MTI Consulting

India’s Indira Institute has recognized the contribution of MTI Consulting and their CEO, Hilmy Cader for their outstanding contribution to Strategy Consulting by conferring upon them the Global Achievers Award. The award will be given away at a grand ceremony to be held on Sunday, September 24, 2006 at the Indira Auditorium in Pune.

Related to the series of events will be the judging of the business school debate competition with over 800 graduates taking part – at which the MTI CEO will preside as judge, followed by the international management film festival in Mumbai.

MTI Consulting started off as a single country – single person operation in 1997 and has grown into a network of eight fully-owned and managed operations, successfully completing over 250 client-specific projects, across 29 countries in 5 continents, across a wide range of industries and categories.

In selecting the recipient of the award, Indira Institute considered MTI’s research-based models such MTI’s 8S for Strategic planning, Re-Structuring based on Re-Strategizing, Brand Biz and BrandCom – all of which have been successfully used by multi-national and local clients.

India has seen a seachange, smashing barriers and actively seeking foreign investment; many companies still see it as a difficult market. According to Mr. Subash Bidare, Country Manager, MTI Consulting India, who will be in Colombo to help Sri Lankan Companies go across the border, understanding the potential of the Indian market, envisaging and developing a Market Entry Strategy and implementing these strategies are the three key steps in making a successful entry into India.

India's 854bn USD economy, the fifth largest in the world, is currently growing at 8% a year - a level which Goldman Sachs predicts will be sustained until 2020. At this rate it will likely overtake the UK, Italian and French economies by 2017, and by 2042 will overtake the US to become the world's second largest economy behind China. And it is not just India's GDP which is booming, the Indian stock market has risen by nearly 40% over the past year, while Indian companies are seeing annual profit growth rates of more than 30% and offering high prospects for growth in practically all areas of business.

Mr. Subash Bidare, Country Manager, MTI Consulting in India, said, "entering India's marketplace requires a well-designed plan backed by serious thought and careful research. For those who take the time and look to India as an opportunity for long-term growth and not short-term profit, the trip will be well worth the effort."

India presents a vast potential for overseas investment and is actively encouraging the entrance of foreign players into the market. No business aspiring to be a global player can ignore this country, which is expected to become one of the top three emerging economies.

Recognizing the potential of the Indian market, MTI Consulting established its Indian operation in 2005 and has helped many Asian corporates in entering the Indian market. MTI can assist Sri Lankan companies in Opportunity assessment, Market Entry strategy, and identification of Joint Venture partners, Channel partners and Franchisees in India.

MTI Consulting is an international business strategy and marketing consulting firm with offices in India, Pakistan, Bangladesh, Sri Lanka, Bahrain, Dubai, UK, Austria and Mexico. MTI has worked on over 275 client-specific assignments across 33 countries. MTI's consulting solutions include Strategic Planning, Re-Structuring, Marketing, Brand Management and Sourcing, Joint Venture and Partner Identification, Sales and Channel Management, and Service Quality.

Photo: Mr. Subash Bidare, Country Manager and Ms. Vidul Sharma, Business Analyst, MTI Consulting (India)
 

Birla, Modi, Marico, Satya Paul, Britannia

MTI's India strategy of enabling Indian Companies with their internationalizing strategy is beginning to show results, with leading Indian Conglomerates and Industry Majors seeking MTI advisory on their internationalization strategy and process.

Aditya Birla Group subsidiary MG Fashions have used MTI successfully with their Middle East Market Expansion, with one project concluded and second in progress. Marico, the Indian Personal Care Major, have just completed their 3rd assignment on international market attractive assessment and about to sign the 4th, while the Satya Paul, Modi and Britannia assignments covering different parts of Europe, Asia and Middle East, are in progress.

In the Indian Sub-Continent, MTI has its own operations in India, Pakistan, Sri Lanka and Bangladesh, in addition to the network in Middle East and South East Asia.

Photo: Mr. Subash Bidare, Country Manager MTI Consulting (India)
 

According to Goldman Sachs “India will be the third largest economy, after the US and China by 2050.” India is also one of the few markets in the world which offers high prospects for growth and earning potential in practically all areas of business. Soaring economic growth and an increasingly affluent middle class, with growing aspirations and a craving for newer consumer experiences, make India an attractive market for domestic and international players.

