GCSL Profile: Key Busines

Sl. No.

Area

Sub Area

Organisation Environment

Established and Ownership

details
Revenue/ Sales Growth

Organisation Environment

Purpose, Vision, Mission, Values

Organisation Environment

Main Products and Services

Organisation Environment

Geography of Operation

Organisation Environment

Employee Profile, Number of

regular, contract, Job Diversity
etc.

Organisation Environment

Employee Engagement and

improvement initiatives

Organisation Environment

Delivery Mechanisms

Organisation Environment

Major Technologies, Equipment,

Facilities

Organisation Environment

Core Competencies

10

Organisation Environment

Principal Success Factors

11

Organisation Environment

Regulatory Environment,
Applicable Statutory and
Regulatory Requirements

12

Organisation Environment

Key Changes influencing

Success

13

Organisational Relationship

Organisation Structure and

Governance System

14

Organisational Relationship

Customers, Market Segment

15

Organisational Relationship

Suppliers, Distributors
relationship

16

Competitive Environment

Competitive position,
Competitive advantage

17

Competitive Environment

Market Share and Growth rate

18

Competitive Environment

Competitors profile

19

Strategic Challenges

Key Business and Operational

Challenges

20

Strategic Challenges

Key Human resource

Challenges

21

Strategic Advantages

Key Strategic Advantages

22

Performance Improvement
System

Current System and

Certifications

23
24

Performance Improvement
System
Performance Improvement
System

Key Improvement Initiatives

Learning and KM systems

SL Profile: Key Business Factors

Key Business Factor
Established and Ownership: GCSL is a Joint Venture between a Team company (Partner A),
with 70% shareholding and Premier Construction Solutions Ltd of Japan (PCSL, Partner B)
holds the balance 30%. Partner A first entered into a technical collaboration with PCSL in
late 80s and then formed the Joint Venture in 1999 for development and manufacturing
state-of-art machines.
Revenue: US $616.85 mn
Mission:1)Provide Full Line of material handling & construction machinery for MICA
Sectors.
2)Be a Trusted Partner for Cost-Effective & Innovative Offerings and Timely Life Cycle
Support to all Customers.
3)Leverage Superior Technologies and Responsive Supply Chain Develop Competent &
Motivated Work Force Globally Establish Harmony with Environment and Society.
Vision:GLOBAL TOP 5 WITH TURNOVER US $2Billion by 2015
Values:Customer First ,Excel through Innovation , Integrity , Team Work, Respect
Individuality, Leverage Diversity , Responsible Citizenship

GCSLs main product and services are Earth Handling Excavators (EH), Back Hoe Loader
(BL), Wheel Loader (WL), Cranes (CR), Special purpose EH Machines from Japan, Bulk
Cement Handlers (BC), Concrete Mixers (CM), Spares & Service.
Head Quarter: Mumbai. Manufacturing plant: Yantrapur, near Pune. Regional Marketing
offices: Kolkata, Delhi, Mumbai, Chennai. 36 Branch offices and 50 dealers across India.
Employee Profile:The average age of the workforce is 38.5 years and comprises 29%
graduate engineers and other professionals. The criticalengineering and developmental
activities are guided by qualified PhDs and Masters Degree holders in their respective
fields of specialization.

The engagement initiatives for employees are:1. GCSL Brand Image 2. encouragement for
personal development 3. talent utilization for challenging work environment 4.
performance management 5. positive relationship witth workers union .
Most of the sales(79%) in India are done through the 50 dealers who are associated with
GCSL. The machines are delivered by road and the process is supervised by engineers
who work for the GCSL or the dealers.

