Developing MSME Strategy for a Fast Growing Indian Finance Company

Financial services strategy consulting

Client Challenge

The client was a leading international financial services company.  In India, it had a Business installment Loan product which is SME focused. In order to gain further insights across different customer segments for the above product, the client hired UC STRATEGY to analyse SME segments.

Our Approach

In order to execute the assignment, UC STRATEGY used the following approach:

  • As a part of the engagement interviewed more than 175 industry respondents
  • Conducted Examination of key segment characteristics, this included:
  • Overall industry size and projected growth rate
  • Extent of consolidation vs. fragmentation
  • Market and product risk
  • Business seasonality and cyclicality
  • International market risk
    • Threat of imports
    • Dependence on export markets
    • Currency fluctuation risk
  • Government policies and regulatory risk
  • Conducted detailed assessment of potential customer profile and key operating and financial ratios:
  • Overall customer profile
  • Average turnover of business
  • Debtor, creditor and inventory period.
  • Analysis of working capital cycle with share of internal funding
  • Bargaining power with customers and suppliers
  • Overall margin pressure
  • Analysis and examination of key ratios
    • Cash to turnover
    • Debt burden ratio
    • Working capital to turnover
    • Debt to Equity
    • Current ratio
  • Defined eligibility criteria:
    • Undertook final discussions with client team on key segment dynamics
    • Developed a risk vs. market attractiveness matrix
    • Finalised eligibility criteria across industry segments

Our Impact

Completed 6 weeks of the study and conducted detailed analysis for 11 industries consisting of 179 respondents. Delivered a final report to the client with finalised eligibility criteria across industry segments.

 

Developing a Digital Strategy and Role Redefinition for a Fast Growing Bank in India

Financial Services Consulting

Client Challenge

The client was a fast growing and privatised bank focused on select domains of expertise including financial inclusion and agriculture. The management had viewed electronic national agricultural market (eNAM) as a strategic space to compete in. The client engaged UC STRATEGY to develop a digital strategy and assess its role in the value chain, given the interests of the stakeholders in the market.

Our Approach

UC STRATEGY conducted the engagement in a collaborative manner adopting the lens of the ecosystem of the banking and eNAM than the lens that would benefit only our client. Our approach consisted of the following key components of work:

    • Developed stake holder map that examined the history, roles, responsibilities, interests, challenges and aspirations of the various stakeholders in the space such as NCDEX, MoAFW, SFAC, WDRA, NFCL, NCML, CDSL, RBI, etc.
    • Developed an understanding 417 agriculture mandis (farmer markets) in 13 states across the country and developed an understanding of the key bottlenecks such as essaying, trade and payment settlement, participation of key commodities, middlemen and farmers, etc.
    • Assessed how the digital solutions could be leveraged by linking the understanding from the stakeholders to the value propositions or functionalities of the solutions
    • Defined the potential actions by our client by aligning the value propositions of digital solutions to key stakeholders, prioritising whom to partner with and defining the political alignment given the financial inclusion goals of the government, the farmer income directive of the Prime Minister’s Office and RBI guidelines
    • Defined statewise and stakeholder specific plan of action, implementation roadmap and expected risks; defined the risk mitigation plan.

Our Impact

The client was able to progress rapidly in connecting with the Prime Minister’s Office (PMO), prioritised stakeholders and the beneficiaries such as farmers and stakeholders as part of their ecosystem; internally, management was able to obtain more resources to expedite the returns on investment in digital solutions. Finally, the client saw its role differently than earlier given the deep understanding of the stakeholders we developed during the study.

 

Building a Business Strategy by 2022 for a Large International Payments and Fintech Player

new business opportunities

Client Challenge

The client was a ~US$ 0.5 Bn MNC present in 116 countries with a focus on 30 countries in Asia (China and India), the UAE, Europe (mainly in the UK and France), Australia, Africa, LatAm and the US. The flagship business of remittances and payments had expanded into multiple product lines in traditional lending, digital financial services and fintech businesses. The client had planned a Fund Raise (an IPO) and UC STRATEGY was engaged to develop a plan for 6 legal entities in 30 countries across its key 8 financial product and service lines of businesses.

Our Approach

UC STRATEGY used the following approach:

Module 1:

    • Created a cohesive structure establishing clear lines of hierarchy in legal entities, businesses and timelines for modelling the final accounts
    • Documented the explicit and implicit assumptions of the businesses in in-depth discussions with the client
    • Defined the data needed to be populated in the financial model developed in collaboration with the client

Module 2:

    • Verified the data availability and gaps in discussions with the country leaders, leadership team and the IPO task force
    • Developed detailed 10 country intelligence decks that accounted for important streams of revenue, showing the connects and disconnects between the market conditions and the plans made by the client internally
    • Corrected and assumptions and developed a view on strategic levers of competition for our client in each of the lines of business, product lines, countries, entities based on competitiveness and valuation goals
    • Developed a detailed financial model with an estimate of monthly P&L statements, balance sheet and product lines; the excel model ran into several thousands of lines of assumptions and data making it one of the most comprehensive and complex models; we used the combination of latest technologies to be able to make it convenient for the client to use it.
    • Developed a summary of all the decks, countries, product lines, businesses, etc ready to be presented to the promoters
    • Assisted the client top management to build a narrative for its business plans

