A presentation on TATA Green Batteries

Technology Focus | Admired Employer | Customer Value | Operational Excellence

 Introducing TATA Green Batteries

A 50:50 JV between TATA AutoComp Systems Ltd and GS Yuasa

International, Japan.

Technology Focus | Admired Employer | Customer Value | Operational Excellence

TATA AutoC omp S ys tems Limited

Technology Focus | Admired Employer | Customer Value | Operational Excellence

 TATA AutoC omp S ys tems Limited

• Established in 1995 to serve Indian and Global Auto Industry

• One of India’s leading auto - component groups
– Planned turnover to reach US$ 1 Billion this year
– Rapid growth (CAGR last 3 yrs. 40%) with Strong Quality and Cost Focus
• Offering services across the value chain
- Manufacturing, Engineering and Supply Chain Management
• 15 Global partners, 30 plants, 3 Export Oriented Units, in India and 6 Engineering
Centers
• Overseas manufacturing facilities in Germany and China
• Customers in all segments – Passenger Vehicles, Commercial Vehicles, Farm
Tractors, Two and Three Wheelers
• Consistent customer recognition for our performance

Technology Focus | Admired Employer | Customer Value | Operational Excellence

 GS YUASA International

Technology Focus | Admired Employer | Customer Value | Operational Excellence

 GS YUASA
• Merger of 2 Battery giants- YUASA Corporation and Japan Storage Battery Co.

• US$2.2 billion turnover pa and is a global leader in Batteries.

• Asia’s No.1 in Automotive Batteries. World No.1 in Two wheeler Batteries.

• Best in class R and D facilities to develop next-generation batteries for current and
advanced automotive application needs.

• Global technology sharing between all plants

• Pride on providing high performance and high quality products which exceed
customers’ expectations.

• Global major automobile customers include OEMs like Toyota, Honda, Mitsubishi,
Nissan, Mazda, Suzuki, Daimler Chrysler, Isuzu, Subaru, Matsuda, Daihatsu,
Kawasaki, Yamaha etc.

Technology Focus | Admired Employer | Customer Value | Operational Excellence

 GS Yuasa International Global Presence
Produce 33 million automotive batteries p.a. globally
12,000 employees – worldwide distribution

Tata AutoComp GY Batteries 29 bases, 15 countries

TIANJIN YUASA
TIANJIN TONG YEE

SHANDONG GS
YUASA Battery UK
GS BATTERY (CHINA)
YUASA Automotive Batteries

Global YUASA
YUASA
GS
YUASA Battery Shunde
YUASA Battery Guangdong YUASA Battery Inc.
ZTONG YEE
Taiwan YUASA
SIAM GS
GS VIETNAM
YUASA Battery Thailand
Century YUASA
YUASA Battery Malaysia PTGS CBI
P.T.YUASA Oriental YUASA

Technology Focus | Admired Employer | Customer Value | Operational Excellence

TATA AutoComp GY Batteries Pvt Ltd

Technology Focus | Admired Employer | Customer Value | Operational Excellence

 Market Overview

Automotive (4W and 3W)

Technology Focus | Admired Employer | Customer Value | Operational Excellence 9

 4W Market Scenario – 2007-08
Total Automotive Battery Market (13 Mn Units) OEM Battery Market (3 Mn Units)
TGY , 0.03 , 1% Others, 0.18 , 6%
OE , 3 , 23% Amaron , 0.79 ,
26%

Exide , 2.00 ,
AM, 10 , 77% 67%
OE AM
Exide Amaron TGY Others

Total AM Battery Market (10 Mn Units) Organized AM Battery Market (4.4 Mn Units)

TGY, 0.2 , 4%
TGY, 0.2 , 2% Exide , 2.4 ,
Unorganized, Others, 0.8 ,
5.6 , 56% 24% 19%

Amaron , 1.0 ,
10%

Exide , 2.4 ,
Others , 0.8 , Amaron , 1.0 ,
54%
8% 23%

Exide Amaron Others Unorganized TGY Exide Amaron Others TGY

Technology Focus | Admired Employer | Customer Value | Operational Excellence 10

 4W Market Scenario – 2008-09
Total Automotive Battery Market OEM Battery Market (3.5 Mn Units)
(14.4 Mn Units) TGY , 0.1 , 4% Others, 0.2 , 6%
OE , 3.5 , 24% Amaron , 0.9 ,
27%

