CorporateInfromationStrategy and ManagementM.pptx

AKESHES1 85 views 36 slides Aug 25, 2024
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About This Presentation

The Amara Raja Group, an Indian conglomerate headquartered in Tirupati, Andhra Pradesh, is primarily known for manufacturing automotive and industrial batteries under the Amaron brand. However, specific details about their current IT strategies are not readily available or verifiable. Companies ofte...


Slide Content

Corporate Information Strategy and Management Amara Raja Group: Strategy Audit and Capability Audit

About the Company: Amara Raja is amongst India's leading business conglomerates with interests spanning verticals from the production of lead-acid batteries (AMARON brand), power conversion products, sheet metal products, precision components, electronic products, infrastructure development, industrial services, food processing to media and entertainment. Founded by Dr Ramachandra N Galla , The Amara Raja Group is USD 1.75 Billion conglomerate with 6 companies, operating 17 businesses and anchored by a workforce of 16,000+ people. Amara Raja Group of companies with their flagship company Amara Raja Energy & Mobility Limited is one of the largest manufacturers of Automotive and Industrial batteries in India .

Core Purpose To transform our increasing spheres of influence and to improve the quality of life by building institutions that provide better access to better opportunities to more people all the time .

Core Values

Vision Amara Raja is a symphony of diverse elements coming together and moving forward in perfect harmony. These five Elements come together as a swirling mass to form a dynamic circle of unparalleled energy. The new form of energy is a reflection of Amara Raja, an emblem of everything that defines – The Amara Raja Way® “Through The Amara Raja Way®, We will continually redefine business to Deliver High Social Impact by Anticipating Future Trends, Building Preferred Brands and Leveraging Talent & Technology.”

Strategies in Last 10 Years: Amararaja Group, an Indian business conglomerate, has implemented several major strategies over the last 10 years. Here are some of them: Diversification: Amararaja Group has diversified its product portfolio by entering new markets such as electric vehicle batteries, renewable energy, and advanced automotive technologies. E.g., Amararaja Group's entry into the electric vehicle battery market, leveraging its expertise in battery technology to cater to the growing EV demand. Capacity Expansion: The group has expanded its manufacturing capacity to meet growing demand, investing in new plants and upgrading existing facilities. E.g., Amararaja Batteries Ltd. (a group company) expanded its battery manufacturing capacity by setting up a new plant in Andhra Pradesh, India, to meet increasing demand from the automotive and industrial sectors. Innovation and R&D: Amararaja has emphasized research and development, focusing on innovation and technology upgradation to stay competitive and address evolving customer needs. E.g., Amararaja Group developed a new range of advanced automotive batteries with enhanced performance and fuel efficiency, designed to meet the requirements of modern vehicles. Partnerships and Collaborations: The group has formed strategic partnerships with global companies to leverage technology, expertise, and market access. E.g., Amararaja Group partnered with East Penn Manufacturing Co. (USA) to jointly develop and manufacture advanced battery technologies for global markets.

5. Sustainability Initiatives: Amararaja has implemented various sustainability initiatives, such as reducing carbon footprint, waste management, and water conservation. E.g., Amararaja Group implemented a comprehensive recycling program for lead-acid batteries, reducing waste and minimizing environmental impact. 6. Digital Transformation: The group has embraced digitalization, adopting Industry 4.0 technologies like IoT, AI, and data analytics to enhance operations and customer experience. E.g., Amararaja Group adopted Industry 4.0 technologies, such as predictive maintenance and quality control, to optimize production processes and enhance product quality. 7. Global Expansion: Amararaja has expanded its international presence, establishing new subsidiaries and partnerships to cater to global markets. E.g., Amararaja Group established a new subsidiary in the United States to cater to the growing demand for its products in the North American market. 8. Acquisitions and Joint Ventures: The group has made strategic acquisitions and formed joint ventures to enhance its capabilities, expand offerings, and enter new markets. E.g., Amararaja Group acquired a majority stake in a leading automotive component manufacturer, expanding its product portfolio and market presence.

