Inflow Of Extensive Business Opportunities In Air Suspension Domain
With the growth in pneumatic technology, there has been significant growth in the automobile industry that further aims for a positive outlook moving forward. Keeping this in mind, let us share some information about one of the deals regarding the air suspension industry facilitated by Verkko Group. This particular deal was one of the significant deals in our portfolio as it was the first deal of technology transfer in the said domain.
The company started its operations in 1938 with the manufacturing of automotive components for various motor vehicles. With a vision to become a leading name in the global automobile industry, the company shifted its focus towards the latest product technologies. Air suspension was one such domain, where the company shifted its operations around 1970s. Soon the market was witnessing tremendous growth and the client company started globalizing its services to multiple countries ranging from the UK, USA, Germany, Morocco, Egypt, Malaysia, and Singapore.
After a decade of successful business relations with these counties, the company focused more on expansion by providing a series of casting components, CNC machining, VMC machining, and production of other automotive components. Due to their quality assurance tests and high demand, the company was able to lock deals with multiple leading OEMs throughout the globe. These companies included Ashok Leyland, Mahindra & Mahindra (NISSAN), Hindustan Motors Ltd., Maruti Udyog Ltd (SUZUKI), and a lot more on the list.
The company had achieved a milestone in the automobile industry and was looking forward to expanding its reach in other domains. So, the client was looking to expand its business in the railway sector as it’s one of the most promising industrial sectors, showing a positive outlook of growth. They were looking for a suitable collaborative partner for technology exchange to enter the railway sector for air suspension requirements.
Verkko 5 Step Approach
Verkko Group follows a 5 step procedure to ensure procedural and high customer satisfaction standards.
Step 1: Align The Meeting
A meeting was arranged with the Indian Railways’ representatives to present them with the business proposal. Railway experts then analysed the requirement and the potential of the company to grow in the particular domain. Well-listed requirements were attained from the client’s end.
Step 2: Get The Team
The most suitable and experienced team members were brought together to curate the finest team as per client requirements. To curate a list of potential business partners, the market research team analysed the potential of the product as well as technology in the target region. Moreover, considering the competitiveness of the market, a comparative analysis among different industry players were conducted in order to select the most suitable business model.
Step 3: Finalising The Model
Three models were pitched to the client.
Joint Venture model: This model focused on 100% localization of the production.
TOT Model: This model focused on the transfer of 100% technology.
Vendor-based model: This model focused on 50% localization of components.
Pros, cons, and insights of each model were shared with the client and they were given detailed presentations on the same.
Result: TOT (Transfer of Technology) model was finalized
Step 4: Teams On The Move
At this stage, the Business Development team started screening the list prepared by the market research team; and the potential clients were sorted out based on some preliminary findings as per their SWOT and PASTEL analysis. Meetings were then arranged with the respective companies’ stakehoders along with their proposals and quotations for the same.
Once the TOT partner was shortlisted by the client company, the due diligence was carried out by the legal team.
The project was then transferred to the operations team, along with all the details and research of the project. The operation team facilitated a smooth workflow and successful completion of the project, and the deal turned out to be a great success.
Step 5: Successful Completion Photograph With The Client Company
For a company who had tapped most major automotive industry players, Verkko had to devise extensive research to carry out the sourcing. The strategy was to build relationship with the identified partner, increase their valuable engagement score, and realise solutions as per the client’s requirements to have an effective business collaboration.
Once all the preliminary requirements were fulfilled and the execution strategy was in motion, it was time for a successful completion photograph