BCG IOCL Brochure

Charting a new

DISHA for the Indian Lubricants industry

Foreword by

Chairman

At the outset, I would like to extend my heartiest congratulations to the team at IOCL Lubricants for establishing and continuously aiming to strengthen its No. 1 position in a competitive, fast growing lubricants market in India. In this context, IOCL’s decision to holistically redefine its Route-to-Market strategy to align with the evolving dynamics of the industry and thereby, further strengthening its market leadership is a step forward in the right direction and certainly merits applaud.

At BCG, we have unparalleled global expertise and thought leadership in the lubricants industry as well as in large scale Route-to-Market transformation.

BCG is committed to the success of IOCL, and I will ensure that our foremost global experts are available to help IOCL achieve its ambitions.

Yours sincerely, Hans-Paul Buerkner Chairman, BCG Worldwide

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We are the right partner for your success

WE HAVE UNPARALLELED GLOBAL EXPERTISE AND THOUGHT LEADERSHIP IN THE LUBRICANTS INDUSTRY

WE HAVE STATE-OF-THE-ART TOOLS, RESOURCES AND BATTLE-TESTED FRAMEWORKS

We have done 50+ case assignments in lubricants in the last 5 years and can provide insights into global best practices of key industry peers.

We will leverage our extensive set of proprietary tools and frameworks such as profit pools framework, acquisition target screening assessment, GeoAnalytics, etc., and our deep functional and industry expertise to work with you in an accelerated fashion.

“Put simply, BCG is a world leader in Route-to-Market transformation.”

- Vaishali Rastogi

RECOGNIZED AS THE LEADERS IN GO-TO-MARKET AND CHANGE MANAGEMENT STRATEGY

WE HAVE A COLLABORATIVE WORKING STYLE TO ENSURE THE OUTPUT WILL BE EMBEDDED IN YOUR ORGANIZATION

We have done 50+ case assignments in lubricants in the last 5 years and can provide insights into global best practices of key industry peers.

Our focus will be on ownership and enablement of the IOCL team during the course of the project. A world-class senior team comprise of a pool of dedicated and experienced experts is committed and ready to support you.

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Our Core Team

....about supporting you in achieving your Ambition

for IOCL is passionate....

Vaishali Rastogi

Paul Duerloo

Senior Partner and Director BCG Head – South East Asia

Partner and Managing Director Global Topic Leader – Oil and Gas Retail

Lead Partner

Lead Partner

Abheek Singhi Senior Partner and Managing Director APAC Head – Consumer and Retail Practice

Giuseppe Falco Senior Partner and Managing Director BCG CEO – Italy, Greece, Turkey Global Topic Leader – Oil and Gas Downstream

1. Strengthen Market Leadership

Lead Partner Alan Thomson Senior Partner and Managing Director Global Leader – Energy Practice

Rahool Panandiker Partner and Director India Topic Leader – Oil and Gas Downstream

Amitabh Mall

Partner and Director Global Topic Leader – GTM in Rapidly Developing Economies

Kunal Rana

Principal Core member - Consumer Goods and Retail

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Kaustav Mukherjee Senior Partner and Managing Director Head – BCG India Energy Practice

2. Step jump in profitability 3. Enhance the share of synthetics in overall portfolio

Vikram Bhalla

Senior Partner and Managing Director Global Topic Leader - People and Organization

Anirban Mukherjee

India Topic Expert – Oil and Gas

Brij Vashisth

4. Position SERVO as a complete lubrication solution provider and a brand of choice across customer segments

5. Pioneer innovation and technological advancement across the lubricants value chain

Project Leader India Topic Expert – Oil and Gas

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IOCL needs to overcome an imminent threat:

Arrest further decline in market share arising with increased competition from new challengers Indian Lubricant market share

Incumbents losing market share... “With increased competition and new players entering the play, the risk for further market share loss is again real.�

2010

2016

35%

30%

20%

15%

18%

12%

12%

12%

15%

31%

- Kaustav Mukherjee

....to new challengers

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Others

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6 megatrends likely to impact lubricants space

Concentrated Industrial Hubs emerging

Demographic shifts

6.

