The pulse of the automotive industry Vol -l .lssue-8 1 May 2011 I ~1 00/­ SONS OF THESOII~: j\.. S. Mittal ~iI/~~~\I~i~rcr~;a~ft~ ,y;a~c~hts,~~~ex~~p~e~Sn~~iv~e~lIlIii:::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::: '- oC. GI oc: cars and bikes are being bought by high networth indi viduals (HNls) as if there is no tomorrow. And to lure them into leading a life of absolute style , thri! 1and elegance is Th e ESTD, a '- brand that was recently launched > Products Pv t Ltd . GI o U in India by InterGlobe Established Th e compan y is barely four years old and was established in I ndia as InterGlobe General Aviation. Now aviation is just a part of its busin ess as it gets into the mould of selling expensive yachts, cars and bikes. Th e company will soon be ope ning its firs t exclusiv e showroom in th e co untry in "l ew Delhi early 2012. For the common man , the names of the ESTD products could trigger a frenetic Googl e search. But for th e teeming millionaires in the country, the names would definitely mean a lot, perhaps the next birthday gift to their spouse, or the ir lo ver tucked away secretly in some up-scale home in one of the design er locations built next to a wate rfall. The prices ofThe ESTD produ cts vary from produ ct to product. The Koenigseg g Agera costs f 12.5 crore w hil e the Deronda car, a two-seater sports car, costs f 40 la kh. The Gumpert costs around f 5 crore. The pri ce s of yachts range from US$ 1million (~4. 5 rore approx.) to US$ 80 million (f 360 crore app rox.) The aircraft sells for US$ 1miilion to US$ 2 million (f 112.5 crore) In order to make the lives of these HNls a ta d m ore excitin g, The ESTD is on a ro ll . Motown India met up w it h the company 's Presid ent and CEO Nigel A. Harwood, a man in love with Ind ia. " I first came t o India in 1993 and during that t ime I w as with Rolls Royce aero engines. I have bee n ass ociated with aviation for around 25 years. After Rolls Royce, I was Head of Sales, Airbus for Asia. I sold a lot of aircraft w ithin India. A majority of my life has been spent in India. I love the country, I love the people, I love the way the country w orks, despite som e of the failing s it has. I have been associated with the country for a long time and I intend MAY 20 11 MOTOWN INDIA w ww.mot ow nindia.com n o < tD ~ ::a tD -a o ~ pta www.motownindia.com MOTOWN INDIA MAY 201 1 :... (II > u o --­ - - - - - - - - :: - . . - - I MAY 20 11 MOTOWN INDIA www.motown india.com www.motownind ia.com MOTOWN INDIA MAY 2011 ~ ~ o a. <II D: a.. <II > o u Nigel A. Harwood MAY 2011 MOTOWN INDIA www.motownindia.com n o < tD ~ :XI tD -a o ,... ~ infras tructure. Interes tingly enough, afte r four ye ars we have sold 40 aircra ft. I look at are able to sell one a year we sh all be very happy. So do we believe that we w ill sell one a som e of th e roads in India are extrem ely good for driving . An d it will come. It is a fact that year? Yes, we bel ieve we will se ll more than one a year. Once the car has been driven, once a things are chan ging, India is changing. Infrastructure will car has been te sted, you will not want to try an ything else, he be de velop ed ov er a period of t ime. It's not one-upm anship add s empha t ical ly. The company works on a represe ntative model and alon e that prompts peopl e to buy thes e," says Harwood . The decision to nam e the co mpany's brand The ESTD was p rompted by th e its desire to create a kind of mysti q ue and · . www.motownindia.com that mod el is very simple. It signs up an exclusive lo ng term agre ement with each of the manufa cturers. Wh at the manufacturer gets from that intrigue. "We are interested in is branding, marketing and a bringi ng th e right produ cts into Ineli and in the ca se of sal es team that is d edicated to their product. And their role is to go and talk one on t he Koenig segg Agera I do not think there is d finer ca r. Having driven it and ha ving one basis with HNls to sell these products. "This is no t be en to the factory and see what these people develop, it is quite a remarkable car. Every so mething someone would buy just passing the sh op. You put a lot of thought into buying one little feature of this car has of thes e produ cts. We have a one on one relationship with t hese HNls. We work with them someth ing very unique about it. They produ ce 15 ca rs a year. MOTOWN INDIA MAY 2011 -- to d eve lop as to which product suits them be st, is th e produ ct fi tting in their bu dget, does it meet their requirements in terms of customis ation etc . Once we con f irm all that we sell th e product to them. It is not a showroom type of mode l. You will not w alk in to a showroom and buy a ~ 1 2 cro re car," he says. Harwood beli eves that India is not a sprint . Rat her, he says it i a m arathon. "We do not want to go an d clos e dea ls t hat qui ck ly. The infras t ructure for mar ine is not th ere. Whe n it com es we shall sell more yac hts. Will it happen next year? Probab ly not. It's all ---- --- mind. If India is adding 12,000 It's all about b uild ing t he righ t grow. The propensity to spend product and o ffering the right is there;' he cla im s He defines HNls as t hose with a net surplus he sees t he pro d uct and til l t he t ime he sig ns th e dea l. The car and the yac ht will al so have M AY 20 11 MOTOWN INDIA - Increasing number of HNls Everybody predicts India to be the seco nd largest lu xury market it the world. "I am not talking about hand bag s and shoes etc. I am talking about these types of produc ts we offer. The market potential is enormous and we have establi shed ourselves with a data ba se of 14,000 HNls with whom we have a personal contact on a very regul ar base. Th is allows us to build from the aviation portfolio into the ya cht portfolio. It's that we are doing now, transitioning t heir abou t bu ild ing re lationship. eigh t month s i.e. from t he time -- typi ca lly the similar lead time profil e," he notes. millionaires to the lis t every yea r, I think my list too wo uld p roduct. Buyi ng an aircraft, typically ou r lead time is six to -- - of US$ 6 million or min imum net incom e of USS 6 mil lion (ap prox. ~ 27 (rare) per annum. That is his target au di ence. Harwood says th at th er are still some exciting products in the car market that are not avai labl e in India. He refu ses to name th em or his competito rs, he says, will go chasin g th em. "We are opening a showroom in early 2012 which will have some of these p ro d ucts. It is our intention not to move into our dealership model but a sho wroom that will showcase some of our products. It will be an exclusive TD showroom. One of th e ca rs we are working is a stunning one priced at { 2 crore. That should sell very co mfortably in India;' he say s. He continues to smile as we take his leave. He is definitely ent hused by the ~ 2 (rore stunner w hich is on its way! MI www.motownindia.com