research & advisory solutions for enterprises india...

Business Research & Advisory

Research & Advisory Solutions for Enterprises – India Experience

Capability Overview

June 2017

Prepared for

Switzerland Global Enterprise

2 Capability Overview


Local Know-How

Understanding local market

nuances & challenges

Unparalleled knowledge of the

businesses, markets and

opportunities in this region

Extensive Research

Experience in India

Completed nearly 500 projects

in India

Projects executed have been

spread across several regions

enabling Aranca to gain robust

regional understanding

Strategic Local

Presence

Home country advantage to

service clients based in India

Delivery Centres in key metro

cities – Mumbai, and Delhi

Diverse Client Base

in India

Executed advisory projects

across 20 industries for ~125

clients in public/private sector

Client base includes banks,

MNC’s, consulting firms,

investment banks, law firms and

private equity firms

Full service global research firm with over a decade’s

experience across synergistic business lines:

Market Intelligence

Procurement Research

Investment Research

Fixed Income & Credit Research

Valuations & Advisory

Intellectual Property Research

Aranca India Value Proposition



Indicative list of sectors & sub-sectors studied in China…

AGRIBUSINESS

• Farm Equipment

• Agrochemicals

• Livestock

• Aquaculture

• Farm Produce

ALTERNATE ENERGY

• Solar Energy

• Photovoltaic Devices

• Biofuels & Biodiesel

• Wind Energy

• Geothermal Energy

AUTOMOBILES & PARTS

• EV/Hybrid Vehicles

• Lithium Ion Batteries

• Lead Acid Batteries

• Auto Infotainment

• Auto components

• Automotive after market

BANKING & INSURANCE

• Corporate & Retail Banking

• Life & Non-life insurance

• Asset Management

• Crowd & P2P Lending

• Private Equity & VC

BUSINESS SERVICES

• Facility Management

Services

• Car Rental Services

• Leasing Services

• Event Planning &

Management

• Human Resource Consulting

• Management Consulting

CAPITAL GOODS

• Packaging machinery

• Pumps, Gates & Valves

• Industrial fasteners

• Decanters & Centrifuges

• Mining Machinery

CHEMICALS

• Fine chemicals

• Electronic materials

• Agrochemicals

• Oleochemicals

• Coatings

• Specialty Chemicals

• Petrochemicals

CONSTRUCTION, REAL

ESTATE & INFRA

• Residential Construction

• Affordable housing

• Commercial Real Estate

• Urban infrastructure

• Real Estate Classifieds

ELECTRICAL EQUIPMENT

• Switchgear

• LED Lighting

• Transformers

• Smart Grid Infrastructure

• Advanced Metering

Infrastructure

ELECTRONICS & IT

• Semiconductors

• IC Fabrication/

• EMS

• ERP/CRM Software

• Application Software

FOOD & BEVERAGES

• Processed Food

• Infant & Baby Food

• Confectionery & Snacks

• Alcoholic Beverages

• Juices & RTD Beverages

HEALTHCARE & PHARMA

• Generic drugs

• Biosimilars

• Hospital Services

• Clinical Research

• Contract Research (CRO)

INTERNET

• Internet Infrastructure

• Internet Advertising

• Online Retail

• Payment Gateways

• Mobile Internet Services

• Digital Content

MEDIA & ENTERTAINMENT

• Newspapers

• Book Publishing

• Publishing

• Film Production

• Cable TV

• Satellite Broadcast

• Digital Media Marketing

MEDICAL DEVICES

• Endoscopic Devices

• Ophthalmic Devices

• Patient Monitoring Devices

• Implants

• Medical Consumables

• Infusion Pumps

METALS & MINING

• Fabricated Steel products

• Extruded Aluminium

• Copper Products

• Rare Earth Mining

• Precious Metals Mining

PACKAGING

• Flexible Packaging

• Metal Packaging

• Easy Open Ends

• Glass Packaging

• Release Liners

• Corrugated Packaging

RETAIL

• Super Markets & Hyper

Markets

• Logistics & Distribution

• Traditional Retail Channels

• Modern Retail Formats

• E-Commerce

TELECOM

• Fixed Telecom Services

• Wireless Telecom Services

• Telecom Infrastructure

• Value Added Services

• Managed services

TRANSPORTATION, TRAVEL

& TOURISM

• Hospitality

• Tourism & Tour Operators

• Amusement Facilities

• Marine Transport

• Port Facilities

• Road Transport

India Experience

Completed several hundred projects across sectors for over 125 clients

Indicative list of sectors & sub-sectors studied in India…

• Enterprises (Multinational & Domestic)

