Industries

Localization of production facility for a global pharmaceutical producer

One of the worldwide leading generics producer was intending to locate its production plant in Russia. We provided a complex support for the investment project including:

• regional study and site selection
• feasibility study and production business plan development
• support in getting the status of priority project in the region and receiving tax holidays
• GR and project support.

The plant opening ceremony was held in October 2014. Commercial production started in 2015. Additional investment has been made in 2016-2017 and the project is developing in accordance to the strategic plan.

Distribution strategy and supply chain concept for a global pharmaceutical company

Within the scope of the project of production localization for one of the global pharmaceutical company the task was to develop a distribution strategy and supply chain concept in order to optimize operating costs and deal with arising challenges. We implemented a detailed analysis of the existing supply chain, defined strategic goals and tasks, worked out a system of KPI and provided a detailed road-map to achieve strategic goals. Additionally we implemented a financial analysis of construction of own distribution center for the client.

Localization of production of specific pharmaceutical products in Russia for a leading international company

One of the leading international pharmaceutical companies decided to invest into production of specific (narrow focused) pharmaceutical products, which have no analogs in Russia. We provided strategic assistance for the project including:

• comparative analysis of potential sites for future production allocation
• technical DD of the chosen land plots
• comparative assessment of localization models and potential sites based on CapEx and OpEx estimation
• risks assessment
• preliminary business case estimation
• assistance in search and further work coordination with engineering company responsible for conceptual design development
• GR and other project support services

Currently the project is on the finishing stage of construction and commissioning of the plant is expected in the nearest future. Recently, the client has approached us for additional support in getting priority status for the project in the region.

Market research and strategy development for Russian and Ukrainian pharmaceutical markets for a global pharmaceutical company

One of the international pharmaceutical companies aimed to introduce new product to the Russian and Ukrainian markets. Our tasks for the project included comprehensive market research competitive landscape analysis, development of market entry and pricing strategies.

Strategic support, market research and market entry for European producer of medical devices

Our client, European manufacturer of medical devices, intended to enter Russian market with its products. Our tasks for the project included: comprehensive market research, market entry strategy development, preparation of the business plan and distribution model development.

Market research and competitive intelligence for one of the leading global suppliers of pharmaceutical glass packaging

Jointly with our partner, European consulting company, we conducted a comprehensive research on the Russian pharmaceutical glass packaging market as a part of the larger investigation, covering other emerging markets for potential expansion of the client. As a result our client got the presentation covering market assessment with the market trends and dynamics in terms of different segments, comprehensive competitive landscape analysis covering local suppliers and import, pricing analysis and recommendations for the market entry strategy.

Getting the status of regional priority project for the investment project of construction of the thermal power station

The project of construction and operation of the thermal power station (a joint venture with international company) needed to get the status of regional priority investment project in order to get tax incentives. We provided a range of services including:

• negotiations with regional government authorities
• development of business plan in accordance to required format
• estimation of budget efficiency and other project efficiency coefficients
• support in preparation of package of required documents
• documents submission and following communication with the department of investment projects in the region
• participation in Commission (Cross agency Commission) for investment project assessment (together with investor representatives)
• support in coordination and approvals.

The project was included in the list of priority projects in the region and tax holidays were received.

Market research and competitive intelligence for one of the leading global providers of power generating equipment

Jointly with our partner, European consulting company, we conducted a comprehensive research on Russian hydro power generation market.The research aimed to understand the plant owners' current and future needs from the hydro power generation equipment suppliers, to assess the market potential and to evaluate the possibilities for implementation of the energy projects. As a result, our client got in-depth understanding of key decision makers during new power plants' construction process and equipment suppliers choice in Russia and the major lobbying points. Moreover, we provided our client with the analysis of competitive base in different segments on the market and potential partners among manufacturers, construction and engineering companies.

Survey on power generation markets in Belarus and Central Asian countries for one of the leading global manufacturer of power generating equipment

Being a market leader in large power generating equipment (turbines, generators and boilers) on some of the European markets, our client considered the development of its position in Belarus and Central Asian area.Our work resulted in research, evaluating attractiveness and magnitude of power generation market in the considered countries, giving forecasts for markets' development, covering competitive environment and providing our client with recommendations regarding selected markets.

