As part of corporate development, we have assisted clients in three major areas – Diversification(for Indian firms), Market Entry Strategy(for foreign firms) and setting up Joint Ventures(between foreign and Indian companies). The details are as follows.
A firm that is exploring the option of diversifying into the solar sector needs the answers to some important questions like
- Which part of the solar value chain should the firm focus on? Is it PV Manufacturing, Services, Project Development or Product Development?
- How can the company use its existing resources to create a value in the solar sector?
- What are the growth drivers for solar in India? Are they sustainable?
- What is the influence of policy and regulation on the sector? Are they favourable? What are the policy and regulatory risks?
- How can the firm differentiate itself from entrenched players?
RESolve assists firms in evaluating the product and market attractiveness thereby enabling informed decision making.
Click here to learn our track record in diversification strategy.
Market Entry Strategy
The Indian solar sector is growing fast. From less than 10 MW at the end of 2009, Solar in India has already crossed 1.7 GW and is expected to cross 2 GW by end of this year. With a target of more than 15 GW in the next 5 years, India is a solar market that cannot be ignored.
But opportunities always come with challenges. The Indian Solar opportunity is not different.
There are some natural concerns like
- How can the firm compete in the extremely price sensitive market?
- How does the legal system in India work and will my intellectual property be protected?
- How can the firm find reliable local, Indian partners?
- Is it better to have a JV-company, a 100% subsidiary or opt for a licence model?
- What is the best location in India to operate out of?
Having assisted a Germany based Balance of Systems (BOS) provider in setting up an office in Chennai and building it to a 20 member team over 18 months, the RESolve team can provide hands-on support to a company interested in entering the Indian market.
Once a foreign firm is convinced about the potential of the Indian market, the firm will be required to find answers to a new set of questions like
- Should the firm acquire another company or go alone or should it enter into a Joint Venture(JV) with a local partner?
- If a JV is preferable, who are the potential partners?
- What will be the partnership arrangement? Will the local partner take care of sales alone, licenses and sells the product or is there some other possibility?
- RESolve adds value in such a situation by doing a thorough evaluation of the potential partners and provide a recommendation about the strategic fit with each of the potential partners. RESolve can also assist in the negotiations with the potential partners.
Click here to learn about our experience in Joint Ventures.