Indutrade's sales are made in many product areas and to customers from an array of sectors and countries. This broad spread reduces the Group's sensitivity to fluctuations in the economy.
Indutrade is a technology sales company active primarily in the northern European market for industrial components, systems and services. In this market, sales are made either directly through the manufacturers’ own sales organisations, or indirectly through technology sales companies and wholesalers.
Technology sales companies differ from wholesalers in that they offer technical advice, customised solutions and generally more technologically advanced products. In addition, technology sales companies often offer high-quality support, training and other aftermarket services. From the manufacturer’s perspective, working through a technology sales company is like having an own sales organisation.
PRODUCTS
The market can be broken down into products for recurring needs and products of an investment nature. Products for recurring needs generate more stable revenue flows. Indutrade focuses on products for recurring needs with a high-tech content in selected niches. Indutrade's spread of business over various product segments is reasonably well balanced. The two largest product groups are valves and measurement/analysis instruments.
MARKET SIZE
Indutrade conducts business in 18 countries. In 2009 the Group’s three most important geographic markets, Sweden, Finland and Benelux, together accounted for about 74% of consolidated net sales. Indutrade estimates that the market for the niches in which the Group operates is worth approximately SEK 15 billion in Sweden and about SEK 8 billion in Finland. This means that Indutrade has an estimated market share of about 20% in its niches in the Swedish and Finnish markets, respectively. In the other geographic markets, Indutrade is a relatively minor player at present.
MARKET GROWTH AND CYCLICAL DEPENDENCE
Indutrade's sales are made to many different industries, each of which is affected differently by a certain economic climate. This means that, compared with other companies with similar operations, Indutrade’s profitability is normally less sensitive to economic swings. The four largest sectors for Indutrade are energy, engineering, water/wastewater/environment and medicine.