Description Instructions for the LTTS Case Synopsis This is how you write a 1-page synopsis*: Main Problem/Question: What is the question/problem that needs to be answered? (NOTE: there are multiple questions/problems in a case BUT you should select ONE and that should guide the rest of your synopsis.) Major Issues: What are the 1-2 major issues as they relate to your selected question/problem? (NOTE: these should link directly to the question/problem that you have identified in #2 above.) What are the relevant strategies proposed in the case? (NOTE: these strategies should link directly to the question/problem that you have identified in #3 above.) Support for #3: Discuss how the readings& videos support your relevant strategies. Recommendations: 1 or 2 recommendations related to the above synopsis including providing some alternative strateg(ies) if you believe this is warranted. Support for #5: How do the readings and videos support your selected recommendations to solve the major problem/question. Your synopsis should be set up with 6 short sections based on the above outline: Use the following headings to guide your synopsis: (1) Major Problem (2) Major Issues (3) Relevant Strategies, (4) Support for #3, (5) Recommendations and (6) Support for #5. There are SIX rubrics that provide a more in-depth description of how to respond to the SIX sections of the case synopsis. Note: the term 'relevant' is critical so don't just list all the strategies that are proposed in the case. Linke the question/problem to the major issues to the relevant strategies and when you do that you will have a story that can answer the case question. The goal is to help you be well prepared for the case discussion in class. Your synopsis should be: One page Single-spaced 1" margins (top, bottom, left and right hand margins) First line on the page should include the following: Title of the case(YOUR first and last name) | e.g., Netflix (Name) Do not include any information except the title and your name on the first line. Avoid leaving extra spaces. If you use the sections headings that I provide, you will not need to put in any blank lines/extra spaces. Finally: There is not just ONE RIGHT ANSWER, but there are wrong answers. Just because a business had implemented one strategy, it does not mean that was the only right strategy direction or that it was even a correct strategic direction to go in. UNFORMATTED ATTACHMENT PREVIEW HBP No. 7924 Quick Case PO ST Should LTTS Charge Forward in India? The Scenario O R In September 2023, Prashant Singh, an investment associate at the hedge fund MMM, received an email from Rahul Khanna, Managing Director at MMM: PY From: Rahul Khanna To: Prashant Singh Re: Looking into LTTS O Hi Prashant. N O T C MMM is evaluating whether to advocate for L&T Technology Services Limited (LTTS) to leverage its eVOLTTS platform (see https://www.ltts.com/industry/transportation/eVOLTTS) by entering the electronic vehicle (EV) segment of the automotive industry. LTTS’s platform enables potential EV manufacturers to build products for the EV market and includes all the major components of EVs, including the battery and battery management, electric motor, charger, and inverter. LTTS could be uniquely positioned for success because it is free of the legacy costs that can keep conventional automobile manufacturers from responding to new opportunities. Please give me your analysis and recommendation for what MMM should do by Friday night. D O Thanks, Rahul Rahul Khanna Managing Director MMM Page 1 of 4 Should LTTS Charge Forward in India? HBR Quick Case As Singh researched this question, he found the following information about the Indian automotive market: First, many customers bought diesel cars to save money, as diesel fuel was subsidized. Although the government had stated plans to ban them soon, this possibility seemed doubtful given the large PO ST established base of vehicles. EV sales in India were forecast to grow from 473,000 units in 2022, 1 or about 2% of the Indian automobile market, 2 to 30% of this market by 2030 with USD $150 billion in revenue. Prospective buyers planned to keep their EVs for five to 10 years. Factors influencing their decisions included an EV’s brand name and its features. Two features that EV buyers apparently focused on were a vehicle’s range—how long could it go before it needed recharging—and how many charging stations they could recharge at. Even though most O R customers would charge their cars at home or at their office, prospective buyers often hesitated to buy EVs because of range anxiety: they worried about running out of charge, unless they saw many charging stations available in daily life. Second, the market for charging EVs was dynamic. The Indian government was offering incentives to PY create a public charging infrastructure. Some manufacturers wanted to customize chargers for their EVs, which added complexity and reduced flexibility to use other charging points. There were independent O charge point operators (CPOs), but they remained unprofitable. Tesla planned to open its supercharger network to other EV car owners, so its projected entry into the C Indian market would increase the number of stations. Reliance BP, a large oil company, intended to establish between 