
This project aimed to strengthen the competitiveness of the domestic rendering and used cooking oil (UCO) business while facilitating its expansion into the global market. Through the Commercial Due Diligence (CDD) and Post-Merger Integration (PMI) phases, Looxent defined the client’s strategic direction and designed actionable plans focused on market analysis, competitiveness assessment, organizational restructuring, and operational optimization to support sustainable growth.
1. Market Analysis and Target Competitiveness Assessment
Growth Outlook for the Industry
The rendering industry has shown stable growth as the valorization of livestock by-products accelerates. Similarly, the UCO market is experiencing a growth rate of over 10%, driven by surging global demand for biodiesel, strengthened environmental regulations, and renewable energy policies.
The rising demand for UCO as a biodiesel feedstock presents significant opportunities for the client to expand market share through high-value product development.
Client’s Competitiveness and Growth Potential
The client holds a dominant market share in the domestic rendering and UCO sectors, leveraging a robust regional collection network and efficient delivery capabilities as key competitive advantages. However, risks were identified, including a reliance on specific customer segments and global supply chain disruptions. The project highlighted diversification of the customer base and exploration of new revenue channels as critical priorities.
2. Building an Integrated Organization and Enhancing Operational Efficiency through PMI
The PMI phase focused on establishing an integrated organizational structure and reinforcing data-driven decision-making processes to enhance competitiveness.
Organizational Restructuring: Transitioning to a Functional Organization
The client transitioned from a business-unit-based structure to a functional organization to strengthen expertise in production, procurement, and sales. This shift aimed to eliminate redundancy, accelerate decision-making processes, and improve overall decision quality.
3. Risk Management and Execution Plans
The project established a robust risk management framework with a focus on legal compliance and internal governance enhancement.
Legal Compliance and Governance Reinforcement
To address regulatory risks associated with subcontracting and foreign workforce employment, the project recommended strengthening internal education and monitoring processes.
A continuous internal audit system was also proposed to proactively identify and mitigate legal risks, ensuring compliance and operational resilience.
Outcomes and Expected Impact
The project delivered tangible improvements through organizational restructuring, risk identification, and proactive management strategies.
By providing clear strategic direction, this initiative has positioned the client for sustainable growth and mitigated potential risks. It will play a pivotal role in establishing the client as a leading industry player, poised for both domestic success and global expansion.
This project aimed to strengthen the competitiveness of the domestic rendering and used cooking oil (UCO) business while facilitating its expansion into the global market. Through the Commercial Due Diligence (CDD) and Post-Merger Integration (PMI) phases, Looxent defined the client’s strategic direction and designed actionable plans focused on market analysis, competitiveness assessment, organizational restructuring, and operational optimization to support sustainable growth.
1. Market Analysis and Target Competitiveness Assessment
Growth Outlook for the Industry
The rendering industry has shown stable growth as the valorization of livestock by-products accelerates. Similarly, the UCO market is experiencing a growth rate of over 10%, driven by surging global demand for biodiesel, strengthened environmental regulations, and renewable energy policies.
The rising demand for UCO as a biodiesel feedstock presents significant opportunities for the client to expand market share through high-value product development.
Client’s Competitiveness and Growth Potential
The client holds a dominant market share in the domestic rendering and UCO sectors, leveraging a robust regional collection network and efficient delivery capabilities as key competitive advantages. However, risks were identified, including a reliance on specific customer segments and global supply chain disruptions. The project highlighted diversification of the customer base and exploration of new revenue channels as critical priorities.
2. Building an Integrated Organization and Enhancing Operational Efficiency through PMI
The PMI phase focused on establishing an integrated organizational structure and reinforcing data-driven decision-making processes to enhance competitiveness.
Organizational Restructuring: Transitioning to a Functional Organization
The client transitioned from a business-unit-based structure to a functional organization to strengthen expertise in production, procurement, and sales. This shift aimed to eliminate redundancy, accelerate decision-making processes, and improve overall decision quality.
3. Risk Management and Execution Plans
The project established a robust risk management framework with a focus on legal compliance and internal governance enhancement.
Legal Compliance and Governance Reinforcement
To address regulatory risks associated with subcontracting and foreign workforce employment, the project recommended strengthening internal education and monitoring processes.
A continuous internal audit system was also proposed to proactively identify and mitigate legal risks, ensuring compliance and operational resilience.
Outcomes and Expected Impact
The project delivered tangible improvements through organizational restructuring, risk identification, and proactive management strategies.
By providing clear strategic direction, this initiative has positioned the client for sustainable growth and mitigated potential risks. It will play a pivotal role in establishing the client as a leading industry player, poised for both domestic success and global expansion.