The document discusses Vestas' opportunity to expand in India by establishing operations in the country. It analyzes factors like India's growing renewable energy sector and lack of electricity access. Gujarat is identified as the optimal location to build a new plant due to market and economic conditions. A proposed strategy involves setting up a greenfield manufacturing plant and sales offices in Mumbai and Surat to target the growing Indian wind power market. Financial projections estimate the investment would become profitable within 5 years and help Vestas gain a leading position in India.

1. So IMAGINE.
So IMAGINE

5. KEY POINT CONSULTANTS Defying the status quo.
A large number of people do not have access to stable electricity in India
Number and share of people without access to electricity in 2013:
Source: International Energy Agency
69%
Without
Access

6. KEY POINT CONSULTANTS Defying the status quo.
Leading companies are under performing in emerging markets
There is opportunity forVestas to defy the status quo by doing it right
Source: McKinsey (2010)
Leading companies in the developed market
earn 17% of total revenues from emerging
markets, while emerging markets represent
36% of global GDP.

7. KEY POINT CONSULTANTS Defying the status quo.
Overall, emerging-market companies grow faster than those from developed economies
Source: McKinsey

8. KEY POINT CONSULTANTS Defying the status quo.
Overall, emerging-market companies grow faster than those from developed economies
Source: McKinsey
HOW CANVESTASWIN?
WHERE ARETHE GOOD NEWS?

9. KEY POINT CONSULTANTS Defying the status quo.
Revenue increased by 22%, EBITDA increased by 30%, healthy cash flow
Gross profit margin increased by 28% (not in the graph)
Source: Vestas

10. KEY POINT CONSULTANTS Defying the status quo.
Global investments in renewable energy capacity are returning to a steady growth path
Renewable energy capacity investments,2007-2030
Source: International Renewable Energy Agency (IRENA)

11. KEY POINT CONSULTANTS Defying the status quo.
GDP growth varies widely across different Indian cities
Tier 1 = >4 million; tier 2 = 1-4 million; tier 3 = 0.5 to 1 million; tier 4 = 0.1 million
Source: BCG

12. KEY POINT CONSULTANTS Defying the status quo.
GDP growth varies widely across different Indian cities
Tier 1 = >4 million; tier 2 = 1-4 million; tier 3 = 0.5 to 1 million; tier 4 = 0.1 million
Source: BCG
SELECTINGTHE RIGHT CITY IS CRITICAL
WHAT DOESTHIS MEAN?

13. KEY POINT CONSULTANTS Defying the status quo.
Our thought process
Three integrated strategies reaching for one common goal
WHAT TAKE ADVANTAGE OF INDIA’S GROWTHTO EXPAND
WHY
MOVETO URBAN
CENTRES
INDIA IS INVESTING IN
RENEWABLE ENERGY
LACK OF ACCESS TO
ELECTRICITY IN INDIA
HOW
The BEST.The BOLD. The BRAVE.
Set a bold goal to expand
in India.
Be brave and aggressively
promoteVestas.
Opportunities for future
excellence in off-shore.
WHERE
PROFIT IN 5
YEARS EARN A NET INCOME: 5.6M
SURAT CITY IN GUJARAT STATE

14. KEY POINT CONSULTANTS Defying the status quo.
Three main pillars ofVestas’ outstanding performance
Sales &
Service
Excellence
Research
Excellence
Production
Excellence
1 2 3

15. KEY POINT CONSULTANTS Defying the status quo.
VALUE CHAIN: Sales & Service Centres
Vestas latitude worldwide
The company has covered a lot of ground
HQ Europe
HOME
Austria
Bulgaria
France
Germany
Ireland
Italy
Netherlands
Poland
Portugal
Romania
Spain
Sweden
Turkey
United Kingdom
Denmark
Africa Asia
SouthAfrica China Singapore USA Argentina Australia
India
Japan
South Korea
Philippines
Taiwan Brazil
Chile
Mexico New Zealand
N.A. S.A. Oceania

