Since this year, the injection molding machine manufacturer Netstal has been part of the Krones Group. In an interview, Netstal CEO Renzo Davatz and Netstal CFO Danijela Karelse explain how a previously initiated efficiency and effectiv eness program had a positive effect on the operational due diligence.
18.000
Employees worldwide
200+
Mio. € Turnover
Netstal has established itself as a technology leader for high-speed injection molding machines. In response to increasingly fierce competition, the company, together with Staufen and Vetica, developed measures to speed up processes, optimize costs, and better address customers. This efficiency and effectiveness program formed the perfect basis for the operational due diligence as part of the takeover talks with the Krones Group.
Our USP is that our customers produce with a Netstal machine at the lowest cost per piece – with the highest precision
Renzo Davatz
CEO, Netstal Maschinen AG
Netstal on the way to operational excellence
Efficiency increase, brand relaunch and integration into the Krones Group
In an interview, Renzo Davatz, CEO of Netstal, and Danijela Karelse, responsible for change management, provide exciting insights into the strategic realignment of the long-established company. Netstal, a leading niche supplier of injection molding machines, is facing the challenge of asserting itself in a highly competitive market. With a clear focus on increasing efficiency, process optimization and a new brand strategy, the company is aiming for sustainable growth. The integration into the Krones Group also plays a central role in paving the way for Netstal’s future development. Find out how Netstal is positioning itself for the future and what role the cooperation with Staufen AG and Vetica plays in this process
Netstal‘s origins date back to 1857. Where is your company today, and how does it stand out from the competition?
Renzo Davatz
CEO
Netstal Maschinen AG
Renzo Davatz: As a niche supplier and technology leader for high-speed injection molding machines, we have a clear focus on four application markets: preforms for PET bottles, closures/lids, thin-walled packaging (e.g. for ice cream), and plastic parts for medical technology. Our USP is that with a Netstal machine, our customers can produce at the lowest cost per unit – with the highest precision.
You contacted the Staufen consultants at the beginning of 2022. What was the trigger and what was the goal of the collaboration?
Renzo Davatz
CEO
Netstal Maschinen AG
Danijela Karelse
CFO
Netstal Maschinen AG
Renzo Davatz: The market for injection molding machines is very competitive because the technology is quite mature. It is therefore becoming increasingly difficult to stand out from the competition through technology alone. Accordingly, a price war develops in such mature markets, to which one must respond by increasing efficiency. As a technology leader, however, we must also be able to offer a top external image including a high-end machine design. Therefore, on Staufen‘s recommendation, we decided to tackle this project together with Staufen and Vetica – two proven top-line optimizers
Danijela Karelse: In addition to Staufen‘s technical expertise for process improvements in industry, the objective view from outside was particularly important to us. We are fortunate to have many long-standing and loyal employees, but sometimes we – including the management – focus too much on ourselves. Thanks to the very collaborative consulting approach of Staufen and Vetica, we quickly had an open and trusting atmosphere.
What measures have you identified together with Staufen to achieve the desired increase in efficiency?
Danijela Karelse
CFO
Netstal Maschinen AG
Danijela Karelse: The measures range from a new distribution of roles in management regarding change management in order to take the workforce along with us on this path to establish a new project management system. The main focus here was on accelerating the order fulfillment process – in sales as well as in assembly and logistics. In addition, the product development process was optimized, and cost awareness in product design was increased. We wanted to show to the entire workforce and customers that we are serious about this change, and at the same time, we redesigned the NETSTAL brand, including their website, CI/CD, and a new machine design, together with Vetica.
How far have you got with the implementation?
Renzo Davatz
CEO
Netstal Maschinen AG
Renzo Davatz: The target images are clearly defined for all value streams, and all processes have been worked out. The new processes are already being implemented on a daily basis in the “Lead to Order” and “Order to Cash” workstreams. The new roles within the organization are also being increasingly accepted and filled in the interests of increasing efficiency. The new CI/CD has been integrated, the new website with the machine selector is online. Our trade fair appearance is also completely new, for which we received a lot of positive feedback from customers and the industry.
In the middle of the realignment of your organization, there was a change of ownership. At the beginning of 2024, you announced that Netstal would become a member of the Krones Group. To what extent did the efficiency program you initiated impact the due diligence with Krones?
