Post on 29-May-2018
Business Research & Advisory
Research & Advisory Solutions for Enterprises – India Experience
Capability Overview
June 2017
Prepared for
Switzerland Global Enterprise
2 Capability Overview
Research & Advisory Solutions for Enterprises – India Experience
Local Know-How
Understanding local market
nuances & challenges
Unparalleled knowledge of the
businesses, markets and
opportunities in this region
Extensive Research
Experience in India
Completed nearly 500 projects
in India
Projects executed have been
spread across several regions
enabling Aranca to gain robust
regional understanding
Strategic Local
Presence
Home country advantage to
service clients based in India
Delivery Centres in key metro
cities – Mumbai, and Delhi
Diverse Client Base
in India
Executed advisory projects
across 20 industries for ~125
clients in public/private sector
Client base includes banks,
MNC’s, consulting firms,
investment banks, law firms and
private equity firms
Full service global research firm with over a decade’s
experience across synergistic business lines:
Market Intelligence
Procurement Research
Investment Research
Fixed Income & Credit Research
Valuations & Advisory
Intellectual Property Research
Aranca India Value Proposition
3 Capability Overview
Research & Advisory Solutions for Enterprises – India Experience
Indicative list of sectors & sub-sectors studied in China…
AGRIBUSINESS
• Farm Equipment
• Agrochemicals
• Livestock
• Aquaculture
• Farm Produce
ALTERNATE ENERGY
• Solar Energy
• Photovoltaic Devices
• Biofuels & Biodiesel
• Wind Energy
• Geothermal Energy
AUTOMOBILES & PARTS
• EV/Hybrid Vehicles
• Lithium Ion Batteries
• Lead Acid Batteries
• Auto Infotainment
• Auto components
• Automotive after market
BANKING & INSURANCE
• Corporate & Retail Banking
• Life & Non-life insurance
• Asset Management
• Crowd & P2P Lending
• Private Equity & VC
BUSINESS SERVICES
• Facility Management
Services
• Car Rental Services
• Leasing Services
• Event Planning &
Management
• Human Resource Consulting
• Management Consulting
CAPITAL GOODS
• Packaging machinery
• Pumps, Gates & Valves
• Industrial fasteners
• Decanters & Centrifuges
• Mining Machinery
CHEMICALS
• Fine chemicals
• Electronic materials
• Agrochemicals
• Oleochemicals
• Coatings
• Specialty Chemicals
• Petrochemicals
CONSTRUCTION, REAL
ESTATE & INFRA
• Residential Construction
• Affordable housing
• Commercial Real Estate
• Urban infrastructure
• Real Estate Classifieds
ELECTRICAL EQUIPMENT
• Switchgear
• LED Lighting
• Transformers
• Smart Grid Infrastructure
• Advanced Metering
Infrastructure
ELECTRONICS & IT
• Semiconductors
• IC Fabrication/
• EMS
• ERP/CRM Software
• Application Software
FOOD & BEVERAGES
• Processed Food
• Infant & Baby Food
• Confectionery & Snacks
• Alcoholic Beverages
• Juices & RTD Beverages
HEALTHCARE & PHARMA
• Generic drugs
• Biosimilars
• Hospital Services
• Clinical Research
• Contract Research (CRO)
INTERNET
• Internet Infrastructure
• Internet Advertising
• Online Retail
• Payment Gateways
• Mobile Internet Services
• Digital Content
MEDIA & ENTERTAINMENT
• Newspapers
• Book Publishing
• Publishing
• Film Production
• Cable TV
• Satellite Broadcast
• Digital Media Marketing
MEDICAL DEVICES
• Endoscopic Devices
• Ophthalmic Devices
• Patient Monitoring Devices
• Implants
• Medical Consumables
• Infusion Pumps
METALS & MINING
• Fabricated Steel products
• Extruded Aluminium
• Copper Products
• Rare Earth Mining
• Precious Metals Mining
PACKAGING
• Flexible Packaging
• Metal Packaging
• Easy Open Ends
• Glass Packaging
• Release Liners
• Corrugated Packaging
RETAIL
• Super Markets & Hyper
Markets
• Logistics & Distribution
• Traditional Retail Channels
• Modern Retail Formats
• E-Commerce
TELECOM
• Fixed Telecom Services
• Wireless Telecom Services
• Telecom Infrastructure
• Value Added Services
• Managed services
TRANSPORTATION, TRAVEL
& TOURISM
• Hospitality
• Tourism & Tour Operators
• Amusement Facilities
• Marine Transport
• Port Facilities
• Road Transport
India Experience
Completed several hundred projects across sectors for over 125 clients
Indicative list of sectors & sub-sectors studied in India…
• Enterprises (Multinational & Domestic)
− Corporate Strategy & Business Intelligence Teams
− Procurement & Purchase Teams
− Marketing & Business Development Teams
• Consulting Firms
• Private Equity &VC Firms
• Law Firms & Professional Services Firms
Client Profile
Market Intelligence Solutions
• Entering new markets
• Defining go-to-market strategies
• Launching new products
• Evaluate new geographies
• Diversify into adjacent markets
• Increasing market share
• Track competitor's strategies
• Implementing digital strategies
Research Solutions
• Driving innovation initiatives
• Tracking customer experience
• Enhance sales-force effectiveness
• Benchmark competitor capabilities
• Explore acquisition opportunities
• Identify Joint Venture partners
• Effective channel management
• Benchmark supplier capabilities
