How business strategy helped the client to successfully setup a manufacturing plant for bricks and blocks in India
Background and Challenge
- The client is a leading iron ore mining, processing, and export company with 60 years of expertise. They are one of India’s largest iron ore mining companies and possess the largest installed capacity of green energy in the country.
Challenges Faced by Client:
- Difficulties in evaluating the market opportunity : Ken Research was engaged by the client to undertake an analysis of Karnataka Bricks and Blocks Market with special emphasis on iron ore bricks in order to assess the market attractiveness, development and upcoming trends for strategic decision making process for venturing into new vertical.
- Limited resources and time to identify trends: : In addition, the client was interested in identifying the trends, growth drivers, challenges, shortcomings and opportunities in the market in order for strategic decision making processes.
Construction Equipment Industry at Glance:
- The India concrete block and brick manufacturing market is driven by rising focus on reconstructing the present infrastructure and growing investments in residential construction. The emergence of eco-friendly building materials are expected to fueling the market growth during the forecast period.
- Rapid urbanization across emerging economies and increasing foreign investments in construction & building manufacturing sectors are likely to create lucrative opportunities for key players in the India concrete block and brick manufacturing market.
Approach and Recommendations
Phase 1: Provided the ecosystem of players
- Ken collaborated with its client in curating a list of companies and form an ecosystem of the Bricks and Blocks market of India, especially in Karnataka.
- Ken Research have approached to management of these companies to assess the current market framework, business potential, customer behavior and future growth in the sector space
- In-depth and detailed discussions were carried out with the top decision making authorities.
- These discussions gave the client possible opportunity windows to know-how of the Bricks and Blocks market of India.
Phase 2: Key Analysis of market and its segments
- The second phase of work focused on analyzing the overview of Bricks and Blocks based on various parameters like annual production, average price, leading players etc.
- Ken Research’s team conducted interviews and was able to identify;
- Segmentation by type of bricks: Clay Bricks, Fly Ash Bricks, Concrete Blocks and AAC Blocks.
- Segmentation by regions, usage etc.
- Overview of bricks and blocks industry in Karnataka
- Investment models for various bricks and blocks market
- The client was able to understand the overview as well as segmentation of the market with eminent and noteworthy Primary Research by Ken Research in short span of time duration.
Phase 3: Quality Recommendations and advisory for the client
- After identifying and analyzing the overall market, Ken provided Overview by different types of bricks and blocks in Karnataka based on:
- Usage by type of consumers
- Average Price
- Annual Production
- Market Structure
- Production Process
- Key recommendations for improving likelihood of success of the business were also pitched.
- Ken has provided a clear road map to the Client was able to provide 360 degree view of Bricks and Blocks market in India to the client by helping them understand historical and future trends of the market.
Result and Conclusions
Constructive Market Assessment
The overview and segmentation of the market will enable the Client to substantially develop their understanding about the bricks and blocks market of Karnataka and India.
Holistic Approach driven decision making
The client was able to get detailed overview and understanding of various types bricks and blocks being utilized in the industry and formulate strategies on how they can choose the right type.
Roadmap to growth and efficiency
The client can now take informed decisions as the deliverable covered detailed understanding of bricks and blocks market of Karnataka. It also included the key findings which further enhances the quality of taking a better informed decision for the future.
Client was able to setup manufacturing plant for bricks and blocks