Cases

Defining Entry Strategy in Sugar and Ethanol Space for a Leading Agribusiness Company

Challenge

The client, a Fortune 500 agri-commodity player with operations across the globe, wanted to enter the Indian sugar and ethanol space. The top Management was seeking answers to key strategic questions such as which business model the company should follow and which part of India the operations should be set up in.

Our Approach

To answer these questions, UC adopted the following approach:

  • Conducted financial feasibility of various business models
  • Identified attractive locations on the basis of financial feasibility and local dynamics. For example – Sugar recovery, days of crushing, yield, irrigation, water table etc.
  • Defined the entry strategy that the client should adopt
  • Defined risks that the client should be cognisant of, and the mitigation initiatives for the same.

Impact

The client got clarity on the business model, a shortlist of selected locations, the mode of entry and the scale of investments required.