Kejriwal Industries, a textile leader, sought to diversify into chemical manufacturing—a booming sector in India. Partnering with Stratefix Consulting, they executed a strategic market research project to identify high-growth opportunities and develop a robust entry plan.
This case study highlights how data-driven insights and meticulous planning helped Kejriwal establish a strong foundation for expansion into this competitive market.
With an ambition to capitalize on India’s growing demand for specialty chemicals, polymer-based products, and Active Pharmaceutical Ingredients (APIs), Kejriwal turned to Stratefix Consulting for a data-driven, strategic market research initiative. This collaboration aimed to lay a robust foundation for growth, expansion, and industry leadership.
The Role of Market Research in Strategic Diversification
Strategic market research is the cornerstone of successful diversification. For businesses like Kejriwal Industries, venturing into a new sector requires:
- Understanding Industry Dynamics: Identifying growth trends, competitive landscapes, and demand drivers.
- Assessing Feasibility: Determining the viability of potential product categories based on market gaps and organizational strengths.
- Mapping Opportunities: Aligning product capabilities with the needs of high-growth sectors.
- Gathering Practical Insights: Conducting one-to-one meetings with industry experts in targeted sector.
Stratefix Consulting’s expertise enabled Kejriwal to navigate these challenges with precision.
By leveraging comprehensive research methodologies, Stratefix provided actionable insights, empowering Kejriwal to make informed decisions and chart a path to success in India’s burgeoning chemical industry.
The USD 11 billion pharmaceutical API market is expanding by 8% annually, while the agrochemical sector, valued at USD 6.3 billion, grows at 8.5% CAGR. Construction chemicals are seeing 15% annual growth, fueled by urbanization and government initiatives like “Smart Cities,” making it a lucrative market for new entrants.
Chemical Manufacturing in India: A Landscape of Opportunities
India’s chemical industry ranks as the sixth largest globally, contributing significantly to the nation’s GDP. It is expected to grow at a CAGR of 9.3% through 2030, driven by:
- Rising Domestic Demand: High-growth sectors like pharmaceuticals, agriculture, and construction are key consumers of chemicals.
- Government Support: Initiatives such as the Production-Linked Incentive (PLI) scheme and the Petroleum, Chemicals, and Petrochemicals Investment Region (PCPIR) policy incentivize local manufacturing.
- Export Potential: India’s chemical exports, valued at USD 44 billion in 2023, reflect its global competitiveness.
- Technological Growth: India’s tech growth supports the growing chemical market dynamics in India.
- Labor and Utilities: India’s chemical industry benefits significantly from its abundant low-cost labor, which helps in maintaining lower production costs and enhancing competitiveness in the global market.
By entering this dynamic sector, Kejriwal Industries aimed to tap into these opportunities and position itself as a key player in domestic and international markets.
How Kejriwal Industries Leveraged Market Insights to Dominate India’s Chemical Market?
Stratefix Consulting undertook a meticulous approach to ensure that Kejriwal Industries’ diversification strategy was rooted in data and aligned with market realities. Here’s how the process unfolded:
- Market Segmentation and Analysis Stratefix segmented the chemical industry into key verticals. Segmentation revealed high-demand product categories, such as:
- Detailed Segmentation: Our research revealed precise segmentation of chemical industry in 8 different categories such as Bulk, Speciality, Fine, Consumer Chemicals etc.
- Pharmaceutical APIs: India’s pharmaceutical market depends heavily on APIs, with the market valued at USD 11 billion and growing at 8% annually.
- Specialty Chemicals: Used in agriculture and construction, these high-margin products address niche applications with significant profitability.
- Polymer-Based Chemicals: Essential for packaging, automotive, and consumer goods, these chemicals align with sustainability trends through biopolymers
- Secondary Research: Our market research team thoroughly analysed publicly available research reports, market analysis reports, media publications and ethically paid sources to gather insights based on client’s requirements.
- Competitor Benchmarking Stratefix benchmarked Kejriwal’s capabilities against domestic and global competitors, analyzing factors such as cost structures, technological adoption, and product quality. This ensured that Kejriwal’s new operations would be competitively positioned.
- Product family Recommendations Based on demand forecasts and regulatory incentives, Stratefix recommended a strategic focus on:
- Pharmaceuticals APIs for easy market penetration.
- Specialty agrochemicals and construction additives.
- Advanced polymers in textiles and resins for industrial coatings and defence applications.
- Investment and Scalability Planning Stratefix emphasized the importance of scalable production facilities like Multiple purpose plants (MPPs) that could adapt to fluctuating market demands. This flexibility enables future expansions into adjacent product categories without significant overhauls.
- Global Impact: Countries like China, Japan, and Europe top countries impacting directly the Indian markets impacting imports and exports.