Procurement Research Solutions
• BCCs / LCCs Sourcing
• Supplier intelligence
• Category intelligence
• Vendor management support
4 Capability Overview
Research & Advisory Solutions for Enterprises – India Experience
Assignment Examples by Industry
Track record of having completed several assignments, across sectors, in India (1/3)
AGRIBUSINESS
• Assessing opportunities in phosphate fertilizers value chain
• Competition assessment of harvesters manufacturers
• Opportunity analysis for aquaculture in pharma products
• Opportunity assessment on dairy farming
• Identification of Solar power component suppliers & system integrators in
• M&A target identification in the solar energy sector
• Detailed assessment of Solar PV and thermal markets
ALTERNATE ENERGY
AUTOMOBILES & AUTO PARTS
• Market potential study for railway wheels in India
• Regulation mapping for the automotive sector in Southern and Western
India
• Database building on suppliers of brake friction suppliers in Asian
countries
• Market potential study for distribution of automotive spare parts in India
• Strategy support to grow SME lease finance business in APAC
• Preparing a feasibility report as per Indian bank guidelines including
macroeconomic environment in India; financial system and structure of a
leading international bank
• Insight of Regional Bank's performance and strategy
BANKING & FINANCIAL SERVICES
BUSINESS SUPPORT SERVICES
• Market study on car rentals business
• Industry analysis - business process outsourcing
• Identification and profiling of business information providers
• Market overview and competitive landscape of financial and credit
information services
• Feasibility study to set-up heavy machinery production plant
• Go-To-Market strategy for entering metal processing market
• Opportunity assessment of coal mining equipment
• Industry analysis - machine tools manufacturing
CAPITAL GOODS
5 Capability Overview
Research & Advisory Solutions for Enterprises – India Experience
Assignment Examples by Industry
Track record of having completed several assignments, across sectors, in India (2/3)
CHEMICALS
• Purified Terephthalic Acid (PTA) - Analysis of price trends in India
• Benchmarking cost structures of Chlor-alkali manufacturers in Asia
• Market opportunity assessment for food-grade phosphates in Asia
• Identification and profiling of selected films (PE, PP, HDPE / LDEP /
LLDPE) suppliers in tier 1 cities in India
• Market study on infrastructure investments and turnkey contracting in
BRICS countries
• Competition mapping of construction equipment market in developing
countries
• Post-merger Business Plan Proposal – Construction Sector in India
CONSTRUCTION, REAL ESTATE, INFRASTRUCTURE
ELECTRICALS & ELECTRONICS
• Market opportunity for refurbished electronics
• Partner identification study for air conditioner distribution
• Market assessment for energy-saving electronics market
• Competitive analysis of LED lighting manufacturers
• Indian Coffee Shops – Feasibility study and Business Plan
• APAC Restaurant Business Plan
• Southeast Asian Kitchen Line - Business Plan
• Market attractiveness assessment for setting up a rice processing plant in
Southern Indian cities
FOOD & BEVERAGES
INDUSTRIAL CONSUMABLES
• Market opportunity assessment for fluidizing fabrics in sixteen countries
including India
• Industry report on the industrial gloves and Personal protective equipment
market in India
• Market study on coolant oil used in machining applications
• Opportunity assessment for hosted web conferencing market
• Market opportunity assessment for M2M services
• Monetization strategies for IoT solutions in transportation sector
• Acquisition opportunity evaluation in the Indian online real estate
classifieds
INFORMATION TECHNOLOGY
6 Capability Overview
Research & Advisory Solutions for Enterprises – India Experience
Assignment Examples by Industry
Track record of having completed several assignments, across sectors, in India (3/3)
MEDIA & ENTERTAINMENT
• Business Plan for a crime based TV channel
• Mystery Shopping Services - Entertainment Industry
• Investor Presentation entertainment industry
• Industry Report on Broadcasting/Commercial Film Production
• Technology assessment – non invasive blood sugar monitoring
• Market Study on the medical endoscopy devices market
• Report on private equity & venture capital investments in medical
equipment industry
• Market study on bone graft substitutes
MEDICAL DEVICES
METALS & MINING
• Market study on flat steel products in Northern India
• Survey of steel mills in India to assess technology trends in BF operation
• Feasibility study for steel pipes and tubes plant in APAC region
• Market study on steel wires used in the Indian mining industry
• Market attractiveness and entry strategy for aerosol packaging in India &
Russia
• Market assessment for flexible packaging in India
• Market study and entry strategy on paint packaging in India & China