CEO & CFO
R.Davatz & D.Karelse
Danijela Karelse: From the outset, the buyer saw how consistently Netstal was working on efficiency and how the company was being further developed with all of its processes, its newly defined external image, and its employees. This certainly made it much easier for the Krones Group to assess the risks during the due diligence process.
Renzo Davatz: An investor like Krones doesn‘t just calculate with a mathematical multiple, but invests in a strategic perspective. We were able to offer precisely this strong perspective with our efficiency program.
So you were perfectly prepared for the M&A process. Is it common for companies to be prepared for an Operational Due Diligence so well?
Danijela Karelse
CFO
Netstal Maschinen AG
Danijela Karelse: No. I have already been accompanying
some M&A processes myself, but so far, I had never seen such a detailed concept for the future. If you are able to show a potential buyer a well-calculated perspective supported by concrete measures, this reduces the negotiation pressure enormously. Because thanks to this preparation, you can react to the investor‘s questions appropriately, and you talk absolutely at eye level.
What’s next for Netstal in terms of operational excellence?
Renzo Davatz
CEO
Netstal Maschinen AG
Renzo Davatz: First priority is continue our “Efficient to Double in Five” project, i.e. to complete the development of all value streams and implement them operationally. In the medium term, we want to embed the lean philosophy throughout the company and make it an integral part of our entrepreneurial thinking.
STAUFEN AS YOUR PARTNER FOR OPERATIONAL DUE DILIGENCE
A practice example
The example of NETSTAL Maschinen AG shows how thanks to a well-prepared Operational Due Diligence, an M&A process can be accelerated and completed successfully – for both sides‘ benefits.
Often, however, it is not just two experienced CEOs who talk to each other, but all possible disciplines within the company. While for a COO, CSO or CTO, identifying and leveraging operational potential is part of everyday business, most financial experts have to learn this skill first or seek external support.
Whether you are a medium-sized company in need of capital or an investor looking for an investment target – based on real consulting projects by Staufen, the following four examples show where the operational potential in companies often lies dormant:
The opportunities for optimizing value creation are nowhere as extensive as in production. The goal: to install modern production processes and align them perfectly with the supply and customer chains. To get even closer to this ideal, a hidden champion from the electronics industry, for example, used the construction of a new factory hall to reorganize manufacturing according to lean principles and streamline processes.
Excessive complexity in the production and product areas limits companies‘ scope for action and is seen as an efficiency killer. A manufacturer of agricultural machinery therefore set themselves the goal of bringing orderliness to the “chaos of variants” and ensuring a clear system. The solution: a pragmatic evaluation model that better captures the complexity costs.
Frontloading is a part of the holistic development approach. During the planning phase, the manufacturer collects as much data and information about the product as possible and links them with the expertise within the specialist areas. This way, late changes in R&D process are supposed to be avoided, which usually cause expensive adaptations on other components. Therefore, an automotive supplier set up a corresponding frontloading together with Staufen, also with the objective to be able to provide even more resilient quotations in the future.
The introduction of Shop Floor Management goes far beyond the reorganization of processes in the factory floor. It means a transformation of the corporate culture. The presence of managers in the production areas and their focus on standard deviations accelerates decisions and develops employees into improvement managers. A manufacturer of control cabinets and IT infrastructure was able to achieve excellent improvements in all relevant KPIs in this way.
The shared understanding of what your brand stands for, what relevance the company has for its customers and where it stands in comparison to the competition forms the basis for the future impact you want to achieve in the market. How you as a company are perceived from the outside – i.e. from the customer‘s perspective – is a crucial part of the change process and is a central element for increasing the effectiveness of all touchpoints such as brand, products, services, sales and marketing towards the different customer groups. A successful top-line strategy therefore not only has an external effect, but is also an important signal internally. It underlines the will to change, to optimize, and to achieve excellence in a modern and resilient company.
About Netstal
Netstal stands for world-leading high-performance injection molding technology. The brand goes back to the founding location of the same name in the Swiss canton of Glarus. Netstal employs a total of more than 500 people at its headquarters with a production facility in Näfels and in its twelve international branches. NETSTAL Maschinen AG has been a member of the Krones Group since 2024.