC) has appointed audit and consultancy firm Grant Thornton to conduct a forensic audit of
Multi Commodity Exchange of India Ltd (MCX), indicating that investigations into the settlement crisis at the National Spot Exchange Ltd
(NSEL) are expanding to other bourses promoted by the same parent—Financial Technologies (India) Ltd.
Grant Thornton had earlier conducted a forensic audit of NSEL, which has been hit by a Rs.5,574.35 crore payment crisis. NSEL is 99.99%
owned by Financial Technologies. Grant Thornton’s audit of MCX is likely to examine the trades done by the Indian Bullion Market Association Ltd (IBMA) on MCX, among other issues. NSEL owns over 60.88% stake in IBMA.
Debt to drive M&A surge for chemicals business
New analysis by consulting firm A.T. Kearney paints a turbulent picture ahead for global chemicals players: a $33bn debt peak in
2018 and depressed margins as a result of US shale gas forcing a major divestment frenzy that will reshape the landscape for at least 27 chemicals businesses with a turnover of more than $1bn. These companies will preside over a debt mountain of approximately $140bn in the next
five years.The A.T. Kearney study, Refinancing Will Drive Chemicals Consolidation finds that the flurry of deals that occurred in the chemicals sector between 2006 and 2008 are now spurring a wave of repayments that will come due between 2013 and 2018.A.T. Kearney analysts
say that any new deals now are occurring within the context of refinancing debt from the transaction peak, and it is investment grade companies that will lead the trend. Some companies, such as INEOS, refinanced part of their debt in 2012. However, according to A.T. Kearney
analysis, the bulk of the debt repayment is concentrated over the next few years, with levels of $22bn to $26bn through 2015, leading to a peak
of $33bn due in 2016.
Roland Berger: European companies must invest to boost competitiveness
Europe's economy is in the doldrums. Yet companies are still looking to the future with a positive mindset. 76% of survey respondents expect a return to robust economic growth in 2015. But the prospects for European competitiveness are not quite as bright. Over 70%
think Europe will lose its competitive edge, primarily to Asia. European companies will also probably lose out to North and South America in
the next few years, according to the findings of the international restructuring study for 2013. "To avoid losing out to other economies, European countries should invest more in factors that enhance competitiveness, such as infrastructure, innovation power and the education system.
After all, the European internal market is a very important export market for many European companies," says Max Falckenberg, Partner at
Roland Berger Strategy Consultants."Europe should become closer economically and politically. Otherwise the situation might get even worse
for companies from the continent's crisis-ridden southern fringe," Roland Berger restructuring expert Jakob Rüden says. But many companies
are sceptical about this: over 60% of those surveyed are doubtful that the current political actions in individual countries can boost confidence
Bestoutcome strengthens board with appointment of non-executive director
Bestoutcome, the specialist consultancy in complex change management for large organisations, is delighted to announce the appointment of Steve Watmough as non-executive director. Steve will support the ongoing growth and success of the company as it looks to
further enhance its flagship project portfolio management software PM3 and consultancy services. Steve has a successful 30 year track record
in the IT and Management Consulting field, most recently heading KPMG's CIO Advisory practice in the UK. This followed the acquisition by
KPMG of Xantus, a leading IT Advisory firm.
Steve was CEO of Xantus having co-founded the business in 2000. Bestoutcome focuses on change projects that deliver successful business
outcomes. Its PM3 toolset encompasses change management, resource and capacity management, outcome-driven planning, project office
support, risk mitigation and benefits realisation.
BELOW ARE ANSWERS TO
QUIZZ TIME !!
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1. Bearing Point
2. Iva’n Marte’n , BCG
3. PA Consulting Group
4. Skoda Auto, Vaclav Klement , Vaclav Laurin
5. Elon Musk ( Founder of Tesla Motors, SpaceX
and an inspiration for the character of Tony Stark in Iron Man series)
Mail Answers To:
First Received All Correct Answers will
be published in next month’s Edition.
Winner of Quiz September 2013 -> Hrishikesh Rahatal (MMS 2013-15)
QUIZZ OF OCTOBER 2013
Q.1. Connect the images top to bottom and identify the person and the consulting
firm (s)he is in.
Q.2. Name the consulting tool which is named after an American city famous in
history for a “party” related to a hot beverage.
Q.3 The consulting firm (X), which was ranked as one of the best consulting firms
to work for (2013), recently sold stake in a company (Y) which was ranked “Seven
Small Jewels”(2012). Identify X and Y.
Q.4. Ernst & Young published a report in 2008 named after an Indian cricketer,
which talked about the growth story in small towns. Name the report.
Q.5. X is French by birth. X married the adopted child of an Indian business family. Under X’s leadership, an Indian company Y - named after the goddess Lakshmi – became a leader in its segment. The stakes in Y were sold and money
from the sale was used to set up a retail company, whose chairperson X currently
is. Identify X and Y.
To make this feature a successful effort, we seek continued
involvement and contribution from our readers, that is YOU. We invite articles and trivia on
themes related to consulting. Be it industry news, consulting trends, a joke, a cartoon or
feedback, we are eager to hear from you. So go ahead, do your research, pen down your
thoughts and mail your entries to firstname.lastname@example.org.
SIMCON –SIMSREE CONSULTING CLUB
SIMSREE, B-ROAD CHURCHGATE 400 020, INDIA.
Mail To: email@example.com