9. Operational Efficiency: Amararaja has focused on optimizing operations, implementing lean manufacturing and cost-saving initiatives to improve productivity and profitability. E.g., Amararaja Group implemented lean manufacturing techniques, resulting in significant reductions in production costs and lead times. 10. Talent Development and Acquisition: The group has emphasized talent development and acquisition, investing in employee training and attracting top talent to drive innovation and growth. E.g., Amararaja Group established a dedicated research and development centre, attracting top talent from leading institutions to drive innovation and product development. These strategies have enabled Amararaja Group to maintain its competitive edge, drive growth, and stay adaptable in a rapidly changing business landscape.

Business Model Strategy Audit

Business Context Amara Raja Group is an Indian multinational conglomerate with business interests in:- Automotive battery business- Amaron , the flagship brand, offers a range of batteries for passenger vehicles, commercial vehicles, and two-wheelers. Packaged foods and beverages- Amara Raja Group's food division, Mangalaya , offers a range of packaged snacks, spices, and beverages, including mango juice and coconut water. Electronics products manufacturing- The group's electronics division, Amara Raja Electronics, manufactures a range of products, including inverters, UPS systems, and solar power systems. Infrastructure sector- Amara Raja Group has interests in infrastructure development, including construction and maintenance of roads, bridges, and buildings. Power system production- The group's power systems division, Amara Raja Power Systems, manufactures and supplies power generation and distribution equipment, including transformers and switchgear. Fabrication of sheet metal products and fasteners- Amara Raja Group's metal fabrication division produces a range of sheet metal components, including automotive parts, electrical enclosures, and construction hardware. Amara Raja Batteries was named on Asia's 'Best Under A Billion' 2010 list of companies compiled by Forbes magazine.

Business Network Amara Raja Group has a diverse business network spanning various industries and geographies. Here's an overview of their business network: Domestic Presence: Amara Raja Group has a strong presence in India, with multiple manufacturing facilities, sales offices, and distribution networks across the country. International Presence : The group has a significant global footprint, with exports to over 50 countries, including the United States, Europe, Asia, Africa, and the Middle East. Subsidiaries and Joint Ventures: Amara Raja Group has several subsidiaries and joint ventures, including: - Amara Raja Batteries Ltd. (India) - Amara Raja Electronics Ltd. (India) - Amara Raja Power Systems Ltd. (India) - Amara Raja Fasteners Ltd. (India) - Mangalaya Foods and Beverages Pvt. Ltd. (India) - Amara Raja USA Inc. (USA) - Amara Raja Europe GmbH (Germany) - Amara Raja Asia Pacific Pte. Ltd. (Singapore). Partnerships and Collaborations: The group has partnerships with global companies like: - Johnson Controls (USA) - East Penn Manufacturing Co. (USA) - Exide Technologies (USA) - Robert Bosch GmbH (Germany) - Siemens AG (Germany)

5 . Distribution Network: Amara Raja Group has an extensive distribution network, with over 1,000 distributors and dealers across India and international markets. 6. Supply Chain: The group has a robust supply chain, with a network of suppliers, vendors, and logistics partners. 7. Research and Development: Amara Raja Group has dedicated R&D centers in India and abroad, focusing on innovation and product development.This business network enables Amara Raja Group to leverage its strengths, expand its reach, and stay competitive in various markets.

Competition Analysis Amara Raja Group operates in various industries, including automotive batteries, packaged foods, electronics, and infrastructure. Here's a competition analysis for each of these segments: Automotive Batteries: Exide Industries (India) Mahindra & Mahindra (India) Luminous Power Technologies (India) Okaya Power Pvt. Ltd. (India) Johnson Controls (USA) Packaged Foods: Haldiram's (India) Britannia Industries (India) ITC Limited (India) PepsiCo India Holdings Pvt. Ltd. (India) Nestle India Ltd. (India)

Electronics: Siemens AG (Germany) Robert Bosch GmbH (Germany) Schneider Electric SE (France) ABB Ltd. (Switzerland) Havells India Ltd. (India) Infrastructure: Larsen & Toubro Ltd. (India) Tata Projects Ltd. (India) IRB Infrastructure Developers Ltd. (India) HCC Ltd. (India) Amara Raja Group's Competitive Advantage:- Strong brand presence in automotive batteries ( Amaron ). Diversified product portfolio. Extensive distribution network- Focus on innovation and R&D. Strategic partnerships and collaborations Challenges:- Intense competition in each segment. Constant need for innovation and product development- Fluctuating market trends and consumer preferences. Global economic uncertainty and trade policies. By analyzing the competition and identifying its strengths and weaknesses, Amara Raja Group can develop effective strategies to maintain its market position and grow its business.

