Case Studies | Sathguru Management Consultants

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Technical Analysis of biologics companies and opportunity assessment of Indian biologics and other biologics segments

Our client, a global agribusiness conglomerate focused on crop protection, expressed interest in assessment of biologics business and opportunity assessment in biologicals segment in India. The client, through its third-party driven market insight, identified biological enterprises based in US and Europe and engaged Sathguru for their technical assessment and identification for acquisition or collaboration purposes, which helped the client to understand the technical and business potential of the biological enterprises. The client also engaged Sathguru to assess the biologics opportunities in India and the potential of other biologics segments with significant growth potential, which helped the client to understand business opportunity for Indian markets.

Situational Analysis

Our client, a global agribusiness conglomerate focused on crop protection, expressed interest in assessment of biologics business for acquisition/collaboration purposes and opportunity assessment in biologicals segment in India.

Scope/Approach/ Recommendation

Sathguru conducted an in-depth assessment of the biological enterprises based on technical and business acumen categorized as per portfolio diversity. Sathguru critically evaluated the growth potential of the enterprises based on portfolio, product diversity, technological integration, innovation potential novelty of AI, strength of IP, and market potential based on market trends. The enterprises were evaluated and scored based on technological advancement, product registrations across regions, versatility of application and market potential.

Indian biological industry and the governing regulations, policies and schemes were studied at length to understand the criticalities for product introduction and growth potential. Sathguru carried out a detailed domestic industry landscape assessment and segmentation-based study for biopesticides and biostimulants. Strategies of MNS’s and Indian enterprises were studied at length in terms of proprietary, acquired and/or in-licensed assets, collaborations & partnerships and strength of IP for both the product segments of biostimulants and biopesticides.

Impact/Result/Client Benefit

Sathguru helped the client understand the dynamics of the global biological industry, critical trends required for potential investment or acquisition of the biological enterprise. The opportunity of Indian biological industry helped the client to understand the level of technological evolution, investment trends by key players, collaboration models, along with strategic options for market entry helped in informed decision making by client.

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Agribusiness

Technical and Commercial Due Diligence, Financial Valuation and Strategic Business Plan of a Seed Company For Potential Investment and Acquisition

Our client, a leading agro-chemical conglomerate expressed interest in making a potential investment in a seed enterprise for diversifying their business into the Indian seed industry. The client company, through its internal understanding of the market, chose a seed company and engaged Sathguru to conduct techno-commercial due diligence, and financial valuation which helped the client understand the technical and financial viability of the enterprise for potential investment. Sathguru further developed a growth strategy and business plan for driving growth in the industry post-acquisition.

Situational Analysis

Our client, a leading agrochemical conglomerate is focused on diversifying business by expanding into the seed sector and wanted to understand the technical and business profile of an enterprise for potential investment and a roadmap for further growth prospects with the acquired entity.

Scope/Approach/ Recommendation

Sathguru conducted an in-depth analysis of the Indian seed industry for acquainting the client with the trending dynamics of the industry. Sathguru critically analyzed the portfolio of the seed enterprise by assessing the strength of the portfolio, crop diversity, product efficiency and vis-à-vis key competitors for each of the crops. Sathguru also assessed the business operational efficiency of the enterprise in terms of research strength, seed production and processing efficiency and market reach. A SWOT analysis of the enterprise was carried out to understand technical suitability, growth potential of the enterprise and areas of improvement.

Sathguru carried out financial valuation of the enterprise in terms of lifecycle and growth potential of current products, strength of pipeline and anticipated market returns. Sathguru also developed a growth strategy for the client based on growth potential assessment of existing products, inclusion of additional complementing crops, competitive landscape and changing dynamics of the industry. A detailed business plan was developed for achieving returns as per the proposed growth strategy.

Impact/Result/Client Benefit

Sathguru helped the client understand the dynamics of the Indian seed industry, associated growth drivers and competitive landscape. Sathguru assessment helped the client to understand the growth prospective and limitations of the enterprise aligned with the industry trends for making informed decision making about the industry. A financial valuation helped client on understanding the market value of the enterprise for investment prices. Sathguru helped the client understand the value differentiators in the seed industry and routes for business expansion development with the help of the comprehensive growth strategy and business plan.

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Agribusiness Business Advisory

Techno-commercial due diligence of a crop nutrition company for a global investor for potential investment in specialty fertilizers

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.