~3X growth in middle class population

1.

Maturing transport landscape

Industrialization

Consumer Trends

5.

Mega Trends in India

Urbanization 600 geographically disparate urban centers to drive demand by 2021

85% of commercial vehicle demand still with small fleets

Urbanization

Transportation

2.

4.

Evolving Rural

Digital Trends

3.

Evolving rural customers

Internet penetration 3X growth in internet penetration

“Evolving consumer preferences and purchase drivers present a very real opportunity for IOCL to become the brand of choice across customer segments through customized targeted strategies.� – Abheek Singhi

2.6X growth in connected rural customers by 2020

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Our framework for a holistic redesign of IOCL’s RTM strategy

IOCL Lubes 'Route-To-Market' Strategy

Market strategy

1.

2.

Industry canvas & positioning

Market segmentation & geographic presence

Value proposition

Go-to-market

3. Product portfolio

6.

CRM

4. Pricing

7.

Channel management

5. Brand promotion

8.

Sales promotion

9.

Cost of sales

10. Sales & service excellence Order &

11. inventory

management

“Many functional elements need to come together to make the IOCL journey successful: BCG will bring its depth of functional expertise and experience from across the world.”

– Rahool Pai Panandiker

Enablers

12. HR transformation

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& 13. Rewards recognition

Technology

Resource

14. transformation 15. utilization

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BCG Approach: Mobilize organization for implementation, while designing the strategy and roadmap

Baselining and diagnostic

Issue identification

Benchmarking

Pilot rollout

Initiative Designing

Pilot Implementation

PMO Design

Roadmap design

Quick win rollout

Nationwide rollout

Capability Development

Implementation

Project Management

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We have an arsenal of tools, experts, and capabilities to support every element in IOCL’s scope of work

We bring a comprehensive understanding of consumers and proven expertise in digital, analytics, and technology

CCCI Center for Customer & Consumer Insight

Gamma Advanced Analytics solutions for clients facing high-impact business issues

Dedicated research center in India covering macro economic/consumer trends

Digital Ventures Experienced technical resource of solution architects and developers

Proprietary Data & Tools Supports Advanced Analytics GTM (175 proprietary data/tools)

“We have developed fieldproven frameworks and superior tools working with lubricant manufacturers and FMCG retailers throughout the world. “ – Paul Duerloo

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Technology Advantage TA tools & benchmarks and Advanced Analytics tools & platforms

Advanced Analytics 200 deeply skilled analytics professionals team of data scientists for complex/big data analytics

Platinion Implementation of complex application systems and architecture components

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We will set up and institutionalize real tools at IOCL....

y

1

Create Awareness Building awareness and understanding to ensure seamless alignment

En

Sponsorship, Governance & PMO

IOCL campaigns

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IOCL Sales Officer Learning App

er s Lead led

Executional

n it i a

Coverage: Covers all the internal cohorts as well as external partners

ab

IOCL Distributor Mgmt App

Ce rt

IOCL Project Mgmt App

....such as an “IOCL Sales & Marketing Academy”

IOCL graphic novel

IOCL Sales & Marketing Academy

Objective: Enhancing retail business effectiveness via sustained capability building Approach: High impact, practical interventions, combined with on-the-job learning

Build 2 Capabilities Building skill sets & techniques critical to retail business transformation

Sales & Marketing Academy

Embed Culture Adapting behaviors to drive culture for change

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Fortify Enablers Driving high performance to deliver sustainable results

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Only 30% of change programs SUCCEED!....