Customer Analysis Customer Segments: Automotive Battery Customers: OEMs (Original Equipment Manufacturers) like passenger car, commercial vehicle, and two-wheeler manufacturers, replacement market customers (individual vehicle owners, workshops, and garages) Packaged Food Customers: Retail consumers (individuals and families), Institutional customers (hotels, restaurants, and cafes), and Distributors and wholesalers. Electronics Customers: Industrial customers (manufacturing units, infrastructure projects), Commercial customers (office buildings, shopping malls), Residential customers (individual home owners). Infrastructure Customers: Government agencies (central and state governments),Private infrastructure developers and Construction companies.

SWOT Analysis

Business Model Capability Audit(IT)

Process Infrastructure Enterprise Resource Planning (ERP) System: An integrated system that manages all aspects of the business, including manufacturing, sales, marketing, finance, and human resources. Customer Relationship Management (CRM) System: A system that manages customer interactions, sales, and marketing activities. Supply Chain Management (SCM) System: A system that manages the flow of goods, services, and information from raw materials to end customers. Manufacturing Execution System (MES): A system that manages and monitors the manufacturing process in real-time. Quality Management System (QMS): A system that ensures compliance with quality standards and regulations. Data Analytics and Business Intelligence Tools: Tools that analyze and interpret data to support business decision-making. Network Infrastructure: A secure and reliable network that connects all locations and enables communication and data exchange.

8. Cybersecurity Measures: Measures to protect the organization's IT systems and data from cyber threats. 9. Database Management Systems: Systems that manage and store data securely and efficiently. 10. Cloud Services: Cloud-based services that provide scalability, flexibility, and cost savings. 11. Internet of Things (IoT) Devices: Devices that connect and monitor physical assets, such as machines and sensors. 12. Artificial Intelligence (AI) and Machine Learning (ML) Applications: Applications that automate and optimize business processes.

Leadership and Governance IT Steering Committee: A committee that oversees IT strategy, investments, and priorities, comprising senior leaders from various business units and IT. Chief Information Officer (CIO): A senior executive responsible for IT strategy, operations, and governance, reporting to the CEO or MD. IT Governance Framework: A framework that defines roles, responsibilities, and policies for IT decision-making, risk management, and compliance. IT Risk Management: A process to identify, assess, and mitigate IT-related risks, ensuring the confidentiality, integrity, and availability of data and systems. IT Security Governance: A framework that ensures the security of IT systems, data, and infrastructure, aligned with industry standards and best practices. Data Governance: A framework that ensures data quality, integrity, and compliance with regulations, defining roles, responsibilities, and policies for data management. Digital Transformation Office: A team responsible for driving digital transformation initiatives, leveraging IT to innovate and improve business outcomes

8. IT Service Management: A process to manage IT services, ensuring high availability, performance, and customer satisfaction, aligned with ITIL best practices. 9. IT Investment Management: A process to evaluate, prioritize, and manage IT investments, ensuring alignment with business objectives and optimal ROI. 10. IT Talent Management: A program to attract, develop, and retain IT talent, ensuring the necessary skills and expertise to support business growth and innovation. These IT leadership and governance structures enable Amara Raja Group to effectively manage its IT resources, ensure alignment with business objectives, and drive digital transformation.

The adoption of IT has significantly reshaped Amara Raja Group's organizational culture in several ways: Digital Mindset: IT has fostered a digital mindset across the organization, encouraging employees to embrace technology and innovate. Collaboration and Communication: IT has enabled seamless collaboration and communication among employees, departments, and locations, breaking down silos and promoting a more cohesive culture. Data-Driven Decision-Making: IT has enabled data-driven decision-making, encouraging employees to rely on data insights rather than intuition, leading to more informed and strategic decisions. Agility and Adaptability: IT has enabled the organization to respond quickly to changing market conditions, customer needs, and business requirements, fostering an agile and adaptable culture. Innovation and Experimentation: IT has encouraged a culture of innovation and experimentation, allowing employees to explore new ideas, test prototypes, and develop innovative solutions. Transparency and Accountability: IT has promoted transparency and accountability across the organization, enabling real-time monitoring, tracking, and evaluation of performance and progress. Organizational Culture

