Identifying Investment Opportunities in the Energy and Environment Market in India, for a Global Conglomerate
Background and Challenge
A global conglomerate having interest in several business areas was interested in acquiring stake in an Indian company operating in the energy and environment space. The company wanted to bring in capital and leverage upon its network, lobbying power and portfolio management skills in India. The company wanted solutions to the following key strategic questions:
- What are the attractive segments within the energy and environment market from an investment standpoint?
- Which value chain components within these attractive segments are profitable?
- Which are the promising companies which can be considered for target acquisition within the attractive segments?
Approach and Recommendations
To identify the investment opportunities, UC adopted the following approach:
- Landscaped the energy and environment market in India. Segmented the energy market based on sources of energy generation and the environment market based on treatment media and methods
- Formulated a framework to identify attractive segments within the energy and environment space
- Conducted desk research and detailed primary research to determine attractive segments within the energy and environment space
- Shortlisted 25 companies for acquisition, within the identified attractive segments
- Developed a scorecard to determine the company attractiveness from an investment standpoint
- Conducted detailed interviews with the top management of the shortlisted companies and evaluated their strengths, growth plans, management qualities and willingness to divest
UC recommended the final list of companies to be looked at as targets for acquisition, based on a set of evaluation parameters that was also delivered to the client.