Client Impact: Business Turnaround

Our Client

A reputed manufacturing company,amongst the leader in its area of operations

Client’s Challenge

The Client was facing stagnant growth for the last few years with declining profitability and a funds problem. They wanted to arrest & reverse the situation towards profitable growth

How we worked together:
  • Built a business re-alignment strategy & action plan for profitable growth.
  • Prepared a Financial Plan detailing costs cutting measures, working capital improvements, profitability as well as investment requirements.
  • An ambitious Plan identifying areas of growth viz geographical expansion to increase national coverage.
  • Reassessed manufacturing capacities & introduced new processes to improve productivity.
Impact:

1.5x Growth - In 3 years, the topline of the company grew from flat growth to 1.5 times @ a 15% CAGR & profitability reversed from negative to 10% EBIT.
Improved Cash Flow - - Net Financial debt was brought down to a debt-earnings ratio of 1.6, against earlier 4.0 .