India accounts for 20% of the world’s consumption. India has the second largest population & also the largest consuming class in the world. This consuming class is very upbeat about the outlook for the coming year.

India is inviting FDI in all most all sectors of the economy. This is the right time for companies to invest in India. India has been rated a better investment destination on eight investment parameters than Russia, China, Malaysia, Thailand, Brazil, Australia, UK, France and Singapore in a recent survey by Federation of Indian Chambers of Commerce & Industry (FICCI) on the India Perceptions, by 135 MNCs present in India. Profitability of MNCs in the Indian markets is a major attraction for investing in the country. About 62 per cent respondents reported making profit in their Indian operations while 9 per cent are breaking even.

India has been a successful market for the national and international companies. Some of the top fortune 500 companies who are leveraging on India’s strengths for growth and expansion cross industry cross segments are:- in food and beverages (e.g. Coca-Cola, PepsiCo), consumer durables (e.g. Samsung, Philips, LG, Canon, Electrolux), automotives (e.g. General Motors, Ford, Toyota, Bosch, Visteon), computers and software services (e.g. IBM, Sun, Honeywell), pharmaceuticals (e.g. GSK, Pfizer), consumer products (e.g. Unilever), financial services (e.g. Citigroup, HSBC), insurance (e.g. Allianz, Prudential), engineering (Siemens, ABB, Alstom, Bombardier), logistics (e.g. FedEx) and petrochemicals and chemicals (e.g. BP, Shell, BASF).
 

India accounts for 20% of the world’s consumption. India has the second largest population & also the largest consuming class in the world. This consuming class is very upbeat about the outlook for the coming year. A recent AC Neilson global survey on consumer confidence puts India ahead of the pack of 42 countries covered in the research. This confidence is supported by rising disposable income, willingness to spend, predisposition towards global brands & global consumption habits influenced by media, connectivity, communication & international travel. Young adults in India are ambitious, hard working and have money to spend on their lifestyle – they are brand-conscious and internationally aware of what their counterparts in the West are wearing and buying; concludes a recent survey.

India is inviting FDI in all most all sectors of the economy. This is the right time for companies to invest in India. India has been rated a better investment destination on eight investment parameters than Russia, China, Malaysia, Thailand, Brazil, Australia, UK, France and Singapore in a recent survey by Federation of Indian Chambers of Commerce & Industry (FICCI) on the India Perceptions, by 135 MNCs present in India. Profitability of MNCs in the Indian markets is a major attraction for investing in the country. About 62 per cent respondents reported making profit in their Indian operations while 9 per cent are breaking even.

Despite a steady and growing market size, abundant availability of natural resources for manufacturing, cost attractiveness, reliable business community, high levels of intellectual manpower, engineering expertise and a reform process that has brought about impressive economic liberalization, the Indian market is largely untapped and provides a huge potential for international players to foray. At the same time, the market is evolving at a rapid pace- in terms of consumers, investment opportunities and as more and more companies are trying to grab the chunk of the Indian advantage, the competition in each sector is increasing.

We believe that the organizations who will realize the potential of the opportunity called “India” and will be able to capitalize on it, will flourish in the long run. Sooner they realize the better profits they’ll reap.
 

India has ranked next only to China in registering high GDP growth. The Indian manufacturing output has been increasing year over year and the composites industry has been growing at about 20% in the last couple of years. The need for composites is increasing day by day and it is predicted that the composites market will grow by 4 times the current consumption by the year 2010. This report discusses in detail the large need for composites and the many new applications that will emerge. The presence of many multinationals together with a growing need for applications will ensure a steady market growth for the composites in India.

Indeed, Southern India is different from the north. Whether it be the manufacturing hub of Chennai in Tamil Nadu, or the high tech city of Bangalore in Karnataka, or the famous education state of Kerala (world re-known for its amazing near 100 per cent literacy levels) the south of India does stand out for its economic dynamism and openness.

Chennai is the capital of Tamil Nadu and thought by many to be the commercial capital of Southern India. Chennai is known as the Detroit of Asia due to its automotive facilities, but is also building a strong telecommunications presence thanks to Nokia (there are direct flights between Helsinki and Chennai on Finnair), and it also had a busy port and related transport facilities in road and rail.

