Industrial Products & Capital Goods
Strategic Assessment of India's Plastic Compounding Market for Leading Lead Manufacturer
Client Challenge
Our client, a prominent Indian lead manufacturer and recycler, had limited engagement in the plastic segment through their recycling business. The client sought to thoroughly assess the plastic compounding industry in India to understand the application segments, industry attractiveness, and the feasibility of forward integrating their existing recycled plastic business into plastic compounding.
Our Approach
To evaluate the potential of the plastic compounding industry, UC Strategy adopted a comprehensive approach:
- Market Analysis:
- Conducted primary and secondary research to determine market size and future growth rates, with a particular focus on the automotive applications segment.
- Engaged in extensive secondary research and strategic interviews with stakeholders across the value chain, including compounders, tier-1 suppliers (moulders), and Original Equipment Manufacturers (OEMs), to analyze the influence of each player in the business.
- Product Segment Analysis:
- Developed detailed snapshots for individual product segments, identifying key macro trends and drivers impacting each segment.
- Assessed the current usage of recycled compounds and forecasted their future use in the Indian automotive industry for each segment.
- Customer and Competitor Analysis:
- Analyzed customer segments and evaluated the existing competitor landscape by examining production and spare capacities, new market entrants, revenues, and profitability.
- Attractiveness Framework:
- Developed a framework based on quantitative and qualitative parameters to determine the attractiveness of the plastic compounding segment.
- Conducted discussions with various stakeholders to inform the framework and assess the segment’s potential.
Our Impact
The client received a comprehensive report with product-level insights into the plastic compounding industry, including the influence of different stakeholders and the profitability landscape in India. Based on the attractiveness framework and industry structure, a final recommendation was provided on whether the client should forward integrate their recycling business into plastic compounding.