RECAP
Mapping The Road Ahead
2020
- $10B in revenue
- Sources of Revenue:
- 72% MFG & Driveline
- 18% ICE
- 10% Skyjack
2014
- Skyjack
- New plants in China
- MFG
- Acquisition of Kalyani Forge Ltd.
2015
- Expected returns from Skyjack plants & acquisitions
- Approx. $5B in revenue
2013
- Skyjack
- New plants in:
- Brazil
- Extension in Hungary
- India
- MFG
- Acquisition of Omax Auto Ltd.
- Skyjack
- Establish three geographically diverse plants
- ICE
- Utilize ICE internally for several plants
- Continue operations within China & North Carolina
- MFG
- Acquire Omax Autos Ltd
- Acquire Kalyani Forges Ltd
- Estimated sales of $10b by 2020
- Estimated $1b operating profits
Projections
Skyjack
Skyjack
- Significant growth from three new plants:
- Brazil, India, China
- 10% of sales by 2020
MFG
&
Driveline
MFG & Driveline
- Less dependance on North America
- $3.7b sales by 2015
- $7.2b by 2020
- OEM's of India & China
ICE
ICE
- ICE will grow with the renewable energy industry
- Internal:
- Using ICE in Linamar plants
- External:
- New plants in US & China
- 18% of sales by 2020
LINAMAR USES THE POWER OF THE SUN
ICE Challange: Linamar
Internal Board: B
Group: 52
Graeme Falco
Jeremy Kwong
Markus Venturato
Nikita Balachandar
Victoria Craig
Yasin Elrofaie
Financials: Acquisition
"... an industry where suppliers such as Linamar produce finished engines for cost-conscious auto makers"
– Linda Hasenfratz
- VA = Value of Linamar (a levered firm)
- = $1,066,373,966
- VB = Value of OmaxAuto Limited
- = $ 87,952,164.51
- VC = Value of Kalyani Forge Limited
- = $ 13,093,863.04
- VABC =$2,537,330,287
Organizational Structure & Human Resources
- Linamar meets all the conditions to run a Matrix structure
- Matrix Caveat
- Obtain appropriate talent
- Hire campus reps
- ie. Co-op & Internship
- Continue to develop Linamar Recruitment Facility
- Succession Program
- 100% acquisition promotes control and collaboration of strengths + experience
- Synergy = $1,369,910,293 (excluding growth)
Opportunities
in Automotive
- India is expected to grow 45.9% by 2015
- $66.1b
- Linamar currently has limited operations within India
MFG & Powerdrive
ICE
Skyjack
Kaylani Forge Ltd.
- Vertical integration
- Producing forged engines and transmission components
- Controlling the supply chain
- Projected acquisition: 2014
Industrial
Commercial
Energy
- Internal uses of ICE technologies
- Improving internal efficiencies
- Capitalizing on government grants & rebates
- Reduced operating expenses
Skyjack: Regional Focus
- Promoting a green operations, values, and image
- Establish plants in high growth regions for:
- Construction
- Commercial real estate
- 7 strategically located plants across India
- Offers diversity to Linamar's manufacturing
- Produces a variety of components
- Two, three and four wheel vehicles (LV,MV,HV)
- Horizontal integration
- Strong strategic alliance with OEM's
- ie. Honda, Nissan, Yamaha, TaTa Motors
- Projected acquisition: 2013
ICE: External
- Linamar Global Expansions:
- North Carolina, USA
- Tianjin, China
- Significant demand for renewable energy
- ICE will continue to grow with demand
Omax Autos Ltd