The Indian Mining Technology,
Equipment and Services
Opportunities and Strategies for
Australian Companies
October 2012
Today’s Agenda
Introduction to the Indian Mining Sector
Kylie Bell Austrade Mumbai
The Indian mining sector, potential opportunities, proposed reforms &
implications, and procurement strategies of Indian companies
Mr Kameswara (Kami) Rao, Partner and Practice Leader, Energy, Utilities, and
Mining Leader, PWC
An Australian case study in India, Modular Mining
Mr Greg Sweeney, Business Development Manager
Advice on market entry options and next steps
Kylie Bell, Austrade
Questions
Australia Unlimited
INDIA – a major global economy
US$ 1.7
Trillion
economy
11th largest
global
economy,
poised to be
the 3rd largest
by 2030
Australia’s 3rd
largest and
fastest
growing trade
partner
Home to a
number of the
world’s
leading
corporates
Rapidly
expanding
domestic
market of 1.2
billion people
Australia Unlimited
Indian Market Snapshot
 The total value of mineral production in 2009-10 was A$ 37.5 billion, an increase
of 8% over the previous year
 World’s third largest coal producer with annual production in 2009 of around 549
million tones. Ranks 4th in iron ore, 5th in bauxite and 7th in Manganese Ore
 Also a significant producer of lignite, copper ore, zinc ore, chromite, mineral
sands and limestone
 Approximately 3000 operating mines across the country, of which about 750 are
owned by the public sector
 The Government of India forecasts an annual growth rate of 8.0-8.5 % for the
Mining and Quarrying sector during the Five Year Plan covering the period from
1st April, 2012, to 31st March, 2017.
 Over the last decade, more than 40 Australian METS companies have
penetrated the Indian market either by their own presence or through agents and
distributors.
Australia Unlimited
Key Market Drivers
High GDP growth, resulting in:
 Substantially higher requirements of fuel minerals to support rapidly
increasing electricity demand
 Rapid infrastructure needs and industrial growth driving higher
requirements for minerals for the metals sector to support
 Substantially higher requirements for minerals for the cement and
construction materials sectors
 High transportation costs for imported minerals, particularly from
distant geographies
 Infrastructure and policy issues in some of the import source countries
in close geographies
Australia Unlimited
Opportunities from India market
1. Mine development and operation- public and private sector
Various - both from the public and private sectors, particularly in
underground mining. On hand recently are opportunities from Coal India
Limited /Subsidiaries, Hindustan Copper Limited and a number of private
allottees
2. Mineral Beneficiation
McNally Bharat - seeking a JV for (a) Coal Sizers, (b) Modern design of crushers/
screens, impacters
3. Collision avoidance systems
Coal India Limited – for their subsidiaries with large open cast mines
4. Washeries:
Various- private sector enquiries for technology and operational partners for
washeries
5. Vocational training in Mining:
Various- seeking courses in niche areas of mining, as well as consultancy for setting
up a mining VET institution
6. Mine site rehabilitation expertise
Australia Unlimited
Successful Australian companies in India
Australia Unlimited
Successful Australian companies in India
Australia Unlimited
www.pwc.com
Opportunities in India
mining sector
Oct 2012
Strictly Private
and Confidential
Draft
October 11, 2012
Agenda
Contents
Page
1
Mining industry in India
1
2
Potential opportunities
8
3
Proposed reforms & implications
17
4
Procurement strategies
21
5
How can we work together
25
Section 1
Mining industry in India
PricewaterhouseCoopers, India • Indian Mining Industry
PwC
October 11, 2012
1
Section 1 – Mining industry in India
Overview of the economy and sector drivers
•
•
A higher growth trajectory over the last two
decades albeit under pressure lately.