GCSL was formed as a joint venture between Team Company and PCSL for the
development o state of the art machinery, and has access to the latest technological
advencements made by PCSL.It also acquired two more equiment manufacturers in
Europe.
GCSL has its headqurters in Mumbai,
with one plant located in Yantrapur (for near Pune, another plant for the assembly part
machines and another plant already been commisioned for. It also has a full-fledged
Design & Development set-up for developing indigenous and collaborator's machines. It
has a high-end CAD/PDM infrastructure and sophisticated software packages such as
Unigraphics, I-Deas, Pro/Engineer and Teamcentre. It also SAP ECC 6.0 ERP package for IT
management.
GCSL has three major core competencies which are strongly aligned with the missions of
the company. Their competencies are technology integration, customer engagement and
market knowledge, and responsive team work. This is strongly linked with their mission
focus of developoing superior technologies, cost effective innovation, timely life cycle
support to customers and responsive supply chain, a full line of material handling and
machinery and fostering a competent and motivated workforce.

Customer First, Excel through Innovation and Teamwork are the operational Values of
GCSL which has resulted in a high performance work culture and innovation in meeting
customer and supplier needs and expectations.
The market leadership position is continuously reviewed and strengthened, and decision
making process is backed up by the Balanced Scorecard (BSC) based strategy execution
and performance reviews so that stakeholder requirements are not compromised. Other
factors have motivated the workforce to engage in an improvement drive to sustained
high performance. These include the GCSL Brand Image, encouragement for personal
development,talent utilization for challenging work environment, performance
management and positive relationship with GCSL Workers Union. The Principal success
factors:
Customer Engagement
through sustained Leadership, Service Quality, repurchase results and positive referrals
Customized Products and Services like new products introduced in pipeline
Superior Product Features
Lifecycle performance : Value for money and ownership and consumnerables costs
Strong Partnerships:Supply Chain management- PIP, Support
from PCSL and Acquisitions, NPIs & International business performance
Lifecycle Support and distribution Network: large number of contact points and
outlets per 1000 machines, Spares availability.

GCSL actively strives to meet all the regulations and statutory requirements. GCSL also
surpasses the emission norms by providing recent versions of fuel efficient compliant
engines in its equipment. It has also become one of the first ten Indian companies to
become SOX (Sarbanes Oxley) compliant.
Some of the laws that it complies with are as follows:
Labour Laws, Air & Pollution Act, Environment: ISO14001, GRI, CSR
Financial: Company Law, SOX, Income Tax, Excise, Customs, Sales Tax
Corporate Governance: CSR Report, Triple Bottom Line
Product Regulations: CMVR guidelines, DGMS Circulars
Quality System: ISO9001, ISO 14001, OHSAS18001
The following are the key factors influencing success:
Changing
Customer expectations: Customers now want to extend the economically viable life of
existing machines rather than acquire new machines.
The global players which have not entered into the Indian market find it hard to
compete in India because they find it difficult to be cost-competitive due to change in
Re/US$ parity
Industry consolidation through mergers & acquisitions
Influx of cheap second hand machines in the country
Well designed struscture with leadership distributed over domains and functional areas.
The leadership designation include Sr. GM, AGM, VP etc.
The work force profile comprises 29% graduate engineers and other professionals
Customers groups are product based: 1.EH 2.BL&WL 3.CR 4.Other products
Operates in four key market segments: Mining,Infrastructure,Construction & Agriculture
Communication mechanism activities used in case of suppliers include PIP, Sourcing Team
visit; Partners meets, Engagement with seniors; Sharing Production Plan, etc. Quality and
Climate Audits Reltionship activitiesincludes Parts/aggregate development,Capacity buildup, Quality Assurance, Support Green Movement.
Communication mechanism activities used in case of dealers include CRM
initiative, On-line connectivity, Web site, Dealer Meets, Sr.
Management visits, Dealer Conference, GCSL Kutumb while Reltionship activities includes
Equipment sales & service; Stocking of spare parts,
Training
Suppliers play a key
role in the value creation process of GCSL with cost of materials and components
accounting for about 50% of turnover.
Dealers are the partners for sales and service of machines, extending the reach of
GCSL to remote areas and establishing long-term relationships with the customers

