Yagna_Corporate_Presentation September 2024

Yagna Entrepreneur Success Services Profile Presentation

1. CHAO S T O SUCCES S WEBSITE: www.yagnaworld.com Transforming Businesses from 1

2. CONFIDENTIAL CHAOS TO SUCCESS Need Indian Economy is likely to grow at a rate of 7 %+ year-on-year for the foreseeable future and demand for consumption and equipment supporting consumption with the supply of products and services is likely to grow at double the pace on an average. Owners/senior management of the existing companies have to ensure two necessary conditions - ‘Protect the current business and earnings’ AND ‘Build for the future’ to achieve success now as well as in future. Current challenges of the business need to be tackled successfully, else there is no future. Growing economy is attracting newer players. Existing businesses have no option but to grow if they want to stay relevant and significant. They have limited time, money, capacity,  resources and ideas to achieve these simultaneously. Dilemma - Where should they apply these? Current approach leads to neglect of one of the above conditions, compromise or shifting priorities from time to time. Any which ways, business does not achieve its GOAL . 2

3. CONFIDENTIAL CHAOS TO SUCCESS We are a team of consulting entrepreneurs who have passion and expertise in executing CHANGE with a Skin-in-the-game approach We believe that it is possible for any company to pursue ONE initiative that will deliver both STABILITY and GROWTH . This initiative will consist of Holistic, Focused Solutions following principles of Theory of Constraints , DDMRP , Lean . Chaos to Success “We not only give advice but also stay engaged for implementation to get the enhanced value for the company” Who we are? 3 We transform business from

4. Vision and Mission CONFIDENTIAL Our Vision We envision a day when The process of ongoing improvement ( POOGI) is firmly instituted in the majority of mid-sized companies / owner managed businesses capitalizing on the available opportunities. These businesses have all the stakeholders aligned and sustain better than before Profit, ROI and Cash-Flow quarter after quarter. Our Mission We are on a mission to equip 1000 mid-sized companies / owner managed businesses to deliver improvement through every change which is logically thought out and implemented in a WIN-WIN fashion. 4

5. CONFIDENTIAL CHAOS TO SUCCESS Operational Excellence Reliable and fast deliveries Stable Schedules Low Inventory Clarity of Tasks & Priority in which they need to be done Business Growth Ensure consistent product availability across the supply chain without accurate sales forecast Programs for channel partners and influencers Effective key account management Improve reach and range Mobile and IT Support for monitoring Feet on street to trigger secondary sales New Product Development Regular stream of viable new products Fast & reliable delivery to stakeholders Effective cross functional collaborations Adoption of project management software Adoption of project management Supplier Improvement Program Alignment of Supplier with company schedules Upgrade the performance of critical suppliers Optimize quality and on-time delivery performance What we Deliver? 5 1 2 3 4 Strategy and Tactics for

6. CONFIDENTIAL Complex to Simple Managing business operations is very complex. Due to complexity associated with volatility and uncertainty we end up with plethora of rules to manage the business. Over a period of time, these rules become not only sub-optimal but also have siloed approach. Yagna team works on the above principles and has helped several companies to simplify rules, improve operations and enhance the cash flow, material flow, order flow. Yagna has worked with the teams to have a continuous flow of ideas. The challenge is to simplify and work with fewer smarter rules which help first ‘Not to Lose’ the game (which essentially means not to make things worse) and then ‘To win’ the game (which essentially means to make things better and holistic) This enhances the ‘Flow', thereby creating and sustaining value for the business. Chaos to Success 6

7. CONFIDENTIAL CHAOS TO SUCCESS Business Flows Business makes money through these flows. Yagna has over cumulative 100 years of experience in MAXIMISING earnings of the business by ACTIVATING THE BOTTLE-NECK in these flows. IDEA FLOW MATERIAL FLOW ORDER FLOW MONEY FLOW 7

8. CONFIDENTIAL CHAOS TO SUCCESS Business Flows What is a BOTTLE-NECK? Bottle neck decides the rate at which your business can generate VALUE. What happens when you master the flow through your business’s bottle-neck? Your business works at its optimal capacity. It satisfies all the stakeholders involved and provides a clear path for the future. Bottlenecks (constraints) Upstream Downstream Queues at upstream to be serviced Bottle-neck restricts the flow Downstream starved of full flow 8

9. 9 Variety Business accumulates a plethora of offerings (products and services), slew of customers in order to support desired growth. Untamed variety leads to more and more confusion. Variability Every business is buffeted with uncertainty in demand, supply and operations. If the system is not designed to absorb these common-cause variations, then small disturbances get amplified by unsynchronized responses from different parts of the system. People get forced to operate in fire-fighting mode on a continuous basis. Visibility Current IT systems are not designed to provide visibility of the current status and planned future actions to all the relevant actors. This results in siloed and unsynchronized mode of actions. 3 V’s CONFIDENTIAL Above 3 Vs exacerbate the CHAOS through many vicious cycles continuously playing out. What obstructs a smooth "FLOW" through the system and creates CHAOS?

