Growth with limited operational risk
Growth will be achieved organically and through acquisitions – preferably in three dimensions:
- In existing and new technology areas.
- Through a broadened customer offering based on relevant knowledge, such as extended support, training and other aftermarket services.
- Geographically in selected markets.
› Business development and growth are strategic tools for reducing the Group’s risk.
Indutrade acquires well managed, successful, typically owner-led industrial companies whose management teams are eager to continue running and growing the business. The companies manufacture or sell products in distinct markets. We can also make smaller, add-on acquisitions through our existing companies to strengthen market positions. A central feature in our acquisition process is to ensure a shared values foundation and shared ethical principles. These ethical principles are summarised in Indutrade’s Code of Conduct, which all subsidiaries are expected to follow.
› Indutrade acquires companies for longterm development. We neither change the companies’ names or merge companies, which means that the seller knows that the company will continue as a long-term player in the market.
Strong market positions
Indutrade focuses on sales of products in niches in which it can attain a leading position.
› Strong market positions are often a prerequisite for good profitability. They also make it easier to attract the best suppliers, which further consolidates Indutrade’s position.
Long-term partnerships with leading suppliers
Indutrade gives priority to suppliers who, through own product development, provide market-leading, high-quality products with a high-tech content. A partnership with Indutrade should be the most profitable way for suppliers to sell their products.
› A range of market-leading products from the best suppliers, coupled with Indutrade’s technical and market knowhow, makes Indutrade a more attractive business partner for existing and potential customers.
Companies with proprietary products and brands
Indutrade has many companies with proprietary products and brands. The products should have a high-tech content, while the companies should have a strong market position and good growth potential.
› Companies with proprietary products and brands provide balance to the Group’s technology sales companies. Since 2004 the share of companies with proprietary products has grown by 31 percentage points, and in 2018 they accounted for 40% of consolidated net sales.
High share of repetitive sales and focus on selected customer segments
The Group gives priority to customers with a recurring need that are active in industries with favourable prospects for maintaining competitive production in Indutrade’s home markets. Many of these industries are characterised by a high degree of automation, high distribution costs and/or large start-up investment.
› This contributes to business stability and predictability of revenue flows.
Sales organisation with a high level of technical expertise
Indutrade’s product and service offering, which is aimed at both end users and OEM customers (customers that integrate Indutrade’s products in their own products), should have a high-tech content and incorporate a high level of service and qualified technical consulting. Indutrade’s sales representatives must have a high level of technical expertise in their respective niches and a depth of knowledge about the customers’ production processes.
› This makes Indutrade an attractive business partner that creates valueadded for customers and suppliers alike.
Decentralised organisation with a strong local presence
Indutrade’s governance model is characterised by decentralisation, as the best business decisions are made close to customers by people who have the best understanding of the customers’ needs and processes.
› We are increasing customer value with subsidiaries that control their own operations, are flexible and entrepreneurial, and work closely with customers.