- is an engineering consulting firm that has operated for 60+ years and now seeks to enter the Australian market. - Key opportunities in Australia include growth in infrastructure, declining mining profits increasing demand for productivity solutions, and government initiatives in electricity markets. - will position itself as an experienced engineering and technology consulting firm that provides customized IT solutions and a focus on operational productivity and cost optimization. - An action plan is outlined to set up local operations, develop marketing materials, and appoint a team to manage business development and projects in Australia.

1. White Paper on Australian
Market Opportunities for
Prepared by
Parthasarathy Bhaumik

2. Content
2
1. Executive Summary Page 3
2. Australian Industry Outlook Page 6
3. Competencies Page 14
4. Service Differentiators Page 15
5. Why Australian Market ? Page 16
6. Opportunities Page 17
7. Positioning Page 20
8. Action Plan Page 21
9. Partho’s Value Add to the Business Page 22

3. Executive Summary
3
Australian Market
Management consultants provide a range of services to businesses in Australia. These services
primarily involve implementing new practices and processes to improve business efficiency. Key
industry services include consulting on financial performance, business growth strategies, risk-
minimising processes, human resource optimisation and sustainability issues. These services,
particularly on large projects, tend to be provided simultaneously, with some variance depending
on a client's needs.
The Management Consulting industry has grown slowly over the past five years. Industry
Consulting operators have partly offset this trend by:
• Increasingly incorporating analytics into their services, which offer businesses greater
understanding of their business and clients.
• Introducing new business processes and enhancing operating efficiencies.
Consulting market of Australia is in the mature phase with many players and fierce competition
amongst the players. With low entry barrier, many try to enter the market, and they choose to
operate in niche segments. There is hardly any difference with the product ranges offered by the
companies.

4. Executive Summary
4
is one of the largest independent engineering consultants in the world. With over 60 years in the
business it has created a enviable global reputation based on trust. has a multidisciplinary team
of professionals with in-depth understanding of the latest trends, combining creativity with
initiatives.
In 2008, added a new dimension to its business offerings in the form of Business & Technology
Consulting, to focus on meeting emerging challenges in the rapidly changing global business and
technology.
Imperatives for Growth
• has categorised its customer base into five industry segments based on its respective needs,
and they are – Steel, Non-Ferrous, Energy, Mining, and Infrastructure; and the fields of
services cover Business & Technology, Engineering, Project Management and Operations
• The industries core needs vary from – ‘quality service and products’, ‘operational excellence’,
‘cost optimisation’, ‘productivity improvement’ and ‘market strategy’ to name a few.
• Providing innovative solutions and personalised service to the customers seems to be the key
competitive driver for in consulting industry.

5. Executive Summary
5
White Paper Objective
• One of the few independent organisation that has provided services in both developed and
developing markets.
• With a flat organisation structure, it can provide its clients with fast resolutions and
customised service.
• As an independent organisation it gives unbiased advice, and hence, provides value based
service to its clients.
• Combined talents pool in core engineering, project management and IT areas positions in an
unique manner unmatched by its competitors
Competitive Differentiator
• To counter competition and meet its growth objective, is planning to enter the Australian
market.
• The deliverable of this white paper is to provide an overview of the Australian Industry
outlook, and in the process highlights the positive opportunities that would facilitate the
decision to enter the new market and the gaps that need to be closed for an effective and
efficient implementation.

6. Australian Industry Outlook
Australia needs reforms that improve productivity and reduce business costs to remain
competitive. Australian industry must act on opportunities, and service sectors in particular, will
play an important role in ensuring that Australia remains a modern dynamic economy.
Mining:
• Instability in the euro area and economic volatility in China pose risks for the Australian
mining sector.
• Decline in global commodity prices:
• Would likely see a shift in Australia’s mining export profile;
• Would likely to threaten corporate profits;
• Lead to mine closures;
• Would force companies to consider how to sustain their cost take-outs and drive
ongoing productivity improvements;
Electricity (Source – Australian Energy Market Operator);
• Consumption in the residential and commercial sector is forecast to recover from 129,743
GWh to 133,163 GWh (0.9% annually) over the short term: Although consumption is
recovering, per capita consumption continues to decline, indicating population growth is a
key driver of this increase.
6

