A US-based marketer of new and remanufactured parts for heavy-equipment diesel engines, wanted to setup a off-shore based sourcing business to better compete with the engines OEM which had virtually no aftermarket competition
leading maker of engines for agricultural & construction equipment in NA
life expectancy of engine is around 20 years
brand loyalty was becoming increasingly less important to customers
Opportunity to introduce a packaged line of diesel engine parts, with high quality, in stock availability, comprehensive warranty and a regional distribution network of dealers.
We helped our client to setup a buying operations in India that also sources parts from other parts of the far east, including Thailand, China, and Taiwan. Also setup a joint-venture in India for making private label parts, including kitting, warehousing and shipping services.
We have been buying about $9 MM parts from its Indian JV for 3 years. We run their operations in India from Chennai,
about 80% of the purchases come from India, rest from Taiwan, China and Thailand
ship parts directly from India to Australia and other distributors/dealers specializing in aftermarket
increased product quality and gained market share (to 90% of all that is not served by OEM)