1.

Brief Background:
2. Vitals 3. Major Product Category Details 4.1 RM Movement - Change
05~06 06~07 07~08
08~09
(Budgeted)
A B C D
Total Turnover Rs Cr
(Net of Excise)
2245.3 2626.7 3295.2 3789.48 All All All All Apr'07 Oct'07 Feb'08 Wtd. Terminal
Total Turnover Growth 17% 25% 15% 25 26 29 29 Steel
Turnover with MSIL Rs Cr (Net of
Excise)
50 65.2 75 80 32 28 46 46 Rubber
Turnover Growth with MSIL 30% 15% 7% 30 35 65 65 Scrap
Contribution Increase on account of
increase in volume
-6% 25% 41% 41% Aluminium
Dependance upon MUL 2.2% 2.5% 2.3% 2.1% YC5, YP8 YC5, YL6,YP8 YC5, YL6 YC5, YL7
Operating Margin (EBITA)
EBITA/ Net Sales 8.2 8.5 9.5 13.2
PAT 4.2 Already settled with other Vendors in SC
PAT / Net Sales 3 3 3.4 6 Base Rs/ Kg Period Rs/ Kg Period
Major Customer
Tata -
MHCV
Tata -
MHCV
Tata -
MHCV
Tata -
MHCV
Steel
% Dependency on Major
Customer
16% 22% 25% 26% Rubber
Scrap
Aluminium
5. Price reduction history and savings potential (weighted)
6. Financial Performance:
FY
T/O (Rs. lacs) 06~07 07~08 06~07 07~08 06~07 07~08
Reduction head
Amount
(Rs. lacs)
%
Amount
(Rs. lacs)
%
Amount
(Rs. lacs)
% Amount (Rs. lacs) % 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
PCD ( Contribution - Inc. Volume) 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
RM Increase 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
Conversion Increase 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
Vendor Effort 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
IPL 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
VA/VE 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
Rejection / Improvement benefit 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
Alternate sourcing / BOP PCD 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
Statutory Changes 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
FE/ CD 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
CST 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
CST / Excise benefit on BOP Interpretation:
- No major impact of increases in power/ fuel/ employee cost
Others
- RM cost has gone up
Total 0.00 0.00% 0.00 0.00% 0.00 0.00% 0.00 0.00%
- High other income
7. Price line movement 8. Conclusion & Negotiation Strategy:
Apr'04 Apr'05 Apr'06 Apr'07 Apr'08
Imapct
RM / Net Sales
Product Category
Models
Turnover 06~07 (Cr)
Turnover 07~08 (Cr)
Supplier A
Turnover 08~09 (Cr)
Growth w.r.t. Last year
Any New Development Model
Change
50.00 65.20 75.00
Buying from outside Haryana /
Total RM
Imported Content / Total RM
Total Imported Buying - JPY
- USD
- Euro
Investments made in 07~08 for
MSIL Business
2005-06 2006-07 2007-08
Gross Profit Margin
Optg. Profit Margin
Saving potential - 2008~09
80.00
Sales growth
Profit fm Opn growth
SGA / Net Sales
Consumable/ Net sales
Depreciation/ Net Sales
Supplier C Supplier A Supplier B
Net Profit Margin
Profit fm opn./Net sales
Power & Fuel/ Net Sales
Base
RM/Net Sales
Employee/ Net Sales
2%
-1.50%
5% 2.00%
-1%
2%
0.50%
5.50%
7.50% 6.50%
Apr'04 Apr'05 Apr'06 Apr'07 Apr'08