Agribusiness Innovation Advisory

Deployment of Innovative Consortium Models for Inclusive Agricultural Transformation

Sathguru developed country-specific agri-food system assessment tools and scenarios for deploying consortium models in 30 African countries by 2030. Sathguru further suggested strategic interventions and investment plans for strengthening seed systems and enterprises, accessing blended fertilizers, facilitating an effective irrigation system, stimulating farm mechanization adoption, enhancing food value addition and post-harvest technology adoption, and developing robust market linkages through public-private player intercessions.

Situation Analysis:

The Client expressed their interest in assessing the current consortia performance, expanding the investment on developing and deploying agri-food inclusive consortium models across 30 African countries, and further anticipating its economic impact for ten years of implementation across the agri-food value chain.

Scope:

The scope of Sathguru’s engagement included the following:

Assess the performance of consortia models in seven African countries and leverage the insights in developing Consortia Model 2.0 for 30 countries.
Develop a country-specific investment plan based on the current status of the agri-food system and opportunities for improvement.
Anticipate the economic value creation through the proposed agri-food value-chain investment plan and consortia model implementation.

Approach:

An appropriate mix of secondary research and primary interactions was conducted to meet the project’s objectives. Sathguru’s conducted an in-depth assessment of country-specific cropping systems, production and consumption patterns, access to improved seeds and other agri-inputs, R&D capability, irrigation status, access to finance, private sector support, and opportunities for digitization. The assessment led to a detailed investment plan to develop and deploy Consortia Model 2.0, focusing on crop-specific value chain elements in each target country.

To achieve this, Sathguru:

Conducted primary interactions with on-field country-specific consortia members, farmers, and public and private sector officials to gauge existing consortia performance in seven African countries.
Performed an in-depth country-specific assessment on agri-inputs, R&D, markets, and value addition segments and developed a country-specific baseline for non-consortia countries.
Suggested economic value-creation elements for each consortium and presented the anticipated impact.
Projected gains from phased consortium investments and prioritized investments country-wise for the next ten years.

Recommendations:

Sathguru made recommendations based on the following:

Sathguru assessed the current agri-food system preparedness to strengthen agri-input production, its use, and the feasibility of post-harvest value addition in target countries.
Sathguru recommended strategic interventions to improve the crop-specific agri-food value chain and identified public and private sector engagements required to achieve the proposed models’ sustainability.
Sathguru evaluated the anticipated economic impact on crop-specific yield and production, post-harvest losses, and value addition.

Impact/Result/Client Benefit

With Sathguru’s support, the Client has started developing and deploying country-specific proposed Consortium Model 2.0 to increase its effectiveness across the target countries and achieve the anticipated economic impact across the agri-food value chain.

With critical insights of Sathguru, the client has strengthened the deployment of agricultural systems and downstream delivery models in 11 African countries that includes Burkina Faso, Ghana, Ethiopia, Kenya, Malawi,Mali, Nigeria, Tanzania, Mozambique, Kenya, Uganda.

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Agribusiness

Providing regulatory framework in India for US-based firm developing Biologicals & coated fertilizer

Sathguru helped the company understand the current regulatory landscape in India and suggested a regulatory pathway for registration as per the FCO, 1985.

Situation Analysis

Our client, a US-based firm involved in developing and manufacturing microbial solutions, expressed interest in entering the B2B fertilizer market by assessing the associated regulations and expected timeline. The client expressed interest in registering their product(s) in India for microbial coating of inorganic fertilizers or direct application in India.

Scope and approach

Sathguru thoroughly assessed the Indian fertilizer regulations and evaluated India’s specific regulations to meet the client’s goals. Sathguru suggested the regulatory pathway for product registration according to product suitability in compliance with FCO, 1985.

To achieve this, Sathguru:

Classified the company’s product(s),
Studied the Fertilizer Control Order (FCO), 1985 and amendments for product(s) fitment with the existing regulations,
Assessed the regulations to register the product for coating inorganic fertilizers with biologicals in the country, and
Suggested the pathway for product registration and market entry into India.

Recommendations

Sathguru made specific recommendations based on the product classification and proposed two regulatory pathways for registration.

Apply for commercial registration as a biofertilizer under FCO based on the product’s classification, and
The microbial coated fertilizer category is not available in India; hence, coat the fertilizers with microbial solutions, conduct Bio efficacy studies, and submit the application to The Fertilizer Controller for review and appropriate action in collaboration with the local partner organization/company.