• Egg Packaging market assessment across 9 countries in South East Asia
PACKAGING
RETAIL
• Mystery Shopping Services in Retail Market Supermarkets
• Investment assessment of a company operating in the used car sales
market
• Best practices in logistics and distribution in the Fast Moving Consumer
Goods (FMCG) Sector in
• Market study on IT managed services in India
• Market opportunity assessment for cloud based storage in the BRIC
countries
• Market opportunity assessment for remote technical services in the
selected cities in India
TELECOM
7 Capability Overview
Research & Advisory Solutions for Enterprises – India Experience
Case Study 1: Packaging
Feasibility Study for Setting-up Molded Fiber Operations in India
SAMPLE ANALYSIS TEMPLATES BUSINESS SITUATION
A global packaging company was interested in the in-depth analysis of
current and future growth potential across select end-markets (fruits
and eggs) to gauge the feasibility to set-up a molded fiber plant in
India.
INDIA: PACKAGING MARKET ($M) AND BREAK-UP BY SEGMENTS (%)
INDIA: DEMAND FORECAST AND BREAKDOWN (IN VOLUME – PIECES)
• Analysis of the macro economic scenario and retail industry of India
• Understanding the packaging dynamics of end-market segments
and shortlisting the ones with high usage of molded fiber (MF)
packaging and strong growth potential
• Demand & supply analysis and gap analysis
• Mapping the consumer preference level for MF packaging in key
cities of the country
• Identifying the regions/states with high potential:
- Covered critical factors supporting establishment of
manufacturing facility – land, labor, raw material and resources
availability
- Conducted logistics analysis – existing infrastructure and potential
3PL partners
- Conducted technical feasibility for Greenfield plant – approximate
project size, equipment / technology requirements, and tax and
duties, etc.
RESEARCH METHODOLOGY
Desk research; 130+ phone interviews with industry experts
RESEARCH DELIVERABLES
2006
2007
2008
2009
2010
2011
2012
2013
Plastic vs paper
packaging
Egg Boxes vs
Egg Trays
2013
2013
2016: xxx
million
2016
XXX million boxes
Paper
Plastic
2016
XXX million trays
Paper
Plastic
8 Capability Overview
Research & Advisory Solutions for Enterprises – India Experience
Case Study 2: Healthcare
Market Study for Cancer Treatment Market in India and Competitor Benchmarking
SAMPLE ANALYSIS TEMPLATES BUSINESS SITUATION
A leading knowledge engineering company that offers information
services, including information systems, consulting, and think-tank
services. It is involved in research of global economic issues,
consulting, analysis and surveys for entry into new markets and
industries.
ANALYSIS OF CANCER PATIENTS IN ONE OF THE LEADING HOSPITALS
• Module 1: Market sizing for cancer treatment in India. This includes
top cancer treatments carried across top 10 hospitals in India and
their segmentation by cancer site, gender, stage of cancer, etc.
• Module 2: Competitor Benchmarking for the cervices, ownership,
and cancer patient profiles across the top 10 hospitals in India.
• Module 3: Opportunity analysis based on the first two modules,
highlighting the opportunity and challenges for setting up cancer
treatment facility in India.
RESEARCH METHODOLOGY
The research and analysis for this study was based on desk research
and extensive primary research with top 10 cancer hospitals in India.
RESEARCH DELIVERABLES
9 Capability Overview
Research & Advisory Solutions for Enterprises – India Experience
Case Study 3: Auto & Auto Components
Market Study on Auto-Component Market in India
SAMPLE ANALYSIS TEMPLATES BUSINESS SITUATION
A global testing, inspection and certification company was evaluating
the market for testing of auto components and commissioned Aranca
to do a detailed study in India
VALUE CHAIN ANALYSIS - AUTO COMPONENTS MARKET IN INDIA
AUTOMOTIVE COMPONENTS MARKET IN INDIA
• Analysis of the auto component market in India (market size, sales
segmentation, key OEMs, future growth trends)
• Market sizing - auto components (both OEM and after-market) in
India; breakdown by vehicle category
• Evaluating the export/import for auto components in India
• Assessment of the market for spurious parts
• Mapping out the key auto components manufacturers
• Detailed assessment of auto components manufacturers covering
- Value chain
- Key players and their capabilities
- Growth drivers and Challenges
• Estimating the potential market size for automotive component
market in India
RESEARCH METHODOLOGY
Desk research; 25+ phone interviews with industry participants
RESEARCH DELIVERABLES
Original equipment
manufacturers
Original equipment
manufacturers / Tier
1
Generic
Manufacturers/ Tier
2 / Tier 3
OEMs Franchisee
Dealers
Multi brand dealers
Small garages/
Other small players
Business
Fleet
Private
OEM vehicle part/
dealers
Independent part
dealers
• The industry contributes to xx% of India’s GDP (manufacturing) and provides employment
to approximately, one million people.
