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CLIENT CASE STUDY

NMDC Limited

Actionable insights for ambitious, sustainable growth.

OVERVIEW

Developing a strategic management plan for business growth

The NMDC Limited is India’s largest iron ore miner, producing about 30 million tons per annum (MTPA) of iron ore.

It set itself an aggressive growth agenda that would require multiple strategic transformations spanning its business, operations, sustainability, capital projects, human resources and IT. To this end it required a Strategic Management Plan (SMP) that evaluated various growth opportunities and formulated strategic enablers.

To develop the SMP, Accenture Strategy conducted site visits and hosted focused group discussions, workshops, and brainstorming sessions involving participation from all levels of the organization. As a result of its close collaboration with Accenture Strategy, NMDC has a comprehensive growth strategy and a roadmap with a specific action-plan and timeline.

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OPPORTUNITY

NMDC has an aggressive growth agenda that includes:

  • Increasing the scale of its iron mining.

  • Strengthening exploration and forward-integrating to value-added businesses.

  • Strategically diversifying into other commodities.

  • Selectively investing in other geographies.

To accomplish this, it needed to manage multiple strategic transformations:

  • Business Strategy: From “single commodity and geography” to “multiple commodities and globally diversified”.

  • Operations Strategy: From a 30 MTPA iron miner to 100 MTPA with forward-integration to value-added businesses.

  • Sustainability Strategy: From operating in suppliers’ markets to being compliant and profitable in buyers’ markets.

  • Capital Projects Strategy: Managing significant capital investment.

  • Human Resources Strategy: From possessing mining skills to having skills in mining, metals, and other businesses.

  • IT Strategy: From possessing a basic level of IT maturity to enablement through leading digital innovation practices.

A Strategic Management Plan (SMP) needed to be developed by evaluating various growth opportunities and formulating strategic enablers.

OUTCOMES

Over three months, Accenture Strategy helped NMDC:

  • Review and evaluate its growth plan.

  • Analyze its industry with insight from historical growth strategies of major mining companies.

  • Develop future strategies and an integrated business plan for its existing and future key businesses.

  • Evaluate the current-state across key strategic pillars and develop strategic recommendations for the future covering business, operations, sustainability, capital project, human resources and IT strategies.

  • Benchmark NMDC’s key financial and operational metrics against those of global mining leaders.

  • Develop an implementation roadmap.

To develop the SMP, Accenture Strategy conducted site visits and hosted focused group discussions, workshops, and brainstorming sessions involving participation from all levels of the organization.

Accenture Strategy’s field-tested methodologies and ready-to-deploy assets and knowledge base helped evaluate the current state and develop specific recommendations to enable future growth. Subject Matter Advisers (SMAs) from Accenture Strategy’s global network helped develop the strategy and a number of presentations were made at the highest level to align the SMP with key stakeholders.

As a result of its close collaboration with Accenture Strategy, NMDC has a comprehensive growth strategy and a roadmap with a specific action-plan and timeline. Key outcomes include:

  • A comprehensive financial model that helps visualize future financials at the portfolio level and for each key business. This dynamic model will help assess any business scenario going forward and fine-tune its yearly action plans as required.

  • Specific strategies across six key strategic areas—business, operations, sustainability, capital projects, human resources and IT—that help develop a balanced and sustainable growth plan.

  • A historical review of the strategies and leading practices followed by large mining companies globally to help evaluate and establish new strategic initiatives.

  • The benchmarking of key parameters (operation and finance) to help identify key areas and specific measures for improvement.

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