Our client, a global investor focused on sustainability practices across various industries, expressed interest in making a potential investment in specialty fertilizers, a rapidly growing segment in the Indian fertilizer industry. The client company, through its internal understanding of the market, chose a target crop nutrition company and engaged Sathguru to conduct techno-commercial due diligence, which helped the client understand the financial viability and environmental sustainability of the potential investment.
Situational Analysis:
Our client, a global investor focused on sustainability across various industries, expressed interest in investing in a promising segment of a crop nutrition business company and wanted to understand the specialty fertilizer market and growth prospects.
Scope and Approach:
Sathguru conducted an in-depth assessment of the Indian fertilizer industry and the government policies and schemes governing the industry. Sathguru also critically evaluated the growth drivers of the specialty fertilizers market and provided detailed insights about all the critical elements, including changing industry dynamics, raw material supply-demand, production systems, inbound and out-bound logistics, digitization of operations, and consumer feedback about the products of interest.
Sathguru analyzed the portfolio of the target crop nutrition company by assessing the USPs of the products, product efficiency, vis-à-vis competitors in various states of the country. The assessment also included a SWOT analysis of the target companies’ products, product development, and business operations, including the production and distribution of specialty nutrients.
Recommendations:
Sathguru made specific recommendations based on the target company’s product portfolio and its uniqueness vis-à-vis similar products from competitors and threats from global players operating or planning to enter Indian fertilizer sector.
- Sathguru recommended the potential for further portfolio optimization and diversification to improve market reach and enhance profitability.
- Sathguru provided recommendations for diversifying technology base, strengthening portfolio with innovative products, ensuring continuous supply and quality of imported products will be critical and analyzing threats from alternative emerging threats.
- Sathguru also recommended pathways for market expansion by capitalizing on current technology-based products to gain market share.
- Sathguru advised creating more farmer awareness about balanced nutrition programs.
Impact/Result/Client Benefit:
Sathguru helped the client understand the dynamics of the Indian Fertilizer industry, the competitive landscape of the specialty nutrients segments in terms of innovation index and technological evolution, internal and external factors limiting growth factors of the target company to make informed investment decisions.