: 4 + 11 =
: 12 + 13 =

Diversification and Growth strategy for a leading fastener company

With reducing market share of the anchor customer in auto industry, growth of the fastener manufacturer was stagnated in since last 2 years. The client aspired to increase the topline by 400% in next four years and expressed readiness to consider exploring new segments/ customers/ geographies/ products in the existing business and venturing into new opportunities such as other auto components, aftermarkets etc.

Tata Strategic conducted the Indian and global fasteners market assessment to identify the new target customers/ geographies for the current business. For diversifying into new business segment, Tata Strategic generated list of opportunities and shortlisted the most attractive opportunities based on demand-supply gaps and competitive intensity. A structured and detailed analysis of client’s capabilities was conducted. Shortlisted opportunities were prioritized based on the market attractiveness and current capabilities of the client. Owing to constraints on capital investments and resources, one out of the prioritized business opportunities was decided to be explored by client.

A detailed growth strategy and business plan was prepared for current and the chosen new businesses, based on market potential, customer requirements, channel structure, and competitive landscape.

The study and recommendations made by Tata Strategic were accepted by the promoters, who subsequently implemented the recommendations in full.