Impact/Result/Client Benefit

Sathguru helped the client understand the regulatory pathway they need to take for product registration and the expected timeline. The client is pursuing it with local partners.

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Agribusiness Business Advisory

Technical and Commercial Valuation for a Novel Bio solutions offering client

Sathguru helped the company assess the current business operations, gauge market potential, and evaluate commercial business valuation in target markets. Sathguru also prioritized key markets based on country-specific market entry timelines and conceptualized an expansion plan for strategic business expansion and target market expansion.

Situation Analysis:

With a strong IP proposition for three novel patented bio solutions, our client expressed their interest in assessing target market potential and product feasibility, analyzing the competitive patent landscape, conceptualizing a roadmap to commercialization with potential growth models across 15 countries, and evaluating the commercial valuation of the business. The client further sought assistance in developing an investor pitch based on technical and commercial valuation assessment.

Scope:

The scope of Sathguru’s engagement included:

Assessing current product portfolio, R&D capabilities, and business operational efficiency.
Analyzing growth potential of novel products based on market entry timelines, target area, and regulation requirements of identified markets.
Developing strategic growth models and roadmap to commercialization.
Evaluating the business of novel products based on technical and commercial valuation.

Approach:

An appropriate mix of secondary and primary research was conducted to meet the client’s objectives. Sathguru’s approach was to assess the company’s research, the strength of novel products, and operational strength. Sathguru intended to map the novel technologies with industry regulatory and market entry requirements, analyze competitive patent and market landscape across target markets, and develop strategic expansion plans and potential growth models.

To achieve this, Sathguru:

Performed internal assessment of the company to understand its current strengths, product portfolio, R&D pipeline, technology preparedness, and operational strength.
Assessed market and technology competitiveness and projected the target area, production capacity requirements, and potential growth models for new markets.
Evaluated product attractiveness aligned with target market regulatory and market entry requirements and developed a roadmap to commercialization.
Suggested domestic and overseas growth models based on target market competitiveness.
Developed a comprehensive technical and commercial valuation report.

Recommendations:

Sathguru made strategic recommendations based on the technical and commercial valuation assessment of the novel product portfolio:

Sathguru evaluated the strength of the novel portfolio and suggested the production capacity expansion plan based on target market demand over projected years.
Sathguru recommended growth models and a roadmap to commercialization for novel patented technologies based on technology-market landscaping.
Sathguru suggested a business expansion and investment plan based on commercial business valuation in target markets with existing IP.
Sathguru recommended strategies to strengthen operational systems, scale-up production capacities, business support services, and align IP management systems with business objectives.

Impact/Result/Client Benefit

With Sathguru’s support, the client intents to launch novel patented products in the target market and pitch in potential investors with in-depth technical and commercial valuation assessment of the novel technologies.

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Agribusiness Business Advisory

R&D Strength Assessment & Strategic Growth Plan Development for a Vegetable Seed company

Sathguru helped an Indian vegetable seed company andby evaluating its R&D and germplasm strength, assessing the current product portfolio, screening the pipeline products based on industry landscaping. Sathguru also helped prioritize key Indian markets and strategically take relevant products to market, leading to business diversification and target market expansion.

Situation Analysis:

Our Client, a vegetable seed company with OPVs dominant product portfolio, expressed interest in exploring opportunities assessing its current business, product pipeline, research programs, and overall business strength. The Client further sought assistance to expand operations by improving Pan India presence and widening its portfolio of products.

Scope:

The scope of Sathguru’s engagement included:

Assessing current product portfolio, R&D, and business operational strength.
Mapping growth potential based on current portfolio and industry readiness of pipeline products with key markets to focus.
Startegizing product diversification and suitable licensing models that can be leveraged to generate proposed revenue projections.
Conceptualizing strategic growth plan for building research strength and strong product pipeline, scaling up market penetration, and strengthening business support.

Approach:

Sathguru’s approach was to review the company’s research and product strength, assess germplasm pool, map the existing product portfolio and traits with industry requirements, identify gaps, , analyze bussiness goals and current sales and, marketing approaches, and consequently understand growth potential and develop a strategic growth plan.

To achieve this, Sathguru:

Performed internal assessment of the company to understand its current strengths, product portfolio, and distribution capabilities for the existing products.
Evaluate existing R&D infrastructure and skilled force, systems, and processes for trial management, quality control, SOPs, etc.
Assessed the pipeline products based on industry readiness and suggested the key focus markets.
Suggested new potential products for a diversified product portfolio mix for attaining market expansion and improved revenue. and.
Developed a five-year strategic growth strategy focusing on widening the portfolio with hybrids and market-relevant traits, additional products, scaling-up market presence, and enhancing business support services.

