Growth with limited operational risk
Growth is to have three dimensions:
- In new and existing fields of technology
- Through a broadened customer offering, such as extended support, training and other aftermarket services
- Through geographic growth in selected markets
Indutrade is to grow both organically and through acquisitions. As our companies grow, the barriers to entry for potential competitors are expected to rise. At the same time, the risk that Indutrade’s suppliers establish their own sales organisations in the Company’s markets will fall.
› Business development and growth are strategic tools for reducing our exposure to operational risk.
We acquire well-managed, long-term successful, usually owner-managed industrial companies with a management that wants to continue running and developing the business. The companies manufacture or conduct sales of products in a well-defined market.
› Indutrade does not normally divest companies. Nor do we rename or merge companies, which means that the seller can feel assured that the company will also remain a market player over time.
Strong market positions
Indutrade focuses on sales of products in niche markets where a leading position can be achieved.
› Strong market positions are usually a prerequisite for high profitability. They also make it easier for us to attract the best suppliers, which further consolidates our position.
Long-term partnerships with leading suppliers
Indutrade prioritises suppliers with proprietary product development that deliver market-leading, high-tech products of superior quality. A partnership with us will prove the most profitable way for suppliers to sell their products in the geographic markets in which we operate.
› A range of market-leading products from the best suppliers, combined with our technological and market expertise, makes us a more attractive business partner for existing and potential customers.
Companies with proprietary products and brands
Indutrade has a number of companies with proprietary products and brands. These should be high-tech products, and the companies must have a strong market position with solid growth potential.
› Proprietary products and brands balance our technology sales companies. The proportion of companies with proprietary products has risen gradually since 2004, and they now account for approximately 40% of our net sales.
High proportion of recurring sales and a focus on selected customer segments
Our companies prioritise customers with recurring needs and they operate in sectors with favorable prospects for maintaining competitive production in their home markets. These sectors are usually characterised by high automation levels, high distribution costs, and/or large initial investment.
› Recurring sales promote business stability and predictable revenue streams.
Sales organisation with a high level of technical expertise
Our offering, which caters to both end users and OEM customers (customers that integrate our products into their proprietary products), comprises high-tech products and services that incorporate a high level of service and qualified technical advice.
Our sales staff are highly specialised in their respective niches, and have sound knowledge of customer production processes.
› A high level of technical expertise combined with excellent service makes us an attractive partner for both customers and suppliers.
Decentralised organisation with a strong local presence
Our governance model is characterised by decentralisation, since the best business decisions are made by the people who are closest to the customer and best understand their needs and processes.
- We are increasing customer value with subsidiaries that control their own operations, are flexible and entrepreneurial, and work closely with customers.