– 4.1% (1950-90) vs. 6.9% (1990-2012)
16
The fundamental drivers remain:
14
– change in structure of the economy: to
services (59%), industry (27% of GDP)
12
– urbanization (28% to 41% by 2030)
– infrastructure deficit
•
India: economic growth and
structure
Some key challenges to be addressed:
– industry structure reform
– proper use of natural resources
– equitable growth
– environment, safety, and health
10
8
6
4
2
0
2006-07 2007-08 2008-09 2009-10 2010-11 2011-12
GDP
IIP
Inflation (WPI)
IIP – Index for Industrial Production
WPI – Wholesale Price Index
PricewaterhouseCoopers, India • Indian Mining Industry
PwC
October 11, 2012
2
Section 1 – Mining industry in India
Doing business in India
Source: World Bank
Doing Business
2012 Rank
Australia
South Africa
Brazil
Mozambique
India
Overall Rank
15
35
126
139
132
Starting Business
2
44
120
70
166
Getting Credit
8
1
98
150
40
Dealing with
construction
permit
42
31
127
126
181
Getting electricity
37
124
51
172
98
Protecting
Investors
65
10
79
46
46
Logistics
11
23
45
67
46
PricewaterhouseCoopers, India • Indian Mining Industry
PwC
October 11, 2012
3
Section 1 – Mining industry in India
Structure of the Mining industry
•
Large listed state owned mining companies,
integrated private mining-metal companies,
and independent holdings.
– SOMC dominate: 72% by value produced
but differ by sector (92% in coal, 31% in iron
ore).
Share of minerals by value
2011
67%
2010
69%
– metallic minerals: robust private sector
activity and growing
– focussed on domestic use
– size: 2.26% of GDP (~$22 billion)
21%
18%
24% 3%
58%
0%
20%
3%
18%
63%
2007
2%
40%
10%
11%
21% 2%
66%
• A large part of the industry is fragmented (573 2009
coal, 553 metallic, 1523 non-metallic mines)
and in under-developed regions.
2008
– fuel minerals dominate 67%
9%
2%
60%
80%
15%
16%
100%
Fuels (Coal & Lignite)
Metallic Minerals
Non-Metallic Minerals
Source: Indian Bureau of Mines
PricewaterhouseCoopers, India • Indian Mining Industry
PwC
October 11, 2012
4
Section 1 – Mining industry in India
Coal sector scenario
• The demand for coal is growing at annual
rate of 6.37% per annum against local
production of 5.79%.
• Demand supply gap is rising
-
shortfall is now about 84 MT
-
estimated domestic shortfall is over 300 MT
in medium term, if all LoAs issued are
activated.
Resource classification
Proved
114.00
Indicated
137.47
Inferred
34.39
Total
1000
• The demand for coal is estimated at over
1.6 BT by 2025 (IEP, Vision 2025 @ 8%
GDP)
Demand vs. Indigenous
Production
MT
contributes to ~70% of total demand
285.86
Source: Ministry of Coal
• Power generation drives demand
-
In billion tonnes
500
0
2008 2009 2010 2011 2012 2013 2014 2015 2016
Demand
Production
Figures for future years are estimated figures. Source: Infraline database
PricewaterhouseCoopers, India • Indian Mining Industry
PwC
October 11, 2012
5
The changes in downstream industries
• Coal remains key to core sectors even over longer term.
• Implications of market concentration in coal sector on downstream sectors,
and its mitigation (e.g., regulation, competition)
• Deregulation in key downstream industry e.g., retail competition in power
Coal use by sector: FY12
Coal use by sector: FY32
21%
20%
58%
10%
3%
8%
Electricity
Others
10%
5%
Iron & Steel
Non-elect.
Cement
60%
5%
Electricity
Others
Iron & Steel
Non-elect.
Cement
Source: PwC Analysis, India Energy Book 2012, (World Energy Council ,Indian Member Committee)
PwC
Section 1 – Mining industry in India
Iron ore scenario
• Significant iron ore reserves
-
26 BT, cut off grade of 55%
-
almost double if cut off grade 45%
• Fourth largest producer in world: Current
production >200 MTPA
• Share in mineral value: 17%
• Resource utilisation:
-
new steel capacity; value addition
requirement in most states
exports (duty on ore increased to 30% and
withdrawn from pellets - Dec „11)
• Large quantity of low grade in-situ
reserve, low grade fines and slimes.