− Corporate Strategy & Business Intelligence Teams

− Procurement & Purchase Teams

− Marketing & Business Development Teams

• Consulting Firms

• Private Equity &VC Firms

• Law Firms & Professional Services Firms

Client Profile

Market Intelligence Solutions

• Entering new markets

• Defining go-to-market strategies

• Launching new products

• Evaluate new geographies

• Diversify into adjacent markets

• Increasing market share

• Track competitor's strategies

• Implementing digital strategies

Research Solutions

• Driving innovation initiatives

• Tracking customer experience

• Enhance sales-force effectiveness

• Benchmark competitor capabilities

• Explore acquisition opportunities

• Identify Joint Venture partners

• Effective channel management

• Benchmark supplier capabilities

Procurement Research Solutions

• BCCs / LCCs Sourcing

• Supplier intelligence

• Category intelligence

• Vendor management support



Assignment Examples by Industry

Track record of having completed several assignments, across sectors, in India (1/3)

AGRIBUSINESS

• Assessing opportunities in phosphate fertilizers value chain

• Competition assessment of harvesters manufacturers

• Opportunity analysis for aquaculture in pharma products

• Opportunity assessment on dairy farming

• Identification of Solar power component suppliers & system integrators in

• M&A target identification in the solar energy sector

• Detailed assessment of Solar PV and thermal markets

ALTERNATE ENERGY

AUTOMOBILES & AUTO PARTS

• Market potential study for railway wheels in India

• Regulation mapping for the automotive sector in Southern and Western

India

• Database building on suppliers of brake friction suppliers in Asian

countries

• Market potential study for distribution of automotive spare parts in India

• Strategy support to grow SME lease finance business in APAC

• Preparing a feasibility report as per Indian bank guidelines including

macroeconomic environment in India; financial system and structure of a

leading international bank

• Insight of Regional Bank's performance and strategy

BANKING & FINANCIAL SERVICES

BUSINESS SUPPORT SERVICES

• Market study on car rentals business

• Industry analysis - business process outsourcing

• Identification and profiling of business information providers

• Market overview and competitive landscape of financial and credit

information services

• Feasibility study to set-up heavy machinery production plant

• Go-To-Market strategy for entering metal processing market

• Opportunity assessment of coal mining equipment

• Industry analysis - machine tools manufacturing

CAPITAL GOODS





CHEMICALS

• Purified Terephthalic Acid (PTA) - Analysis of price trends in India

• Benchmarking cost structures of Chlor-alkali manufacturers in Asia

• Market opportunity assessment for food-grade phosphates in Asia

• Identification and profiling of selected films (PE, PP, HDPE / LDEP /

LLDPE) suppliers in tier 1 cities in India

• Market study on infrastructure investments and turnkey contracting in

BRICS countries

• Competition mapping of construction equipment market in developing

countries

• Post-merger Business Plan Proposal – Construction Sector in India

CONSTRUCTION, REAL ESTATE, INFRASTRUCTURE

ELECTRICALS & ELECTRONICS

• Market opportunity for refurbished electronics

• Partner identification study for air conditioner distribution

• Market assessment for energy-saving electronics market

• Competitive analysis of LED lighting manufacturers

• Indian Coffee Shops – Feasibility study and Business Plan

• APAC Restaurant Business Plan

• Southeast Asian Kitchen Line - Business Plan

• Market attractiveness assessment for setting up a rice processing plant in

Southern Indian cities

FOOD & BEVERAGES

INDUSTRIAL CONSUMABLES

• Market opportunity assessment for fluidizing fabrics in sixteen countries

including India

• Industry report on the industrial gloves and Personal protective equipment

market in India

• Market study on coolant oil used in machining applications

• Opportunity assessment for hosted web conferencing market

• Market opportunity assessment for M2M services

• Monetization strategies for IoT solutions in transportation sector

• Acquisition opportunity evaluation in the Indian online real estate

