Automotive: Project Feasibility
Whether the proposed manufacturing set-up will be viable?
The client wished to evaluate the attractiveness and viability of the project and understand sensitivity of the project on select macro-factors impacting the project.
We conducted a feasibility study with a dynamic sensitivity analysis with particular focus on
- Estimating addressable market size for proposed product-line
- Map the competitive scenario – Current mode of operation, Business Models, sales and likely expansion plans of key competition
- In-depth Financial assessment of Cost-of-Production, Operating Profits, Project Pay-back and Project’s sensitivity to Government’s policy
Re-negotiate pricing for select parts, request for additional parts and assure M-o-Q to justify the investment-to-returns.
A clearer picture helped client to decide confidently minimum viable project size and prepare a realistic roadmap of the business.