Exide , 2.2 , 63%

AM, 10.9 , OE AM
76% Exide Amaron TGY Others

Organized AM Battery Market (5.1 Mn Units)

Total AM Battery Market (10.9 Mn Units)
TGY, 0.4 , 3%
TGY, 0.4 ,
Unorganized, Exide , 2.5 ,
7%
5.8 , 54% 23% Others, 1.0 ,
20%
Amaron , 1.2 ,
11%
Exide , 2.5 ,
Am aron , 1.2 49%
Others , 1.0 ,
, 24%
9%
Exide Amaron Others TGY
Exide Amaron Others Unorganized TGY

Technology Focus | Admired Employer | Customer Value | Operational Excellence 11

 Market Overview

2W (Bikes and Scooters)

Technology Focus | Admired Employer | Customer Value | Operational Excellence 12

 2W Market Scenario – 2007-08
Total 2W Battery Market (17.7 Mn Units) OEM Battery Market (7.1 Mn Units)

Others, 0.1 , 1%
OE , 7.1 , 40% Amco, 3.0 , 42%

AM, 10.6 , Exide , 4.0 , 57%

60%
OE AM Exide Amco Others

Organized AM Battery Market (5.1 Mn Units)

Total AM Battery Market (10.6 Mn Units)
TGY, 0.1 ,
Unorganized, TGY, 0.1 , 1% Others, 2%
5.5 , 53% Exide , 3.0 , 0.6 , 11%
28%

Amco, 1.4 ,
13% Amco, 1.4
, 28% Exide , 3.0
Others , 0.6 ,
, 59%
5%
Exide Amco Others Unorganized TGY
Exide Amco Others TGY

Technology Focus | Admired Employer | Customer Value | Operational Excellence 13

 2W Market Scenario – 2008-09
Total 2W Battery Market (20.6 Mn Units) OEM Battery Market (7.6 Mn Units)
Others, 0.4 ,
OE , 7.6 , 37% Amco, 3.1 , 5%
41%

Exide , 4.1 ,
AM, 13.0 ,
54%
63%
OE AM
Exide Amco Others

Total AM Battery Market (13 Mn Units) Organized AM Battery Market (6.4 Mn Units)
TGY, 0.4 , 3% TGY, 0.4 , 6%
Unorganized, Exide , 3.4 ,
6.6 , 51% 26% Others, 1.0 ,
15%

Amco, 1.6 ,
12%

Others , 1.0 ,
Exide , 3.4 ,
8% Amco, 1.6 ,
Exide Amco Others Unorganized TGY 54%
25% Exide Amco Others TGY

Technology Focus | Admired Employer | Customer Value | Operational Excellence 14

 Key Milestones –
TATA AutoComp GY Batteries Pvt Ltd
Activity Milestones
 JVA Signed Oct’05
 Land acquired at Ranjangaon Nov’05
 HR May’06 ~ Jan’07
 220 employees recruited in 1 year
 Training for operational team in Japan Feb-Apr’06
 Training for sales team Oct’06
 Plant construction Dec’05 –Jun’06
 Machine installation April ~ June’06
 Load trial run of machines June’06
 Appointment of Strategic Brand Management Partner June ‘06
 Birth of the Brand – Brand name finalization Oct ’06
 Finalization of brand Identity (TATA Sons approval) Nov ‘06
 Design Review 3 Dec’06
 SOP Dec’06

Technology Focus | Admired Employer | Customer Value | Operational Excellence 15

 Key Milestones

Activity Milestones
 Soft launch (Dealer/ Influencer/ Press Conferences) Feb-07
 Launch of PC / UV batteries Feb’07
 Launch of 2W batteries June’07
 Launch of Price variants – PC/ UV Aug-07
 Change of Strategic Brand Management Partner Aug -07
 Completed Pan India presence Aug’07
 Tie-up with TML for dealer appointment Nov-07
 Launch of mass media initiatives on Radio Dec-07
 Launch of Easy Access Mechanism Dec-07
 Launch of Tractor batteries Dec-07
 Launch of Inverter batteries Jan-08
 Launch of CV Batteries Feb-08
 Launch of mass media initiatives on TV Feb-08
 Launch of Top Cities PC/ UV Thrust Mar-08

