Landscaping and Identification of Opportunities for India Sourcing for a World Leader in Design and Manufacture of Specialised Electronics and Associated Components

Client Challenge

The client was a world leader in the design and manufacture of electrical connectors, fiber optic connectors; specialized electronics and associated components. It met requirements of various industries including Defense, Civil Aerospace to Industry, Auto sport, Rail, Offshore and Recreational vehicles

The management hired UC Strategy to assist it in landscaping India sourcing opportunity for the above mentioned six industries and short-listing two-three industries for in-depth market analysis

 

Our Approach

In order to landscape and identify opportunities, UC Strategy used the following approach:

  • As a part of the assignment interviewed more than 115 respondents to gain connector consumption pattern in India
  • Covered important segments such as those mentioned below as a part of the assignment:
    • Aerospace
    • Army
    • Space
    • Navy
    • Railways
    • Civilian commercial sectors
    • Civilian construction sectors
  • Examined industry structure and identified key segments:
    • Examined structure for selected end user industries
    • Identified sub-segments (relevant to Deutsch) and determine key sub-segment characteristics
      • Organized vs. unorganized
      • Concentration of players
    • Reviewed player concentration based on type of entity
      • Domestic players
      • International companies operating in India
    • Ascertained within the relevant industries, who are the potential customers for Deutsch’s product portfolio
      • OEM
      • Tier I
      • Tier II
    • Determined sourcing trends for specific end-user industries across the various stages in the value chain. Ascertain presence of Indian players and extent of India sourcing across the following:
      • Engineering/ design
      • Material supplies
      • Equipment/ component supplies
      • Procurement/ integration/ assembling
      • Development/ Construction/ Installation
      • Operations & Maintenance
  • Determined underlying growth drivers:
    • Determined overall market size and expected growth rates for relevant industries
    • Estimated projected investments for the next 5-6 years
    • Assessed extent of capital asset creation and estimate CapEx requirements
    • Examined key growth drivers
      • Expected foreign investments/ FDI
      • % of greenfield vs. brownfield projects
      • Growth and development in relevant sectors
      • Government policies for:
        • Public-Private Partnerships
        • Length of concession agreements
        • Capital grants/ subsidies/ tax concessions
        • E.g. Govt. offset policy in defence
      • Emerging demographics and customer spend dynamics: E.g. MRO sector expected to witness robust growth as a result of airline traffic and growth in air fleet
    • Analysed the historical and future trends in principal end-user markets.
    • Determined extent of business cyclicality
    • Corroborated recent and future growth trends and evaluate views of future trends through market interviews with industry experts
  • Analysed implications of global demand/ supply trends:
    • Assessed overall global demand trends
      • Demand and growth rates by region
    • Determined key demand and supply centres and assess key drivers resulting in shift of demand and supply centres
      • Emergence of relevant/ core sectors
      • Access to growth markets
      • Global OEM imperatives: Expansion and consolidation, cost efficiencies and innovation

Our Impact

The client received a comprehensive landscaping report with identified opportunities with a smart scenario in detail. As per the recommendations of UC Strategy, the client approved commencement of Phase – II of the assignment for detailed market analysis and development of the business model and implementation planning.

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