Option Analysis

Introduction:
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:

  1. Where to make clinker?
  2. Where to grind clinker and make cement?
  3. How much to make?
  4. What to make?
  5. Where to market?
  6. 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.



Benefits:

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.