-
IBM directive for iron ore produced with Fe
45-55% stacked at mine for future use
PricewaterhouseCoopers, India • Indian Mining Industry
PwC
250
Iron ore production &
exports 219
213
200
213
213
188
150
100
102
91
98
69
68
50
-
0
0
Domestic production
1
0
Exports
N/A
Imports
Source: Ministry of Mines
October 11, 2012
7
Section 2
Potential opportunities
PricewaterhouseCoopers, India • Indian Mining Industry
PwC
October 11, 2012
8
Section 2 – Potential opportunities
Estimated investment potential in mining
UCG/Coal to
Liquids
Iron ore
mining
Bauxite/
Alumina and
Aluminum
Consultancy
services in
Mining
For
additional
170 million
tons per
annum
capacity in
next 5
years
For 50000
barrels/da
y in next 510 years
For
meeting
domestic
demand
from steel
industry in
2020 of
190 MTPA
Investmen
t in
mining,
refinery &
smelters
Varies
from 1-5%
of total
investment
USD 3.5
billion
USD 3.5
billion
USD 4
billion
USD 5
billion
USD 0.4 to
4 billion
Coal Mining
Coal
Beneficiation
To reach
target
production
capacity of
1.5 billion
tons per
annum by
2025
USD 24
billion
Source: PwC Analysis with Ministry of Coal & Ministry of Mines, Ministry of Steel data
PricewaterhouseCoopers, India • Indian Mining Industry
PwC
October 11, 2012
9
Section 2 – Potential opportunities
International collaborations (Govt. of India)
Source: Ministry of Coal, Ministry of Mines
Mining
Activities
Geophysic
al
Exploratio
n / 3D
Seismic
survey
European
Union
√
South
Africa
Germany
√
CBM/
CMM/
AMM/
VAM/
UCG
Deep
shaft
for coal
mines
√
√
√
√
√
√
USA
√
Russia
√
Mechani
zation of
UG
mines
Thick
seam
and
steep
seam
mining
Mining
technolo
gy
services
PricewaterhouseCoopers, India • Indian Mining Industry
PwC
Training
related
to safety
√
√
√
√
√
√
Japan
Australia
Clean
coal
tech.,
and coal
preparati
on
√
√
√
October 11, 2012
10
Section 2 – Potential opportunities
Rising private participation in mining industry
Ongoing projects in state owned coal
companies
•
State owned mining companies viz. CIL, SCCL,
NMDC are expanding their production capacity
to meet growing demand.
Entity
•
They are adopting various modes of PPP to
accelerate development:
CIL
138
5.1
397
SCCL
29
0.7
47
NLC
5
2.3
7/ 1750 (MW)
– Bhubaneswari OCP has been awarded to
Essel Mining for 20 MTPA.
– Magadh (20 MTPA), Amrapali (12 MTPA)
projects of CCL are likely to be on PPP.
– Ore handling plant (2.5 MTPA) of OMC to
be on PPP
– Reject beneficiation (NMDC) to be on PPP
•
100% FDI permitted in coal and non-coal
mineral sectors. Potential opportunity with
competitive auctions.
No. of
ongoing
projects
Estimated
investments
(USD bn)
Capacity
addition
(Mty)
Source: Ministry of Coal
200
150
FDI in non-coal mining ($m)
174
141
80
100
50
34
2009
2010
2011
2012
Source: Indian Bureau of Mines
PricewaterhouseCoopers, India • Indian Mining Industry
PwC
October 11, 2012
11
Section 2 – Potential opportunities
Opportunity size for contract mining in coal
28
24
20
Contract mining market potential (billion tons)
Investment size of
USD 5.9 billion
14.2
16
12
8
4
4.6
4
0
Steel
Power
Mining capability
Lack mining capability/Target
PricewaterhouseCoopers, India • Indian Mining Industry
PwC
Others
October 11, 2012
12
Section 2 – Potential opportunities
Opportunities in coal beneficiation
•
•
Coal washing was notified as approved
end use for coal in 1993.