Strategic support for the project of localization of production of specialized and road construction machinery in Russia

Our client, a leading producer of specialized and road construction machinery, experienced limited sales on the Russian market, given the recent changes in legislation and increased competition from local market players. The company decided to invest into local production facility. Within scope of the project we provided the following services:

• market research with conclusions on necessity to allocate production facility in Russia
• analysis of localization background and conditions
• analysis of localization models, including SpIC (calculations and reasoning)
• regional assessment and selection of potential production sites for localization
• strategic consultancy
• business plan and project budget estimation
• government relations support.

Currently negotiations are being held in the headquarters and decision on the further steps is awaited.

Investment support for the production project implementation by one of largest Western machinery holding

The large Western machinery holding intended to localize production of fittings and control equipment for piping valves in Russia. Our services included:

• regional study and region choice
• location analysis and choice of the site for potential localization
• preliminary negotiations on the investment
• governemnt relations support.

Market study and market entry strategy for large European manufacturer of heat treatment furnaces

Our company in cooperation with the partner, an international consulting company, implemented a survey on Russian heat treatment furnaces market as a part of more extensive research on Eastern European market. Development of market entry strategy for our client involved thorough analysis of possible customers and potential competitive landscape. As a key result of the research, we were able to underline major customer preferences in the industry, as well as to identify major local furnaces producers as potential merger/acquisition targets for the client, and provided their detailed assessment.

General overview of electric motors market in Russia

Our company prepared a report for the Western European manufacturer, who was interested in electric motors market in Russia with the focus on DC (Direct current) motors segment. Since the project was very limited in time, the research was primarily based on secondary sources. The outcome of our work was a general report discussing the electric motors market in Russia and concentrating on the key issues such as current situation, key trends, drivers and restraints on the market, including visual representations in the form of graphs and charts with relevant comments.

Market research and strategic assistance for a big car manufacturer

The company, a major Japanese car manufacturer, wanted to introduce a new range of products (LCV) to the Russian market, where at the same time it was suffering from stagnating sales. We carried out a comprehensive market research in several regions in Russia for both product ranges (cars and LCVs) and analysed the distribution channels. We also evaluated the offer for a joint venture. The new range of products was established in Russia. Sales went up after restructuring the distribution channels. The proposed joint venture was called off, as recommended. Our client started successful own production in Russia.

M&A support for steel producer

The client, an international steel producer, was saddled with a Soviet-legacy disbalance between his raw and finished processing capabilities. The result was that surplus slab steel was sold at a disadvantage. Within the project scope we identified a bankrupt steel mini-mill in Scandinavia, carried out due diligence and arranged its acquisition. The mini-mill was restructured and became profitable in a matter of months.
The previously surplus of slab was rolled to thick plate and sold at higher added-value to international markets as far away as to Korean market.

Production localization and investment support for a leading supplier of steel building solutions

The company had limited sales growth in the region with a representative office: both foreign and local competition was expanding. We implemented the Russian market study which proved that there was a booming market capable to cover a new production facility. Regional study and site search were implemented for potential production plant localization. Within the project scope four regions and 14 potential sites for a new production facility were investigated. We also provided support in negotiations with local and regional administrations concerning investment incentives and tax holidays. The production started in 2009.

Preliminary concept development for the construction of inter-modal transportation and logistics park in SEZ

Our client, one of the largest financial industrial groups in Kazakhstan (banking, food industry, construction and development), approached us for the development of preliminary concept for the construction of the inter-modal transportation and logistics park in SEZ. We developed:

• the concept for logistics center
• preliminary outline and construction plan
• business-plan of the project within SEZ
• financial model
• search for international partners for the project

The project received support on the high level of Kazakhstan government.

Strategic consultancy for a leading Russian transport company

We provided strategic support for a leading transport company. Our services included:

• development of executive business plan of a new sales department
• feasibility study of creating a separate sales and marketing department in order to concentrate on new projects
• assessment of human resource service and organization of training
• analysis of sales structure for identification of the most profitable customers, recommendations for potential customers search
• analysis and optimization of business processes of the branch office in Kazakhstan
• recommendations on optimization of personnel motivation system

Strategic support for a large Russian food holding

Shareholders of the regional food holding in Russia decided to exit the business because of the reduction in profitability. The holding included two dairy plants in Volga region and Central region, a trading company, marketing company with regional brands, the network of dairy sales units over Russia:

• market analysis
• search and analysis of the potential partners/ potential acquiring parties
• support in negotiations with potential partners
• choice of the acquiring party
• further support in sales agreement signature and sale process

The company was prepared for the sales process, the loan debt was restructured. The sale deal was successfully implemented, and the shareholders invested proceeds into the diversified business in another field.