Chennai and its economic importance to the South, and indeed to the rest of India’s growing economy: “Everything’s hot in Southern India – including the temperature! Our patch extends from Chennai to Bangalore and even into Kerala. The diversity of the region is bringing in a wealth of opportunity, Chennai’s strength in manufacturing is well known but it is building up its high tech capability, Bangalore is well known as the home of computer icons Infosys and Wipro and aviation, whilst Kerala is strong in education and medical services – including medical tourism.”

These are some of the industries that are at the forefront today, but there are many more industries that are poised for growth in the near future. All this is part of the great opportunity that is being put forth by India.

India provides a booming opportunity for the national and international players to expand and be part of a booming economy and to take advantage of the rising tide. India provides companies with an opportunity to expand their operations, grow their top line & bottom line & also diversify the business risk through a multi country presence
 

Royal Challengers Bangalore, the runners-up of the 2009 edition of Indian Premier League (IPL) have emerged as the strongest IPL brand. UK’s Intangible Business, a world leading brand valuation company, in collaboration with MTI Consulting, a fast growing international strategy consultancy, for the second successive year have released the IPL Brand Value Scoreboard 2010– a pioneering valuation aimed at measuring the strengths of the 8 IPL Franchises .

Royal Challengers Bangalore, with a brand value of $37.8 mn tops the Brand Value Table, very closely followed by Kolkata Knight Riders ($37.7 mn), Delhi Daredevils ($36 mn), Chennai Super Kings ($36 mn) and Mukesh Ambani’s Mumbai Indians at $33 mn. Despite winning last year’s IPL, Hyderabad Deccan Chargers are sixth on the Brand Value Table with a brand value pegged at $32 mn followed by Kings XI Punjab ($32 mn). The winners of the first edition of IPL, Rajasthan Royals are at the bottom of the table with a value of $28 mn. The Royal Challengers have moved up 5 places when compared to last year, to the top spot on the Brand Value Table.

Richard Yoxon, International Director, Intangible Business, believes that "The most valuable franchise brands have made the most progress off the field of play showing brand building is not just about winning, it’s about capturing the hearts, minds and wallets of a passionate Indian public."

Further explaining the rationale and methodology, the CEO of MTI Consulting Hilmy Cader says “brand values are a reflection of a brand’s ability to generate future income. It is a forward looking study that uses historic performance and future trends to predict future activity. Last years’ historical sales data was gathered for each franchise. To determine the strength of the brands, each brand was scored on three measures of brand strength, owner equity, awareness and perception. These attributes are a mixture of hard measures and soft measures of brand strength sourced from publically available information and from a qualitative panel of cricket fans from each test playing nation. Using this data, each brand was then valued using the relief-from-royalty methodology"

The IPL has the foundations to remain as the premier domestic Twenty20 tournament due to the passion of the Indian public for cricket and a population that outstrips all the other test nations combined. While the playing squads would change after the third edition of the tournament and the success could fluctuate over the years, the brand is the constant that unites supporters and is ultimately responsible for driving the long-term commercial sustainability and success of the IPL franchises.

“Revenues generated from last year’s tournament surpassed our expectations and go some way towards justifying the franchise fees that at the outset appeared high. Fees for the two new franchises in excess of $300m show how far the IPL has progressed in a short space of time.” says Hilmy Cader, CEO of MTI Consulting.

For further information on the IPL Brand Valuation please contact MTI Consulting on: (91) 98406 31376 / (973) 3962 3660

Madura Garments, part of the Aditya Vikram Birla Group, is a US$ 6.5 bn conglomerate with operations in 20 countries that is a major player across the value chain in the apparel industry. It has operations ranging from wood pulp, fiber, yarn and fabric to apparels. Madura Garments is a market leader in India with a turnover of over US$ 100 mn, which is growing at a clipping rate of 20% p.a.

Madura Garments has perpetual rights for the manufacture and sale of international brands like Louis Philippe, Van Heusen, Allen Solly, Allen Solly Women's Wear, Peter England, Peter England – Elements, Byford, and SF Jeans. The company also contracts manufacturers for global brands like Marks & Spencer's, Tommy Hilfiger, Polo, and Ralph Lauren among others.

The credibility of Madura Garments is strengthened by its state-of-the-art design studio with an international team headed by the well known European designer David Platon; and its investments in R&D to retain technological leadership; and in the talent under the experienced leadership of Hemachandra Zaveri.