16. KEY POINT CONSULTANTS Defying the status quo.
VALUE CHAIN: Research & development
Vestas latitude worldwide
The company has covered a lot of ground
HQ Europe
HOME
Austria
Bulgaria
France
Germany
Ireland
Italy
Netherlands
Poland
Portugal
Romania
Spain
Sweden
Turkey
United Kingdom
Denmark
Africa Asia
SouthAfrica China Singapore USA Argentina Australia
India
Japan
South Korea
Philippines
Taiwan Brazil
Chile
Mexico New Zealand
N.A. S.A. Oceania

17. KEY POINT CONSULTANTS Defying the status quo.
VALUE CHAIN: Production
Vestas latitude worldwide
The company has covered a lot of ground
HQ Europe
HOME
Austria
Bulgaria
France
Germany
Ireland
Italy
Netherlands
Poland
Portugal
Romania
Spain
Sweden
Turkey
United Kingdom
Denmark
Africa Asia
SouthAfrica China Singapore USA Argentina Australia
India
Japan
South Korea
Philippines
Taiwan Brazil
Chile
Mexico New Zealand
N.A. S.A. Oceania

18. KEY POINT CONSULTANTS Defying the status quo.
Diving deep into production
Germany
Italy SpainDenmark China USA
India Brazil
• Blades x2
• Control systems
• Nacelles x2
• Spare parts & repair
• Blades
• Blades
• Nacelles
• Blades
• Nacelles x2
• Spare parts & repair
• GS
• Blades
• CS
• Nacelles
• Nacelles
• Blades (2016)
• Blades x2
• Nacelles
• Towers
• Assembly
HQ Europe Asia N.A. S.A.
VALUE CHAIN: ProductionHOME

19. COUNTRY

20. KEY POINT CONSULTANTS Defying the status quo.
Vestas has installed 56, 860 turbines in 75 countries
All turbines combined produce enough energy to power 80 million homes in Europe
Source: Vestas Financial Report (2015)

21. KEY POINT CONSULTANTS Defying the status quo.
Large winds of opportunity lies along the west coast of India
Map of India’s wind power capacity vs.GDP Per Capita
Source: Centre for Wind Energy Technology Chennai

22. KEY POINT CONSULTANTS Defying the status quo.
Gujarat is the most optimal place to build your plant
There are positive economic conditions and polices that favourVestas
Market growth driver:
Development of wind energy
+
Decadal growth rate of the state
is 19%
• Large population and businesses
• Growing demand for energy
Wind power industry has grown
82%
• 3,500 MW of wind power produced
right now
• Gujarat has one of the highest wind
energy capacities in the country (9,000
MW)
FORYOUR REFERENCE
+
SURAT CITY: Tier 2 with 9% CAGR
• India’s best city in 2013
• Cleanest,highest per capita income
• More than 40,000 industries

23. KEY POINT CONSULTANTS Defying the status quo.
Evaluating investment viability in fast-growing economies
Using our very own GIL analysis for environmental scanning
Government
Infrastructure
Labour
Exemption of the Special Additional Duty (4%)
On all parts and raw materials dedicated for wind turbines
Special economy zones
Lead state in infrastructure sophistication
Highest network density of roads
Widespread access to rail, air, and shipping (biggest port)
Skilled and stable workforce:WPR in Gujarat is 41% vs 39% avg.
Surat city has 87% literacy and 1.26 million are in college (2014)
71,000 seats are in engineering

24. KEY POINT CONSULTANTS Defying the status quo.
Vestas is a major player globally, but has opportunity to soar in India
A competitive landscape
INTERNATIONAL
VESTAS
SIEMENS
GE
INDIA
VESTAS
GE
SUZLON
GUJARAT
SUZLON
GAMESA
VESTAS
1ST
BECOME A
CATEGORY
WINNER

25. ENTRY

26. KEY POINT CONSULTANTS Defying the status quo.
Go-to-market activation strategy
Critical pivot points
RETAIN Technical knowledge and control
NAVIGATE Be able to operate in and around the Indian market
SHOW
Long term commitment to the Indian economy through local recruitment and
partnerships
INVEST Invest to gain (wind capacity, government benefits, innovation)