1,400 to 5,500 retail outlets with charging stations by March 2025.3 T Third, Tata Motors had 82% of the Indian EV market. It had launched the Tigor EV, priced at 12.24 lakhs (1 lakh = INR ?1,00,000).4 Tata used inputs like steel, lithium-ion cells, and battery packs, the LandRover, O Jaguar, and Tata brands, and manufacturing facilities from other Tata subsidiaries. N Tata Power helped create a charging infrastructure (with help from Tata Consultancy Services and Tata Elxsi for designing the charging platforms). It had a 50% share of the public charging points (PCPs) and O 40% share in home and fleet charging stations. By September 2022, it had installed 6,500 public chargers. Other current or potential competitors included Mahindra, which entered the market in January 2023.5 It D had 50% and 40% shares in light commercial vehicles and farm equipment and tractors, respectively. By 2027, it expected EVs to make up 20% to 30% of its SUV sales.6 MG Motor India introduced the Comet EV, priced under Rs 10 lakhs (1 lakh = INR ?1,00,000) (USD $1 = INR ?82 approx.). 7 Thirty to 40 additional EVs were scheduled to launch by 2027, including offerings from Volkswagen, Hyundai, Maruti, and possibly Tesla and BYD. Page 2 of 4 Should LTTS Charge Forward in India? HBR Quick Case Finally, most Indian cities had or were building a rail network, besides having bus, train, and taxi networks. Ride sharing services like Uber and Ola were popular, with newer players entering. For travel to further destinations, people preferred trains or airplane services to driving. The government was also building a road network that connected most cities. Additionally, airlines were offering routes at low cost, making Fast Facts: LTTS8 PO ST domestic travel convenient. Company type: Public, traded as NSE: LTTS • Industry: Engineering • Founded: June 14, 2012 in Mumbai, Maharashtra, India • Headquarters: Mumbai, India • Products and services: Engineering solutions (product design, analysis, prototyping, testing), O R • embedded system design, manufacturing engineering, plant and construction engineering, asset information management, and engineering process support Revenue: US $0.990 billion (2023) or INR ?8014 crores (2023) • Key people: Amit Chadha, CEO & Managing Director; S.N. Subrahmanyan, Vice Chairman; and C O A. M. Naik, Founder Chairman PY • The Ask T 1. Is the Indian EV industry attractive? D O N O 2. What should Singh recommend LTTS do? Page 3 of 4 Should LTTS Charge Forward in India? HBR Quick Case —————————————————— 1 Seetharaman G, “Low margins, high stakes: The Tata Power foundation to Tata Group’s electric empire”, The Ken, November 29, 2021, https://the-ken.com/story/tata-power-ev-charging/, accessed September 26, 2023. Sumathi Bala, “Indian automaker Mahindra says competition from Tesla ‘does not faze us’”, CNBC website, August 8, 2023, https://www.cnbc.com/2023/08/09/indian-automaker-mahindra-says-its-unfazed-by-ev-competitors-like-tesla.html, accessed September 26, 2023. PO ST 2 Seetharaman G, “Low margins, high stakes: The Tata Power foundation to Tata Group’s electric empire”, The Ken, November 29, 2021, https://the-ken.com/story/tata-power-ev-charging/, accessed September 26, 2023. 3 “Tata Motors Captures 82% Market Share in Electric 4W Market”, Electric Vehicle Info, May 20, 2022, https://e-vehicleinfo.com/tatamotors-market-share-in-electric-4w-market/, accessed September 26, 2023. 4 Mihir Mishra, “As Mahindra launches its EV, here’s a look at India’s Electric Vehicles space”, The Indian Express website, January 20, 2023, https://indianexpress.com/article/explained/explained-economics/mahindra-launches-ev-india-space-8391464/, accessed September 26, 2023. 5 Sumathi Bala, “Indian automaker Mahindra says competition from Tesla ‘does not faze us’”, CNBC website, August 8, 2023, https://www.cnbc.com/2023/08/09/indian-automaker-mahindra-says-its-unfazed-by-ev-competitors-like-tesla.html, accessed September 26, 2023. 6 “Volkswagen plans to invest in India, manufacture electric vehicles locally: Report”, Business Today website, April 19, 2023, https://www.businesstoday.in/latest/corporate/story/volkswagen-plans-to-invest-in-india-manufacture-electric-vehicles-locally-report-3779782023-04-19?utm_source=topic&utm_medium=topic&utm_campaign=topic, accessed September 26, 2023. Company Profile, L&T Technology Services website, https://www.ltts.com/about-us/company-profile, accessed September 26, 2023. N O T C O PY 8 O R 7 O This Harvard Business Review Quick Case was prepared by Professor Rajiv Agarwal of S.P. Jain Institute of Management & Research. HBR Quick Cases are developed solely as the basis for class discussion. They are not intended to serve as endorsements, sources of primary data, or illustrations of effective or ineffective management. This publication may not be digitized, D photocopied, or otherwise reproduced, posted, or transmitted without the permission of Harvard Business Publishing. Although based on real industries and despite reference to actual companies and company information, the problem in this Quick Case is fictitious and any resemblance to actual company problems is coincidental. © 2023 Harvard Business School Publishing. All rights reserved. Page 4 of 4
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