classifieds

INFORMATION TECHNOLOGY





MEDIA & ENTERTAINMENT

• Business Plan for a crime based TV channel

• Mystery Shopping Services - Entertainment Industry

• Investor Presentation entertainment industry

• Industry Report on Broadcasting/Commercial Film Production

• Technology assessment – non invasive blood sugar monitoring

• Market Study on the medical endoscopy devices market

• Report on private equity & venture capital investments in medical

equipment industry

• Market study on bone graft substitutes

MEDICAL DEVICES

METALS & MINING

• Market study on flat steel products in Northern India

• Survey of steel mills in India to assess technology trends in BF operation

• Feasibility study for steel pipes and tubes plant in APAC region

• Market study on steel wires used in the Indian mining industry

• Market attractiveness and entry strategy for aerosol packaging in India &

Russia

• Market assessment for flexible packaging in India

• Market study and entry strategy on paint packaging in India & China

• Egg Packaging market assessment across 9 countries in South East Asia

PACKAGING

RETAIL

• Mystery Shopping Services in Retail Market Supermarkets

• Investment assessment of a company operating in the used car sales

market

• Best practices in logistics and distribution in the Fast Moving Consumer

Goods (FMCG) Sector in

• Market study on IT managed services in India

• Market opportunity assessment for cloud based storage in the BRIC

countries

• Market opportunity assessment for remote technical services in the

selected cities in India

TELECOM



Case Study 1: Packaging

Feasibility Study for Setting-up Molded Fiber Operations in India

SAMPLE ANALYSIS TEMPLATES BUSINESS SITUATION

A global packaging company was interested in the in-depth analysis of

current and future growth potential across select end-markets (fruits

and eggs) to gauge the feasibility to set-up a molded fiber plant in

India.

INDIA: PACKAGING MARKET ($M) AND BREAK-UP BY SEGMENTS (%)

INDIA: DEMAND FORECAST AND BREAKDOWN (IN VOLUME – PIECES)

• Analysis of the macro economic scenario and retail industry of India

• Understanding the packaging dynamics of end-market segments

and shortlisting the ones with high usage of molded fiber (MF)

packaging and strong growth potential

• Demand & supply analysis and gap analysis

• Mapping the consumer preference level for MF packaging in key

cities of the country

• Identifying the regions/states with high potential:

- Covered critical factors supporting establishment of

manufacturing facility – land, labor, raw material and resources

availability

- Conducted logistics analysis – existing infrastructure and potential

3PL partners

- Conducted technical feasibility for Greenfield plant – approximate

project size, equipment / technology requirements, and tax and

duties, etc.

RESEARCH METHODOLOGY

Desk research; 130+ phone interviews with industry experts

RESEARCH DELIVERABLES

2006

2007

2008

2009

2010

2011

2012

2013

Plastic vs paper

packaging

Egg Boxes vs

Egg Trays

2013

2013

2016: xxx

million

2016

XXX million boxes

Paper

Plastic

2016

XXX million trays

Paper

Plastic



Case Study 2: Healthcare

Market Study for Cancer Treatment Market in India and Competitor Benchmarking


A leading knowledge engineering company that offers information

services, including information systems, consulting, and think-tank

services. It is involved in research of global economic issues,

consulting, analysis and surveys for entry into new markets and

industries.

ANALYSIS OF CANCER PATIENTS IN ONE OF THE LEADING HOSPITALS

• Module 1: Market sizing for cancer treatment in India. This includes

top cancer treatments carried across top 10 hospitals in India and

their segmentation by cancer site, gender, stage of cancer, etc.

• Module 2: Competitor Benchmarking for the cervices, ownership,

and cancer patient profiles across the top 10 hospitals in India.

• Module 3: Opportunity analysis based on the first two modules,

highlighting the opportunity and challenges for setting up cancer

treatment facility in India.


The research and analysis for this study was based on desk research

and extensive primary research with top 10 cancer hospitals in India.




