Kirovsky Zavod

Economic and marketing scope of the transmission  business project for Joint Stock Company “Kirovsky Zavod”

Joint Stock Company “Kirovsky Zavod” is the leading company in the area of industrial machinery with a developed metallurgy bases. “Kirovsky Zavod” and its subsidiaries are specialized in products for the nuclear power, gas, heating, electricity and agriculture industries  
The management of “Kirovsky Zavod” stated a goal to systemize the information concerning the project of creation the transmission production business. The key goal was to estimate the economic effectiveness of the project in the different scenarios of business and cost configurations.

What we have done

After the analyses and discussions with the company members ALT RC consultants have proposed optimal configurations for that business. The key parameter was the level of outsourcing used in the business. Our consultants have helped to measure the costs and financing schemes in the different scenarios of business organization and to compare their efficiency. The calculation had showed that the correct use of outsourcing could dramatically cut the costs of business and optimize its financial figures.
Our consultants have also analyzed the market of transmissions for the client. The crucial point was the experience of foreign markets in that subject. 

Results

Hence we have elaborated the most effective way to implement the project with a significant reduction of investment costs, and educe the key efficiency drivers, specify the cost structure in the different scenarios of project implementation; clarify the market perspectives of the project.