Corporate Strategy - Wazir Advisors

Strategy > Textile and Apparel > Corporate Strategy

Manufacturer Strategy Development, TEV Study for Business Restructuring and Asset Valuation

Project Brief

A vertically integrated Indian textile player was looking to restructure its business to improve its business performance. For this, client engaged Wazir to conduct the Techno Economic Viability (TEV) study, develop business strategy and undertake asset valuation of its business.

Project Objectives:

Core objective of the study was to devise a corporate strategy for the client covering the following aspects:

Assessing the business model of the client including product mix, price positioning, market and buyer mix, supply chain, sales & distribution channel, etc.
Evaluating the financials of the business covering revenues & expenses by segment, major cost drivers, etc.
Conducting Techno Economic Viability study of the current setup covering:
1. Assessment of technical capability and adequacy of the present infrastructure including machinery, external infrastructure and miscellaneous fixed assets
2. Analysis of factory locations covering proximity to raw materials, transportation cost, availability of manpower, proximity to market, etc.
3. Assessment and justification of the capex requirement at its units and funding requirement for the completion of the order book
4. Financial viability and future prospects of the company
5. Sensitivity analysis on the projected revenues and profitability

Deliverables:

We delivered a Techno Economic Viability study report covering the stated objectives
Devised a business strategy suggesting the most suitable restructuring option including need for consolidation and recommendations to improve company’s competitive positioning
We submitted a comprehensive asset valuation study report covering:
1. Book value of the assets
2. Cost of new assets with same capacity and specifications
3. Workable life of plant and machinery
4. Future investment requirement of assets for modernization / upgradation