Conducting Market Assessment for Windmill Gearboxes for a Leading Indian Industrial Player

Automotive Consulting Firms

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
  • 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
  • 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
  • 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.

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