Client’s Objective
A leading cement plant contractor and operator in the African region wanted to understand the feasibility of setting up a cement plant in an island country in West Africa. The project was being sponsored by the African Development Bank – a multilateral development bank (MDB) in Africa. The client entrusted DataM Intelligence to conduct an extensive study to:
- Assess the feasibility of establishing a cement plant in this niche geographical area
- Develop an accurate market demand forecast and understanding competitor strategies
- Create a robust 5-year business plan focused on long-term sustainability, operational efficiency, and risk management
Our Project Strategy
Having understood the challenging nature of the target geography, we, at DataM Intelligence, adopted a multipronged approach of conducting in-house analysis as well as collecting on-the-ground insights through our distinguished primary research consultants.
- Secondary research: Desk research by our industry expert consultants was conducted to understand the current market scenario, presence of local and global competitors, regulatory and environmental risks, and other market dynamics.
- Primary research: We conducted interviews with stakeholders across the value chain of the cement market in the country. As most of the cement market in the country was captured by imports, it was very essential to speak to executives from the global cement companies that were exporting to this country. We gathered insights on the volume of imports into the country, including the type of cement that was in demand, challenges faced in importing, and their distribution network in the country. This helped us in formulating the broader view on the current market situation, and impending challenges as well as benefits of setting up a cement plant locally in the country.
Our Delivery
Substantiating our desk research with interview insights and analysis by our in-house industry consultants, we delivered the study report covering the following aspects:
- Market Analysis and Risk Assessment: A thorough review of the market dynamics, regulatory environment, trade barriers, pricing dynamics, environmental impact considerations, and raw material availability
- Operational Cost and Financial Breakdown: A detailed cost analysis was performed, including break-even calculations and financial analysis to forecast future demand. This also included an examination of different range of production scenarios and their consequent investment needs, and potential income streams including ROI durations
- Comprehensive Business Plan: We developed a comprehensive 5-year business plan including financial projections, supply chain management, marketing strategies, workforce planning, and risk management protocols. The plan was focused on setting up of a cement plant of 100,000 Tons capacity, which will become profit-generating from the end of 1st year itself. It was realized that the unavailability of any local manufacturing facility in the country and costly imports from Europe will make it very easy for the client to supply locally manufactured cement in the country and will also open export opportunities to West Africa