10. How to bring ORDER to replace CHAOS and create a platform for SUCCESS? CONFIDENTIAL Above  3 Ms are collaboratively designed with the client team and continuously improved to support the GOAL of the business 10 Monitoring A cadence of reviews - Daily, Weekly, Monthly, Quarterly is designed and established so that the different players know the SCORE and plan appropriate improvement actions. Measures Yagna Team builds a hierarchical scheme of LEAD and LAG measures in a SCORECARD so that different parts of the system can contribute to overall achievement of the GOAL of the business. Method Yagna team brings the knowledge and experience to create a Demand Driven Operating Model of the business that deals with variety and variability in manner to tame the CHAOS for getting new orders, executing the delivery and envisioning new products.

11. Awareness Study the company profile Making the KMPs aware of the scientific approach Agreement on major points of the current reality Desire to explore further systematically. Invite YAGNA for Assessment Assessment Discussions with relevant stakeholders Data analysis of Financial and Operational Transactions Direct Observations “on GEMBA” Holistic understanding of the business's current reality Core problem that needs to be addressed Direction of solution Potential that can be unlocked from the existing set-up Decision to implement Adoption Core Team and Champion identification Training Detailed solution design with implementation plan Implementation Process of Ongoing Improvement with regular reviews Alignment of different parts of the business towards a common GOAL with coherent KRAs Release of Time and Capacity Operational performance improvement Financial performance improvement Sky is also not the limit How we do it? CONFIDENTIAL 11 Action Outcome

12. CONFIDENTIAL CHAOS TO SUCCESS DCE for sustained business performance Integrated IT (External) Align people Using measures & structure (Internal) Operational Excellence to support DCE Integrated IT (External) Pragmatic Capacity Investment for Flow improvement Sales and Marketing Excellence Align people Using measures & structure (External) 1. DESIGN 2. BUILD 3. CAPITALIZE 4. SUSTAIN Business as a “puzzle” to be put together in a scientific order Business Operations 12 DCE: Decisive Competitive Edge

13. CONFIDENTIAL CHAOS TO SUCCESS The Goal by Eliyahu M. Goldratt It’s not Luck by Eliyahu M. Goldratt Our Inspiration 13

14. CHAOS TO SUCCESS Demand Driven Technologies Demand Driven Institute A- dato CONFIDENTIAL Our Partnerships Project Management software (Demand Management software) 14

15. Godrej & Boyce started with the locks business in 1897 and went on to patent the world's first springless lock in 1907. They have state-of-the-art innovation centre and collaborations with leading global industrial and interior designers. They own the highest number of patents in the industry. Value Delivered over 10 years 1 Sales grown 4 times 2 Profit and Free Cash Flows grown 8 times 3 Profitability doubled to 15% of sales 4 Working Capital Turns improved by 50% at much higher sales volume 5 ROI doubled to ~ 50% with infusion of capital in some years 6 Availability improved from 85% to 99.4% at a much higher sales volume 7 Reliability (On-Time-in-Full Due Date performance) improved from 75% to 98.5% at a much higher sales revenue 8 Inventory turns of Channel Partners (Distributors and Dealers) increased from 4 to 14+ 9 Secondary sales increased at the rate of 0.6% week-on-week over the years 10 Retail Market coverage increased to 800+ distributors in 400+ cities 11 B2B Institutional customers doubled and sales growth from key accounts increased with CAGR of 50% and wallet share increased by 70% CHAOS TO SUCCESS CONFIDENTIAL Chaos to Success External factors during this period were Indian market is flooded with Chinese products Merger of small company resulting in consolidation in revenue and profits (negative impact) Negative Market impact due to Demonetization, GST, Covid 15

16. Before Capex Investment Expansion of Capacity Already Executed Plant capacity 1000 MT /month Quality (Defect) 500 PPM Manufacturing Leadtime 2 Weeks Inventory turns 6.5 Mould change time 240 minutes After Capex Investment Tactical purchases of new equipment Plant capacity Exposed 35% additional capacity Quality (Defect) 50 PPM Manufacturing Leadtime 1 week Inventory turns 8 Mould change time 45 minutes Chaos to Success Mitsuchem Plast Limited, est. 1990, is a listed company and a leading manufacturer of world-class plastic blow molded and injection molded products. Mitsu operates in a highly competitive industry where there’s pressure on price and delivery and poor customer loyalty. Mitsu had gotten into a situation of lot of product variants and lot of customers with smaller business size. Ensuring availability of multitude of SKUs in smaller quantities and shorter lead times was a challenge. There were frequent quality issues. Also Mitsu’s new plant wasn’t running at full capacity which was worrying the management. Yagna delivered s ubstantial improvement in operations leading to higher earnings and cash flows. Business Challenges CHAOS TO SUCCESS CONFIDENTIAL 16

