Client Challenge
The client was a leading player in heavy engineering and project execution space in India. It was evaluating a foray into the assembly and testing of windmill gearboxes (1.6 MW to 3.5 MW range) in India. A Czech company, which was into manufacturing gearboxes was in discussions with our client to form a JV company and create a workshop facility in India for assembly and testing of its imported gearbox components
The client hired UC Strategy to conduct a clear market assessment and possible avenues for conducting the business.
Our Approach
In order to conduct an assessment, UC Strategy used the following approach:
- As a part of the assignment interviewed more than 25 respondents across segments
- Gauged Market Dynamics & Wind Mill Developer Preferences, this examination included:
- Determined projected yearly domestic capacity addition of windmill installations over the next 5 years
- Gauged drivers/ inhibitors for the projected demand
- Availability of high-velocity windmill sites
- Attractive tariff offered by SEB in certain states
- Other incentives for wind farm developers, etc.
- Gauge future trends w.r.t the following aspects and gain insights into the drivers/ inhibitors, windmill developer preferences for
- Module sizes and usage of 2 MW and its sustainability
- Usage of gearless turbines vis-vis with gearbox
- Potential of offshore/ onshore installations
- Assessed Wind Turbine Manufacturer Strategies:
- Assessed model adopted for gearbox procurement/ assembly/ testing by wind turbine manufacturers like Suzlon, Bharat Forge Kenersys, etc. (e.g.)
- Captive
- Sole supplier
- Multiple suppliers
- Gained useful insights into the future capacity addition plans of the wind turbine manufacturers
- Determine potential customers for the client
- Assessed model adopted for gearbox procurement/ assembly/ testing by wind turbine manufacturers like Suzlon, Bharat Forge Kenersys, etc. (e.g.)
- Examined the competitive landscape, this included:
- Gained insights into the competitive landscape for assembly/ testing gear-boxes
- Plant location and current capacity
- Domestic/ Export focus
- Captive & Third-party
- Pure third-party suppliers
- Future capacity addition plans
- Gained insights into the competitive landscape for assembly/ testing gear-boxes
- Synthesised & Concluded on the Opportunity
- Determined total market demand over the next 5 years
- Gearless and with gearbox design
- Predominant module sizes
- Determined addressable market for WIL factoring
- Relevant module sizes
- Captive gearbox manufacturing capacities
- Synthesised the findings:
- Addressable market size over the next 5 years of gearboxes for WIL (With Inox and other players)
- Competitive intensity
- Determined total market demand over the next 5 years
- Assessed incentives/ advantages w.r.t taxation due to WIL proposed venture in renewable energy space
Our Impact
The client received a clear market assessment and possible avenues for conducting the business.