ARGENTINA PARTNERSHIP PROJECT TO GET 70% MARKET SHARE
EVOLUTION & GROWTH
1.
2007. 11 machines in stock.
EVOLUTION & GROWTH
2.
2013. 200 machines in stock.
EVOLUTION & GROWTH
3.
2015. Planning a 7000m² assembly plant.
POTENTIAL GROWTH IN ARGENTINA
4.
IRON GROUP + XCMG 2015.
IRON GROUP 2015.
15% market share. IRON GROUP 2013.
10% market share.
70% market share.
750 machines per year. 500 machines per year.
3000 machines per year.
HOW TO GET 70% MARKET SHARE IN ARGENTINA
5.
XCMG I/E bought 51% shares of IRON GROUP.
XCMG I/E controls IRON GROUP.
XCMG Argentina builds a 20000 m² assembly plant.
We would reduce profit to 10%.
XCMG provides stock to fill distribution network with stock. We would reduce prices 40%. Competitors cannot sale at those prices.
Present market price contains 45% profit.
PROFIT
Sales would rise from USD 30 million
to USD 180 million.
PRICE
XCMG Argentina
sales grow
from 500 machines
to 3000 / year.
EXAMPLE OF COST AND MARKET PRICES 2013
6.
XCMG ZL30G
CFR value
Cost value (CFR + Custom Duties)
USD 32.000
USD 38.400
Sale Price (45% profit)
USD 75.800
Other Brands: Liugong CLG sale price USD 78800
Tiangong ZL30H sale price USD 72900 Caterpillar 928H sale price USD142000
EXAMPLE SALE PRICE IF XCMG I/E CONTROLS IRON
7.
XCMG ZL30G
Actual Sale Price (45 % Profit)
New Sale Price (10 % Profit)
USD 75.800
USD 44.000
70% No other brand could sale at that value
XCMG ARGENTINA gets 70% market share in two years
IRON 2013 500 IRON 2015 750 XCMG 2015 3000 UNITS XCMG Argentina sales rice to 3000 units/year by 2015.
CHANGES WITH XCMG ARGENTINA
8.
IRON LEASING renamed XCMG LEASING
|LEASING The only Control of brand brand to be finances campaign sold is XCMG.
30 machines and cranes
in consignment in each dealer.
by XCMG
of 1% of sales
Add full XCMG lines
(today IRON sell only 30% of XCMG products).
CHANGES WITH XCMG ARGENTINA
9.
Dealer´s net dramatically upgraded thanks to stock.
Latin America Spare Parts Center with XCMG support
adequate financing to customers.
ADVANTAGES OF XCMG ARGENTINA
10.
Four competitive advantages
Full stock
supported by XCMG. This leads to
70% market share SHARE IRON GROUP
XCMG I/E controls XCMG Leasing
to finance customers.
Prices 40% lower than competirors. SHARE XCMG Argentina
Tax and import advantages due to assambly plant.
PRICE OF 51% SHARES
11.
value USD
24 million
Equivalent to
100% of last 12 months´ sales. Equivalent to
XCMG Argentina expected profit for 2015 51% =
How 51% (USD 12 million)
could pay
USD 12 million
90% in QAY cranes. 10% in cash.
PROJECT 2013