Knowing When Not to Enter a Market
Background
It is a leading Canadian air cargo airline headquartered in Mississauga, Ontario. It operates one of the largest time sensitive air freight networks in North America, serving routes across Canada, the US, Mexico, Germany, Japan, Bermuda, and the UK.
The company is known for its reliability and overnight delivery strength, a name trusted by global carriers and logistics partners alike.
As part of its long term plan, Company was evaluating India as a potential new market for expansion.
The Challenge
The promoters wanted to explore India’s growing logistics and aviation sector. At first glance, the opportunity looked attractive, strong demand for ecommerce logistics, growing air cargo hubs, and government support for new routes.
But under the surface, the picture was more complicated. India’s cargo ecosystem was still fragmented, infrastructure was uneven, and regulations made it difficult for a foreign carrier to enter independently. Most advisors they spoke with focused on “how to enter.” None questioned whether it should happen at all.
Mantraa’s Role
When Mantraa was brought in, the brief was simple: evaluate the India opportunity and outline a market entry plan. But after studying the operational, financial, and regulatory realities, we reached a different conclusion.
Our analysis showed that the costs, compliance complexity, and competitive landscape made entry unviable in the near term. We presented a clear report explaining why the move didn’t make sense at that stage, covering investment requirements, likely time to profitability, and the absence of supporting infrastructure for Company’s model.
It was an unconventional recommendation, but it was the right one.
The Impact
Company chose not to proceed with India entry at that time. By holding back, the company avoided a significant investment that would likely have locked up capital without returns for years.
The promoters appreciated the honesty and the data behind the decision, a rare moment where saying “no” saved millions and protected long term focus.
Key Takeaway
Good advisory isn’t always about opening doors. Sometimes it’s about knowing which ones not to
walk through. Mantraa’s role was to help Company see the reality clearly, not just the potential.