GCSL is the Market Leader and its Marketplace leadership is attributed to the factors:
1)Customer Engagement
2)Customer Product and Services
3)Superior product features
4)Lifecycle performance-value for money
5)Strong Partnerships
6)Lifecycle support and
Distribution Network

MARKET SHARE:
GCSL has
equipment sales turnover of about US$ 625 mn(overall market share of about 34%),
the sale of spare in market accounts for $4oo mn of which GCSL
accounts for $125 mn and
Market Share according to
product groups as of (08-09) :
1)EH(53%) :
331.25 $mn,
2)BL(24%): 72 $mn,
3)WL(23%): 73.6
$mn ,
4)CR(50%): 100 $mn, 5)Other(10%): 40$mn
GROWTH RATE:
Indian CE market is
expected to remain stagnant during 2009-10 and projected growth rate for the next
4 to 5 years is 15% to 20%
1)No of palyers: There are 13+ players in CE industry out of which 6 players dominate
the indian market, 3 of whom have local JVs and the balance sell completely finished
imported machines in India
2)Facilities: None of the
players have wide range of products, production facilities and countrywide service
network that GCSL offers to its customers.
3)Market
share: market share according to product group as of 2008-09 for EH:32%(Comp-1),
BL:39%(Comp-2), WL:58%(Comp-3), CR:20% (Comp-4), Others:5%(Comp-1)
4)Ownership: Many of the competitors are unlisted privately held companies or SBUs/
Divisions of larger bussiness group
5)Nature of competition: Competition from
global players is putting tremendous pressure on cost management & timely avaibility of
spares
BUSINESS CHALLENGES:
1)Economy Downturn resulting in shrinking demand in all market segments
2)Formulating new investment projects/ acquisitions for new markets and market
segments.
3)Ever changing customer expectations.
4)Extending Product life
5)Timely availability of components and service parts.
OPERATION CHALLENGES:
1)Must ensure profitability and surplus cash generation
inspite of the downturn
2)Scouting for synergistic mergers and acquisitions
ure profitability and surplus cash generation inspite of the downturn
3)Innovative breakthroughs required on our Cost-Quality Service
package.
1)Job Availability & talent retention-Workforce development in acquired units needs to be
aligned with GCSL practices at the earliest.
2)Extending high performance work culture to all acquired units- adopting GCSL work
processes across a highly
diversified workforce globally.

1)Strong focus on market intelligence with FIBRES for Product-market strategy reviews
2)Partners support for new products and extended sales network.
3)Customer engagement processes in place
4)Cost-effective Lifecycle service support
5)Cost reduction program, CRISP, in place.
6)GCSL has been exposed to mergers/ acquisitions.
7)Technology support from PCSL and other partners.
8)Integrated approach to NPI.
9)Partners and suppliers are keen to support GCSL in promoting Green GCSL.
10)Workforce development processes well entrenched in Indian operations.
11)Support available from large Team companies that have accomplished such tasks.

GCSL has implemented three approaches with focus on learning, sharing and innovation.
GCSL has become one of the first ten Indian companies to become SOX (Sarbanes Oxley)
compliant.
Rigorous implementation of the QSHE (quality systems/ standards ISO9001, ISO 14001 &
OHSAS 18001).These initiatives help create and implement systematic and repeatable
work processes to ensure consistent high performance in all work areas.
Regulations and certifications:
Workforce Labour Laws, Air & Pollution Act, OHSAS18001 etc.
Environment ISO14001, GRI, CSR
Financial Company Law, SOX, Income Tax, Excise, Customs, Sales Tax
Corporate Governance CSR Report, Triple Bottom Line
Product Regulations CMVR guidelines, DGMS Circulars
Quality System ISO9001, ISO 14001, OHSAS18001.

Initiatives:CRISP,TOC,JDTs,TPM & SOX

Periodic reviews, Quality Concern meetings, Service feedback meetings, the key learnings
are stored in KM system for future reference