Granite Materials: Finding 12% Growth
Consulting
hard45 min0 submissionsBain
Scenario
Granite Materials (building materials, India) has grown at 5% a year for three years. The new CEO has committed the board to 12% growth — a gap of roughly ₹36 Cr of incremental revenue in year one.
What we know.
- Current revenue: ₹520 Cr
- 4470 active customers
- Annual customer churn: 14%
- Estimated share of existing customers' relevant spend: 26%
- The core market is growing at 6% — so the company is roughly holding share
The CEO's instinct is to enter a new geography. The CFO thinks the answer is in the existing base. Nobody has yet sized either.
Supporting data
market
- core market growth pct
- 6
customers
- active customers
- 4470
- annual churn pct
- 14
- share of wallet pct
- 26
- average revenue per customer
- 116331
current state
- growth pct
- 5
- revenue cr
- 520
- revenue gap cr
- 36
- target growth pct
- 12
Your task
Build the growth case. Provide:
- Analysis — where growth could come from, sized.
- Risks — of the options you recommend and reject.
- Recommendation — a prioritised growth portfolio for the next 24 months.
Ready to move forward? Up next: Should Corveta Motors Enter Brazil?Next question
How you'll be graded
100 points, 60% to pass.
- evaluation25
- recommendation25
- option generation25
- problem structuring25
Hint
Reveal suggested structure
Decompose growth into five sources and size each:
- Retention — reducing 14% churn
- Penetration — raising 26% share of wallet
- New customers in existing segments
- New products to existing customers
- New geographies or segments
Score on size, speed, cost and risk. The first two are usually cheapest and fastest; the last is usually slowest.