 

Our Impact

The client was able to build the business plan financial model in a short time of 10 weeks for 30 countries, across its 8 lines of business and legal entities and was able to meet the deadline set by the promoters and investors for the planned IPO that was ahead of them

 

Assisting a Large Financial Services Player in the UK in Developing a 2023 Business Plan

Financial Services Consulting

Client Challenge

The client was a large UK headquartered brand in financial services and engaged UC STRATEGY to develop a business plan by 2023 as a preparation for the forthcoming IPO. The client’s need was urgent and the task of building the plan was complex in nature, given the inherent contingencies in the plan.

Our Approach

UC STRATEGY used the following approach:

  • Developed a detailed model of financial statements for the US including the physical, digital, wholesale and retail lines of businesses
  • Assessed the forex market in detail in the countries of main operations and developed a detailed view on its potential, expected CAGR and key assumptions of client revenue streams
  • Assessed the acquisition and take over of a large global MNC player’s payment card business and incorporated the findings into the financial model of the client
  • Detailed the cost estimates considering the ambitious plans and tempered the revenue estimates in some cases, given the economics
  • The client financial model estimates were incorporated into the group financial model plans; our team ensured that the roadmap of the strategy and business was consistent with the global plan but also it maximised the potential of the business of the UK entity and the countries that they were present in,

 

Our Impact

The client was able to obtain a realistic view of the market, its assumptions and its ability to address the potential; it also had a clear set of assumptions that they needed to monitor regularly. Finally, the client felt far more confident of achieving its targets set out by the parent management and the promoter group.

 

Developing an Investor Presentation for a Manpower Staffing Company

Automotive Management Consulting

Client Challenge

The client specialised in providing manpower to the oil and gas, infrastructure and power sectors. Some investors had approached the company, showing interest in acquiring a stake. The client requested UC STRATEGY to capture and present the key operating details and the strategic vision of the company to its those strategic investors.

 

 

Our Approach

 To assist the company in developing the investor presentation, UC STRATEGY adopted the following approach:

  • Conducted an overview of the Indian staffing industry
  • Segmented the industry into different pivots to highlight the strengths of the client
  • Conducted an overview of the current operations of the client including the following details –
  • Profile of the management team and their contribution
  • Growth in revenues and profitability highlighting the key elements of the strategy that has led to the growth
  • Share of revenues from various industry segments and highlighting the rationale of focusing on these verticals
  • Future expansion plans including staffing numbers focus on new verticals, strategy to increase penetration in existing verticals etc.
  • Conducted an overview of the alliance/tie-ups especially in the international market and their contribution to stimulating growth
  • Analysed the strategic investment in the company

 

 

Our Impact

The client received a detailed presentation for the investors.

Conduct a Diagnostic Review of Deoxyribonucleic Acid (DNA) Instrumentation in India

Biotech Consulting Services

Client Challenge

The client was involved in developing advanced molecular diagnostic products that would bring fast, accurate and low-cost diagnostics to a range of critical medical and scientific applications. The company was developing a very low-cost instrument for real-time polymerase chain reactions (PCR). It believed that India would be one of the countries with real market potential. Thus, the top management requested UC STRATEGY to diagnose the need for DNA instrumentation in India.

 

Our Approach

To diagnose the need for DNA instrumentation in the Indian market, UC STRATEGY assessed the attractiveness of India as a market for DNA amplification instruments and answered the following key questions:-

  • What is the current market size for real-time/quantitative PCR and the likely growth over the next 5 years?
  • What is the current and future the mix of end-users (researchers in hospital/ academic labs) who would be using real-time PCR vis-vis standard PCR?
  • How will developments like nucleic acid testing drive the demand for reverse transmission (RT)-PCRs?
  • What role can low-cost RT-PCRs play in accelerating the research agenda in India?
  • What are the key drivers that influence the purchasing pattern?
  • Who are the main players in the market and how will the competitive landscape evolve moving forward?
  • If attractive, how can the client enter the Indian market?

 

Our Impact

The engagement concluded that India was an attractive market for low-cost RT PCRs, which the client intended to launch. It further considered UC STRATEGY’s recommendations and contemplated preparing a business plan for the Indian market.

Landscaping the India High Tension Motor Market

Automotive Consulting

Client Challenge

The client was one of the leaders in the electrical engineering industry. The company was manufacturing transformers, motors and drives. They wanted to landscape the high tension (HT) motor market of India.