Case Study 3: Auto & Auto Components

Market Study on Auto-Component Market in India


A global testing, inspection and certification company was evaluating

the market for testing of auto components and commissioned Aranca

to do a detailed study in India

VALUE CHAIN ANALYSIS - AUTO COMPONENTS MARKET IN INDIA

AUTOMOTIVE COMPONENTS MARKET IN INDIA

• Analysis of the auto component market in India (market size, sales

segmentation, key OEMs, future growth trends)

• Market sizing - auto components (both OEM and after-market) in

India; breakdown by vehicle category

• Evaluating the export/import for auto components in India

• Assessment of the market for spurious parts

• Mapping out the key auto components manufacturers

• Detailed assessment of auto components manufacturers covering

- Value chain

- Key players and their capabilities

- Growth drivers and Challenges

• Estimating the potential market size for automotive component

market in India


Desk research; 25+ phone interviews with industry participants


Original equipment

manufacturers

Original equipment

manufacturers / Tier

1

Generic

Manufacturers/ Tier

2 / Tier 3

OEMs Franchisee

Dealers

Multi brand dealers

Small garages/

Other small players

Business

Fleet

Private

OEM vehicle part/

dealers

Independent part

dealers

• The industry contributes to xx% of India’s GDP (manufacturing) and provides employment

to approximately, one million people.

• Factors such as skilled manpower, low cost but high quality products, government support

are providing cushion to the automotive component industry amidst global economic

slowdown



Case Study 4: Consumer Services

Market Entry Assessment - Car Rental Services in India


US based Car Rental Company engaged Aranca to analyze and map

out the market opportunity, competitive landscape and end markets for

car rental services across India

MARKET ENTRY OPTIONS

ORGANIZED MARKET CAR RENTAL SALES BY CATEGORY AND LOCATION

• Overview of the Car Rental Market:

- Market size and volume of car rental in India by key segments

- Historical growth trends and evolution of business models

• Analysis of End Markets:

- Market demographics for each rental segment: Individual buyers

and Corporate buyers and growth of key industries

• Competitive Landscape:

- Market share of industry split by top players

- Company profiles with detail information on fleet size, footprint,

future plans etc.

• Key Findings and Conclusion:

- Evolving opportunities, business Models for car rental services in

India

- How can XYZ play their global strengths in the Indian context?


Desk research; 50 interviews with experts and car rental companies


BUILD PARTNER BUY

Business

Model

• Establish an owned subsidiary that

acquires a fleet and a national footprint

• Tie-up with a local player through a joint

venture or a partnership deal

• Acquire the business of an existing

player

Advantages • Ability to build to XYZ strengths and

retain significant control over the

operations

• Leverage the network, alliances and

capabilities of the partner to shorten

expansion timeframe

• Ability to rapidly build scale riding on a

running business

Disadvanta

ges

• Highly fragmented and unorganized

market poses pricing and positioning

challenges

• XYZ would have to play in the

chauffeured services to start with, which

is not their global mainstay

• The ability to position the XYZ brand

would be determined by the partnership

arrangement

• Taking the franchising route might tie

XYZ’s fortunes to the partner

• Significant upfront investment to acquire

and rebrand

• XYZ might have to invest significantly in

technology and systems

• Not too many players with a significant

footprint across the country

Options

• Start operations based out of the big 5

cities – Mumbai, Delhi, Kolkatta, Chennai

and Bengaluru and expand out in a

phased manner

• Partner with tour operators, hotels and

airports to ensure volumes

• Potential partners for a JV :

‒ Financial institutions – IL&FS,

ICICI and State Bank of India

‒ Car rental companies –

unorganized players

‒ Leasing companies – ALD

• Potential acquisition target examples:

‒ Akbar Travels

‒ Eco Rent-a-car

‒ International Travel House

‒ Auto Riders

‒ Ballal Jyoti Travels

‒ Car Club

Business

$xx mn

Airport

$xx mn

2010

Non-

Airport

$xx mn

2015

Leisure

$xx mn

Non-

Airport

$xx mn

Airport

$xx mn

Total Market

$xx mn

Business

$xx mn

Airport

$xx mn

Non-

Airport

$xx mn

Leisure

$xx mn

Non-

Airport

$xx mn

Airport

$xx mn

Total Market

$xx mn CAGR

8.4%



Case Study 5: Real-Estate

Market Entry Assessment - Facility Management Services in India


US based Facilities Management Company (FFM) engaged Aranca to

build a ‘go-to-market’ strategy and a list of potential target customers

for their expansion plans in India

BUSINESS MODELS OF ORGANIZED PLAYERS IN INDIA

ATTRACTIVE SECTORS FOR ENTRY

• Aranca proposed a two phased approach to the study:

