/ Ammann's India Market Entry Success
Industrial Equipments
Case Summary: Ammann
“India is closer (geographically and culturally) to many of our emerging markets than China, and if we succeed in India, we'll succeed in other developing countries.”
Challenge
- Navigating the complex Indian market landscape
- Identifying and assessing potential local partners
- Establishing a competitive and efficient local operation
- Ensuring compliance with local regulations and standards
Services Provided
- Intensive Market Research
- Due Diligence of Potential Partners
- Negotiation Support
- Ongoing Administrative Support
Delivered Value
We found them the right partner for the successful joint venture and establishing a factory with “Western standards” in India, and using India as a strategic base for further international market expansion.
About the Client
Ammann is a global leader in the construction machinery industry, specializing in manufacturing asphalt mixing, concrete mixing, and mineral processing plants. They also produce compaction machines and pavers, integrating advanced control systems. With a strong presence in Europe, Ammann aimed to expand into the rapidly growing Indian market, leveraging local partnerships and market intelligence.
Project Details
1. Intensive Market Research (2007):
Maier Vidorno Altios conducted a comprehensive market study to understand the Indian construction machinery market. This included analysis of customer needs, competitive landscape, and identification of potential local partners. The research provided Ammann with crucial insights into market dynamics, customer preferences, and regulatory requirements.
2. Due Diligence of Potential Partners:
A thorough due diligence process was conducted on Apollo, a leading Indian manufacturer of road construction equipment. This included evaluating Apollo’s operational capabilities, financial stability, market reputation, and compatibility with Ammann’s business goals. The due diligence ensured that Apollo was a suitable partner for a long-term collaboration.
3. Negotiation Support:
Maier Vidorno Altios supported Ammann in negotiating the terms of the Joint Venture with Apollo. This involved crafting agreements that aligned with Ammann’s strategic objectives while ensuring mutual benefits for both parties. The negotiations focused on defining ownership structures, investment plans, and operational responsibilities.
4. Ongoing Administrative Support:
Post the establishment of the Joint Venture,we provided continuous administrative support. This included assistance with regulatory compliance, local administrative processes, and operational setup. The support ensured a smooth transition and operational efficiency for the Joint Venture.
Delivered Value
1. Profitable Joint Venture:
We found them the right partner for successful joint venture. The Joint Venture between Ammann and Apollo was profitable from the first day of operations. This was attributed to the thorough market research, strategic planning, and effective partnership facilitated by Maier Vidorno Altios2. Establishing a State-of-the-Art Factory:
Ammann Apollo established their factory in Ahmedabad, India, adhering to “Western standards” of efficiency and quality. The factory focused on increasing operational efficiency and providing extensive training to local employees, setting a benchmark in the industry.3. Strengthening Market Position:
Ammann’s strategic entry into India, supported by Maier Vidorno Altios, positioned them strongly in the Indian market. The partnership with Apollo and the establishment of a local manufacturing base enhanced Ammann’s competitiveness and market share in the region.3. Strengthening Market Position:
Ammann’s strategic entry into India, supported by Maier Vidorno Altios, positioned them strongly in the Indian market. The partnership with Apollo and establishing a local manufacturing base enhanced Ammann’s competitiveness and market share in the region.
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