The Ministry of Environment and Forests
mandates thermal power plants located
1,000 km away from pithead and in other
environmentally-sensitive areas to use
coal with ash content not exceeding 34%.
•
Construction of beneficiation plants on
Build-own-operate (BOO) basis is also
allowed.
•
100% FDI is allowed in setting up coal
beneficiation plants.
Beneficiation capacity MTPA
160
140
120
100
80
60
40
20
-
140
70
70
32
Present
Additional (XII
plan)
Coking Coal washing Capacity
PricewaterhouseCoopers, India • Indian Mining Industry
PwC
October 11, 2012
13
Section 2 – Potential opportunities
Opportunities in iron ore sector
•
Exploration in proposed exploration zones
–
–
–
–
•
Odisha: Bonai - Keonjhar belt, Tomka Daitari and Umerkoke belt
Opportunities for value addition projects and
agglomeration plants for fines utilisation
–
Jharkhand: All major high grade ore
deposit contain low grade lateritic ores.
Karnataka: Bagalkot, Tumkur and
Chitradurga districts.
Maharashtra: Sindhudurg, Gadchiroli,
Gondia
–
Chattisgarh : All 14 deposits of Bailadila
range, Dantewara district
–
Andhra Pradesh: Cudappah, Kurnool,
Karimnagar, Adilabad and Guntur District.
PricewaterhouseCoopers, India • Indian Mining Industry
PwC
•
fines production in country in 2009-10 ~
126 MT, while
–
pelletisation capacity ~24 MTPA
–
sintering capacity ~ 29 MTPA
Scope for domestic / foreign firms in upcoming
PPP opportunities.
–
JV or technical participation with midcap
players with lease/license and seeking
capital, expertise, and technology.
–
in coal mines with auctions; and iron ore
mines with larger scale
October 11, 2012
14
Section 2 – Potential opportunities
Opportunities in services...
Opportunity
Contract Mining
Implications
•
NTPC ( Kerendari A – 6 million tons per annum)
•
Mahaguj (Mahanadi coal block - over 20 million tonnes per
annum)
•
OMC (2.5 MTPA iron ore beneficiation plant)
•
Excavator (10-12 cubic meters bucket capacity)
•
Rope shovels (20 and 42 cubic meters bucket capacity)
•
Dumper (150T, 190t and 240 T)
•
Crawler Dozer (850 HP)
•
Wheel Dozer (460 HP)
•
In various public and private mining companies
•
Surpac, Minex, Vulcan, Geological modelling software,
Simulation software to predict underground mine
environment
(MDO opportunities)
Equipment procurement with
maintenance and repair contracts
Software (IT solutions)
PricewaterhouseCoopers, India • Indian Mining Industry
PwC
October 11, 2012
15
Section 2 – Potential opportunities
Opportunities in services...
Opportuity
Low grade iron ore beneficiation
BHQ/BHJ beneficiation
Jharia Master Plan
Implications
•
In integrated mining companies and large mining licensees.
•
Requirement for jigs, spirals, teeter bed separators
•
Requirement for low/high intensity, high gradient magnetic
separators
•
Flotation banks
•
In integrated mining companies and large mining licensees.
•
Requirement for crushers, screens & teeter bed
•
Investment potential of over 2 billion over next 10 years
through GoI initiatives.
•
Opportunities for mine fire control
•
Mine environment improvement
•
Infrastructure development
PricewaterhouseCoopers, India • Indian Mining Industry
PwC
October 11, 2012
16
Section 3
Proposed reforms & implications
PricewaterhouseCoopers, India • Indian Mining Industry
PwC
October 11, 2012
17
Section 3 – Proposed reforms & implications
Sector reforms and opportunities
Proposed
reforms
Implications
Opportunities
Auction of coal
licenses/non-coal
minerals via
competitive bids
• More robust licensing process
• High capacity/suitable
and investment security.
