INDUS HOLDING AG
The corporate group structure of the INDUS Holding AG is split into a holding company and individual participatory companies as independent operating units.
There is a clear assignment of responsibilities between the holding and the participating companies. The holding assumes the classical cross-divisional functions and supports the participating companies in the areas of financing, controlling, balance sheet accounting, taxes and law. As a company listed on the stock exchange with good assessments of its creditworthiness, the holding makes it possible for the individual participating companies to access the financing options on the capital market, which would otherwise not be possible for a company of its moderate size. This optimises the financing costs in the group.
INDUS breaks down the participating companies into the five segments of the construction industry, machine building, automobile industry, consumer goods and “other participants”. The assignment into one of these five segments depends entirely on the industry in which the respective participatory company primarily delivers its products. The companies that cannot be assigned to any of the core segments are assigned to the “other investments” segment.
The CEOs of the participating companies bear the full responsibility for operative business. The de-centralised management system allows them to have the freedom to control their own research and development activities, their production process and distribution. As of balance sheet reporting day, there were a total of 41 operative units and numerous second-tier subsidiaries in the investment portfolio of INUDS Holding AG.
The primary goal of INDUS Holding AG is the sustainable increase of company value. Together with the individual participating companies, the holding develops detailed short and middle-term planning scenarios based on continuously updated individual strategies. Compliance with these scenarios is constantly reviewed by an efficient controlling system, so that it is possible to counter-act significant deviations early and at any time. The controlling in the participating companies is primarily based on financial key figures such as sales, return on capital and cash-flow.
INDUS invests exclusively in the majority acquisition of medium-sized companies and in the continuous development of the existing investments. The focus is on companies that have a strong market position in an attractive market niche and also have a stable business model as well as a successful range of products. The test of whether a company is a suitable candidate for acquisition is decided on the basis of detailed criteria.
Along with the financial criteria, INDUS has develop other qualitative requirements. The focus here is primarily on a thorough analysis and assessment of the respective business model. The decisive factor is the long-term stability of the company’s performance, combined with sustainable growth perspectives in the industry environment. The essential thing is that the potential acquisition targets have a broad customer structure and therefore the dependence on individual customers is limited to Germany. The goal is the stability for the overall portfolios and a balanced diversification of changes and risks.
INDUS generally achieves its growth through the acquisition of medium-sized companies. The goal of all acquisitions medium-term is to take over 100% of the shares. INDUS exclusively enters into long-term investments and basically does not pursue any exit strategies. The broad support from INDUS in the continuous development of operative business in the rapidly changing global markets provides medium-sized companies with unique opportunities. This preserves the successful structure of the acquired company. At the same time, INDUS implements individual instruments for increasing returns on investment in the individual investment companies in order to optimise the portfolio in order to secure internal goals for returns on investment. The individual measures are planned in close dialogue with the respective CEO, optimised and implemented.