Kejriwal’s Vision for a Successful Expansion into India’s Booming Chemical Sector
Armed with a robust strategy, Kejriwal Industries is set to establish a chemical manufacturing plant with cutting-edge facilities targeting to build:
- World-Class Technology: The use of German Oerlikon-Barmag machinery ensures precision and consistency in production.
- Quality Control: Advanced equipment for stringent quality checks aligns with international standards.
- Sustainability Initiatives: Processes designed to minimize environmental impact, reflecting a commitment to eco-friendly manufacturing.
- Manufacturing Efficiency: Building a plant that can be utilized for its maximum capacity.
Data-Driven Decisions for Strategic Sustainable Growth supported by our Primary Research
Stratefix Consulting’s market research proved instrumental in shaping Kejriwal’s market entry strategy.
By grounding decisions in data, Kejriwal avoided costly missteps and ensured that every move was aligned with market realities.
We met multiple stakeholders in chemical industry including existing manufacturers & industry experts, arranged in-person meetings with the client. This helped the client to gain practical insights to move ahead with the next steps.
We arranged meetings with Chemical manufacturing plant engineers to suggest best in class layout structure and gain detailed understanding of future aspects of the business.
Additionally, we participated in multiple events such as Chem Expo 2024 happened in Mumbai alongside the management team, in order to network with industry peers and learn about different product categories in the market.
For instance:
- Identifying Growth Segments: Stratefix’s research pinpointed pharmaceuticals, agriculture, and construction as high-potential sectors.
- Policy Leveraging: Recommendations to utilize government incentives, such as the PLI scheme, reduced operational costs and enhanced competitiveness.
- Risk Mitigation: Stratefix’s insights into raw material dependencies and regulatory challenges allowed Kejriwal to proactively address potential bottlenecks.
Challenges and Strategic Overcoming
Every large-scale diversification project encounter obstacles. Kejriwal faced:
- Demand Forecasting: Major challenge for the client was to understand key factors of niche in demand products.
- Regulatory Hurdles: Stratefix guided compliance with environmental and safety regulations, ensuring a smooth entry.
- Supply Chain Complexities: Establishing reliable raw material sourcing was critical. Stratefix facilitated partnerships with suppliers to stabilize supply chains.
- Technological Adaptation: Transitioning from textiles to chemicals required a steep learning curve. Training programs and process integration were prioritized.
Establishing Kejriwal in India’s unorganized Chemical manufacturing market
Kejriwal Industries is now poised to enter in India’s chemical sector. Their focus on quality, innovation, and sustainability positions them favorably for domestic and global growth.
Key differentiators include:
- Market Readiness: By aligning production with international standards, Kejriwal can access lucrative markets in the U.S., Europe, and Asia.
- Futuristic Products: Investments in pharma sector, biopolymers and sustainable agrochemicals cater to the increasing demand for environmentally friendly solutions.
- Cost Efficiency: Leveraging India’s low-cost manufacturing ecosystem ensures competitive pricing.
Core Activities in the Market Research Process
- Defining Research Objectives: Stratefix collaborated closely with Kejriwal Industries to establish clear research goals. These objectives included estimating market size, analyzing competitive landscapes, and identifying high-potential chemical products aligned with Kejriwal’s capabilities.
- Identifying Target Regions: Focusing on Kejriwal’s strategic aim to enter profitable segments, Stratefix pinpointed key geographic areas. This ensured coverage of high-demand regions with balanced representation across domestic and export markets.
- Collecting Secondary Data: The team gathered comprehensive industry reports, competitor analyses, and government publications. This data provided a macro-level view of market trends, regulatory impacts, and potential demand drivers in the chemical sector.
- Designing and Conducting Primary Research: Customized surveys and interviews were developed to capture insights from industry experts and potential clients. This process targeted key areas such as product preferences, pricing benchmarks, and decision-making factors specific to chemical manufacturing.
- Analyzing and Interpreting Data: Using advanced qualitative and quantitative methods, Stratefix evaluated the data to identify market gaps and opportunities. This analysis included product segmentation, demand forecasting, and a detailed review of competitor strengths and vulnerabilities.
- Formulating Strategic Recommendations: Based on these insights, Stratefix delivered a comprehensive strategy report. It included actionable recommendations for product differentiation, scalable production models, pricing strategies, and a roadmap for geographic expansion, positioning Kejriwal for success in India’s chemical industry.
Partner with Stratefix for Strategic Growth with a Go-To-Market (GTM) Strategy
Kejriwal’s success story underscores the transformative power of data-driven market research.
Whether your business is looking to diversify, expand, or lead in a competitive industry, Stratefix Consulting is your partner for growth. Our expertise in market analysis, strategy development, and execution ensures that your business goals are met with precision and foresight.
Take the first step toward your next success story. Contact Stratefix Consulting today to explore how our tailored solutions can unlock new opportunities for your business.