• Factors such as skilled manpower, low cost but high quality products, government support
are providing cushion to the automotive component industry amidst global economic
slowdown
10 Capability Overview
Research & Advisory Solutions for Enterprises – India Experience
Case Study 4: Consumer Services
Market Entry Assessment - Car Rental Services in India
SAMPLE ANALYSIS TEMPLATES BUSINESS SITUATION
US based Car Rental Company engaged Aranca to analyze and map
out the market opportunity, competitive landscape and end markets for
car rental services across India
MARKET ENTRY OPTIONS
ORGANIZED MARKET CAR RENTAL SALES BY CATEGORY AND LOCATION
• Overview of the Car Rental Market:
- Market size and volume of car rental in India by key segments
- Historical growth trends and evolution of business models
• Analysis of End Markets:
- Market demographics for each rental segment: Individual buyers
and Corporate buyers and growth of key industries
• Competitive Landscape:
- Market share of industry split by top players
- Company profiles with detail information on fleet size, footprint,
future plans etc.
• Key Findings and Conclusion:
- Evolving opportunities, business Models for car rental services in
India
- How can XYZ play their global strengths in the Indian context?
RESEARCH METHODOLOGY
Desk research; 50 interviews with experts and car rental companies
RESEARCH DELIVERABLES
BUILD PARTNER BUY
Business
Model
• Establish an owned subsidiary that
acquires a fleet and a national footprint
• Tie-up with a local player through a joint
venture or a partnership deal
• Acquire the business of an existing
player
Advantages • Ability to build to XYZ strengths and
retain significant control over the
operations
• Leverage the network, alliances and
capabilities of the partner to shorten
expansion timeframe
• Ability to rapidly build scale riding on a
running business
Disadvanta
ges
• Highly fragmented and unorganized
market poses pricing and positioning
challenges
• XYZ would have to play in the
chauffeured services to start with, which
is not their global mainstay
• The ability to position the XYZ brand
would be determined by the partnership
arrangement
• Taking the franchising route might tie
XYZ’s fortunes to the partner
• Significant upfront investment to acquire
and rebrand
• XYZ might have to invest significantly in
technology and systems
• Not too many players with a significant
footprint across the country
Options
• Start operations based out of the big 5
cities – Mumbai, Delhi, Kolkatta, Chennai
and Bengaluru and expand out in a
phased manner
• Partner with tour operators, hotels and
airports to ensure volumes
• Potential partners for a JV :
‒ Financial institutions – IL&FS,
ICICI and State Bank of India
‒ Car rental companies –
unorganized players
‒ Leasing companies – ALD
• Potential acquisition target examples:
‒ Akbar Travels
‒ Eco Rent-a-car
‒ International Travel House
‒ Auto Riders
‒ Ballal Jyoti Travels
‒ Car Club
Business
$xx mn
Airport
$xx mn
2010
Non-
Airport
$xx mn
2015
Leisure
$xx mn
Non-
Airport
$xx mn
Airport
$xx mn
Total Market
$xx mn
Business
$xx mn
Airport
$xx mn
Non-
Airport
$xx mn
Leisure
$xx mn
Non-
Airport
$xx mn
Airport
$xx mn
Total Market
$xx mn CAGR
8.4%
11 Capability Overview
Research & Advisory Solutions for Enterprises – India Experience
Case Study 5: Real-Estate
Market Entry Assessment - Facility Management Services in India
SAMPLE ANALYSIS TEMPLATES BUSINESS SITUATION
US based Facilities Management Company (FFM) engaged Aranca to
build a ‘go-to-market’ strategy and a list of potential target customers
for their expansion plans in India
BUSINESS MODELS OF ORGANIZED PLAYERS IN INDIA
ATTRACTIVE SECTORS FOR ENTRY
• Aranca proposed a two phased approach to the study:
• Phase 1:
- Overview of the FFM market
- Mapping the market & competitor dynamics for FFM services in
India based on supply side interviews (covering all Tier 1 and few
Tier 2 players)
• Phase 2:
