Independent integration

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With independent integration, the holding expands by including enterprises whose goods or services are presented in different markets. The companies that form such a holding operate independently and produce completely unrelated products. A holding with independent integration may include metallurgical enterprises, construction companies, service organizations, etc.

As a result of independent integration, it is possible to reduce the risk of a critical drop in sales and demand in one of the consumer markets occupied by the holding. Risk factors include seasonality of production or demand, economic instability and increased competition.

Independent integration

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The areas of activity of malta email list the enterprises being merged with the holding company must be determined based on the fact that when a particular type of product begins to be in less demand, the sales volumes of the holding company’s other products must remain at the same level or grow at that time.

Therefore, if a holding includes a company offering expensive and prestigious goods, then along with this it should also include manufacturers of cheap mass-market products that are quickly sold in any economic situation. In the same way, the holding integrates with companies producing seasonal products.

In addition, risks arise when a serious competitor or group of competitors appears in one of the markets. Forming a holding company through independent integration helps reduce the impact of these risks and, in a sense, ensures mutual support for the enterprises related to it.

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Mixed integration
The most noticeable results are achieved when holdings work with mixed integration. This scheme combines all the advantages of individual integrations.

Among such holdings, one can single out OOO UGMK Holding. This association is in first place in many market segments far beyond the Urals and Sverdlovsk region. The holding includes:

non-ferrous metallurgy enterprises;

enterprises of the extractive industry;

ferrous metallurgy enterprises;

enterprises for enrichment of raw materials for metallurgical production;

mechanical engineering enterprises;

aircraft manufacturing enterprises;

scientific organizations;

construction companies engaged in civil and industrial construction;

construction industry enterprises;

enterprises producing cable products;

service sector enterprises;

food industry enterprises.

For some groups of enterprises belonging to UGMK Holding LLC, vertical integration by industry affiliation is used, ensuring a significant reduction in production costs and increased management efficiency.

By conducting work in many areas, the holding acquires resistance to falling demand in individual markets, and by increasing the concentration of resources, it gains the ability to finance areas that are a priority for its effective functioning.