• Phase 1:

- Overview of the FFM market

- Mapping the market & competitor dynamics for FFM services in

India based on supply side interviews (covering all Tier 1 and few

Tier 2 players)

• Phase 2:

- Study of Relevant Segments: E.g. Private hospitals, MNC service

companies, Manufacturing companies, IT / ITES firms, top 250

Indian companies (non PSU), off-shore, etc

- End User Survey: Primary interviews with top companies to

develop in-depth insights on current practices on FFM

- Sales Target List: Review segments of interest based on end-user

survey and develop database of ~ 500 companies covering the

top 25-50 firms in target sector


Desk research; 150 interviews with experts and potential partners


SELF EMPLOYED MODEL SUB-CONTRACTED/OUTSOURCED MODEL



Case Study 6: Aerospace & Defense

Market Study on Offshore Support Vessels Market in India

CLIENT

A leading marine services provider based in the Middle East was

evaluating the attractiveness of the offshore charter vessels segment in

India and commissioned Aranca to conduct a market study & recommend

market entry strategy


Desk research; 60-80 phone interviews with industry participants


Module1

• Macro level analysis of offshore oil & gas industry in India with a

special focus on private participation across the value chain. High

level analysis of market and competition dynamics for offshore

vessels charter market in India

Module2

• Detailed market study on key players covering fleet size, expansion

plans, terms of contract, regulatory requirements & taxation

framework, barriers to entry and market opportunity

Module3

• Identification of feasible mode of market entry

• Detailed profiling of key players on demand and supply side

SAMPLE ANALYSIS TEMPLATES

VESSEL TRAFFIC: SUEZ CANAL & RED SEA

VESSEL SHARE BY OPERATOR NATIONALITY



Case Study 7: Banking & Financial Services

Opportunity assessment and M&A target identification in banking space in India (1/2)

CLIENT

Among the top 5 banks in the GCC region. The client wanted to

assess entry opportunities in the Indian Commercial Banking

space. Aranca supports the strategy team of the bank with a

comprehensive analysis of Indian Commercial Banking space


Aranca deployed a team of 2 analysts under the supervision of a

an engagement manager for 2 months.

Desk research; few phone interviews to cover information gaps


Study was carried out in a phased manner:

PHASE I: Growth prospects of the Indian economy

PHASE II: Indian commercial banking space: size/products:

• Existing size and competition

• Key drivers, future prospects

PHASE III: Forecasting banking sector growth for next five

years products/services wise

PHASE IV: Analysis of individual banks

• Selection of potential M&A candidates

• Profiling key target banks


INDIAN BANKING: KEY GROWTH DRIVERS / GROWTH PROSPECTS

0.1

0.2

0.2

0.2

0.3

0.4

2.8

0 2 4 6 8 10 12

Indonesia

Turkey

Russia

Mexico

Brazil

India

China

Canada

Australia

Spain

Italy

France

UK

Germany

Japan

US

Developed

Countries ($ 30 Tn)

Emerging Economies

($ 4.2 Tn)

Domestic Credit - 2007 ($ Trillion)*

0

40

80

120

160

Chin

a

Ko

rea

HK

India

Sin

ga

pore

Th

aila

nd

Ma

laysia

Household Liabilities as % of Disposable

Income

6%

INR 16.9 Tn ($0.38 Tn) INR 34.1 Tn ($0.85 Tn) INR 69.3 Tn ($ 1.7 Tn)

2005 2015 2025

Between 2005 and 2025, aggregate consumption will grow 4x times…

… making India the fifth largest consumer market by 2025

• Rich

(Income > INR 1mn or

$25K PA)

• Middle Class

(Income > INR 200K or

$5K PA)

• Poor

(Income < INR 200K

or $5K PA)



Case Study 8: Chemicals

Supplier analysis of direct dyes in India

CLIENT

An European leather chemicals manufacturer engaged Aranca to conduct

a detailed study on direct dye suppliers in India with the objective of

diversifying their supplier base in India.

