1. Synergy Study for two EPC players
Tata Strategic was engaged to conduct a synergy study between two large players in the EPC
Projects space (with experience across various infrastructure sectors) and evaluate the benefits
of a potential merger between the companies. The scope of the project included the capability
gap assessment of each of the companies and the possible increase in span of abilities for a
merged entity.
Tata strategic did an estimation of market landscape (including size and trends) for EPC
projects business to provide a benchmark for the synergy study. A capability assessment for
each of the players and their relative position in the EPC space was performed. The potential to
harness synergies for a combined entity was performed along various parameters including
improved access to market (expansion into different sectors), higher financial capability,
expanded bidding / marketing ability, increased protection against revenue leakage, stronger
control over project costs and time overruns, sharing of engineering / technical capabilities,
ability to compress timeline for project execution and reduction in total procurement costs.
The ability to perform a smooth integration of firm infrastructure and human resources was
taken into account in doing the synergy study. Tata strategic, as part of its analysis, provided a
“what–if” scenario analysis for the combined entity in terms of size, scale and skill gap with
respect to other major Indian players and leading international players.
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