The performance improvement services provided by Practus assisted the vegetable oil producers in improving debtors’ credit period from 30 (contractual) to 16 Days and reducing inventory holding from 30,000 MT to 16,000 MT.
| Client Name | ROI | Industry | Ownership | Management | No. of Employees | Size | Project Duration |
| A Producer Of Vegetable Oil | 8x | Consumer Staples | MNC | Professional | 200 | $200 million | 30 months |
About The Company
SDK is a Swedish-Danish joint venture that is one of the world’s largest producers of high-value-added vegetable oils and fats. The corporation owns 51% of the Indian manufacturer. The corporation suffered integration challenges as a result of culture differences, KMP’s separation from finance, and a lack of a complete handover.
Practus’ Role in Performance Improvement Services
- Commodity and currency risk management policies are defined and monitored.
- Volatility risk was mitigated by establishing volume restrictions (oil type-specific open positions) as well as monetary exposure limits.
- Monthly consolidation and synchronization of Group Accounting policies by converting IGAAP financial statements to IFRS.
- To control volatility, the focus should be shifted away from imports and toward local sourcing.
- By raising money in India with Zero Collateral against Credit Facilities from banks, we were able to stay in compliance with global covenants.
- Negotiations with banks resulted in lower finance costs.
- The IFC Controls Framework was created to cover important business sectors while also including manual controls as a backup.
- Sales revenue is recognized in accordance with IFRS rules.
Impact Delivered in Performance Improvement Services
- For consolidation of the India MIS at SDK group level, the time it takes to publish the monthly MIS has been reduced from 15 days to 4 days.
- Concentrate on forming a strong team. Since Practus’ debut, there hasn’t been a single resignation, and the CFO tasks have been effortlessly transferred from Practus to the newly hired employee CFO at the end of a year.
- Debtors’ credit periods have been reduced from 30 (contractual) to 16 days.
- The amount of inventory on hand has been cut from 30,000 to 16,000 MT.
- Completion of the statutory audit for the fiscal year ending March 31, 2017, including the group audit for the fiscal year ending December 2016.
- A two-notch improvement in credit ratings was achieved.