Market entry strategy for European beverage producer

A big European corporation was planning to enter the market of soft drinks in Russia and approached us for market entry strategy development. Our services for the project included:

• market research including secondary data analysis and expert interviews
• marketing strategy development
• different market entry models analysis
• market entry strategy implementation including search, analysis and choice of potential partner for contract manufacturing

The company successfully entered market in Russia and was able to reach sales figures exceeding the forecasted ones. The local production facility started its operation (contract manufacturing with the partner).

Strategic consultancy for a leading European manufacturer

In the scope of the strategic assistance project for a leading European manufacturer of industrial refrigeration equipment we implemented the in-depth analysis of the target consumer markets, including meat processing, dairy and ice-cream, beverages (beer and soft-drinks), fish and seafood and frozen food markets. Our project tasks included:

• consumer market analysis, including desk research and expert interviews with the key consumers, industry and branch experts
• markets' size assessment, trends and growth forecasts
• analysis of key players for each market, including geographical segmentation
• assessment of markets' potential for the client
• recommendations on positioning strategy

The final report covered, among other industries, the analysis of 5 consumer markets in food processing, which were of interest for the client. The client got insight into the most perspective markets for its further strategy in Russia, including regional segmentation of the key consumers, identification of potential clients, key preferences and purchasing policies for refrigeration equipment.

Research of the food and non-food retail markets in Ukraine

We implemented research on the food and non-food retail markets in Ukraine for one of the leading international chain (one of the top 5 in the world). We provided:

• assessment of the regions for the potential expansion
• detailed review of the competitive set of retail stores
• evaluation of their sales performance
• evaluation and choice of the optimal sites for stores' location.

The concept of complex development of the territory including industrial park for the land owner

Together with our partner we implemented concept of territorial development for the site of total area of more than 1000 ha in Moscow region. The project tasks included:

• development of the detailed concept of complex re-development for the agricultural and industrial territory, including industrial park, retail park, agricultural park, residential area and other recreational and social infrastructure objects
• recommendations for master plan development
• business plan development
• assistance in preparation of the documents and request for inclusion to the list of priority industrial parks in the region
• budget and social effects calculation.

Currently projects in retail and agricultural park are being implemented. Residential and industrial projects are on project stage (P). Master plan was approved. The project received support of the regional government, and tax incentives were received.

The concept of the development of multifunctional industrial park

In cooperation with our partner we implemented the development of the concept of industrial park as a part of development of the new satellite city with logistics and industrial background and including residential area and social infrastructure objects with the total area of about 900 ha. Additionally we provided:

• the analysis of international experience in projects of complex area development
• recommendations for project extension of up to 10 000 ha (additional territories/ regions)
• assistance in preparation of project presentation materials

As a result, the first 3 projects have started to be implemented, the project has got support from regional government. The industrial park has been certified by Association of industrial parks. The territory got the status of special economic zone.

Consulting support for industrial park in central federal district of Russia

The project tasks included:

• consulting for management company of the industrial park on the issues of management, development and services
• consulting on working with residents of the park: attracting new potential residents and support of the existing ones
• recommendations on master plan development
• recommendations on getting technical conditions (TU) and operating of a separate objects
• other consulting requested by the client

Currently the industrial park is in operation and attracts new residents. The project was certified by Association of industrial parks. The project got support from regional government, including financing. The industrial park is one of the most successful in central federal district.

Development of concepts of industrial parks

In cooperation with our partner we implemented three projects of development of new industrial areas initiated by government of one of the regions in central federal district. Our services included:

• development of concepts of industrial parks
• correction and further development of master plan
• development of business plan and financial models for the projects
• support in presenting the projects of industrial parks to potential investors, attracting of residents

Currently the industrial parks are in operation. The projects got financial support from regional government.