Technology Focus | Admired Employer | Customer Value | Operational Excellence 16

 Plant Overview

Technology Focus | Admired Employer | Customer Value | Operational Excellence

 Layout of Plant

Land : 60,265 sqm

Building (covered area) 　
: 10,995 sqm
Built-up area :17,094 sqm

Technology Focus | Admired Employer | Customer Value | Operational Excellence

Plant Inauguration Ceremony (28th April ’08)

Technology Focus | Admired Employer | Customer Value | Operational Excellence

Plant Inauguration Ceremony (28th April ’08)

Technology Focus | Admired Employer | Customer Value | Operational Excellence

 Manufacturing Set up – Ball Mill

Ball Mill & Apparent Density Measuring

Primary collector Equipment

Technology Focus | Admired Employer | Customer Value | Operational Excellence

 Manufacturing Set up - Assembly

Plate stacking to COS Inter Cell Welder

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 Lab & Battery test facility

Laboratory equipment Battery test Equipment

Technology Focus | Admired Employer | Customer Value | Operational Excellence

 Capacity Ramp-up Plan

Production Plan for the next 3 years

2008-09: 1 Mn equivalent automotive batteries

2009-10: 1.5 Mn equivalent automotive batteries

2010-11: 2 Mn equivalent automotive batteries

Technology Focus | Admired Employer | Customer Value | Operational Excellence

 TGY Battery USPs

 Longer battery life - the Calcium-Calcium advantage!

 Highest product warranties - up to 60 months.
 Superior Vibration Resistance
 Enduring performance in extremes of weather conditions: -40° to 75° C
 Instant start, every time - thanks to the advanced design
 Hassle-free technology - No top-up for 1 lakh kms
 Longer shelf life (More than 90 days)
 Unique venting system designed for total safety
 Optimized design leading to better performance
 Eco-friendly automotive power
 World-class batteries based on cutting edge technology from world
leaders, GS Yuasa

Technology Focus | Admired Employer | Customer Value | Operational Excellence

 TGY Battery USPs

Sr. Feature Advantage Benefits

No
01 Impurity free Lead & special alloy 99.99% High charge acceptance Low self Discharge
pure

02 Calcium - Calcium / Low Antimony Quicker charge Less Warranty Failure &
Technology recovery from Deep customer delight
Discharge
03 Lowest Internal Resistance at all Trouble free start on a Instantaneous cranking
temperatures cold morning and after at Extreme Climatic
along storage time conditions E.g. Ladakh
& Thar desert

04 Special die cast micro-pore free terminal Probability of clamp Charge acceptance is
bushes quality corrosion is nil. good and battery failure
will be almost nil.

Technology Focus | Admired Employer | Customer Value | Operational Excellence

 TGY Battery USPs

Sr. Feature Advantage Benefits

No.
05 20 mm high electrolyte level Straps & plates always No threat of spark
immersed in explosion.
electrolyte
06 Special alloy and paste of the plates Quick recovery from Customer friendly
Deep discharge
07 Double Side Pasting on the plates No Grid Corrosion Longer Battery Life

08 Separator is less prone to stratification Higher battery Longer battery life

performance even in
partial state of charge
operation.

09 Terminals are thermodynamically Terminal pole Longer battery life

cooled during manufacturing process disconnection is
almost nil

Technology Focus | Admired Employer | Customer Value | Operational Excellence

 Distribution Channel Map

TGY

17 CFAs appointed across the country

655 (Dealer + Franchisee) CFA 155 Distributors and 3100 sub-dealers

DEALER FRANCHISEE DISTRIBUTOR FLEET A/C

RETAILER

CUSTOMER CUSTOMER CUSTOMER

Technology Focus | Admired Employer | Customer Value | Operational Excellence

 TGY – CFA Network
North:
Delhi
Faridabad
Jaipur
Lucknow
Ludhiana

West:
Mumbai
Pune
Indore
Ahmadaba
d
East:
Kolkata
Patna
Ranchi
Cuttack
South:
Chennai
Cochin
Hyderabad
Bangalore

