Shaping up the Inorganic Growth Strategy in Indian of a Leading Global Logistics Service Provider

Logistics Consulting Services

Client Challenge

The client was a global market leader in international express, overland transport, air freight, and ocean freight and contract logistics. It is a well know End-to-End logistics service provider having operations in more than 60 countries

The client offered a full range of customised solutions – from express document shipping to supply chain management. It is evaluating an acquisitive/ inorganic growth approach for its global forwarding division with focus being on ocean freight

The client approached UC STRATEGY to assist it in the endeavor of shaping its inorganic growth strategy and identify potential acquisition targets.

Our Approach

In order to shape the inorganic growth strategy, UC STRATEGY used the following approach:

  • Differentiated potential acquisition targets by an initial segmentation of MTO (Multimodal Transport Operators) and Non – MTO players in the Indian market
  • Shortlisted close to 2000 companies for evaluation and using various parameters to elimination, arrived at a final shortlist of 60 companies
  • Made a framework based on internal management discussion to rank the final shortlist companies and assign weights
  • Also adopted an alternate approach to rank top companies in each strategic category & map them against their accessibility, this was done considering:
    • Accessibility of these top companies in each strategic category was determined by their willingness to partner
      • Accessibility was determined on basis of respondents’ willingness to the following three options
        • Independent JV: Company is willing to consider a new joint venture with client, without diluting stake in their existing business
        • Equity participation: Company is open to selling off part of their equity
        • 100% sell-out: Company is willing to sell 100% stake
  • Using a combination of primary research, interviews and secondary desk search, prepared detailed profiles of the 60 odd companies, along with their financials and past five years performance
  • Based on the rankings and weights, selected final list of 25 companies and passed it over to the client for final partner selection.

 

Our Impact

The client received a detailed partner selection strategy.

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