- Study of Relevant Segments: E.g. Private hospitals, MNC service
companies, Manufacturing companies, IT / ITES firms, top 250
Indian companies (non PSU), off-shore, etc
- End User Survey: Primary interviews with top companies to
develop in-depth insights on current practices on FFM
- Sales Target List: Review segments of interest based on end-user
survey and develop database of ~ 500 companies covering the
top 25-50 firms in target sector
RESEARCH METHODOLOGY
Desk research; 150 interviews with experts and potential partners
RESEARCH DELIVERABLES
SELF EMPLOYED MODEL SUB-CONTRACTED/OUTSOURCED MODEL
12 Capability Overview
Research & Advisory Solutions for Enterprises – India Experience
Case Study 6: Aerospace & Defense
Market Study on Offshore Support Vessels Market in India
CLIENT
A leading marine services provider based in the Middle East was
evaluating the attractiveness of the offshore charter vessels segment in
India and commissioned Aranca to conduct a market study & recommend
market entry strategy
RESEARCH METHODOLOGY
Desk research; 60-80 phone interviews with industry participants
RESEARCH DELIVERABLES
Module1
• Macro level analysis of offshore oil & gas industry in India with a
special focus on private participation across the value chain. High
level analysis of market and competition dynamics for offshore
vessels charter market in India
Module2
• Detailed market study on key players covering fleet size, expansion
plans, terms of contract, regulatory requirements & taxation
framework, barriers to entry and market opportunity
Module3
• Identification of feasible mode of market entry
• Detailed profiling of key players on demand and supply side
SAMPLE ANALYSIS TEMPLATES
VESSEL TRAFFIC: SUEZ CANAL & RED SEA
VESSEL SHARE BY OPERATOR NATIONALITY
13 Capability Overview
Research & Advisory Solutions for Enterprises – India Experience
Case Study 7: Banking & Financial Services
Opportunity assessment and M&A target identification in banking space in India (1/2)
CLIENT
Among the top 5 banks in the GCC region. The client wanted to
assess entry opportunities in the Indian Commercial Banking
space. Aranca supports the strategy team of the bank with a
comprehensive analysis of Indian Commercial Banking space
RESEARCH METHODOLOGY
Aranca deployed a team of 2 analysts under the supervision of a
an engagement manager for 2 months.
Desk research; few phone interviews to cover information gaps
RESEARCH DELIVERABLES
Study was carried out in a phased manner:
PHASE I: Growth prospects of the Indian economy
PHASE II: Indian commercial banking space: size/products:
• Existing size and competition
• Key drivers, future prospects
PHASE III: Forecasting banking sector growth for next five
years products/services wise
PHASE IV: Analysis of individual banks
• Selection of potential M&A candidates
• Profiling key target banks
SAMPLE ANALYSIS TEMPLATES
INDIAN BANKING: KEY GROWTH DRIVERS / GROWTH PROSPECTS
0.1
0.2
0.2
0.2
0.3
0.4
2.8
0 2 4 6 8 10 12
Indonesia
Turkey
Russia
Mexico
Brazil
India
China
Canada
Australia
Spain
Italy
France
UK
Germany
Japan
US
Developed
Countries ($ 30 Tn)
Emerging Economies
($ 4.2 Tn)
Domestic Credit - 2007 ($ Trillion)*
0
40
80
120
160
Chin
a
Ko
rea
HK
India
Sin
ga
pore
Th
aila
nd
Ma
laysia
Household Liabilities as % of Disposable
Income
6%
INR 16.9 Tn ($0.38 Tn) INR 34.1 Tn ($0.85 Tn) INR 69.3 Tn ($ 1.7 Tn)
2005 2015 2025
Between 2005 and 2025, aggregate consumption will grow 4x times…
… making India the fifth largest consumer market by 2025
• Rich
(Income > INR 1mn or
$25K PA)
• Middle Class
(Income > INR 200K or
$5K PA)
• Poor
(Income < INR 200K
or $5K PA)
14 Capability Overview
Research & Advisory Solutions for Enterprises – India Experience
Case Study 8: Chemicals
Supplier analysis of direct dyes in India
CLIENT
An European leather chemicals manufacturer engaged Aranca to conduct
a detailed study on direct dye suppliers in India with the objective of
diversifying their supplier base in India.