Recommendations:

Sathguru made specific market aligned recommendations to expand the product portfolio, optimize the existing operations and widen the market presence of the Client across major states of India:

Sathguru recommended market expansion strategies for existing products and further suggested additional proprietary and in-licensed potential products in the portfolio and respective key markets to focus.
Sathguru recommended re-prioritizing the pipeline products with target market requirements based on industry desired traits and competitive benchmarking.
Sathguru suggested state-of-the-art technology for advanced research and best industry-standard practices for streamlining business operations and enhancing responsiveness towards market demand.
Sathguru recommended potential growth strategies and conceptualized a five-year strategic growth plan to strengthen business support systems, optimize business operations and realign the product-market approach required to achieve the projected revenues.

Impact/Result/Client Benefit

The Client has started implementing the recommendations towards portfolio expansion, strategizing product-market fit, and accelerating the introduction of new products by adopting product diversification and market expansion strategies.

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Agribusiness Business Advisory

Technical and Commercial Due Diligence of the Target Seed Company for Strategic Investment

Sathguru helped a globally renowned multilateral trust fund evaluate the target company’s current product portfolio and competitive benchmarking, analyzed the R&D capabilities and product pipeline strength, and assessed business process efficiency. Sathguru further assisted in mapping the target company’s financial and market growth projections and delivered a comprehensive report for the Client to undertake strategic investment decisions.

Situation Analysis:

Our Client, a pioneer in global sustainability and environmental investing entity, expressed their interest in exploring investment opportunities in a pre-identified India-based seed company. Sathguru helped the Client is undertaking a strategic investment decision by conducting in-depth technical and commercial due diligence of the target company.

Scope:

The scope of Sathguru’s engagement included:

Assessing current product portfolio, market performance, and business operational strength.
Evaluating the R&D pipeline, infrastructure, and trial management system
Analyzing market dynamics, identifying growth prospects, and competitive benchmarking of product performance in the market.
Scrutinizing product-specific financial performance and mapping the company’s growth projections.

Approach:

Sathguru’s approach was to conduct the target company’s technical and commercial due diligence in terms of the current business portfolio, R&D strength, and business process efficiency. Product-wise market performance and competitive benchmarking. Sathguru further assisted in mapping the company’s growth potential by scrutinizing the financial and market growth of the company in the market.

To achieve this, Sathguru:

Conducted industry landscaping to understand potential business models and the competitive strength of top players.
Performed assessment of the company to understand their current product portfolio and market performance, business process system for the existing products.
Evaluated R&D capabilities, trial management systems, research programs, and mapping the market potential of pipeline products.
Assessed supply chain dynamics, operational infrastructure, digital tools, and product distribution management system.
Developed growth projections based on fundamental financial assessment and performed competitive benchmarking based on financial parameters.
Analyzed the company’s regulatory compliance alignment and delivered a comprehensive analysis on the potential impact of COVID-19 on the business.

Recommendations:

Sathguru made recommendations to the Client based on the technical and commercial due diligence of the target seed company:

Sathguru recommended that the target be a good investment fit based on an in-depth analysis of the target from a techno-commercial perspective, highlighting a strategically balanced market and financial performance position. Sathguru also suggested strategies to expand market share with existing products and further improve the R&D pipeline to enhance competence.
Sathguru mapped the potential impact of COVID-19 on the target company’s business and further suggested growth and profitability strategies, identified specific improvement levers that could be integrated into the existing business system to ensure stability and market performance.

Impact/Result/Client Benefit

Sathguru helped the Client make an informed investment decision with a comprehensive techno-commercial understanding of the target company’s potential and recommended scope of research and investment realignment in the existing business system to foresee the expected growth.

Innovation Advisory

Valuation of Travel Software for Purchase Price Allocation Post Acquisition

Our client, a global travel solutions company was concluding a transaction to acquire all assets of an Indian travel e-commerce company on a slump sale model.

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Agribusiness Innovation Advisory

IP portfolio valuation for Agri-biotechnology innovation – long shelf life tomato trait

Sathguru worked with the client to evaluate the patent, ascribe valuation range based on a detailed IP valuation exercise, negotiate and in-license the technology to be incorporated in their existing pipeline.

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