7. Australian Industry Outlook
Electricity contd.:
• Underlying consumption is recovering due to a forecast decline in electricity prices in most
regions, and projected growth in income per capita;
• Rooftop Photo Voltaic (PV) continues to display strong growth (18% annually), with
continued installations in both the residential and commercial sectors:
• Coal-fired generation declined by 5 per cent in 2013–14. Despite this, coal remained the
largest source of electricity generation in Australia at 61 per cent. Natural gas constituted 22
per cent of total electricity generation in 2013–14. (Source: Australian Energy Statistics)
• Renewable generation rose by 12 per cent in 2013–14, comprising 15 per cent of total
generation in Australia. Most growth continued to occur in wind and solar energy, with the
share of hydro in total renewable generation falling below 50 per cent for the first time.
• Over the past five years, the cost of retail energy has grown dramatically. Much of the
increase has been attributed to growth in the costs of electricity distribution and
transmission, which are determined by the industry’s asset base.
• The industry’s investment and charging decisions are heavily regulated, and have direct
impacts on profit margins.
7

8. Australian Industry Outlook
Transportation:
• Over 70 per cent of all domestic passenger movements within Australia occur on roads.
Driving remains by far the preferred means of transport within cities and for trips up to 400
kilometres.
• Based on current trends, congestion will increase imposing constraints on freeways and
highways thus constraining productivity within cities and regions.
• Truck traffic is predicted to increase by around 50 per cent in 2030. Governments face
challenges funding road infrastructure improvements to service both a larger freight task and
a growing light commercial vehicle task.
• Rail dominates freight movements between Perth and the eastern states. Rail freight, mainly
supporting commodity exports, is expected to jump by two-thirds by 2030, increasing
pressure on the rail system.
• The freight task and volume of container traffic is increasing substantially proportional to the
overall growth rate of the economy.
• While carrying only 0.1 per cent of Australia’s international freight by weight, aviation freight
makes up nearly 21 per cent of freight by value.
8

9. Australian Industry Outlook
Each industry’s share of GDP in
2004–05 in comparison with
2014–15.
• The services industries account
for the majority of production
(around 60 per cent).
• Mining’s share of GDP has
risen rapidly over the last
decade as a result of the
resources boom, which also
supported growth in
construction output.
• Manufacturing’s share of GDP
has fallen the most sharply of
any industry. Manufacturing is
the only sector which has seen
its actual production fall over
the past decade.
Industry shares of GDP (per cent), 2004–05 versus 2014–15
Source: ABS cat. no. 6291.0.55.003, table 4
9

10. Australian Industry Outlook
10

11. Australian Industry Outlook
11

12. Australian Industry Outlook
Australia can be significantly affected by international events. The graph below projects
which countries account for what proportion of Australian exports and where Australian
imports are sourced.
12

13. Australian Industry Outlook
Australia’s resources and energy commodity exports , by selected commodities
13

14. Competencies
14
Core Sectors and Key Services
Sectors
Services
Steel Non Ferrous Energy Mining Infrastructure
Business &
Technology
Operations
Project
Management
Engineering
Markets &
Strategy
Policy
Studies
Finance &
Restructuring
Operations
Management
Information
Technology
Iron &
Steel
Non-
Ferrous
Mining &
Mineral
Processing
Energy
Infrastructure
Planning
Project
Control
Risk
Management
Governance
Decision
Analysis
Cost
Optimizati
on
Sourcing
optimizat
ion
Productivity
Improvement
Capacity
Consolidation
Energy
Reduction

15. Service Differentiators
15
• Leadership by integrating engineering, technology, economics and operations ;
• Operational excellence from Concept to Completion;
• Long-term trusted relationship with customers;
• Capability of developing customized IT enabled solutions to resolve operation, maintenance
and logistic issues and complete Management Information System to enhance production
capacity and plant productivity;
• Development of Energy Management System to assist in energy management for Electricity
Distribution;
• Global Network provides uninterrupted services to clients irrespective of geographical
locations;
• Powerful culture of innovation, collaboration and teaming;

16. Why Australian Market ?
16
• service range and core competence have demand in Australian industrial sectors.
• Low overheads and operational synergies would play key role in entering Australian
market.
• Inter company technology transfer reducing development cost.
• Customized IT enabled solutions like ERP, CMMS and Energy Management System would be
a major competitive advantage to Australian SMEs who are very cost sensitive.