• Opportunity in coal: 54 coal
blocks (reserves of 16 BT). The
auction route is pure-play as
well as tariff based bidding.
• Coal block auctions only after
exploration and Geological
Report to provide better clarity
of asset base.
PricewaterhouseCoopers, India • Indian Mining Industry
PwC
equipment configuration to
help the owners aim higher
efficiency to win bids.
• Mining and beneficiation
equipment suppliers tie-up
with prospective bidders.
• Equipment leasing.
• Market for new technologies
(e.g. Coal to gasification and
CMM capture and usage).
October 11, 2012
18
Section 3 – Proposed reforms & implications
Sector reforms and opportunities
Proposed
reforms
Implications
Opportunities
Reconnaissance
Permit/
Prospecting
License
• Open sky policy with non-
• Mineral exploration
exclusive RPs to be allowed i.e.
open to all interested.
• Assured transition of licences;
transfer of RP/PL allowed.
• New composite license for high
technology RL/PL to explore
deeper deposits
companies may apply for
exploration in thrust areas
like copper, lead and zinc.
• On successful discovery the
same may be transferred to
prospective miners.
• Incentivize investment and
technology flows
Coal Regulatory
Authority/
National Mining
Regulatory
Authority
• Will review sustainability,
pricing, supply agreements.
• Ensure timely allocation of
mineral licenses.
• Information systems
• GIS /RFID system use by
regulators and licensees
• Sustainability reporting
• Check illegal mining.
PricewaterhouseCoopers, India • Indian Mining Industry
PwC
October 11, 2012
19
Section 3 – Proposed reforms & implications
Sector reforms and opportunities
Proposed
reforms
Implications
Opportunities
Safety Conference
recommendation
implementation
• Will help in increasing safety
• Market for underground
Profit Sharing with
host population
• 26% profit sharing local
Sustainability
reporting
introduced
• Will encourage scientific
in open-cast mines and
and opencast safety
underground mines in light of
equipment, technologies.
mechanisation.
• R&D opportunities with
CMPDIL
population.
mining
• More efforts to reduce
• R&R framework set on a
clearer, standard basis for
mine owners.
• Sustainability reporting
• Technologies for mitigation
efforts.
adverse impact on
environment
PricewaterhouseCoopers, India • Indian Mining Industry
PwC
October 11, 2012
20
30
Section 4
Procurement strategies
PricewaterhouseCoopers, India • Indian Mining Industry
PwC
October 11, 2012
21
Section 4 – Procurement strategies
Procurement strategies
State owned companies
State-owned companies are required to follow
strictly defined guidelines. Two or three stage
process.
• issuing a public tender (can be accessed by all
interested bidders)
• interested suppliers are invited to submit a
qualification proposal.
• they are then invited to submit technical details
of their asset against the minimum acceptable
technical specifications.
• should the asset meet required specifications,
Typical Qualification Criteria:
• Net worth : generally 10-25 % of Project Cost.
• Turnover: generally 1.5-2 times of expected
annual revenues from Project
• Cash Accrual: Varies (seen on occasion)
• O&M experience: 3-5 years of experience
Other conditions:
• Earnest Money Deposit : generally 1-2% of
Project Cost in form of demand draft
• Bank guarantee (on winning): generally 5%
of Project Cost
bidders then be invited to submit their price
• Board approval: necessary in big projects or
quote. At this point, contracts will almost always
in case of strength of affiliate company.
awarded on the most competitive price.
PricewaterhouseCoopers, India • Indian Mining Industry
PwC
October 11, 2012
22
Section 4 – Procurement strategies
Procurement strategies...continued
Private and Listed companies
Other influencing factors
• The procurement processes varies based on the
•
Price remains a key procurement criteria even
for private companies in India, as many
services/licenses are competitive bid and serve
a cost conscious market.
•
Expectation of discounts at negotiation stage
and the inability to secure discount can lead to
a failed negotiation.
•
Ongoing maintenance is often required to be
given free of charge or at a discount i.e., as a
bundled offering.
