Client
A financial institution in GCC who was funding the expansion plan of a private company making certain grade of polymeric films.

The Problem
The company was planning to increase its capacity three fold to achieve economies of scale in business and manufacture newer grades of the product to meet increasing market requirements. It had approached the financial institution for possible funding who in turn wanted a due diligence done on the proposal.

Our Approach
The study involved extensive literature search of the global and Middle East markets for the product. Discussions were held with some of the European technology suppliers in this area to elicit their independent views on the plant costs. Analysis of the Asian companies from India, China, Thailand and Philippines who had expanded their similar plants was made to arrive at a realistic scenario.

Proposed Solution
The expansion was found justified in a global context. Recommendations on price quotes of plant & machinery were made based on independent assessment.

Outcome
The findings were accepted by the financial institution and the company expanded its operations.