7. Employee Empowerment: IT has empowered employees to take ownership of their work, make informed decisions, and drive business outcomes, promoting a culture of autonomy and accountability. 8. Customer-Centricity: IT has enabled the organization to become more customer-centric, leveraging data and analytics to better understand customer needs, preferences, and behaviors . 9. Continuous Learning and Development: IT has fostered a culture of continuous learning and development, encouraging employees to upskill and reskill to stay relevant in a rapidly changing technological landscape. 10. Inclusive and Diverse Culture: IT has promoted an inclusive and diverse culture, enabling employees from diverse backgrounds and locations to collaborate, contribute, and grow. By embracing IT, Amara Raja Group has transformed its organizational culture, becoming more agile, innovative, customer-centric, and data-driven, positioning itself for success in a rapidly changing business landscape.

People Partners Amara Raja Group's people partners in building IT capability include: IT Team: A dedicated team of IT professionals responsible for developing, implementing, and maintaining IT systems and infrastructure. Business Stakeholders: Leaders and representatives from various business units who collaborate with IT to identify business needs and develop solutions. External Partners: IT consulting firms, system integrators, and technology vendors who provide expertise, guidance, and support in building IT capability. Employees: All employees across the organization who are trained and empowered to leverage IT systems and tools to enhance their work and contribute to business outcomes. IT Governance Committee: A committee comprising senior leaders who oversee IT strategy, investments, and risk management, ensuring alignment with business objectives.

6. Digital Champions: Employee advocates who promote digital transformation, encourage adoption of new technologies, and foster a culture of innovation. 7. IT Trainers: Professionals responsible for developing and delivering training programs to ensure employees have the necessary skills to utilize IT systems effectively. 8. Business Analysts: Professionals who work closely with business stakeholders to identify business needs and develop solutions, ensuring IT delivers value to the business. 9. IT Architects: Professionals responsible for designing and implementing IT architecture, ensuring alignment with business strategy and optimal use of technology. 10. Technology Experts: External experts and consultants who provide specialized knowledge and guidance on emerging technologies and best practices.

IT SWOT

Impact Mapping

Based on my 10-year analysis, Amara Raja Group will likely fit inside the “HCHS" quadrant of the Impact Mapping framework. This is due to the following reason: Market Leadership: Amara Raja Group has established itself as a market leader in the battery and automotive segments, with a strong brand presence and customer loyalty. Operational Efficiency: The company has implemented various initiatives to optimize its operations, including digital transformation, process automation, and supply chain management. Innovation: Amara Raja Group has a strong focus on innovation, with investments in R&D, new product development, and emerging technologies like electric vehicles and renewable energy. Sustainability: The company has made significant strides in sustainability, with initiatives like reducing carbon footprint, waste management, and community development programs. Digital Transformation: Amara Raja Group has embraced digital transformation, leveraging IT to enhance customer experience, improve operational efficiency, and drive innovation.

Furthermore, the company is willing to: Refine its operations to achieve even higher levels of efficiency and effectiveness. Invest in emerging technologies and innovation to stay ahead of the competition. Focus on sustainability and social responsibility to maintain its leadership position. Leverage digital transformation to enhance customer experience and drive business growth By following these processes, they want to achieve a Sustainable Competitive Advantage in the market. They have always invested in IT and AI to enhance their already established verticals and expand to more segments and countries steadily.

Conclusion/ Future Prospects Therefore, Amara Raja Group's 10-year journey has been marked by significant growth, transformation, and innovation. From expanding its product portfolio to embracing digital transformation, the company has demonstrated its ability to adapt and thrive in a rapidly changing business landscape. Through its people, partnerships, and investments in IT capability, Amara Raja Group has built a strong foundation for future success. By leveraging its market leadership, operational efficiency, innovation, sustainability, and digital transformation, the company is well-positioned to maintain its competitive edge and drive long-term growth. As Amara Raja Group continues to navigate the complexities of the automotive and industrial sectors, it is essential to remain focused on its core values, customer-centric approach, and commitment to innovation and sustainability. By doing so, the company will continue to create value for its stakeholders, drive business success, and make a positive impact on the environment and society.
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