Beruflich Dokumente
Kultur Dokumente
(IIFT Delhi)
Sector: Luxury Yacht
Mahindra Odyssea
BY:
Dhruv Bhatia
Manvi Bajpai
Sirish Gupta
Yash Saxena
Boating Industry Segments:
Market Presence in segments comprising 70 % Revenues >
Sectors US UK Avg.
The Market segments in Marina/Storage 5.96% 8.64% 7.30%
recreational industries Boats sold 38.40% 42.06% 40.23%
was analysed in US & UK Servicing/Maintenance 5.16% 23.85% 14.50%
to arrive at indicative Equipment 19.40% 12.15% 15.77%
Engine 4.67% 8.10% 6.39%
figures
Others 26.41% 5.21% 15.81%
Revenue Sectors
Marina/Storage Boats sold Servicing/Maintenance
Equipment Engine Others
3. Enter:
1. Enter: 16% 7%
Odyssea
Ocean Blue JV 6%
7 % + 6% + 40%
7%
16% 40% 53% Market presence
2. Enter:
Mahindra Marine 15%
Engines
7 % + 6% 4. Enter:
13% Market presence Odyssea Services
7%+ 6 % + 40% + 15%
~70% Market presence
1. Marina Capacity: Estimation >
No. of
Company Projects Status Locations Capacity
Under
Blue Ocean 1 Const. Cochin 50
15 Planned Maharashtra 700 ? Blue Ocean Aquasil H2O Goa Yacht Heaven
Goa 15 Projects 3 Projects 3 Projects 1 Project
Kerela
Tamil Nadu Others ?
Orissa
Chhattisgarh
Gujarat
H2O, Rajiv Capacity: Projection India
Somani 1 Built Goa 11 3 -4 Years under scenarios
1 Planned Goa 50?
1 Planned Mumbai 50?
Aquasil 1 Planned Goa 50?
Good Medium Low
1 Planned Chennai 50? Capacity (No. Projects)
1 Planned Kochi 50?
Goa Yacht Haven
1200 (20-30) 600 (8-10) 300 (4-5)
Pvt Ltd, 1 Planned Goa 300
Umaji V
Chowgule
Kochi, Bolgatty Marina
Total Planned 1300 Awarded to Gulf Marinas. The Indian arm is Ocean
Blue Marinas (49% partners of M&M).
Sujoy Chahal-
Another Opinion 8 Estimates India 800?
MIBS, Marina
Source:http://www.marinebusiness-
world.com/index.cfm?nid=45585, IBI News
Source:http://IBI News.com
Marina Segment: Revenues >
Calculation:
As shown before ‘ Ocean
Blue Wave’
Investment
450 Crore 50- 75% Market share
estimated in Indian
Marina segment
@ 1300 berth
capacity
45 Crores Return @ 10% Calculation:
A Marina returns its
A 300 Berth Marina Investment over a period of
Usually costs, 100 10-20 years.
Crore and break Assuming median value of
evens in 10-20 15 Years to break even
gives 8 % return.
years.1 16 Crores PPP Partnership will
US$ 25000-30000 sweeten up the deals.
cost per slip. 2
Earning@ 75% market share
& 51% equity.
2. Engines: OutBoard Engine Motors Market> Potential & Revenues
Indian Export:
Only
US$18000 @ 50% Market share
Both Export & 66% & 33%
opportunity & 30 Crores Revenues from
Domestic Domestic & Export
opportunity markets
Boat Market: Factors affecting>
Per Capita Water Area 2
available per urban 1
coastal resident.
3 4
Marina/ Coastal Sea Experience
Infrastructure
3. Total Recreational Boating Retail Market >
120000
Imports in US$
Imported recreational boats
100000 market to reach 400 Crores
by 2012.
80000
Using a simple forecast based
on Import figures for
60000
Recreational & leisure boats
40000 in India.
We calculated a CAGR : 40%
20000 (3 Years) Based on the 2008
figure of 140 crore we get
0
400 crores by 2012.
2002 2003 2004 2005 2006 2007 2008 2012 E
Domestic market targets of 300 boats by 2012 is feasible at ASV of INR 25 Lakhs.
Total revenues from Home markets could then be around INR 75 crores.
Defence markets- Coast Guards (1073 Cr), Marine Police (500 Cr) can bring in
occasional additional large orders of that can amount to additional revenues.
100
80
60 54
42 40 37 35
40 31 29
19 15
20 14
0
Larson Beneteau Regal 2565 Regal 2520 Bayliner 265 Cobalt 232 Cobalt 220 Cobalt 222 Sea-Doo Mahindra Sea-Doo
Cabrio 350 Window Cruiser Islandia Odyssea 22 Challenger
Express
200 182
MO 22 and MO 33 are among
180
27-36 feet segment the cheapest in it
160
Price (Rs Lakhs)
140
120 Other players have already
100 made huge dealer network and
80 67.5
55
advertisement campaigns
60 50
40
20 Stiffer competition in 22 feet
0 category
Meridian Bayliner 300 Cruiser Mahindra Odyssea Silvercraft SC34
33
> Export Market Targets
USA and Canada: Big market for motorboats for
younger crowd. High level of competition. So low
cost advantage will sell huge.
Netherlands: Numerous but small Italy: Very low tax on pleasure boating. Best
waterways. Huge market ideal sale is for 32- sale is from 20-40 feet boats
36 feet
Motor Boating Retail Market > Export Market Potential
• Outboard Motor Boat Sales in US: 150,000 Units; US$ is a 33 Billion
• China is one of the leading exporters today of Yachts including the larger ones
• Taiwan which also started with smaller boats did well initially to supply in export markets.
• The lower boat segment is relatively more price conscious hence a definite market for Low
cost exports.
Boat Business Price- Low Cost Technology & Design Brand Domestic
Inputs labor expertise Markets
India Yes (India can Yes (As shown in small cars No Introductory
leverage on Indian export- India has done
working in Boating better due to its relatively
Industry in Gulf better availability of
countries engineering talent
China Yes No No Maturity
12-30
• Of the total available boats 6-12 Mts Mts >30 Mts
in 6-12 mts segment Till 2000 9338 57.15% 10083 47.00% 531 37.00%
availability has decreased After 2000 7001 42.85% 11368 53.00% 904 63.00%
from 57% to 42% While
availability has increased Used 14538 93.13% 18435 90.11% 289 20.76%
other segments New 1073 6.87% 2024 9.89% 1103 79.24%
17000 250000
• The new boats sold in US in 200000
12000
Small and Large segments
7000 150000
has also decreased over the 1980 2007 1980 2007
years.
Positioning Matrix for all Boat brands >
Scouting for partners- Analysis of other brands: Strategic Positioning
• Enter into co-branding activity which are suffering from the financial
meltdown and provide them with cost effective manufacturing base in India
and use their network to sell our boats in established market
• India also has an advantage of having High Skilled Indian workers working in
the Gulf Boat building Industry which can be leveraged.
Yacht Brand building: The 8 Point agenda >
Inviting customers to see their Yachts in construction
Focus on Individual
customisation
High Price
Innovation & Imagery &
Creativity story telling
Independent
owned dealerships
& Consultants Selective Luxury Tradition
Distribution Brand and
Experience heritage
Stay in touch with the
customer in a segment
where repeat business Superior Superior
will drive growth Service Quality
Exclusive
communication