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Customer Care – R&R Business

Schedule B. Customer Care – R&R Business. Vinesh Jain – Sr. GM Customer Care. Date:- 19 th August, 2014. Journey So Far. Established New Business vertical in April 2012 for improving asset life of customer old DG sets & start a new revenue vertical

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Customer Care – R&R Business

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  1. Schedule B Customer Care – R&R Business Vinesh Jain – Sr. GM Customer Care Date:- 19th August, 2014

  2. Journey So Far • Established New Business vertical in April 2012 for improving asset life of customer old DG sets & start a new revenue vertical • Shifted the activity from unorganized repairing at unhygienic service areas to a systematic refurbishment at Powerol R&R centers. • Identified potential locations and developed R&R centers with key MAGIECs. • Formed R&R Concept and prepared a strategy in Powerol for capturing R&R business in four phases. • Formalized CVP (Customer Value Proposition) to achieve customer’s satisfaction.

  3. Customer Value Proposition

  4. Customer Value Proposition • Mahindra Powerol will Strive to Deliver Reman DGs & Engines with following values to customers: • Improved asset utilization with optimized O&M Cost. • Improved DG uptime and Reliability. • Uninterrupted Power supply.

  5. Powerol R&R Concept – Formalized in May 2012

  6. Powerol Concept for DG ReMan (Formalized during May 2012)……… • Changing current practices of Will fit DG Repairs to Complete DG Refurbishment. • Cost, Quality and Time are the basic fundamental for DG remanufacturing. • Cost : A business with tough competition and tight budget (like Telecom industries and Small Entrepreneurs) can save substantial money by using refurbished DG sets because those will normally cost 40% to 50% less than new DG sets with warranty and complete value for money. • Quality : Telecom industries have piled up with huge inventory of used DG sets, still they require substantial quantity of DG sets for their new / upgraded sites. They are looking for a DG manufacturer to come forward and refurbish their DG sets to as good as new. • Time : Time is money for this segment of customers. Hence meeting stringent delivery schedule through automation in refurbishment activity is must.

  7. Powerol R&R Strategy in Four Phases – Formalized during May 2012

  8. Powerol Strategy for DG ReMan (Formalized in May 2012)……… Phase – 1 • Capture Telecom segment where current potential of around Rs.40Cr is readily available from approx 8000 DG sets. Estimated time for completion 2.5 years. • Customers were ready to move to local vendors if organized DG manufacturers are not able to cater this need. We entered into the business and captured by developing existing capable MAGIECs at key locations while parallel development of full fleshed engine Re-Man centers with professionals / selected MAGIECs. Status: 31st March 2014 We have successfully refurbished 7500 DG sets during F13 and F14 generating Revenue of Rs.32Cr. Twelve Renovo centers and One Exclusive Engine Reman Center were established. These centers have been visited by all major Telecom customers and well appreciated. Powerol is only DG manufacturer who entered with exclusive R&R concept and was offered for all make of DG refurbishment by almost all the customers in Telecom.

  9. Powerol Strategy for DG ReMan (Formalized in May 2012)……… Phase – 2 • We shall offer Dg Reman against scraped DG sets lying at customer’s warehouses. Presently these DG sets are being sold by customer as scrapped to local markets. • We shall take these DG sets to our R&R centers and will complete the process. We may use new engine / Fabricated parts for canopy etc. Status: 31st March 2014 We have successfully refurbished such DG sets in telecom. Indus shifted bulk quantity of such DG sets to our R&R centers among which we refurbished around 40% DG sets by cannibalizing each others at optimum cost.

  10. Business from Phase 1 and Phase 2

  11. Gap Analysis Service Business from Phase 1 and 2 Strategy F13: Positive Results Analysis: Indus acquired all warehouses of Vodafone, Idea and Airtel. This increased DG population with them almost double at warehouses and we exceeded the targets. F14: GAP Analysis:

  12. Powerol Strategy for DG ReMan (Formalized in May 2012)……… Phase – 3 • This phase will reduce our Telecom dependency. • We shall offer Recon DG sets to retail customers as well as discount on new DG set against buy back of their existing DG sets. • We shall ensure that Recon DG set purchased by customer is commissioned before disassembly of their old running DG set to avoid any power interruption to them. • Recon Dg set will be delivered with warranty and performance assurances. Status: 31st March 2014 We could not enter into this market due to some corporate strategic decision.

