30 Years – India’s Strategy Boutique
30 Years – India’s Strategy Boutique

Crop & Food Science

Commercial Due Diligence for Indian Private Equity Firm Investing in Agri-Implements Space

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Client Challenge

An Indian financial services firm, acting as a private equity investor, sought to invest in Target, a Rajasthan-based company dealing in small agricultural machinery. The objective was to conduct a commercial due diligence to understand the market landscape, growth factors, competition profile, and the target’s rank in the market.

Our Approach

  1. Primary Research with Market Experts:
    • Conducted primary research with industry experts and sales personnel from competing companies.
    • Gained insights into market structure, segmentation, competitor shares, growth rates, and key growth factors driving the market.
  2. Primary Research with Distributors and Dealers:
    • Conducted primary research with distributors and dealers across Maharashtra, Odisha, and Madhya Pradesh.
    • Assessed dealer dynamics, including the influence of various players in the value chain.
  3. Market Modeling and Analysis:
    • Built market models for six key products using import data identified through HSN codes.
    • Triangulated data through financial statements and primary research to estimate market sizes.

Our Impact

  1. Market Size Analysis:
    • Provided a detailed commercial due diligence report outlining market sizes for the identified key products (power weeders, brush cutters, battery sprayers, chainsaws, earth augers, water pumps).
    • Market sizes were segmented for FY 2021, FY 2023, and predicted FY 2028, considering horsepower (if applicable) and customer segments.
  2. Use Case and Growth Expectations:
    • Defined use cases for each product, informing market growth expectations.
    • Described the product life cycle, distributor details, competitor profiles, and the target’s rank in terms of product volumes sold.
  3. Differentiation and Competitive Analysis:
    • Highlighted differentiation factors of the target compared to competitors.
    • Provided insights into the target’s competitive positioning and strategies for market penetration.