RESEARCH FRAMEWORK & DELIVERABLES
SAMPLE ANALYSIS TEMPLATES
INDIA MARKET ANALYSIS FOR DYES AND ORGANIC COLORANTS
Specialty chemical sector analysis, dyes and pigments production
by segment, sub-segments & region across India, Production &
consumption by sectors, technology and raw material sources,
Market trends & forecasts, M&A activity
MODULE 1: DETAILED INDUSTRY LANDSCAPE
Detailed study on the supplier landscape & characteristics,
Detailed listing of key suppliers and mapping large players
Identification of high potential suppliers and product quality
certifications, analysis of products, specifications, machinery
listing, modernization plans, key financials, sustainable practices
and responsible sourcing information.
MODULE 2: SUPPLIER MAPPING
Benchmarking of key suppliers on various characteristics, Detailed
supplier analysis & procurement plan covering supply potential
under different scenarios, pricing, financial stability of suppliers,
key risks and initial contact with companies to understand their
willingness and ability to supply the required quantities
MODULE 3: KEY RECOMENDATIONS
XXX
2011
Production
Local
Consumption Stock
Local Demand
Exports Leather and
Textiles
Printing
Inks Paints &
Coatings
Plastic +
Paper,
Other
COMPANY PROFILE TEMPLATES
Business Overview Company Financials
Business Divisions Division
Performance
15 Capability Overview
Research & Advisory Solutions for Enterprises – India Experience
Case Study 9: Construction & Infrastructure
Market Assessment for Coated and Flat Glass in India
BUSINESS SITUATION
A leading float glass manufacturer was keen on setting up a soft coated
glass manufacturing line in India. Before proceeding, it wanted to gain
deeper knowledge and understanding of the Indian glass market. It was to
achieve this objective that it approached Aranca to carry out a detailed
market assessment study
METHODOLOGY
Data was primarily gathered by means of telephone interviews with
industry players, and desk research. Face interviews were also conducted
during the course of field visits that helped us attain valuable insights into
the functioning of the float glass industry in India
SOLUTION FRAMEWORK
Market Overview
• Market size
• Segmentation
• Pricing trends
• End users and Procurement process
Competition Landscape Analysis
Market Drivers
• Factors driving growth of coated glass market
Key Findings & Conclusions
• Demand-supply analysis
• Growth drivers and challenges
SAMPLE TEMPLATES
DEMAND-SUPPLY GAP ANALYSIS
PROCUREMENT PROCESS
82%
18%
Retail channel
Projects
End use of hard coated glass
54%
13%
10%
23%
End use of soft coated glass
Commercial
buildings
Hotels
Others
Retail projects
16 Capability Overview
Research & Advisory Solutions for Enterprises – India Experience
Case Study 10: Retail Sector
Hosiery & Innerwear: India Market Opportunity Study
CLIENT
A global consumer goods company; interested in understanding the Indian
hosiery & innerwear market
RESEARCH METHODOLOGY
Desk research; 30+ phone interviews with industry experts
RESEARCH DELIVERABLES
Overview of the Indian economy and regional variations
Hosiery market – product categories, demand, supply, branding and
regional differences
Value chain analysis, common business models, retail landscape and
distribution
Market demand trends – historical evolution and differentiation by
product category and gender focus
Market demand by price category – value, economy, premium, super-
premium etc & the relevant price bands
Future growth projections for the hosiery market
Regional variations in hosiery retail – national brands, regional brands,
international brands etc.
SAMPLE ANALYSIS TEMPLATES
INNER WEAR MARKET (IN US$ BILLION)
UNIT VALUE COMPARISON – MEN'S WEAR AND WOMEN'S WEAR (2010)
SEGMENT BREAKUP, 2011
75%
35%
2006 2007 2008 2009 2010 2011
CAGR: xx%
WW YY
XX
17 Capability Overview
Research & Advisory Solutions for Enterprises – India Experience
Case Study 11: FMCG
Competition Benchmarking In FMCG Sector For Penetration In Rural Indian Market
CLIENT
In order to adopt the best possible approach from the perspective of
manufacturing and distribution and reduce costs, a leading FMCG
company approached Aranca to outline innovations adopted by its peers
around the globe
RESEARCH METHODOLOGY
Based on desk research and primary research. 100+ Face-to-face
interviews conducted with industry stakeholders across the globe. 90+
telephonic interviews with industry participants across the globe
RESEARCH DELIVERABLES
SAMPLE ANALYSIS TEMPLATES
COST BREAK-UP OF A PRODUCT
METHODOLOGY FOR DEVELOPING CASE STUDIES
Identifying companies that have effectively penetrated the emerging
economic class
Identifying key strategic thrusts of the business models of these
companies
Shortlisting 5–6 most relevant and successful business models
based on pre-selected criteria
MODULE 1: SHORTLISTING COMPANIES / PRODUCTS
Building detailed case studies on each company, highlighting
business model evolution, roll-out and scale-up of manufacturing
activities as well as strategic initiatives undertaken to bring down the
overall product cost , raw material sourcing cost, as well as
distribution cost
MODULE 2: DEVELOPING CASE STUDIES
SOURCE MAKE DELIVER
Each case study was divided into three parts: Source, Make, and Deliver. Source:
study raw material sourcing process and state innovations adopted by the company to
lower procurement costs; Make: study manufacturing process and state innovative
approaches adopted, if any, to iron out the issues to lower manufacturing costs;
Deliver: study distribution chain and state measures, if any, taken by the company to
drive sales as well as reduce distribution costs
18 Capability Overview
Research & Advisory Solutions for Enterprises – India Experience
BUSINESS Demand/Supply Profitability Competition Entry Barriers Deal ActivityOverall
Attractiveness
Gas turbine manufacturing
Gas turbine After Sales
EE Manufacturing/Assembly
EE Distribution (incl. servicing &
spare parts)
EE Rental (incl. servicing & spare
parts)
Pumps manufacturing (incl.
