Doing business in India

Louwrens Dijkstra CEO Hyva Group

India table IGC 1st of April 2010

Content:

Hyva, who we are

What is driving the business of Hyva

How will India impact our business

How did we develop the strategy for India

Where does Hyva India stand today

How did we turn vision into reality

What have we learned

What do we advice newcomers

Hyva, who we are

Hyva’s Mission

Hyva is committed to being the world’s best provider of innovative and efficient equipment for material handling & transport efficiency to the commercial

vehicle and environmental service industries

Hyva Group

Our history: 3 decades of development

Our group: 35 companies, 32 countries, 1.700 employees

Our products: Cylinders ,wet kit components cranes, hooklifts , skiploaders, compactors, RCB’s ,Floors…

Our customers: More than 25.000

Our market: The world

Hyva Winner NICCT India Business Award 2009 in recognition of the company’s excellence in exploring India-Netherlands business opportunities and investing in India.

What is driving the business of Hyva

The main drivers of our business

GDP developments

Infrastructural investment

Mining

Environmental services developments

Rising labour costs

Truck & Trailer sales

How will India impact our business

Attractiveness of India

80 times bigger than the Netherlands .

Growing population that represents 20% of the world population.

The middle class is well educated and many of them are working hard to get a better and wealthier life.

India is playing an increasing role in the global industrial consolidation. (Mittal taking over Arcelor & TATA taking over Corus & Jaguar)

India is a huge and growing country and together with China it represents the New World where major players of the old world, the USA, Japan

and Europe, have almost been taken over.

How did we develop the strategy for India

Our journey 1: Market development

India was traditionally a market for small tippers with under body cylinders.

Market research was executed to identify the potential of the Indian market.

Researched the possibilities to sell front tipping cylinders for truck and trailers.

Proved that our concept was technically innovative , faster and more economical then the under body cylinder concept.

Entered the market by introducing the front –end tipping cylinders and were successful in changing the market.

Later followed by the local competition but we had already secured our reputation as market leader.

Started with components imported into India from our European supply base.

Great efforts made to develop the local supply base from 0 to almost 100%.

Some of these local suppliers are now supplying other Hyva group companies around the world.

Introduced other advanced transport solutions such as refuge collecting bodies, cranes ,hook loaders etc.

Our journey 2: Industrialisation

We still see phenomenal growth ahead of us by introducing new technologies to the Indian market and localize production in India for technologies existing already elsewhere in the group.

This will enable us to continue to provide innovative transport solutions to our Indian customer base

Where does Hyva India stand today

Hyva India Today 1/2

Founded in 1997, now 4 locations,400+ employees,300+ contracted workers

Undisputed market leader & strong reputed brand

Hyva India is 2nd largest contributor to the Hyva Group turnover

Hyva India winner of the best “Truck Application Builder of the Year 2010” award for the contributions made to the Commercial

Vehicle Industry in the Year 2009.

Is an important manufacturing base, it boosts 3 manufacturing

facilities out of 11 total .

In January 2010, Hyva India produced the 50.000th tipper since

1996 and produced the 100.000th cylinder since 2004.

The largest customer (by turnover) of Hyva Group is Tata motors.

Hyva India Today 2/2

How did we turn vision into reality

Creativity and innovation played a major role : To adapt to local market conditions and changing customer

demands. Our innovative spirit enabled us to enter India:

With a top class product of equivalent quality to the rest of the world plus tailor made solutions such as mining .

Business development for other markets and applications: Such as the environmental services industry with new solutions.

Centres of Excellence for research and development with a mission to develop innovative solutions for our customers .

India is our worldwide “Centre of Excellence“ for tippers.

Key Success Factors: Innovation

Examples:

In Krishnapur we initiated and financed the construction of a school for children close to our factory.

This is financed by donations to a foundation to which Hyva, 3i, suppliers and private individuals have donated.

In India we provide medical services for our employees and their families..

Ad hoc assistance in case of natural disasters.

We employ the same safety regulations and equipment as in any of our other factories around the world .

Key Success Factors: Our commitment to people & communities

Our commitment to Corporate Social Responsibility contributes to improving the quality of life of employees and their families, and the development of the

local community

Successfully introduced our front- end cylinders as the new standard in the Indian market.

Hyva India successfully demonstrated that localization in India works and has helped the industry to develop and grow to higher levels.

Hyva will continue to invest in additional manufacturing capacity in India .

Hyva group supported significantly the development off the local components supplier (substantial job creation).

Hyva India ,as market leader provides competitive mechanised solutions to its growing customer base.

Key Success Factors: Conclusion

What have we learned

Lessons learned

1. Country has a growing & “unlimited” market potential

2. The people & industries are open for change

3. Vertical integration “almost a must”

4. European quality ‘made in India” is possible

5. Window of opportunities for selling, sourcing & manufacturing

What do we advice newcomers

Tips

1. Include India in your roadmap for the future

2. Make “people management” one of your top priorities

3. Be aware of bureaucracy, surprises & difficulties

4. Things take longer, don’t expect an easy ride

5. Don’t give up, once started

Take away’s

Say hello to the Indian opportunities

&

Expect more than the usual:

Expect the unexpected !