Madura Garment’s strategy is to consolidate and build its brands into mega brands, through various product categories, collections and retail expansion in India as well as overseas. The company has already established its brands at chain stores such as Lulu Center and K M Trading in Dubai. It also has exclusive retail stores – “Planet Fashion” at Karama Center, Dubai and Yateem Center, Bahrain. It has been exporting products since 1992 to the UAE and its brands are available in most countries in the Gulf.

Madura Garments, in line with its strategy to expand its channels and increase its brands’ footprints in the region approached MTI Consulting for this purpose. MTI Consulting started with identifying potential markets within the MESA region including Bahrain, Dubai, Saudi Arabia, Qatar, Iran, Kuwait, Syria, Egypt, among others where there existed target consumers for the brands of Madura Garments. The next step was mapping these markets for potential brand placements and tie-ups for retailing in the Gulf region.

Once identified, the potential strategic partners were met with personally by MTI’s regional consultants who presented Madura Garments’ credentials to all the identified prospects. Once the initial interest was identified, MTI initiated detailed discussions to identify the right fit option for Madura Garments between an Exclusive Brand Outlet (for brands like Louis Philippe and Van Heusen) and Planet Fashion (multi-brand outlet) based on the potential of the locations; the footfall catchment-area for the potential store; the target consumers; potential competition; and the product mix options.

Based on detailed discussions and background checks, MTI rated the best fit amongst the interested parties and Madura Garment’s requirements to create a priority list for each party in a market. MTI Consulting then facilitated the tie-up discussions with Madura Garments to finalize the strategic alliances.
 

India’s diversified conglomerate The Modi Group is the latest of the Indian Companies to sign up MTI Consulting, this time for an international consulting assignment in the Health and Beauty Segment. MTI’s Project Consultant Ms. Vidul Sharma and CEO Hilmy Cader led the MTI delegation to Delhi this week.

Established in 1932, the Modi Group has interests in the sugar, consumer goods, pharmaceuticals, cosmetics, sponge, iron and steel, engineering and power industries. The group has collaborations with global companies such as Mundipharma AG (Switzerland), Revlon (USA), Lurgi GmbH (Germany), SBEC Systems (UK), Volvo A.B. (Sweden), Morgardshammar A.B. (Sweden), Technical Investments (UK) and Air Liquid (France).

MTI has successfully completed an international brand market entry assignment for the Aditya Vikram Birla Group subsidary Madura Garments, that owns Louis Philippe, Allen Solly, Van Heusen, Peter England and SF Jeans. MTI is currently working on a similar assignment with the Indian Brand house Genesis Colours, which handles Satyapaul, Deepika Gehani, Shobha De, Tie Bar, E Factor and Samsaara brands.

MTI Consulting is an international business strategy and marketing consulting firm with offices in India, Pakistan, Bangladesh, Sri Lanka, Bahrain, Dubai, UK, Austria and Mexico. MTI has worked on over 250 client-specific assignments across 30 countries in five continents.

Recognizing the potential of the Indian market, MTI Consulting established its India operations in 2005 and has since helped many corporates to enter and expand in the Asian market.

Photo : MTI’s Project Consultant Ms. Vidul Sharma – leading the MTI Project Team for the Delhi based Modi Group.
 

The prestigious and popular Indian English Daily The Hindu , recently interviewed in India, the international marketing / management consultant and Bahrain-based CEO Of MTI Consulting Hilmy Cader . The full page in depth interview covered a wide range of topics, from perception of Indian Brands abroad to marketing emergence in West Asia to MTI's concept of Venture Marketing.

Here are some extracts from the interview with, as reproduced from "The Hindu" and written by Sankar Radhakrishnan

"The people of West Asia are realizing that a brand is not just putting a name on a product, but that they've got to invest in it. They've got to look at advertising and promotion as an investment rather than as expenditure. That awareness is increasing. And for us in the consulting business, there lies tremendous opportunity."

Say ` West Asia ', or to use a more popular term, `Gulf', and the immediate picture that comes to mind is oil, deserts and perhaps lots of Indians, but not a marketing consultancy firm. So, it's a bit of a surprise to hear of MTI Consulting, a global marketing consulting and training firm based in Bahrain .

What's more interesting about MTI and Hilmy Cader , its founder and Managing Director, is that in just a few years they developed a strategic marketing tool that's won them words of praise from none less than Philip Kotler, the guru of all marketing gurus.