17. Before Capex Investment Expansion of Capacity Already Executed Machine Shop OEE 39% Quality (Defect) 500 PPM Manufacturing Leadtime 6-8 Weeks Inventory turns 4 Vendor Lead Time 2-8 Weeks After Capex Investment Tactical purchases of new equipment Machine Shop OEE 64% Quality (Defect) 50 PPM Manufacturing Leadtime 3-5 weeks Inventory turns 5.5 Vendor Lead Time 1-4 Weeks Chaos to Success Pradeep Metals Limited, est. 1982, is a listed company. PML manufactures intricate closed-die stainless, alloy, and carbon steel forgings as finished and semi-finished machined components such as oil and gas, petrochemicals, and general engineering PML’s customers are process industry leaders like Emerson, Alfa Laval, Flowserve, Endress Hauser. Their precision machined forged components are in large variety and low volume, The lead time expectations are very short. On-time-in-full performance was a challenge for all the customers. Overall inventory was high with significant slow-moving stock Month-end skew of billing Unstable production plan Significant expediting to meet stringent container stuffing dates High express freight expenses Business Challenges CHAOS TO SUCCESS CONFIDENTIAL 17

18. Before Sales Growth 15% Throughput Growth 20% Profit Growth Barely Profitable Inventory Turns 3 Month end Invoicing Skew Heavy After Sales Growth 40% Throughput Growth 70% Profit Growth Best year Inventory Turns 4 Month end Invoicing Skew Moderate Chaos to Success Barely profitable Stop / Start in Operations Material not available in full kit People under stress and operating in fire-fighting mode Business Challenges CHAOS TO SUCCESS CONFIDENTIAL 18 Hind Rectifiers is a leader in design and development of Electrical and Electronic Equipment

19. Before Sales Growth Sub optimal Throughput Growth Sub optimal Lead Time for Goods and Service Long Offer to Order Lead Time Long After 1 Year Sales Growth 40% Throughput Growth 20% Lead time for Goods and Services 20% Offer to Order Lead Time (new client) 13 weeks Chaos to Success Stagnant Gross Margin High Working Capital Requirement Delays in Order Completion New customer acquisition not fast enough Business Challenges CHAOS TO SUCCESS CONFIDENTIAL 19 Neptunus provides early warning diagnostic and maintenance solutions for diesel engines and large rotary machinery in the Oil & Gas, Marine, Defence and Industrial Sectors

20. Before Capex Investment Capex planned 2 crs Plant capacity In-efficient runs with Labour issues Sales Sub-Optimal On-time-in-full <30% Inventory turns 7 After Capex Investment None Required Plant capacity Increased by 100% Sales Up by 35% On-time-in-full >85% Inventory turns 8 Cash Flow Up by 40% Ramdevs Motors, Coimbatore, est. 1987 is in the business of Electric motors and water pumps and cater to Indian and global markets. Loss of Sales because plant capacity became full in 1 shift and unable to run 2nd shift due to labour issues Frequent changes to production schedule led to disruptions There was constant demand on making fresh investments in capacity expansion in order to grow Sales Business Challenges CHAOS TO SUCCESS CONFIDENTIAL Chaos to Success 20

21. Kohli Industries, Thane, est. 1972 is an established name into manufacturing and sale of printing presses such as Rotogravure and Slitting rewinding machines which are used in printing on a wide range of packaging materials from light weight films to paper to laminates. Kohli industries sell in Indian domestic market as well as export abroad. The sales over 3 years were stagnating although the order backlog was always 6-9 months of future deliveries The lead times to deliver the machine against order was long, between 6 to 7 months The lead time estimates were not reliable and due date performance was poor Cash flow was constantly under pressure and vendor payments were delayed Before Capex Investment Planned ₹ 6 – 7 crs Plant capacity In-efficient Sales Stagnated for 3 years Manufacturing Lead Times 8 to 9 months After Capex Investment None Required Plant capacity Up by 30% Sales Up by 50% in year 1, Up by 100% in year 2 Manufacturing Lead Times 5 to 6 months Inventory Down by 30% Business Challenges CHAOS TO SUCCESS CONFIDENTIAL Chaos to Success 21

