Practus’ working capital improvement services assisted the Beverage Company in reducing factory insurance premium by $80,000 per annum.
|Client||ROI||Industry||Ownership||Management||No. of Employees||Size||Project Duration|
|The Beverage Manufacturer||6X||Consumer Goods||Family Managed||Professional||~2000||$45 million||18 months|
About The Company
AlcoBev is a Family Managed Beverage Manufacturer, holding more than ten brands and having more than 75 years of existence in India.
Practus’ Role in Profit and Cashflow
- Control both short-term and long-term cash flows.
- Increase working capital by lowering OPEX.
- Assist in obtaining short-term debt financing at a lower cost of capital.
- Every month, report on the health of company’s finances.
- Ensure that capital expenditures are spent wisely.
Impact Delivered in Profit and Cashflow
- Led the development of a detailed cash flow turnaround plan worth $15 million, which included actionable items such as revenue growth, OPEX savings, working capital improvement, and asset monetization.
- Led weekly cross-functional review sessions to assess progress and escalate issues that necessitated decisions or slowed progress.
- Under adverse capital conditions, they provided NBFCs with projections and a growth storyline, as well as two term sheets.
- Business Capex proposals were assessed on risk and return on investment.
- Started to close the books by the 7th and have a MIS discussion by the 10th of every month.
- Through a re-evaluation of risk assumptions by insurance brokers, the factory insurance premium was reduced by 60 lakh per year.