Cader says he would like to "take marketing consulting to the next level, to something we call `venture marketing' - which is to say, ok, we believe in our marketing consulting solutions, so forget about the fixed fees, let's work on performance." MTI's clients come from 20 countries around the world, and include the likes of Agribrands International, subsidiaries of DuPont and SriLankan improving the bottom line".

Cader, who was in India recently on a mission for SriLankan Airlines and also to look at the possibility of working with some Indian consultants, spoke to Catalyst on marketing practices in West Asia, Indian brands in the `Gulf' and also on the work of his company.

How high is the level of awareness of marketing in West Asia ?

The whole awareness of marketing is slowly beginning to increase. There are lots of multinational companies setting up base there. So with all the MNCs coming in, the market is getting very competitive. Also, other support services around the core marketing areas are also being set up - things such as research, feasibility studies, advertising, media buying and outdoor. This is a good sign, which means that marketers have access to all those services.

What this also means is that many of the local companies, some of which have had a very high degree of protection, have been challenged.

Of course, some are finding it very difficult to cope, but there are some good local brands that are fighting it out and coming out on top.

If you look at Saudi Arabia , there is a brand called Al Marai, which is a dairy brand (Saudi is one of the driest countries and this brand has one of the largest dairy farms near Riyadh ) and is one of the strongest brands, which even the MNCs have not been able to fight. Unilever and Nestle pulled out of ice-creams last year in West Asia because they couldn't fight the local competition.

In a market such as Oman we have a brand of detergent called Bahar, which has actually taken Ariel head on and has done fairly well. So we are beginning to see some of these local brands coming up.

Is there a conscious effort to build brands in the West Asian region?

Certainly. I don't think it's yet at a stage like in India or the West. But it is changing rapidly. The people of West Asia are realising that a brand is not just putting a name on something, but that they've got to invest in it.

They've got to look at advertising and promotion as an investment rather than as expenditure. So that awareness is increasing.

And for us in the consulting business we see a tremendous opportunity, because there are a lot of small and medium groups who have typically been traders.

They have a brand, but the approach has been more one of trading. They are now saying `we need to build a brand and strengthen it'.

What sort of promotional and advertising strategies do companies in the region look at? Is there a lot of advertising on television?

What we are increasingly seeing is increasing spends on - I wouldn't call it below-the-line - but promotions that are more related to the point of sale. This is because the population is relatively small and lots of shopping malls and restaurants are coming up. All of them are packed in the evening and you find that is what the TV stations call `prime time'. If you look at the number of cars at the mall there is a mismatch between the people there and the people likely to be watching TV.

So the whole concept of experience marketing, in terms of catching the person closer to the point of purchase has relevance. There are lots of companies that are saying it's not worth going on the media because they need, say, $100,000 to stand up and do what they can do with $10,000 in a market of two million people. In which case they have to go to a larger market, they won't need the local media, but the regional or global media to do that. So a lot of it is shifting to the point of purchase.

What is the future of marketing in West Asia ? Which are the more vibrant markets?

Use of marketing is certainly going to increase. The need for that is there. There's more competition coming in and you cannot continue to rely on gut feel.

In terms of sophistication you are talking about Dubai and Lebanon .

But in terms of mass marketing, you are looking at Saudi Arabia , Morocco and Egypt where the opportunities really are from an FMCG point of view.

From a more corporate services point of view, it's Dubai .

What kind of equity do Indian brands have in West Asia ?

I think most of the Indian brands, whether it is Amul or Onida, are there. But I still think they are positioned lower to middle. I feel that in terms of intrinsic quality, the Indian brands are still able to deliver. But what they have to work on is the perception.

So is perception management the main task for Indian brands looking at entering that market?

Yes, perception and positioning. The good news is that you have a product that can live up to much higher expectations.

There is scope for Indian brands in the product area. There is also scope for Indian brands in the service area. Look at advertising, for instance.

You still don't get any Indian ad agencies going all out in the Gulf or anywhere in the world for that matter. Whereas I feel that you have one of the best and most competitive advertising industries in the world here in India .

And I feel that Indians are among the best ad people in the world. But that has been confined to India and hasn't been taken out to the world. So I feel there is a lot that can be done in the service area. There are lots of Indian service brands that haven't gone out and have a lot of scope.