22. Nano-Mag Technologies Pvt Ltd, Mumbai is into manufacturing of specialized equipment in area of gas-solid liquid reactions, catalyst separations which find application in industries such as pharmaceuticals, chemicals, dye chemicals, pesticides & perfumery. Customer committed dates repeatedly missed and revised Long delivery lead time caused by delays at various stages of the order Cash flow pressure due to variations in billing New product development was not fast enough. After Sales Up by 40%+ Gross Profit (Throughput) Up by 50%+ Inventory Turns 131% increase Business Challenges CHAOS TO SUCCESS CONFIDENTIAL Chaos to Success Value Delivered 1 For all the open orders, Nano-Mag was able to determine the priority in which the orders are to be completed. 2 WIP Control – A limit on number of open orders at any point in time 3 A mechanism to release the next order (not as soon as it is received, adding to WIP) 4 Full Kitting – the buffer inventory levels for each component by analyzing its previous consumption record 5 Load control to determine the load on the plant and to commit due dates for new orders. 6 Higher volume of execution without any significant fire-fighting. 22

23. DECIMAL POINT ANALYTICS BLUESTREAM BULLOWS PAINT EQUIPMENT HIND RECTIFIERS HIND GEAR INDUSTRIES *in alphabetical order Our clients over the years – Adoption & Implementation CHAOS TO SUCCESS CONFIDENTIAL KOHLI INDUSTRIES NANO-MAG TECHNOLOGIES MITSU CHEM PLAST LOSMA INDIA NEPTUNUS RAMDEVS MOTORS PRIME GRAPHITE PRADEEP METALS SHARK 23 Tritorc Equipments

24. SPHOORTI MACHINE TOOLS UNITED WORLD NANDAN GSE NAMA INDIA IMPORT EXPORT BUSINESS CONSULTANTS Our clients over the years – Assessment and Report CHAOS TO SUCCESS CONFIDENTIAL HICOOL BONTON TECHNOMAKE HAREN TEXTILES GOLDY PRECISION STAMPINGS ELECTRONICA MECHATRONIC SYSTEMS ELECTRONICA HITECH MACHINE TOOLS INDITECH VALVES FAB-TECH WORKS & CONSTRUCTIONS JAY WOOD INDUSTRY BHARAT BIJLEE IMP POWERS ANM ISPAT FLEXATHERM EXPANLLOW *in alphabetical order 24

25. Our clients over the years – P r evious Experience CHAOS TO SUCCESS CONFIDENTIAL WIPRO THE ARTIST 3s INDIA - SARAPLAST GODREJ APPLIANCES GODREJ LOCKING SOLUTIONS & SYSTEMS GODREJ VENDING AEGON LIFE INSURANCE BHARAT BIJLEE KIRLOSKAR FORBES & COMPANY MIRANDA TOOLS PMP AUTO COMPONENTS *in alphabetical order 25

26. CONFIDENTIAL CHAOS TO SUCCESS Mr. Aniruddha Joshi is a chartered accountant, TOC application expert and a Demand Driven Planning Professional. He has managed and worked on diverse projects in Finance, IT consulting and Business Transformation with an overall work experience of 20+ years. Prior to this , he has worked with Cummins, Tech Mahindra, Satyam Computer Services, Infosys , Avenir Management Consulting. Mr. Ayush Agarwal has an MBA in Business Leadership, B-Tech in Electronics & Communication and is a Demand Driven Planning Professional with expertise in Operations and Supply chain Management. He has been implementing TOC since 2011 at several organizations Mr. Deepak Nagar has an MBA from IIM Bangalore. BE from MNIT, Jaipur and has over 35 years of industry experience, he’s a visiting professor at IIM Indore and an endorsed instructor at Demand driven Institute. He’s also TOCICO Certified in Supply Chain and Operations, Project Management, Thinking Processes. He has Facilitated TOC adoption since 2009 at wide variety of environments (Godrej & Boyce, Ashok Piramal Group, Kirloskar Brothers, Wipro Lighting,) Aniruddha Joshi Founder Resultant Ayush Agarwal Founder Resultant Deepak Nagar Founder Resultant Our Team 26

27. CONFIDENTIAL CHAOS TO SUCCESS Mr. Kartik Modi is responsible for driving company-wide initiatives like Strategy Management, Process Management, Stakeholder Management, TOC, Business Models and Customer Value Proposition for superior experience, Improvement Initiatives. He has also led PMO (Program Management Office) for the business . Prior to this he was at Godrej and Boyce for the last 36 years Kartik Modi Resultant Our Team 27

28. CONFIDENTIAL CHAOS TO SUCCESS ADDRESS C-6/2, Gera’s Emerald City, Site No.66, Baner , Pune – 411 045 YAGNA Entrepreneur Success Services Pvt Ltd. Contact us www.yagnaworld.com DEEPAK NAGAR [phone] [email protected] 28