•
Soft factors such as offering design services,
testing, training, experience sharing etc are
valued and helps strengthen relationship.
•
Incorporating them in the global play can
appeal to their wider group interests.
value, technical complexity, importance to the
procuring company and its governance.
• Private companies typically follow a similar
process to state-owned companies
• Not as strict on purchase from the lowest cost
supplier, but seek “value” which may include
other services and financing.
• Past experience with suppliers and the quality of
business relationships is a significant factor.
• Many tenders may sent to preselected parties
i.e., extend invitations to those they are more
familiar with – including to just 1-2 suppliers
based on existing business relationships or
known specialist expertise.
PricewaterhouseCoopers, India • Indian Mining Industry
PwC
October 11, 2012
23
Section 4 – Procurement strategies
Procurement strategies...continued
Capital expenses in an Indian
Coal Company
Capital expenses in an Indian
Integrated Metal Company
2010
2010
2nd
highest
expenditure on
development
2011
2012
0%
20%
40%
More than 90%
expenditure on plant &
60% machinery
80%
100%
2011
2012
0%
20%
40% Over60%
80%
100%
60% expenditure
on plant & machinery
Plant & equipment
Telecommunication
Railway siding
Furniture and office tools
vehicle
Development
Prosecting and boring
PricewaterhouseCoopers, India • Indian Mining Industry
PwC
Plant & equipment
Furniture and Fixtures
Vehicles
Freehold Land and Roads
Development of property
Buildings
Office Equipments
Railway Siding
Freehold Buildings
Lease hold
October 11, 2012
24
Section 5
How can we work together
PricewaterhouseCoopers, India • Indian Mining Industry
PwC
October 11, 2012
25
Section 5 – How can we work together
Procurement strategies...continued
PwC Mining Industry Advisory can support across our services:
• Investment and Business development
-
bid advice on tendered projects and services, post-award reviews, business alliances
-
opportunity identification and country / state / sector attractiveness
• New entry and investments into new business segments
-
entry strategy, market assessments, business plans
• Production location and optimization
-
site decisions, supply sourcing, cost optimization, supply chain advisory
• Tax planning and investment structuring
• Partnering, Financing and Acquisitions
-
target search, M&A advisory, local fund raising
PricewaterhouseCoopers, India • Indian Mining Industry
PwC
October 11, 2012
26
Thank you
The information contained in this document is provided 'as is', for general guidance on matters
of interest only. PricewaterhouseCoopers is not herein engaged in rendering legal, accounting,
tax, or other professional advice and services. Before making any decision or taking any
action, you should consult a competent professional advisor.
© 2012 PricewaterhouseCoopers Private Limited. All rights reserved. In this document, “PwC”
refers to PricewaterhouseCoopers Private Limited (a limited liability company in India), which is
a member firm of PricewaterhouseCoopers International Limited, each member firm of which is
a separate legal entity.
Modular Mining, An Australian Case Study in India
Mr Greg Sweeney
Mine Production Management Software
©2007 Modular Mining Systems, Inc.
38
About Presenter
• Greg Sweeney – Business Development Manager
• Live on the Central Coast NSW
• Qualification is in accounting, CPA. Started with
MMS as Commercial Manager in 2000
• Spent the past 8 years in Business Development
for MMS, various markets including Australia,
Indonesia, SE Asia, but most time/effort has been
in India
• Currently a Director of our Indian operation which is
based in Pune, close to Mumbai
©2007 Modular Mining Systems, Inc.
39
About Modular Mining
• First company to develop GPS based Fleet
Management Systems (FMS) in 1979
• 12 offices around the globe. Corporate office is
located in Tucson, Arizona
• 100% owned by Komatsu Ltd, but operate largely
independently
• Products include GPS based FMS, which
incorporates fleet optimisation, material blending,
operator performance and safety
©2007 Modular Mining Systems, Inc.
