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 ADVISORY GROUP - CASE STUDY |
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| Profile of the Client |
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The group’s flagship company is one of the leading manufacturers of two wheelers in India. It was one of the first companies to introduce un-geared scooters in the country. The group operates a wide range of companies, some of them under the same brand name as their flagship company. The group is diversified into areas such as engineering services, and manufacture of auto components, escalators, elevators and resistance welding machines. |
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| Role of IndiaCo |
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Developing a strategic roadmap for the growth of group companies |
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Financial restructuring to enhance shareholder value |
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Raising capital for the company through private placements to retire its existing debt |
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Operational restructuring to increase efficiency |
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Financial and operational restructuring of group businesses |
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Assisting in equity stake sale of one of the group companies to a strategic investor |
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| Outcome |
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Profitability improved, significantly increasing return on capital employed |
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The company’s valuation increased by several times over a period of 24 months |
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The company retired all long term debt, thereby taking an unviable business model to sustainability |
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One group company was sold to a strategic investor, providing excellent return on capital to the group |
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