27. KEY POINT CONSULTANTS Defying the status quo.
Evaluating entry options
Source: Bain & Company

28. KEY POINT CONSULTANTS Defying the status quo.
Evaluating entry options
Source: Bain & Company
GREENFIELD

29. KEY POINT CONSULTANTS Defying the status quo.
Ramp up manufacturing and increase productivity
OPEN A NEW TOWER MANUFACTURING
PLANT ON THEWEST COAST AND A
MUMBAI SALES OFFICE
CAPTURE
POTENTIAL
FASTER
RESPONSE
RECOMMENDATION BENEFITS
GREENFIELD
FOCUS
WORKWITH STRATEGIC PARTNERS:
ESSAR STEEL & GUJARAT LOGISTICS
ESTABLISHED
NETWORK
DEMONSTRATES
COMMITMENT
STRATEGIC
ALLIANCE

30. KEY POINT CONSULTANTS Defying the status quo.
A strategy that creates jobs and value
Leverage local university knowledge
Source: IRENA

31. KEY POINT CONSULTANTS Defying the status quo.
A strategy that creates jobs for the economy and adds value for the client
Leverage local knowledge and then pass on savings to clients
Source: IRENA
Wind will create 12 THOUSAND jobs by 2030

32. KEY POINT CONSULTANTS Defying the status quo.
Hire the best to be the best
Pay grants to local universities and recruit from local universities
IIT to hire engineers IIM to hire managers

33. PRODUCT
PRICE

34. KEY POINT CONSULTANTS Defying the status quo.
Vestas Solutions and Services covering the entire value chain
Energy portfolio management is split into project and operations
Source: Vestas

35. KEY POINT CONSULTANTS Defying the status quo.
EXISTING NEW
NEWEXISTING
PRODUCT
MARKET
Penetration
Sell more of your product to
existing customers & run more ads
Product Development
Develop a new product for existing
& loyal customers
Market Development
Introduce your product to a new
market or add delivery service etc.
Diversification
Develop a new product for existing
& loyal customers

36. KEY POINT CONSULTANTS Defying the status quo.
A winning go-to-market activation strategy in India
Win with guaranteed product performance and competitive premium pricing
AFFORDABLE
PRICING
V82: $2,300
V110: $3,600
CUSTOMIZABLE
PRODUCT SERVICES
MAINTAINABLE
SUBSIDIARY:AVAILON
• Customize the product to
fit local consumer tastes &
preferences
• Local operations and
partnerships allowVestas
to pass on the savings to
the client
• V82 – 1.65MW
• Outstanding performance
• Locally sourced
• V110 – 2.0MW
• Advanced
• Imported
• Continuous servicing
reduces downtime for
clients
• Creates greater loyalty for
Vestas
PERFORMANCE
GUARANTEE CONTRACTS

37. DISTRIBUTION
PROMOTION

38. KEY POINT CONSULTANTS Defying the status quo.
Where is the best location to marketVestas?
SALES OFFICE
SURAT MUMBAI DELHI KOLKATA

39. KEY POINT CONSULTANTS Defying the status quo.
Mumbai is a central location with sprawling businesses
Open a retail office to draw in traffic
SALES OFFICE
SURAT MUMBAI DELHI KOLKATA
CENTRALFUTURE
POTENTIAL
FUTURE
POTENTIAL
FUTURE
POTENTIAL

40. KEY POINT CONSULTANTS Defying the status quo.
Two team strategy for efficacy
Team 1 for front-end sales and team 2 for back-end support
SALES TEAM
HIGH
ENGAGEMENT
LOCAL
KNOWLEDGE
RECOMMENDATION BENEFITS
FRONT-END
FOCUS
ITTEAM
CONTENT
CREATION
TECHNICAL
SUPPORT
BACK-END