Technology Focus | Admired Employer | Customer Value | Operational Excellence

 TATA Green Franchisee Stores

Technology Focus | Admired Employer | Customer Value | Operational Excellence

 TATA Green Franchisee Stores

Technology Focus | Admired Employer | Customer Value | Operational Excellence

 TATA Green Franchisee Stores

Technology Focus | Admired Employer | Customer Value | Operational Excellence

 TATA Green Franchisee Stores

Technology Focus | Admired Employer | Customer Value | Operational Excellence

 TATA Green Franchisee Stores

Technology Focus | Admired Employer | Customer Value | Operational Excellence

 Milestone Achievements – 2007-08

Technology Focus | Admired Employer | Customer Value | Operational Excellence

 Milestone Achievements – 2007-08

• State-of-the-art latest technology manufacturing unit with current

production capacity of 0.5 Mn batteries being expanded to 1 Mn capacity
by October’08 and to 2 Mn subsequently, at Ranjangaon MIDC, near Pune.
• Adopting latest technology, Calcium – Calcium / Low Antimony Hybrid
batteries.
• Design Capability of JIS and DIN Range of Batteries.
• Currently manufacturing batteries for :
• Passenger Cars, Utility Vehicles, Farm Vehicles, Commercial
Vehicles and Inverters
• Currently retailing 2W conventional batteries in after market (AM) viz.
imports from Yuasa Batteries Thailand (YBTH)

Technology Focus | Admired Employer | Customer Value | Operational Excellence

 Milestone Achievements – 2007-08

• Launched the brand across 17 locations

• Distribution network with all India footprint
– 17 CFAs
– 600 direct dealers
– 55 Franchisees
– 155 Distributors and 3100 sub-dealers
• National level sales and service network to cater to the OEMs as
well as the ‘After Market’ customers.

Technology Focus | Admired Employer | Customer Value | Operational Excellence

 Product Launch and Press Conferences

Technology Focus | Admired Employer | Customer Value | Operational Excellence

38
 Milestone Achievements – 2007-08
• Introduced comprehensive product range – PC/ UV with three price
variants, DIN series, LCV and Tractor series, CV and Inverter range.

• Introduced 2W conventional batteries range in the aftermarket

by importing from GYIN affiliate Co. in Thailand.
Technology Focus | Admired Employer | Customer Value | Operational Excellence
 Achievements – 2007-08

• OEM business update: TML Ace and Nano; Piaggio Ape; Atul Auto Shakti
3W, International tractor battery and Yamaha 2W YTZ battery.

• Other OEM orders in pipeline: TML Indica, Safari, Sumo and LCV; New
Holland tractor battery; International Cars and Motors SUV Rhino
batteries.

• Basic awareness and visibility levels: Franchisee stores, BTL

• TGY has also launched its mass media awareness and brand building
initiatives: Radio and TV advertising

Technology Focus | Admired Employer | Customer Value | Operational Excellence

 TATA Green TVC – The Battery Man!

• An advanced technological
character symbolizing the high-
technology edge of the battery.

• Positions our brand as a leading

edge battery – the best that an
Indian customer can buy!

• With a Tata Green battery in

your car, you can circle the
globe 2 ½ times without top-up
and hassles!

Technology Focus | Admired Employer | Customer Value | Operational Excellence

 TGY Way forward- Road Map

AGGRESSIVE GROWTH PLANS

• 100% growth in plant capacity from 0.5 to 1mn batteries p.a. by Oct’08 and doubling
it to 2 Mn batteries p.a. in the next 24 months.

• Expand the sales, service and channel network – from 4000 to 5000 retailers

• Be a preferred supplier to all major OEMs

• Explore newer technologies / processes to gain technological and cost ‘edge’.

• Commitment to safety and environment

• Target a market share of about 10% in the selected segments of organized 4W

aftermarket

Technology Focus | Admired Employer | Customer Value | Operational Excellence

 Thank You!

Technology Focus | Admired Employer | Customer Value | Operational Excellence