RESEARCH FRAMEWORK & DELIVERABLES


INDIA MARKET ANALYSIS FOR DYES AND ORGANIC COLORANTS

Specialty chemical sector analysis, dyes and pigments production

by segment, sub-segments & region across India, Production &

consumption by sectors, technology and raw material sources,

Market trends & forecasts, M&A activity

MODULE 1: DETAILED INDUSTRY LANDSCAPE

Detailed study on the supplier landscape & characteristics,

Detailed listing of key suppliers and mapping large players

Identification of high potential suppliers and product quality

certifications, analysis of products, specifications, machinery

listing, modernization plans, key financials, sustainable practices

and responsible sourcing information.

MODULE 2: SUPPLIER MAPPING

Benchmarking of key suppliers on various characteristics, Detailed

supplier analysis & procurement plan covering supply potential

under different scenarios, pricing, financial stability of suppliers,

key risks and initial contact with companies to understand their

willingness and ability to supply the required quantities

MODULE 3: KEY RECOMENDATIONS

XXX

2011

Production

Local

Consumption Stock

Local Demand

Exports Leather and

Textiles

Printing

Inks Paints &

Coatings

Plastic +

Paper,

Other

COMPANY PROFILE TEMPLATES

Business Overview Company Financials

Business Divisions Division

Performance



Case Study 9: Construction & Infrastructure

Market Assessment for Coated and Flat Glass in India

BUSINESS SITUATION

A leading float glass manufacturer was keen on setting up a soft coated

glass manufacturing line in India. Before proceeding, it wanted to gain

deeper knowledge and understanding of the Indian glass market. It was to

achieve this objective that it approached Aranca to carry out a detailed

market assessment study

METHODOLOGY

Data was primarily gathered by means of telephone interviews with

industry players, and desk research. Face interviews were also conducted

during the course of field visits that helped us attain valuable insights into

the functioning of the float glass industry in India

SOLUTION FRAMEWORK

Market Overview

• Market size

• Segmentation

• Pricing trends

• End users and Procurement process

Competition Landscape Analysis

Market Drivers

• Factors driving growth of coated glass market

Key Findings & Conclusions

• Demand-supply analysis

• Growth drivers and challenges

SAMPLE TEMPLATES

DEMAND-SUPPLY GAP ANALYSIS

PROCUREMENT PROCESS

82%

18%

Retail channel

Projects

End use of hard coated glass

54%

13%

10%

23%

End use of soft coated glass

Commercial

buildings

Hotels

Others

Retail projects



Case Study 10: Retail Sector

Hosiery & Innerwear: India Market Opportunity Study

CLIENT

A global consumer goods company; interested in understanding the Indian

hosiery & innerwear market




Overview of the Indian economy and regional variations

Hosiery market – product categories, demand, supply, branding and

regional differences

Value chain analysis, common business models, retail landscape and

distribution

Market demand trends – historical evolution and differentiation by

product category and gender focus

Market demand by price category – value, economy, premium, super-

premium etc & the relevant price bands

Future growth projections for the hosiery market

Regional variations in hosiery retail – national brands, regional brands,

international brands etc.


INNER WEAR MARKET (IN US$ BILLION)

UNIT VALUE COMPARISON – MEN'S WEAR AND WOMEN'S WEAR (2010)

SEGMENT BREAKUP, 2011

75%

35%

2006 2007 2008 2009 2010 2011

CAGR: xx%

WW YY

XX



Case Study 11: FMCG

Competition Benchmarking In FMCG Sector For Penetration In Rural Indian Market

CLIENT

In order to adopt the best possible approach from the perspective of

manufacturing and distribution and reduce costs, a leading FMCG

company approached Aranca to outline innovations adopted by its peers

around the globe


Based on desk research and primary research. 100+ Face-to-face

interviews conducted with industry stakeholders across the globe. 90+

telephonic interviews with industry participants across the globe



COST BREAK-UP OF A PRODUCT

METHODOLOGY FOR DEVELOPING CASE STUDIES

Identifying companies that have effectively penetrated the emerging

economic class

Identifying key strategic thrusts of the business models of these

companies

Shortlisting 5–6 most relevant and successful business models

based on pre-selected criteria

MODULE 1: SHORTLISTING COMPANIES / PRODUCTS

Building detailed case studies on each company, highlighting

business model evolution, roll-out and scale-up of manufacturing

activities as well as strategic initiatives undertaken to bring down the

overall product cost , raw material sourcing cost, as well as

distribution cost

MODULE 2: DEVELOPING CASE STUDIES

SOURCE MAKE DELIVER

Each case study was divided into three parts: Source, Make, and Deliver. Source:

study raw material sourcing process and state innovations adopted by the company to

lower procurement costs; Make: study manufacturing process and state innovative

approaches adopted, if any, to iron out the issues to lower manufacturing costs;

