Assessing the Opportunities in the Construction Material Segment and Define Strategy and Business Model

Building Materials Consulting

Client Challenge

The client was a prominent construction material manufacturer in India and was and looking to achieve a sales turnover of ~Rs. 2500 Cr by FY17 with a minimum pre-tax ROCE of 22%. The client, therefore, needed UC Strategy to assess the opportunities in the construction material segment and define strategy and business model for achieving scalability in AEC blocks, selling new products and leveraging distribution and manufacturing capabilities


Our Approach

Various sources and lenses were used to develop the laundry list of products/service opportunities in the building construction space. An opportunity selection framework was used to shortlist potential opportunities that could be pursued under the current distribution channel. Similarly, for opportunities that could not be pursued through the current distribution channel, a pre-selection framework was developed to shortlist opportunities that could be pursued to accelerate growth and achieve its target

Based on these frameworks, 8 opportunities that could be pursued through the current distribution channel and 9 opportunities that required developing a separate distribution channel were shortlisted for further evaluation

A detailed profile was created for each of the shortlisted products, based on the following parameters:

Characteristics of the product, raw materials used, key application areas, current and future adoption rates, market size estimation, growth rate, key customer segments, demand-supply gaps, competitive landscape, business model, key success factors, key business risks, entry barriers, estimated revenue and expected profitability

A comparative analysis based on the following matrix was carried out for the shortlisted opportunities:

  1. Market share of organized players against the gap in prices between the organized and local players
  2. Growth Rate and Stage of products maturity in its lifecycle
  3. Profitability and Synergy with current distribution channel

Based on the level of pay off and the level of uncertainty, each product could be classified as a Real Option, No Regret and Big Bet

Our Impact

Based on the above analysis, the top priority products and second priority products were recommended to the client.


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