m-slide3

Project Description

Project Details

  • Client

    Gold Eye Themes

  • Skills

    • Design
    • Photography
    • HTML

Problem identification

m-slide3

Project Description

Problem identification

The client is a major industrial house with interests in metals, oil & gas, logistics and infrastructure development. The client is a major supplier of equipment to the Oil & gas industry. The client is keen on exploiting its dominance in manufacturing with a range of products suited to the oil & gas sector. Pipes and accessories for the oil & gas industry are a large part of the requirement of the Middle East economy. The current source of these pipes and accessories are imports from Japan and China. The client realizes this could be a huge import substitution proposition.

Solution

SCGs team was brought on board to study the viability of this project – market, technical and financial viability.

  1. SCGs Strategy team worked on estimating demand and supply for steel pipes and accessories used in the oil & gas sector. The team then worked with a team of technical advisors recruited by the client to determine the technical requirements of setting up the plant, importing raw materials, and converting to steel pipes and accessories. It emerged that electricity was a key component in producing steel pipes and the Middle East has a distinct advantage in this area.
  2. SCGs Financial Advisory team worked with the technical team to determine the cost of capital equipment required in setting up the plant. The team developed a series of options on plant location and costs associated with the operations of the plant. The team also worked with the key buyers to determine the price of imports as a benchmark for what could be charged to buyers.
  3. SCGs Market assessment team identified key buyers of steel pipes and accessories to estimate demand. The team also evaluated the key considerations in making buying decisions: such as lead-time, etc. On this basis, we were able to develop a scenario of the operating model and benefits of locating the plant in the Middle East.

The client has expanded into several stores across the region,with over 60 stores, and is a leader in its market segment.

Project Details

  • Client

    Gold Eye Themes

  • Skills

    • Design
    • Photography
    • HTML