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Success Stories
EIC Survive 2024 EIC Survive&&Thrive Thrive 2024
JulyJuly 2024 2024
Story type #diversification (main category) #culture, #people & competency
EXS Synergy
Benefits
Proving the value of patience with a dual-pronged diversification strategy
▸ Business and revenue growth in the last few years. ▸ Contract wins and cross-sectoral penetrations into petrochemical, data centres and electronics.
Fairuz Yahaya Managing Director How is EXS Synergy thriving? Electrical and instrumentation services specialist EXS Synergy’s strategic decision to diversify into new areas, has proven a stroke of genius. Indeed, its energy business has now grown 63% since 2020, and accounted for almost half of its overall revenue in 2023 – up from 19% in 2021. In taking its time to define the right target markets, hire the right talent (61% of which are female), and identify its USPs in high opportunity segments, the firm is now well placed to continue deploying its innovative solutions to help address key industry challenges relating to net-zero. The challenge - Renowned as a go-to provider for Explosion Protection solutions and Hazardous Areas services, EXS Synergy also provides associated Electrical and Instrumentation services including installation, inspections, maintenance, packaging, troubleshooting and logistics support. EXS has spent the past decade adapting to rapidly changing energy market needs. Having initially started out supporting traditional oil and gas firms, the firm has had to innovate and diversify to mitigate the implications of compressed margins and growing competition from both new and established players. Recognising that its USP would be wiped out if it stood still and let others pass it by, EXS has actively been working to establish itself in energy transition markets during the last three years. However, this hasn’t been without its challenges, the company having faced several hurdles in relation to slow cross-sector penetration. The solution - Working to refocus its priorities, EXS set about employing a twin diversification strategy: strengthen its core business, while also expanding its capabilities and portfolio in new markets. In bolstering its core activities, the organisation opted to expand its range of hazardous areas services, adding package assessment and certification, the construction and installation of electrical packages, and training to its offering. It also capitalised on its IECEx certification and competencies by offering specialised electrical services to highly regulated markets such as Australia. This market has proven to be particularly fruitful, with EXS securing contract wins on the Barossa FPSO and Scarborough FPU offshore projects.
Key findings Seeking to expand its expertise and equipment in relation to power, temperature control and new energy, EXS established a relationship with flexible energy specialist and fellow EIC member Aggreko in late 2020. Through this partnership, EXS hired a product specialist to focus on the marketing and sales of its new portfolio. Initially efforts were focused on the oil and gas sector with this being familiar territory, but the company has since grown into several new verticals including electronics, plantations, semiconductors, and data centres. Patience has proven a virtue during these diversification efforts. Recognising the steep learning curve ahead of it, EXS spent an entire year working to define its market and USP, speaking to many prospects and participating in several tenders to learn more about markets, supply chains and competitor offerings. Both EXS’s talent base and Aggreko’s support have also proven crucial, the former having been effective in driving the new portfolio forward, with the latter remaining on hand to offer key guidance and technical support. By the end of 2021, EXS had become confident in its market positioning, and since then has been working to identify high quality prospects as it becomes more selective in its tendering activities. Critically, the firm found that its generators are a perfect fit for activities demanding safety and reliability. Its load banks cut across sectors to ensure seamless testing and commissioning. Its Flare2Power technology answers immediate demand in net-zero ambitions. Its temperature control solutions help petrochemical and refining companies improve productivity. And its battery storage solutions provide much-needed bridges to plug new energy gaps between production, transmission and consumption. One example stood out, with EXS Right-Sizing solutions helping an offshore operator in Malaysia’s North Malay Basin reduce operating costs and cut emissions by more than 50%, significantly helping the client towards their net-zero ambitions. Leaning into its core competencies to bring such a broad variety of innovations to a several new sectors has been the key for EXS. As a result of its diversification strategy, the company’s energy portfolio contributed 19% to overall revenue
For industry ▸ As Miguel Cervantes wrote in Don Quixote “don’t put all your eggs in one basket”, it is important to diversify your portfolio. ▸ Make a conscious effort to increase the quality of your network. For government ▸ Policymakers should agree on one over-arching target, be consistent in setting policies to support this target, and ensure co-ordination between ministries to ensure proper implementation.
EXS Synergy at a glance: Key products and services: electrical and instrumentation services in hazardous areas. Main industries served: ▸ Oil and gas – 75% ▸ Onshore renewable energy – 0,6% ▸ Hydrogen – 0,4% ▸ Others (non-energy: plantation, data centre, semiconductor, port, manufacturing) – 24% Year established: 2014 Number of employees: 70 Revenue: £1.7m Revenue from exports: 26%
in 2021. In 2022, this weighting grew by 86%. And in 2023, the energy portfolio was deemed responsible for 45% of total turnover. With the division growing quickly, EXS is now forecasting its energy activities to account for almost two thirds (65%) of group revenue in 2024 – testament to the value that the firm has been able to bring to the table through its well thought out and implemented diversification strategy.