Food and Oil & Gas Ancillary Industry and Investee Screening for an Investment Fund Company

Client Challenge

The client was a reputed investment fund company and wishes to invest in India. The key focus of the proposed assignment in developing the industry and investor screen and would be to study the dynamics, identify value drivers and identify tomorrow’s winners by defining the characteristics of players who would emerge successful in future and who are open to investment from a PE house

 

Our Approach

In order to conduct the investment screening, UC STRATEGY used the following approach:

  • As a part of the assignment interviewed more than 70 respondents
  • Landscaped the oil and gas industry in detail, this included:
  • Assessed and examined the industry structure by studying its entity chain
    • Entities involved (Food processing: processors, distributors; Oil & Gas: FEED, drilling company, etc.)
    • Activities undertaken by each entity
    • Extent of forward and backward integration
    • Number of entities present at each stage
    • Revenue range for each entity
    • Number of entities across different revenue categories at various stages of the entity chain
  • Assessed the value creation at different stages of the entity chain by understanding
  • Contribution to the revenue pool by each entity
  • Upward or downward trend in the revenue pool
  • Profitability at each stage
  • Contribution to the profit pool by each entity
  • Upward or downward trend in the profitability
  • Any potential to add value by cost advantage or differentiation
  • Assessed industry potential (revenue size and revenue growth rate) across the domestic market and exports potential
  • Studied drivers and inhibitors for the industry at domestic and export level and classify them as ‘strong’ or ‘weak’ signals at the industry level
  • Determined financial indicators

 

Our Impact

The client received a detailed investee screening and decided to go ahead with next step of detailed segmental screening

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