Deliver: study distribution chain and state measures, if any, taken by the company to

drive sales as well as reduce distribution costs



BUSINESS Demand/Supply Profitability Competition Entry Barriers Deal ActivityOverall

Attractiveness

Gas turbine manufacturing

Gas turbine After Sales

EE Manufacturing/Assembly

EE Distribution (incl. servicing &

spare parts)

EE Rental (incl. servicing & spare

parts)

Pumps manufacturing (incl.

servicing & spare parts)

Pumps distribution (incl. servicing &

spare parts)

AC Manufacturing (Window & split)

AC Manufacturing (Central Units)

AC Distribution (incl. servicing)

Supply of Spare

PartsComplete

Engineering: Repair,

refurbishment &

overhaul

Technical

Assistance &

Advisory

Operation and

maintenance

INTEGRATED MRO

SERVICES

TYPICAL GAS TURBINES SECTOR PROFIT POOL

0%

2%

4%

6%

8%

10%

12%

14%

16%

Gas Turbine Manufacturing

75%

Share of Industry Revenue

Ope

ratin

g m

argi

n %

Gas Turbine After Sales

25%

Revenues

Dresser-Rand ~$ 2.0 Bn

Solar Turbines ~$ 1.4 Bn

Man Turbo ~$1.2 Bn

14%

9%

Operating Margins

Dresser-Rand ~13%-15%

Siemens ~12%-14%

GE ~11%-13%

Revenues

Wood Group ~$ 0.9 Bn

Suzler Turbo ~$ 0.3 Bn

Operating Margins

Wood Group ~7%-8%

Suzler Turbo ~8%-10%

AssemblyOEM Manufacturer End Customer

Authorized

Distributors

Manufacturing Distribution

Sales

Rental

Distributors

Third-Party Rental

Companies

Case Study 12: Industrial Machinery

Market study and target identification - ‘Heavy-duty Motorized Machinery’ sector in India

BUSINESS SITUATION

A leading global business house was interested in investigating the market

entry opportunities within the ‘Heavy Duty Motorized Machinery’ sector in

India.




Product Focus: Industrial Gas Turbines; Earth-moving Equipments;

Industrial Air-Conditioners; and Pumps


• Detailed value chain analysis; Demand/supply situation and

growth prospects; Avg. investment across the value chain

• Segmentation of competitors by market share, products,

business models ; Opportunities & threats in the market place

• Most suitable business to be in based on value chain analysis

and competitive landscape

• Investigation of the deal activities in the country; Possible /

Suggested entry strategies

MODULE 1 – End-market Analysis

• Identify possible target companies for investment / buy out or a

JV Initial discussion with the identified targets

• Summary & Recommendations: Most suitable and willing

partners; Identification of final list of target companies

MODULE 2 – Target Identification

PROFIT POOL ANALYSIS

VALUE CHAIN ANALYSIS

ATTRACTIVENESS RANKING AND BUSINESS MODEL ANALYSIS



Case Study 13: Paper & Pulp

Identifying pulp and paper suppliers in India

CLIENT

A global packaging products manufacturer engaged Aranca to conduct a

detailed study on the paper & pulp market in India with the objective

diversifying supplier base to India.

RESEARCH FRAMEWORK & DELIVERABLES


INDIA: MARKET ASSESSMENT FOR PAPER PRODUCTS

INDIA: PAPER PRODUCTS PRODUCTION GROWTH FORECAST

Paper production by segment, sub-segments & region / country,

consumption trends. Production share by company, capacity

expansions. Market trends & forecasts, M&A activity

MODULE 1: DETAILED INDUSTRY OVERVIEW

Segmental deep-dive in to major cities in India

Detailed study on the Indian Paper market characteristics

Detailed listing of key suppliers and mapping large players

Identification of high potential suppliers and level of integration

Opportunity assessment i.e. analysis of products, specifications,

machinery listing, modernization plans, etc.

