Option Analysis Study helps an organization make an informed decision. It is important to set up a plant of optimum capacity at a suitable location. Based on various influencing factors, there are numerous alternatives available and option analysis helps top management understand, prioritize and rank these options.
Coverage/ Methodology :
Any company, either an existing player interested in expanding its business or a new player looking to enter cement industry, has to confront these critical questions:
- Where to make clinker?
- Where to grind clinker and make cement?
- How much to make?
- What to make?
- Where to market?
- When to launch?
Option Analysis answers all these question and more.
Broad methodology followed is as under:
- Defining options based on client’s requirement and Holtec’s knowledge of cement industry, all possible options are enumerated.
- Evaluation of each option based on market results and financial returns, which includes achievable sales volumes, market shares, IRR, NPV, etc for each option.
- Ranking of options based on soft factor analysis.
- Final recommendation covering what to make, how much to make, where to make, etc.
It helps to:
- Make an informed decision.
- Formulate correct entry strategy.
- Make the right investment.
- Substantially reduce the risk of making a sub-optimal decision due to risks of raw material availability, poor market access, low infrastructure, high capacity and thereby investment cost, etc.