servicing & spare parts)
Pumps distribution (incl. servicing &
spare parts)
AC Manufacturing (Window & split)
AC Manufacturing (Central Units)
AC Distribution (incl. servicing)
Supply of Spare
PartsComplete
Engineering: Repair,
refurbishment &
overhaul
Technical
Assistance &
Advisory
Operation and
maintenance
INTEGRATED MRO
SERVICES
TYPICAL GAS TURBINES SECTOR PROFIT POOL
0%
2%
4%
6%
8%
10%
12%
14%
16%
Gas Turbine Manufacturing
75%
Share of Industry Revenue
Ope
ratin
g m
argi
n %
Gas Turbine After Sales
25%
Revenues
Dresser-Rand ~$ 2.0 Bn
Solar Turbines ~$ 1.4 Bn
Man Turbo ~$1.2 Bn
14%
9%
Operating Margins
Dresser-Rand ~13%-15%
Siemens ~12%-14%
GE ~11%-13%
Revenues
Wood Group ~$ 0.9 Bn
Suzler Turbo ~$ 0.3 Bn
Operating Margins
Wood Group ~7%-8%
Suzler Turbo ~8%-10%
AssemblyOEM Manufacturer End Customer
Authorized
Distributors
Manufacturing Distribution
Sales
Rental
Distributors
Third-Party Rental
Companies
Case Study 12: Industrial Machinery
Market study and target identification - ‘Heavy-duty Motorized Machinery’ sector in India
BUSINESS SITUATION
A leading global business house was interested in investigating the market
entry opportunities within the ‘Heavy Duty Motorized Machinery’ sector in
India.
RESEARCH METHODOLOGY
Desk research; 100+ phone interviews with industry experts
RESEARCH DELIVERABLES
Product Focus: Industrial Gas Turbines; Earth-moving Equipments;
Industrial Air-Conditioners; and Pumps
SAMPLE ANALYSIS TEMPLATES
• Detailed value chain analysis; Demand/supply situation and
growth prospects; Avg. investment across the value chain
• Segmentation of competitors by market share, products,
business models ; Opportunities & threats in the market place
• Most suitable business to be in based on value chain analysis
and competitive landscape
• Investigation of the deal activities in the country; Possible /
Suggested entry strategies
MODULE 1 – End-market Analysis
• Identify possible target companies for investment / buy out or a
JV Initial discussion with the identified targets
• Summary & Recommendations: Most suitable and willing
partners; Identification of final list of target companies
MODULE 2 – Target Identification
PROFIT POOL ANALYSIS
VALUE CHAIN ANALYSIS
ATTRACTIVENESS RANKING AND BUSINESS MODEL ANALYSIS
19 Capability Overview
Research & Advisory Solutions for Enterprises – India Experience
Case Study 13: Paper & Pulp
Identifying pulp and paper suppliers in India
CLIENT
A global packaging products manufacturer engaged Aranca to conduct a
detailed study on the paper & pulp market in India with the objective
diversifying supplier base to India.
RESEARCH FRAMEWORK & DELIVERABLES
SAMPLE ANALYSIS TEMPLATES
INDIA: MARKET ASSESSMENT FOR PAPER PRODUCTS
INDIA: PAPER PRODUCTS PRODUCTION GROWTH FORECAST
Paper production by segment, sub-segments & region / country,
consumption trends. Production share by company, capacity
expansions. Market trends & forecasts, M&A activity
MODULE 1: DETAILED INDUSTRY OVERVIEW
Segmental deep-dive in to major cities in India
Detailed study on the Indian Paper market characteristics
Detailed listing of key suppliers and mapping large players
Identification of high potential suppliers and level of integration
Opportunity assessment i.e. analysis of products, specifications,
machinery listing, modernization plans, etc.