41. KEY POINT CONSULTANTS Defying the status quo.
Two team strategy for efficacy
Team 1 for front-end sales and team 2 for back-end support
SALES TEAM
HIGH
ENGAGEMENT
LOCAL
KNOWLEDGE
RECOMMENDATION BENEFITS
FRONT-END
FOCUS
ITTEAM
CONTENT
CREATION
TECHNICAL
SUPPORT
BACK-END
INTEGRATION

42. KEY POINT CONSULTANTS Defying the status quo.
TEAM 1: go-to-market activation strategy, think global, act local
A high involvement purchase requires a convenient centralized location to meet demands
HOW? WHO?
Open a new sales office in
Mumbai
PHASE I: Source local talent &
training
PHASE II: integration &
performance incentives
PHASE III: rotational program
IIT
IIM
Indian clients recognize prestige,
build onVestas brand confidence.
INCREASED EFFICACY + CONVENIENCE OF
CUSTOMER TOUCH POINTS

43. KEY POINT CONSULTANTS Defying the status quo.
TEAM 2: go-to-market activation strategy, think global, act local
A high involvement purchase requires a convenient centralized location to meet demands
HOW? WHY?
Hire an in-house ITTEAM in
Mumbai
PHASE I: Source local talent &
training
PHASE II: integration with sales
team
PHASE III: technical support
Faster in-house response to
support local sales team
Can create content that is
translated in the client’s preferred
language
INCREASED EFFICACY + CONVENIENCE OF
CUSTOMER TOUCH POINTS

44. KEY POINT CONSULTANTS Defying the status quo.
Consider the customer life-time value
A push-pull strategy will not only engage with customers,but retain them because you are VERTICAL
Customize offerings and service packages for
local preferences
Leverage brand prestige & talent
Sales Force & CRM
C-suite commitment and engagement
IT team creates content to showcase product
benefits in the local dialect
Sales team attends four trade shows

45. FINANCES

46. KEY POINT CONSULTANTS Defying the status quo.
Budget summary in USD
New plant in millions, sales team and IT team in thousands
NEW PLANT
Utilities 2.75
20 engineers 0.72
Training 0.05
Salary 48
Construction 55M
SALESTEAM
Utilities 0.8k
Salespersons 144k
Sales executive 60k
University grants 50k
Trade shows 500k
IT TEAM
Engineers 72k
Translator 30k
Content creator 36k
Sales force 0.3k
Training 37.5k
YEAR 1: 107M
Year 2 to 8: 52M

47. KEY POINT CONSULTANTS Defying the status quo.
Assumptions: sales, COGS, GPM, depreciation, interests, taxes
Note 1: Depreciation of the manufactory with useful life of 60 years and a salvage value of USD10,000,000
Note 2: The is no interest expense since the project is 100% equity financed
Note 3: Because of the Special Economic Zone Agreement, the company will not pay taxes during the first 10 years
Amounts in USD Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8
Revenues 88,650,000.00$ 147,750,000.00$ 206,850,000.00$ 265,950,000.00$ 325,050,000.00$ 354,600,000.00$ 384,150,000.00$ 413,700,000.00$
COGS 72,781,650.00$ 121,302,750.00$ 169,823,850.00$ 218,344,950.00$ 266,866,050.00$ 291,126,600.00$ 315,387,150.00$ 339,647,700.00$
SG&A 107,466,600.00$ 51,848,300.00$ 51,848,300.00$ 51,848,300.00$ 51,848,300.00$ 51,848,300.00$ 51,848,300.00$ 51,848,300.00$
EBITDA (91,598,250.00)$ (25,401,050.00)$ (14,822,150.00)$ (4,243,250.00)$ 6,335,650.00$ 11,625,100.00$ 16,914,550.00$ 22,204,000.00$
Depreciation 750,000.00$ 750,000.00$ 750,000.00$ 750,000.00$ 750,000.00$ 750,000.00$ 750,000.00$ 750,000.00$
EBIT (92,348,250.00)$ (26,151,050.00)$ (15,572,150.00)$ (4,993,250.00)$ 5,585,650.00$ 10,875,100.00$ 16,164,550.00$ 21,454,000.00$
Interest -$ -$ -$ -$ -$ -$ -$ -$
Taxes -$ -$ -$ -$ -$ -$ -$ -$
NI (92,348,250.00)$ (26,151,050.00)$ (15,572,150.00)$ (4,993,250.00)$ 5,585,650.00$ 10,875,100.00$ 16,164,550.00$ 21,454,000.00$

