Entry into the Indian Infrastructure/Energy, Procurement and Construction Space
The client was a leading player in the pharmaceutical industry, and wanted to enter the infrastructure sector in India by becoming an energy, procurement and construction (EPC) player. At the same time the client was also open to any niche business opportunities, peripheral to EPC work in the in the infrastructure domain.
To develop an entry strategy for the company, UC adopted the following approach:
- Developed a filtration framework for identifying the possible sectors and specific opportunities within them based on an iterative process using some key parameters proposed by the client -
- The criteria - Investment up to Rs. 500 crore, Low involvement of blue collared workers, No direct face-off with Reliance, Less hush money, Involves some technology play and Does not involve a very high gestation period
- Conducted comprehensive secondary and primary research to validate the parameters of the filtration framework, and choose the best fitting opportunities
- Suggested opportunities, explained the logic behind the recommendation, and the best possible entry route
- Classified the identified opportunities as - No regret (areas to get in without delay), real options (aggressively seek opportunities into such areas) and big bets (highly lucrative options for the future)
The client got a host of EPC opportunities to choose from in the infrastructure domain, and which fit its company values and selection criteria. It also received recommendations on some niche peripheral opportunities, which could act as building blocks for its entry into some infrastructure sectors (e.g. ESO, Seismic surveys, maintenance, repairs and overhaul etc.).