The success of businesses operating in developing countries is highly dependent on leveraging opportunities and mitigating risks. Business challenges are complex and stem essentially from four main areas: integrity, compliance, security and operations.
Orkash aims at insulating corporations from these risks through a process of intelligence collection and creation of control mechanisms.
Our capabilities include exhaustive primary research, field surveys and due diligence based on a 360 degree risk intelligence collection involving all stakeholders.
Our expertise lies in mapping risk dynamics based on social, economic, political and industry trends.
We assist a large number of Fortune 1000 companies and investment banks across geographies: India and South Asia, South-East Asia, Middle East, US and Europe.
Case study 1 - Energy Sector
Net result: The Australian company re-negotiated to insulate from the risks and the potential downsides
Case study 2 - Real Estate Sector
Case study 3 - Diverse Sectors
Case study 4 - Space Technology Sector
PE deal with an international diamond house with operations in Middle East, Europe and India
Unique findings: Orkash's due diligence revealed a complex mix of international subsidiaries and the cross holdings pattern amongst the various family members. Detailed market inquiries spanning across the former employees, competitors and vendors revealed that the two brothers (owning the company) were operating independently despite being under the group umbrella, resulting in poor synergies in operations.
Net result: A professional management layer was mandated to be incorporated in the company by the PE fund. A large part of the group's operations were then restructured to successfully leverage the growth capital injection from the PE investment.
Case Study 1 – Tyre Sector
A global Top 10 tyre manufacturing company was setting up a manufacturing facility in India. The client was to soon start hiring labor for its facility and wanted to be aware of all related risks.
Project Scope and Findings: Orkash undertook a survey of labor related challenges and best practices covering a number of similar other plants, and also mapped the labour union networks and influences existing there. This helped create a detailed risk analysis framework for the client. We also analyzed the key labor related polices and regulations in the country and state specific laws that impact labor relations, plus factors that influence trade unionism in the country and how the political dynamics of the state were impacting labor operations.
Net Results: The client used the research to fully understand the complexities of trade unions activities, their leadership and influences, and the potential issues that the client could be exposed to. The detailed risk-analysis framework was used to highlights risks, possibility of occurrence and intensity of impact. Our decision making framework on labor issues became the go to guide for possible solutions and outcomes, and adoption of best practices within the framework of labor laws.
Case Study 2 – Retail Sector
For an American QSR company, one of the JV partner identified was a Top 5 Indian retail group which belongs to one of India’s largest (family managed) business conglomerate. The client wanted an understanding of all JV’s done by the Indian group previously, their success or failure factors, and any out of ordinary risks (such as family dynamics, or governance standards) of working with the firm.
Unique Findings: Orkash assessed the QSR segment in India along with entry routes for other JV’s in the sector in India. A detailed analysis of the JV partners’ performance, finances, business footprint, existing joint ventures, disclosure practices, management structure and governance dynamics were provided. Orkash also undertook detailed investigative inquiries and market intelligence collection into the corruption allegations and controversies that the business conglomerate had been charged with. Extensive due diligence on the Senior Management of the company was conducted and we conducted confidential interviews with several former CXO level employees to understand the corporate governance related practices of the group.
Net Results: The client was in a better position to decide on whether to go ahead with the JV along with the ability to undertake more informed negotiations based on a detailed understanding of control dynamics of partnering with an Indian family owned business group and its inner management practices and governance standards.
Case Study 3 – Lottery & Gaming Sector: Risk and Business Assurance Support for a JV
A global company operating in the Online Gaming business sought assistance from ORKASH for taking a strategic business decision for a JV with an Indian company operating in the Online Gaming and Lottery business
Orkash's Risk & Business Assurance Framework
Orkash built a risk analysis framework comprising of a wide range of parameters including the sectoral risk in Online Gaming and Lottery business, regulatory and policy related risk, and operational risks (arising from internal governance standards) pertaining to the target company for the probable JV. We found a number of extraordinary risk factors that needed to be addressed for unlocking the potential opportunity from the JV. These included political risk, regulatory risks, integrity and governance risk, and other extraordinary risk factors including the financial risk associated with the target company. The Orkash team conducted exhaustive research as a prerequisite to understand the nuances of how the lottery and gaming business operates in India. In addition to this, the Orkash team conducted detailed primary source interviews with the former employees of the target company as well as industry experts and government officials overseeing the regulatory aspects of the sector.
Based on our risk based framework, it came to light that the sector is characterized by a high-risk high-opportunity combination, with with only few states in the country permitting this business. With no all India level regulatory body in the sector, a few players had emerged as dominant in paper based as well as online lottery business, with many of these adopting corrupt and unethical business practices. We also found that a recent regulation brought in by the federal government of India had a potential for significant impact on the paper based lottery business by limiting the number of draws and monetary payouts.
Orkash's research and advisory support equipped the client with microscopic details on the sector as well as on the target company, and facilitated the execution of a balanced JV deal.