EXEL industries - 2019 Universal Registration Document

Presentation of c the c Group

Business overview of the EXEL Industries group

Selected according to speci fi c criteria, the members of our networks bene fi t from continuous training and professional development to improve their skills and ensure customer satisfaction. Major accounts To maintain contact with our markets, we have developed a speci fi c approach for “major accounts” involving direct sales or support through our distribution partners. Numerous prestigious companies place their trust in us: Airbus, Alstom, Areva, Audi, Bang & Olufsen, Bénéteau, Caterpillar, Dacia, Dassault, EDF, Eurocopter, Fagor, Ford, GM, IKEA, Lafarge, Lamborghini, Louis Vuitton, Mahindra, Mercedes, Philips, PSA Peugeot Citroën, Renault-Nissan, Rolls-Royce, Safran, Schneider Electrics, Tata, Tefal, Veolia, Porsche, BMW Bosch and Chrysler. Given our very diversified markets and customers, the Group’s consolidated sales arewell balanced between our di ff erent accounts. For our Group, industry is a very dynamic customer segment: „ investing heavily in new factories located in regions where there is strong growth in product demand (emerging and newly industrialized countries); „ constantly looking for new sprayer solutions to increase its productivity and pro fi tability. Suppliers Whenever several suppliers were able to provide the same product to more than one subsidiary, attempts were made to achieve standardization and economies of scale at the group level. As a result, one or more authorized suppliers may be selected for the whole of the Group. Negotiations are carried out by one or more buyers and contribute to securing favorable sales conditions (prices, deadlines, quality, etc.). With regard to the manufacture of agricultural sprayers, the three largest purchase items are: „ mechanized welding: chassis, ramp arms, etc.; „ plastics for the manufacture of tanks or bodywork parts; „ general mechanical parts: engines, cylinders, universal blocks, wheel rims, etc. Manufacturing sprayers or pumps for the industrial market requires sophisticated and very precise industrial techniques with tolerance or surface fi nish of within a fewmicrons to ensure no leaks under very high spraying pressures (more than 600 c bars). 2.3.2.5

2.3.2.3 The consumer market Products marketed by HOZELOCK and HOZELOCK EXEL, specialized in watering and plant protection, are mainly sold through specialized dealers (garden centers, agricultural cooperatives and DIY superstores) in traditional retailers and through mail order (pure playersor sites a ffi liated to our specialized dealers). The Group enjoys excellent relations with major national and international groups, as well as a network of independent distributors. Through its HOZELOCK, BERTHOUD, TECNOMA, LASER and COOPER PEGLER brands, the EXEL Industries group, a global leader in consumer watering, o ff ers Watering and Spraying solutions for the gardening market. The products are characterized by their performance and their technology, their security, their design and their ease-of-use. HOZELOCK EXEL also manufactures and markets a range of professional sprayers to meet the speci fi c needs of industrial markets (in particular the building trade). These products are marketed under the Laser Industrie brand name. High-performance thermal weeders are also o ff ered as an alternative to sprayers. This product range has increased in importance as consumers focus on alternatives to chemical weeding. It also meets new legal requirements concerning phytosanitary products for green spaces and private gardens. The industrial market The companies operating in the Industrial Spraying segment are major players in traditional, long-term markets like the automotive industry, aeronautics, railways, consumer goods and farmmachinery and pursue growth in the high value-added markets: the food industry, healthcare and renewable energy. This enables it to fund research and innovation. The products are marketed through two main channels namely, distribution and direct sales to major accounts. Distribution The equipment is sold from our plants and distributed through a variety of distribution channels coordinated by our subsidiaries. These networks are made up of “approved resellers” (typical of counter sales and modern distribution), “approved dealers” (active sales including servicing) and consolidators (sale of “turnkey” solutions). 2.3.2.4 Production techniques The main technologies used in the Group’s factories are: „ injection and over-injection of synthetic thermoplastic resin; „ machining of metals with great precision (machining center for up to 11 c axes); „ rotational molding of tanks and cowling of complex shapes; „ automatic fl ow and robot-controlled or semi-automatic welding of complex chassis items; „ surface preparation and application of paint in liquid or powder form via an electrostatic process (manual or automated). 2.3.3 Plant and machinery

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Production organization All of the Group’s factories are organized as autonomous workshops operating on a just-in-time basis. This organization contributes to better responsiveness to seasonal fl uctuations in activity and more e ffi cient management of working capital. Moreover, the Group applies Lean Management practices in its manufacturing plants. Lean management is a process that seeks to optimize the organization and operating e ffi ciencies of our companies.

EXEL Industries Group I 2019 Universal Registration Document

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