 

Our Approach

 UC STRATEGY landscaped the market, following the following processes:

  • Defined the HT motor Industry in India based on frame size, input voltage and power output
  • Estimate the total market of HT motors in India and triangulate the market size figure with some of the competitor’s sale
  • Extrapolate the demand based on the expansion plan of the key application industries and understand the demand-supply gap in each segment
  • Segment the market based on various machine application, type of motor, frame size and application industry vertical
  • Understand competition on key parameters like production capabilities, focus application segments and the future expansion plans
  • Based on the study, express our viewpoint on the feasibility of entering the HT motor market

 

Our Impact

The client received details on the market size and the demand-supply in each of the segments. UC STRATEGY also gave the client an understanding of the competition’s strategy in the market to evaluate the entry decision in the HT motor industry.

 

 

 

Improving Customer Experience by Re-designing key Customer Interaction Points for a Leading NBFC Company

Financial services strategy consulting

Client Challenge

The client was one of the leading wealth management, capital markets and advisory companies in India. It served as a strategic advisor to corporations, governments, institutions and individuals. The client wanted UC STRATEGY to assist them in improving their customer experience by redesigning all their customer correspondence, thus making it more informative and user-friendly.

Our Approach

To improve customer experience, UC STRATEGY adopted the following approach:

  • Recommended content and presentation improvements in their monthly statements to the customer’s clients:
    • Analysed the content and presented existing statements and reports
    • Gained an understand of customer requirements
    • Compared statements against competitors
    • Synthesised findings and defined revised / additional statements
  • Recommended additional special reports that could be generated for customers as well as content and presentation improvements in the existing special reports
  • Identified and recommended improvements in their performance review analysis and presentation to customers using the client’s global toolkit. This helped to
    • Evaluate the content presented in performance reviews
    • Outline the ideal method of preparing performance review reports

Our Impact

The client received recommendations on alterations in the content and presentation of monthly statements along with modification to existing special reports as well as identification of additional reports that could be generated for clients. The client also received recommendations on tools from the global toolkit that can be adapted to prepare performance reports.

Defining the India Entry Strategy for a Reputed Middle East Based Player in the Façade Fabrication Segment

Automotive Consulting Firms

Client Challenge

The client was a leading player in the façade fabrication market in the Middle East, with interest in aluminium extrusion segment. As part of expansion plans, and sensing an opportunity in India, the client wanted to validate the market attractiveness and define an India entry strategy. 

 

Our Approach

To define the India entry strategy, UC STRATEGY adopted the following approach:

  • Conducted desk research and primary research to landscape the market façade fabrication segment
  • Analysed and estimated key growth drivers, competitive intensity, margins, potential threats, challenges, business risks etc. to define overall attractiveness of the façade fabrication business
  • Established the synergies between the façade fabrication business and backward integration opportunities like glass processing, glass coating and aluminium extrusion
  • Analysed the potential of each opportunity on the basis of captive utilisation of the façade fabrication business and the ability to sell the remaining capacity
  • Analysed the probability of success of various strategic options of entering the Indian markets and recommended a suitable option based on the core capabilities of the client
  • Defined a strategic sequence of market entry and accordingly defined investments outlay and time frames
  • Developed detailed financials for all the business and projected the same for 5 years

 

Our Impact

 The client received a deep understanding of market dynamics in India and a definition of the India entry strategy along with a five-year business plan.

 

Assessing Market Attractiveness to Enter the Radiopharmaceutical Business in India

Drug Discovery

Client Challenge

The client was an integrated pharmaceutical industry player from India that had recently acquired a Canadian company with radiopharmaceuticals in its product portfolio. This provided it with an opportunity to enter the Indian radiopharmaceutical business. The client wanted UC STRATEGY to conduct a detailed market assessment of radiopharmaceuticals and contrast agents for CT and MRI in the Indian market, as well as evaluate its feasibility based on the attractiveness of the market.

 

Our Approach

Our role was to provide a perspective on a market which was still in its nascent stages in India. We provided the following insights to our client:

  • Perspective on the current market size, growth and outlook over next 5 years for key applications and modalities across India for radiopharmaceuticals, contrast agents for CT and MRI scans and radioimmunoassay kits
  • Insight into the overall usage of radiopharmaceuticals in India – i.e. diagnostics vs. therapeutics
  • Synthesis of opinions from key opinion leaders on the usage of radiopharmaceuticals and potential cannibalisation by modalities of one another
  • An understanding of whether a radiopharmacy model is a need in India and its potential benefits
  • Insight on the economics underlying this market
  • View on the competitive landscape and the challenges it posed to our client
  • Understanding of the regulatory framework from AERB (Atomic Energy Regulatory Board), laws and import duty structure, patents expiring for both radioisotopes and cold kits

 

Our Impact

The analysis revealed that our client could launch its products at a price point between two key leading competitors in the market. We also recommended that the client consider setting up a radiopharmacy. We cautioned the client, a large Indian MNC, to consider the material significance of the radiopharmaceutical market (given that it is nascent in India) before entering the space.