....while BCG has 100% SUCCESS in change management programs

The Change Delta Governance and PMO

Enabled leaders

• Clear program structure, vision, superior platform, objectives, mandates, fact base and roll-out timing ce rt ai nt y

al ec ut io n Ex

Governance and PMO

• Alignment of leaders is palpable, visible and maintained—”One voice”

s er ad le

• Value-added PMO provides essential support structure to the organization

• Leaders able to effectively sponsor and manage the change

ed bl

• Key teams led by ambitious, talented, and capable leaders

• Leaders deeply accountable for success

a En

• Clear governance structure with explicit roles, processes and decision rights

• C-Suite leading from the top

Engaged organization “The emphasis is on the practical: the Change Delta approach helps sharpen the focus on the change activities that matter most and gives business leaders the tools they need to ensure success.”

– Vikram Bhalla

Executional certainty • Transparency across milestones and outcomes

• Employees at every level understand the change and are equipped to manage it

• Rigorous methodologies and tools, testing of initiatives

• Critical stakeholders are deeply engaged

• Forward-looking view on emerging issues

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Engaged organization

• Essential behaviors are reinforced

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We have successfully delivered similar assignments in the lubricant industry across the globe

Russia

Finland United Kingdom

Spain

U.S

China

Italy UAE

Mexico

Japan

India

Brazil

“We have done 50+ case assignments in lubricants in the last 5 years.”

– Giuseppe Falco

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We have worked with leading oil and gas and downstream companies....e

....and are regarded as a thought leader in FMCG globally and in Indiap

We work with 10 of the 15 largest Oil companies around the globe....

Thought leadership through publications on cutting-edge topics

Close participation in industry-wide topics and policy making

...and with 11 of the top 15 Oil Downstream companies in the world

We have worked with 19 of the top 25 consumer product companies in the world over the past five years

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Why BCG?

We have unparalleled global expertise and thought leadership in the lubricants industry with 50+ case assignments in the last 5 years

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Currently, we are managing change initiatives worth over $30 billion

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We have a collaborative working style to ensure the output is embedded in your organization

Our global leadership team is deeply committed to IOCL

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We are committed

to your success BCG Leadership Hans-Paul Buerkner Chairman, BCG

Executing team Abheek Singhi Lead Partner APAC Head - Consumer & Retail Practice

Alan Thomson Global Leader – Energy Practice

Neeraj Aggarwal CEO, BCG India

Kaustav Mukherjee

Head - Energy Practice in India

Vaishali Rastogi Lead Partner BCG Head, South East Asia Turkey Global Topic Leader – Oil and Gas Downstream

Paul Duerloo Lead Partner

Global Topic Leader – Oil and Gas Retail

Executing team

Topic Experts Arindam Bhattacharya

Anirban Mukherjee India Topic Expert – Oil and Gas

Core member – Industrial Goods and Operations

Ravi Srivastava Kunal Rana Core member - Consumer Goods and Retail

Brij Vashisth

India topic expert - Oil & Gas

APAC Head - Operations

Giuseppe Falco Global topic leader - Oil & Gas Downstream

Dr. Rahool Pai Panandiker

Vikram Bhalla

India topic leader - Oil & Gas Downstream

Global topic leader – People and Organization

Amitabh Mall

Global Topic Leader – GTM in Rapidly Developing Economies

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Conclusion

I am deeply excited by this opportunity to work with IOCL, India’s flagship National Oil Company, on its Route-to-Market strategy for its lubricants business. BCG closely understands the project context and its criticality in IOCL’s overall business context. I am confident that you will find this understanding invaluable for the success of the project.

We have worked on similar large and critical projects in the past. We will have our partners and senior advisors who understand the challenges of such projects by your side. We have an arsenal of tools and resources to support every element in IOCL’s scope of work. At BCG, we give extreme importance to building capabilities and leaders. Our focus will be on ownership and enablement of the IOCL team as we set out together to achieve the targets of this mega project.

Yours sincerely, Alan Thomson BCG Global Leader – Energy Practice

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