17. Opportunities
17
• In Australia, overall engineering consulting services are growing in response to the surge in
infrastructure construction (particularly mining, energy and road and bridge construction),
resources and environmental markets. Outsourcing of engineering services has been a
growing trend amongst large private and public sector corporations for efficiency gains.
• The Australian Government is encouraging privatisation of state and territory electricity
assets to increase competition amongst electricity generators and retailers with the intent to
encourage innovation and deliver energy products and services to consumers at the lowest
cost.
• With extensive knowledge in conventional thermal and renewable energy based power
generation and distribution plants, can assist the electricity business assets to improve
productivity, lower their cost base and ensure effective energy management.
• Fluctuating commodity prices and increasing cost base have reduced profits for mining
companies in Australia. This has triggered an urgent need of capital investment discipline and
focus on improving productivity. has capabilities to make strategic changes to process
improvements and introduce technologies that can help deliver labour and asset productivity
improvements in mining companies.

18. Opportunities
18
• The consistently falling cash rate has contributed to the decline in revenue of operators in the
banking industries, which are highly sensitive to movements in the cash rate. Wages are often
the second-highest cost for operators in finance industries. Hence, to maintain and enhance
margins businesses are focusing on improving productivity through investments in technology.
can assist banks in improving technologies to increase automation, information management
and efficiency.
• Growth in revenue (including average revenue per user) and user penetration are anticipated
in e Commerce (B2C) market in Australia.
• As an expansion strategy, can plan to enter the new industry growth area of e
Commerce by offering its ERP solutions to help businesses reduce cost, effectively
collect and distribute information, and increase productivity by supporting ‘pull type’
supply chain management.
• The current Australian Government policy on the usage of environmental management
systems is that government agencies are encouraged to develop and implement an
environmental management system for at least one of their sites. with capabilities in
providing comprehensive range of environmental related services can help businesses in
ensuring their projects when implemented are in compliance with environmental regulatory
standards. can also offer its services to Australian Government to conduct Environment
Impact Assessments.

19. Opportunities
19
• Australian Bureau of Infrastructure, Transport and Regional Economics estimated wastage of a
total of $9.4 billion as the social cost of congestion for the year 2005 in the major Australian
cities and the cost is estimated to be more than doubled by 2020. The State Governments in
Australia are trying to find solution to the problem through Public Private Partnership.
• can conduct feasibility studies on behalf of State Governments and propose
management measures to combat congestion or how to get the best from a given stock
of infrastructure and changing demand scenarios.

20. Positioning
20
Differentiation
Relative Cost
Differentiating
through tech. &
service
Tier 1 Consulting
companies
Tier 2 Consulting
companies
Low
Low
High
High
’s key entry strategy would be positioning it
as a engineering and management consulting
company with:
• Over 60 years experience as a trusted
engineering and consulting house;
• Capability to develop customized IT
enabled systems to address operation,
maintenance and logistic issues;
• Competence in enhancing operational
productivity and cost optimisation in
varied sectors;
• Advantageous low operational cost to
counter entry barrier in new market;

21. ’s Action Plan
21
An action program needs to be developed to ensure effective implementation of the strategies to
enter Australian market. This involves listing of specific actions in different areas: on what needs
to be done? Who will be responsible?
What Who
Set up an operating arm in Australia Legal
Prepare a briefing presentation for the Australian market focusing on ’s
products and its benefits
/ Partho
Develop strategy paper for entry into Australian market
Develop strategy implementation plan in Australia / Partho
Appoint a team responsible for Australia
Upgrade the current website
- to make it contemporary and compatible with mobile hand held
devices;
- Include publications to market ’s Intellectual Capital and its success
for the past 60 years of its operation.
- Turnaround success stories

22. Partho’s Value Add to the Business
22
• Assist in setting up an operating arm for in Australia;
• Conduct market research and develop markets with key inputs and support from ;
• Assist in development and implementation of strategic business plan;
• Identifying and managing risks for business and projects managed for clients;
• Develop ongoing annual business plan and manage budget for Australian operations;
• Identify client requirements and coordinate to provide customer service to create customer
advocacy;
• Manage projects from initiation phase to project close phase;