48. KEY POINT CONSULTANTS Defying the status quo.
Assumptions: sales, COGS, GPM, depreciation, interests, taxes
Note 1: Depreciation of the manufactory with useful life of 60 years and a salvage value of USD10,000,000
Note 2: The is no interest expense since the project is 100% equity financed
Note 3: Because of the Special Economic Zone Agreement, the company will not pay taxes during the first 10 years
Amounts in USD Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8
Revenues 88,650,000.00$ 147,750,000.00$ 206,850,000.00$ 265,950,000.00$ 325,050,000.00$ 354,600,000.00$ 384,150,000.00$ 413,700,000.00$
COGS 72,781,650.00$ 121,302,750.00$ 169,823,850.00$ 218,344,950.00$ 266,866,050.00$ 291,126,600.00$ 315,387,150.00$ 339,647,700.00$
SG&A 107,466,600.00$ 51,848,300.00$ 51,848,300.00$ 51,848,300.00$ 51,848,300.00$ 51,848,300.00$ 51,848,300.00$ 51,848,300.00$
EBITDA (91,598,250.00)$ (25,401,050.00)$ (14,822,150.00)$ (4,243,250.00)$ 6,335,650.00$ 11,625,100.00$ 16,914,550.00$ 22,204,000.00$
Depreciation 750,000.00$ 750,000.00$ 750,000.00$ 750,000.00$ 750,000.00$ 750,000.00$ 750,000.00$ 750,000.00$
EBIT (92,348,250.00)$ (26,151,050.00)$ (15,572,150.00)$ (4,993,250.00)$ 5,585,650.00$ 10,875,100.00$ 16,164,550.00$ 21,454,000.00$
Interest -$ -$ -$ -$ -$ -$ -$ -$
Taxes -$ -$ -$ -$ -$ -$ -$ -$
NI (92,348,250.00)$ (26,151,050.00)$ (15,572,150.00)$ (4,993,250.00)$ 5,585,650.00$ 10,875,100.00$ 16,164,550.00$ 21,454,000.00$
5M INYEAR 5

49. KEY POINT CONSULTANTS Defying the status quo.
Net income for the project
$(92,348,250.00)
$(26,151,050.00)
$(15,572,150.00)
$(4,993,250.00)
$5,585,650.00
$10,875,100.00
$16,164,550.00
$21,454,000.00
-1E+08
-80000000
-60000000
-40000000
-20000000
0
20000000
40000000
0 1 2 3 4 5 6 7 8 9
in USD
Time (years)
Net Income for the Project

50. KEY POINT CONSULTANTS Defying the status quo.
Manage foreign exchange risk through forward contracts and natural hedging
Source: Yahoo Finance

51. FUTURE

52. KEY POINT CONSULTANTS Defying the status quo.
A timeline toVestas winning strategy
PRIORITY CONSTANT ENHANCEMENT
PHASE I PHASE II PHASE III PHASE IV
STEP INTO
INDIAWITH A
BIGGER
PRESENCE
EXPANSION OF
SALES OFFICES
EXPANSION OF
REPAIR CENTRE
OFF-SHORE
PROJECTS &
MORE
FACTORIES
IMMEDIATE SHORT MEDIUM FUTURE

53. It’s your time
to SHINE

56. KEY POINT CONSULTANTS Defying the status quo.
WhereVestas should focus on for India vs. other countries

60. KEY POINT CONSULTANTS Defying the status quo.
Investment in supply chain with global footprint
High delivery performance while reducing inventory and driving cost out

61. KEY POINT CONSULTANTS Defying the status quo.
WhereVestas is today
Service recognized as a business opportunity