MODULE 2: SUPPLIER MAPPING
Benchmarking of sourcing characteristics across cities
Detailed supplier analysis & procurement plan covering supply
potential under different scenarios, focus cities, pricing, financial
stability of suppliers, key risks & mitigation strategies, product
categories, supply chain risks etc.
MODULE 3: KEY RECOMENDATIONS
XXX
2015
Demand
Current
Capacity Planned
Capacity
Mostly PWP capacity
2015 Gap
Industrial
Categories
Specialty*
Printing & Writing
Paper (PWP)
2009 2010E 2011F 2012F 2013F 2014F 2015F
With the growing demand, local players are set to increase their production
capacity in coming years to take a full advantage of available abundant raw-
materials in India.
XX% CAGR
* includes napkins, towels, table covers, tissues and other specialty products
News-
20 Capability Overview
Research & Advisory Solutions for Enterprises – India Experience
Case Study 14: Pharmaceutical & Healthcare
Market Opportunity Assessment for Health Care Devices in India
BUSINESS SITUATION
A large holding firm engaged Aranca to identify opportunities in
manufacturing & distribution of medical devices in India
RESEARCH METHODOLOGY
Extensive desk research; ~75 phone and face-to-face interviews
RESEARCH DELIVERABLES
SAMPLE ANALYSIS TEMPLATES
OPPORTUNITY ASSESSMENT
Healthcare sector overview covering spending growth, demographic
analysis, disease burden, and key trends
Detailed analysis of market and competition dynamics for medical
devices in Saudi Arabia
MODULE 1
Identify manufacturing and distribution opportunities in the market
covering the overall market growth forecast, attractive segments /
products to enter, ranking of opportunities
MODULE 2
Deep dive analysis into the identified attractive products covering key
aspects such as market size & structure, competitive landscape,
business models, addressable opportunity, Go-to market strategies
MODULE 3
Market maturity needed
Ec
on
om
ic V
alu
e a
dd
Mature Nascent
Lo
wH
igh
Imaging/Diagnosti
c Services
Medium Risk
Medical Devices
High Risk Medical
Devices
Laboratory
Services
Generic
Pharmaceuticals
Pharmaceutical
Fine ChemicalsLow risk
medical
devices
Imaging/Diagnosti
c Services
Medium Risk
Medical Devices
Laboratory
Services
Generic
Pharmaceuticals
Pharmaceutical
Fine ChemicalsLow risk
medical
devices
High Priority Opportunities
Other Opportunities
Class III
Medical
devices
Product/ Parameter
Imports Raw Material
Availability
Alignment with
current portfolio Value
(2010)
CAGR
2007-2010
Syringes (with/without needles)
Medical dressings (adhesive)
Medical dressings (non-adhesive)
Breathing appliances
Walking aids
Orthopedic appliances
Disinfectants, packaged for retail
sale
Medical/surgical/laboratory sterilizers
High Low Medium Very High
21 Capability Overview
Research & Advisory Solutions for Enterprises – India Experience
Case Study 15: Pharmaceutical & Healthcare
Benchmarking study for dialysis centers across select cities in India
CLIENT
A PE fund focused on the healthcare and life sciences sectors was
evaluating the investment in a company that runs a chain of dialysis
centers across India and which has plans to expand to other non-metro
cities in the states of Uttar Pradesh, Andhra Pradesh, Karnataka, Orissa,
West Bengal and Chhattisgarh
RESEARCH METHODOLOGY
Secondary research as well as extensive primary research including 125
research interviews
RESEARCH FRAMEWORK
Module 1 - Market Overview: including market size & growth rate of
dialysis centers, key indicators such as patient to doctor ratio,
prevalence of CKD; government initiatives; key country-wide market
players; market trends.
Module 2 - Database Development & Surveys: Development of an
exhaustive list of dialysis centers in each of the target cities and
conducting ~ 3-4 surveys in each city (~ 125 interviews in total) with
Admin Manager / Patient Coordinator / Reception Manager to
understand specifics aspects about the market, patient preferences and
facilities & equipment.
SAMPLE ANALYSIS TEMPLATES
CURRENT & PROJECTED DEMAND
ESTIMATED OPERATING EXPENSES OF A FIVE BED DIH DIALYSIS CENTER
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BUSINESS RESEARCH
& ADVISORY
INVESTMENT RESEARCH
& ANALYTICS
FIXED INCOME
RESEARCH & ANALYTICS
VALUATION
ADVISORY
TECHNOLOGY INTELLIGENCE &
IP RESEARCH
PROCUREMENT & SUPPLY CHAIN
INTELLIGENCE