Supplier Market Research for a European Private Equity Company

The client, a PE company focusing on energy investment in the Nordics, wanted to have a comprehensive insight and evaluation of the PV (Photovoltaic) market in China. They requested to understand the supply chain of six major market players in China as well as the potential risks that these players were facing.

With the aim being set, the client turned to ARC Consulting for support in reviewing and evaluating the selected suppliers. ARC Consulting delivered a report including a high-level overview of the PV market as well as in-depth analysis of the specific suppliers.

Photovoltaic panels in Chongqing, China

In recent years, the solar cell industry has developed rapidly, driven by the strong financial and policy support from the Chinese government. Some large players have been developed, increasing the industry concentration level; at the same time, many players faced financial crisis, went into bankruptcy or reorganization due to over expansion or fluctuation of raw material prices. Therefore, it is critical for the client to have a holistic picture of the main suppliers of the PV industry in China.

Project data was collected through desktop research and on-site visits at suppliers’ premises. ARC Consulting’s team of consultants collected, crossed checked, and analyzed the following information from different sources:

  1. Basic background information about the market players from official websites, public portal websites and industry databases
  2. Financial information through public financial reporting
  3. Supply chain information collected from both industry interviews as well as desktop research
  4. Risk assessment through analyzing the legal disputes and administrative penalties involved
  5. Information further verified from on-site visits

The final report provided an overview of the supply chain and general risks on the Chinese PV market. In addition, the report present detailed information of the selected suppliers in the supply chain, including their background, financial status, capability, their main suppliers and the potential risks they have.

This report enabled the client to have a factual basis for making the decision of the next steps in the Chinese PV market.

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