40
About Modular In India
•
•
•
•
1st system installed in 2004
1st employee in 2004, working from home
We now have 4 mines, 30+ employees
From our Pune office we provide support for all of
our Indian customers, plus provide some back
office support for our other global offices
• Our main effort in the early years was directed
towards the very large government deals. Our
more recent focus has been on the rapidly
expanding private sector
• Modular does not use agents/third parties. We set
up shop in each country once it becomes
commercially viable
©2007 Modular Mining Systems, Inc.
41
Learning's
• Be Patient! Do not expect anything to happen as
quickly or as smoothly as they do at home
• Develop a market strategy based on extensive
research. Clearly identify your target market
sector, specific customers, understand the
differences between the different sectors
• Use the Austrade resources wherever available.
They have a lot of experience and resources to
help you to understand the market, pitfalls,
identifying customers, market intelligence etc
• Also suggest getting in contact with your State
Government who supply valuable market
information and even financial grants
©2007 Modular Mining Systems, Inc.
42
Learning's
• Take part in organised Tradeshows and Trade
Missions. Helps you build your brand, and
generate in country contacts
• Be wary if using local agents. You will be
approached by many. Even large multinational
companies have suffered due to poor choice of
representative
• Companies need to carefully consider how they
will operate in country. Need to weigh up having
higher costs and control (employees) vs. using
third party agents which have a lower initial
commercial impact but also less control
©2007 Modular Mining Systems, Inc.
43
Learning's
• Modular initially focussed on Government tenders,
which represent a bigger potential prize, but these
deals come with a lot of pitfalls including
bureaucracy, corruption, L1 pricing, time delays –
we spent a lot of money understanding this
• We have been more successful with Private
companies, who are more agile and are looking to
buy our systems to extract value. Private
companies are still very price sensitive, but they
are more transparent to deal with
• Modular will continue to tender for the government
jobs, they are too big to ignore, but we will
certainly approach them differently based on our
experience to date
©2007 Modular Mining Systems, Inc.
44
Learning's
• In India you need to sell on value/features, there
will always be someone who will beat you on
price.
• It is a price sensitive market
• You need to invest time with the decision makers
to educate them on the advantages of your
product, why it is better than the cheaper
offerings, what advantages you can bring to them
• Buyers want foreign products to get better quality
and greater features, but you still need to
demonstrate capability and a track record
©2007 Modular Mining Systems, Inc.
45
Learning's
• Try and get in early on any deal to establish
relationships.
• Often we are asked to write the technical
specification document as they do not have the
prior knowledge
• Expect deals to take longer than you would like
• Invest time in fostering the relationships and
education
• Where possible, ask for a technical ranking to be
included in the evaluation process, get away from
purely a price decision
©2007 Modular Mining Systems, Inc.
46
Finally, if you like cricket, then study up. If you
don’t, then start. It is the best conversation
starter!
©2007 Modular Mining Systems, Inc.
47
Austrades’ Market Activities
December 2012
•
Mining Technologies and Mining Education Seminar at Kolkata on 04
December, 2012
•
IMME 2012 mining exhibition in Kolkata, with an Australian Pavilion, from 5-8
December, 2012
First Quarter 2012
•
Resource Suppliers Mission to India, covering Kolkata, New Delhi and
Mumbai, and with visit options to a coal or metals mine ( To be confirmed )
Second Quarter 2012
•
Webinar on Business prospects in the Indian mining sector
Australia Unlimited
Indian network
Amit Khaira
Kylie Bell
Trade and Investment Commissioner
Partha Sen
Ramakrishna Dastrala
Bhavin Kadakia
Australia Unlimited
Contact us for assistance:
Isaac Court
Austrade, Newcastle (Australia)
T: +61 2 4925 8777
Sectoral
E: Isaac.Court@austrade.gov.au
opportunities
Kylie Bell
Austrade, Mumbai (India)
T: +91 22 6116 7117
E: Kylie.Bell@austrade.gov.au
Partha Sen
Austrade, Kolkata (India)
T: +91 33 4003 3610
E: Partha.Sen@austrade.gov.au