Lub System Business Model.pptx

1. Lubrication Systems for Heavy
Equipment Services Business Model
Ver. 0
EmadHamdi
HOT-BusinessConsultant
Kuwait,12th Aug,2023

2. Business Lines
I n d u s t r i a l S e r v i c e s D i v i s i o n
C e n t r a l i z e d L u b r i c a t i o n S y s t e m s
Centralized grease lubrication systems are widely used in industrial
and heavy-duty mobile equipment applications to lubricate multiple
points on a machine.
These systems range from a simple single-port lubricator to complex
dual-line, reversing units employing timers and alarms to deliver
grease reliably to hundreds of grease points.

3. Increasing emphasis on
improved asset utilisation
Greater technical complexity of
installed equipment
Standardization of
Specification
Conservative mind-set
leads to slow
technology adoption
Reduction in greenfield
investment
Increased competition from
low-cost service companies
Industrial Services Market: Key Drivers and Restraints, Kuwait, 2022–2030
IS Market in Kuwait: Drivers and Restraints (Future)
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Drivers & Restraints of Industrial Equipment Services in Kuwait
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4. The construction equipment market in Kuwait has witnessed strong growth over the past few years mainly driven by
the growing construction industry supported by the increase in the commercial, hospitality and residential sectors.
According to ResearchAndMarkets, the construction equipment market size in Kuwait is expected to grow at a
compound annual growth rate of 4.2% over the period from 2022 to 2029. Kuwait's increasing focus on infrastructure
and the development of automation in construction and manufacturing processes has had a significant impact on the
growth of the market. The need for cost-effective machines with lower emissions is dominating the construction
equipment market influencing manufacturers to choose electric and hydraulic machines.
The construction equipment market in Kuwait

5. Market Size example : Construction Equipment
• Construction Equipment/Cranes/Concrete Pumps Purchased in (2005-2021) : 18,436
• Buses and Trucks Purchased in (2005-2021) : 7,585
4,070
1,068
588
1,900
1,190
2,619
2,210
5,125

6. High
•Spare parts & Consumables
• Lubrication Solutions
•Site Services (Mobile)
•Repair Shop
•Long time Maintenance Contract
•Engineering & Consulting
•Upgrades & Retrofits
•Remote Diagnostics
•End-of-life Services
•Equipment Life Cycle Optimization
•Equipment Sales, Installation and Commissioning
Level
of
Technical
support
needs
Time frame
Business Size/Status (Working, Ready, Need more realization)

7. Major Equipment Distributors
• Alghanim Equipment
• Emdad Equipment & Oil Field Supplier
• Arab Group for Equipment and Construction (AGECO)
• Mohamed Abdulrahman Al-Bahar
• EQUIP
• RIHAM
• Boodai Trading Company Ltd. W.L.L.

8. Major Players
• SKF : Has one distributor but not active due to lead time
• Beka Max, has one distributor with no focus on selling to vehicle
• Man, Mercedes, Volvo : Supply with new equipment as an option.

9. • TAM – Total Available Market
• SAM – Serviceable Accessible Market
• SOM – Serviceable Obtainable Market
• LAM – Launch Assigned Market
Size of the Market : Kuwait 2023
TAM = 36 M$
SAM = 14.9
M$
SOM = 1.8 M$
for HOT
LAM = to be
discussed
• TAM CE Services Market = 36 M$ (including Trucks and Buses)
• SAM CE Services Market = 14.9 M$ (Heavy)
• HOT Lubrication System Target = 1.8 M$ +15% Growth
• Volume:
 Systems : 55% to 65%
 Parts : 20% to 25%
 Services: 20% to 25%
 Warranty: 5%
 Profitability:
 Systems : 20% to 30%
 Parts : 15% to 20%
 Services: 70% to 80%
 Warranty: 3% to 5%

10. How does we create, deliver and capture value?

11. Our Plan
• Maintenance and Repair Shop (4 persons)
• Dedicated Mobile Services Team (2 persons +1)
• Mobile Shop (one Equipped Truck)
• Spare parts Inventory Stocking (Fast Movers)
• Technical Training Center
• Local Parts Supply
• Fittings: Hoses, Valves, Nipples, and Manifolds.
Detailed action plan with milestones will be discussed later once we started