Growth strategy and five year financial planning for a leading provider of agri warehousing and allied services in India
The client is one of the largest provider of services to manage risks across various stages of agri commodity and inventory handling. Service portfolio of client included dry warehousing, cold storage, collateral management, commodity financing, etc.
Client believed there is significant opportunity to extend its presence in warehousing and other services in both agri and non-agri space. Client had selected 15 such opportunities as potentially attractive spaces which it believed are worthy of further investigation for growth, in terms of size, target customers, competition and the potential routes-to-market or expansion strategies.
Towards this the Top management of the company requested UC to conduct a growth strategy case and define five year growth plan including:
● Current and expected size and growth of opportunity
● Market drivers impacting the business
● Assessment of competitive landscape and the key success factors for players to succeed in this space
● Revenue plan for 5 year across opportunities including required investment, payback and profitability
In order to build perspective and growth map for client, we conducted exhaustive desk research and in-depth discussions with approximately 450 respondents geographic locations and a range of industry participants which included WSPs, government officials, farmers, traders, processors, NBFCs, banks, PE firms, regulatory bodies, etc.
● UC landscaped the market for client services in India and for six clusters with varied level of client presence
● Analyzed impact of emerging trends and regulatory developments (e.g. SEBI-FMC merger) on the market
● Segmented the customers based on various pivots (such as type of business services needed, price preference, size of prize, etc.) to assess implications on their service mix and impact on client business
● Based on a bottom-up assessment, developed a location model to assess the market opportunity for warehousing and attractiveness of owning warehouses (in place of leasing or franchising)
● Undertook assessment of regional dynamics: consumption patterns and preferences, pricing variations and differences in overall demand
● Assessed the player landscape and identified strategic player groupings based on their portfolio of offerings
● Within each service category identified potential opportunities to drive growth: product and customer focus
The client received a detailed report with UC findings and growth roadmap and financial projection for 5 years, implementation plan for different opportunities, financial viability models for various opportunities and investments.