Growth and Scale Up
Growth strategy and strategic business planning for a leading chemical and fertilizer manufacturer
03 Jun 2020
Context- Client description: A leading manufacturer of industrial chemicals and fertilizers
- Opportunity: Client was growing slower than the industry and wanted to accelerate sales. Client also wanted to develop a 5-year business plan aligned with its marketing and technological capabilities
Our Approach- Conducted in-depth management discussions to understand the product portfolio, key customers, and sales trend. Reinforced quantitative understanding of sales trend by analyzing financial data.
- Engaged with industry experts to understand the industry structure and major trends reshaping industry dynamics
- Assessed forward-looking demand supply dynamics of major chemical products and identified growth opportunities
- Engaged with management team to understand technical capabilities, manufacturing process workflow and overall cost build-up for each product
- Based on industry dynamics and firms’ technical capabilities, identified the products where company should have greater focus on and build additional manufacturing capacity for
- Conducted workshops with management team to get buy-in on new growth pivot
- Estimated CAPEX based on inputs from finance team and industry benchmarks for building incremental capacity
- Created a 5-year business plan and estimated the funding required to expand capacity
Key Insights / Outcomes
Developed long term growth strategy for client
Developed a 5-year business plan, along with a business case for raising capital for capacity expansion
Praxis Value Delivered- Client was able to raise ~INR 200Cr equity capital from coveted investors
- In 2 years, client was able to increase its sales growth rate to 1.5x of its earlier growth rate
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