  13. Powerol Strategy for DG ReMan (Formalized in May 2012)……… Phase – 4 • Phase 4 will take us beyond the boundary. • We shall offer refurbishment for competitors DG sets also. Status: 31st March 2014 We refurbished 250 competitor DG sets in Telecom. However stopped competitor’s DG refurbishment due to corporate strategic decision during H2-F14. We returned 215 such DG potential to customer back.

  14. Country wide R&R Network

  15. Network Establishment

  16. Network Establishment Exclusive Engine R&R Center Gurgaon Cleaning Section

  17. Network Establishment Exclusive Engine R&R Center Gurgaon Fuel Pump and Injector Section

  18. Network Establishment Exclusive Engine R&R Center Gurgaon Electrical Accessories Section – Alternators & Self Starters

  19. Network Establishment Exclusive Engine R&R Center Gurgaon Engine Assembly Section

  20. Network Establishment Exclusive Engine R&R Center Gurgaon Engine Test Bed

  21. Network Establishment Exclusive Engine R&R Center Gurgaon Exclusive Spare Parts Store

  22. Network Establishment Exclusive Engine R&R Center Gurgaon Training Center

  23. Revenue Plan F15 – F17

  24. Revenue Plan (F15 - F17) Rs. In Cr F15 – Break up

  25. Unique Offerings to Customers

  26. Competitor’s DG Repowering: Unique Offerings to Customer • There are substantial quantity of BER / Scrapped M&M DG sets lying at warehouse due to major problems in canopy and main alternators. and poor service support in field. • At the same time there are huge quantity of Competitor’s DG sets are also lying at warehouses. These DG sets are inoperative due to engine seizer • We developed a suitable kit by which AL DG canopy can be modified to accommodate M&M engines in it. • 10 DG sets repowered successfully and same are under observations in field. We are likely to get a further order of at least 50 such repowering. Competitors DG Canopy Repowered DG set M&M Engine Being installed

  27. End to End Solutions – Refurbishment, Shifting and I&C Unique Offerings to Customer • There are substantial quantity of DG sets lying break down in various sites. These sites are non running sites. • Customer wants to refurbish these DG sets and transfer to other site where DG running is high. • We have offered them a comprehensive solution (i.e. checking, Refurbishment, transfer and commissioning of DG set. • Currently entered into one such RC with customer.

  28. Mobile DG Trolleys - equipped with Refurbished DG sets Unique Offerings to Customer • Some times customer needs DG sets for a short duration (Retail/Telecom). • Telecom customers prefer to keep a float movable DG set with them so that same can be deployed as and when required. • Retail customers want to hire such DG sets from market. Hence we can keep ready with our dealers. • Offered a total solution to customer i.e. Refurbished DG set equipped on a movable trolley. • Negotiation is going on with different customers. We are likely to get an order of 100 trolleys soon.

  29. Power Back-up and Allied Services Unique Offerings to Customer Objectives: • To provide 24X7 uninterrupted Power Supply through quality back up and dedicated team of professionals. • Maintenance of all electrical utilities viz. Air conditioners, distribution boxes, change over switches, stabilizers, fuse carriers, fans, lights, etc. alongwith liaisoning with State Electricity Board for bill collection and payment remittance (i.e. single window solutions for all power and allied services to the branches so that they can focus on their core business). • Single window solution for all Power and Allied Services related need to customer. • Target Segments: • Corporate Offices • Banks • Hospitals • School and Colleges • Residential, etc

  30. SWOT Analysis – R&R Business

  31. SWOT – M&M Reman business

  32. SWOT – M&M Reman business

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