Whether the proposed manufacturing set-up will be viable?
shares
Business Challenge:
The client wished to evaluate the attractiveness and viability of the project and understand sensitivity of the project on select macro-factors impacting the project.
A leading South-Asian automotive distributor was offered opportunity to localise select parts-manufacturing by OEM with $20M investment so as to reduce import costs and become more competitive. Our Technical and Financial Viability assessment along with project sensitivity to Macro factors resulted in bringing in clarity on product-mix, minimum viable production and re-negotiating on part-pricing.
Our Approach:
We conducted a feasibility study with a dynamic sensitivity analysis with particular focus on
- Estimating addressable market size for proposed product-line
- Map the competitive scenario – Current mode of operation, Business Models, sales and likely expansion plans of key competition
- In-depth Financial assessment of Cost-of-Production, Operating Profits, Project Pay-back and Project’s sensitivity to Government’s policy
Our Recommendation
Re-negotiate pricing for select parts, request for additional parts and assure M-o-Q to justify the investment-to-returns.
Client Results
A clearer picture helped client to decide confidently minimum viable project size and prepare a realistic roadmap of the business.
Quick Links
- Contact Us
- Privacy Policy
- About Us
- Client Results
Contact Us
- 17A Namostu, Amar Society, Off Law College Rd, Pune - 411004, Maharashtra, India
- jinal@expandus.co.in
- +91-20-2952-5331
Connect Us Now!
Follow Us
Copyright © 2025 Expandus