MODULE 2: SUPPLIER MAPPING

Benchmarking of sourcing characteristics across cities

Detailed supplier analysis & procurement plan covering supply

potential under different scenarios, focus cities, pricing, financial

stability of suppliers, key risks & mitigation strategies, product

categories, supply chain risks etc.

MODULE 3: KEY RECOMENDATIONS

XXX

2015

Demand

Current

Capacity Planned

Capacity

Mostly PWP capacity

2015 Gap

Industrial

Categories

Specialty*

Printing & Writing

Paper (PWP)

2009 2010E 2011F 2012F 2013F 2014F 2015F

With the growing demand, local players are set to increase their production

capacity in coming years to take a full advantage of available abundant raw-

materials in India.

XX% CAGR

* includes napkins, towels, table covers, tissues and other specialty products

News-

Print



Case Study 14: Pharmaceutical & Healthcare

Market Opportunity Assessment for Health Care Devices in India

BUSINESS SITUATION

A large holding firm engaged Aranca to identify opportunities in

manufacturing & distribution of medical devices in India


Extensive desk research; ~75 phone and face-to-face interviews



OPPORTUNITY ASSESSMENT

Healthcare sector overview covering spending growth, demographic

analysis, disease burden, and key trends

Detailed analysis of market and competition dynamics for medical

devices in Saudi Arabia

MODULE 1

Identify manufacturing and distribution opportunities in the market

covering the overall market growth forecast, attractive segments /

products to enter, ranking of opportunities

MODULE 2

Deep dive analysis into the identified attractive products covering key

aspects such as market size & structure, competitive landscape,

business models, addressable opportunity, Go-to market strategies

MODULE 3

Market maturity needed

Ec

on

om

ic V

alu

e a

dd

Mature Nascent

Lo

wH

igh

Imaging/Diagnosti

c Services

Medium Risk

Medical Devices

High Risk Medical

Devices

Laboratory

Services

Generic

Pharmaceuticals

Pharmaceutical

Fine ChemicalsLow risk

medical

devices

Imaging/Diagnosti

c Services

Medium Risk

Medical Devices

Laboratory

Services

Generic

Pharmaceuticals

Pharmaceutical

Fine ChemicalsLow risk

medical

devices

High Priority Opportunities

Other Opportunities

Class III

Medical

devices

Product/ Parameter

Imports Raw Material

Availability

Alignment with

current portfolio Value

(2010)

CAGR

2007-2010

Syringes (with/without needles)

Medical dressings (adhesive)

Medical dressings (non-adhesive)

Breathing appliances

Walking aids

Orthopedic appliances

Disinfectants, packaged for retail

sale

Medical/surgical/laboratory sterilizers

High Low Medium Very High



Case Study 15: Pharmaceutical & Healthcare

Benchmarking study for dialysis centers across select cities in India

CLIENT

A PE fund focused on the healthcare and life sciences sectors was

evaluating the investment in a company that runs a chain of dialysis

centers across India and which has plans to expand to other non-metro

cities in the states of Uttar Pradesh, Andhra Pradesh, Karnataka, Orissa,

West Bengal and Chhattisgarh


Secondary research as well as extensive primary research including 125

research interviews

RESEARCH FRAMEWORK

Module 1 - Market Overview: including market size & growth rate of

dialysis centers, key indicators such as patient to doctor ratio,

prevalence of CKD; government initiatives; key country-wide market

players; market trends.

Module 2 - Database Development & Surveys: Development of an

exhaustive list of dialysis centers in each of the target cities and

conducting ~ 3-4 surveys in each city (~ 125 interviews in total) with

Admin Manager / Patient Coordinator / Reception Manager to

understand specifics aspects about the market, patient preferences and

facilities & equipment.


CURRENT & PROJECTED DEMAND

ESTIMATED OPERATING EXPENSES OF A FIVE BED DIH DIALYSIS CENTER

This material is exclusive property of Aranca. No part of this presentation may be used, shared, modified and/or disseminated without permission. All rights reserved.

BUSINESS RESEARCH

& ADVISORY

INVESTMENT RESEARCH

& ANALYTICS

FIXED INCOME

RESEARCH & ANALYTICS

VALUATION

ADVISORY

TECHNOLOGY INTELLIGENCE &

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PROCUREMENT & SUPPLY CHAIN

INTELLIGENCE

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