Tracing The Journey Of India’s Leading Steel Producer With KredX
With revenue of INR 3000+ crores (US$440 million), this steel mammoth is a leading manufacturer and producer of stainless steel, stainless steel billets, alloy steel, and an exporter of hot rolled bars. Being one of the largest manufacturers of gantry crane with monobox girder and underslung trolley in India, the company supports a large client base and exports their products to the U.S., Italy, Netherlands, Germany, UAE, Korea, and Japan among others.
We, at KredX, are proud to be associated with a brand that has made its mark as a private manufacturer while for decades the public sector has maintained a virtual hegemony over steelmaking. With their production increasing by leaps and bounds, KredX is honoured to help the steel giant bridge the gap between their payables and receivables and be a part of their growth story.
Snapshot Of The Company
Product: Production of stainless steel billets, Special steel wire rods and Black Bars, EOT and Gantry Cranes, Port and Shipyard Cranes, Rolling Mills among others
On The KredX Platform Since: 25 November 2018
Invoice Amount Discounted Till Date: ₹42 Cr
A Quick Glimpse Of The Steel Manufacturer’s Journey So Far With KredX
With a fleet of overseas clientele, the receivables timeline for the company is close to 60-70 days, whereas continuous manufacturing requires them to deal with large vendors whose payment timelines are 30 days or less. This ultimately impacted liquidity.
Although the company approached Banks & NBFCs, there were several challenges with the offerings; primarily around the time involved aside from:
- Lower funding limit as per existing norms and procedures
- Requirement for collaterals
- Challenges availing funds for liquidity and growth
- Expensive when exploring other forms of short term and long term borrowing
The KredX Offering
We offered the company a customised ‘Receivables Financing’ product for the company’s vendors that provided them with 90 days of additional working capital, wherein:
- The company raises invoices against their customers payable within 90 days
- KredX offers finance to the company and receives money from the enterprise on the due date
- Discounted invoices are listed on the KredX’s platform for 90 days
- KredX’s investors purchase invoices as per the terms and conditions
- At the end of 90 days, KredX investors receive the principal amount invested along with the profit earned
How We Helped The Steel Manufacturer
Our platform aided the steel giant in managing its liquidity while at the same time ensuring that its current relationship with the customer does not get impacted.
In association with KredX, the company was able to further grow and expand its business and increase its liquidity, without impacting its balance sheet. Our tailor-made processes and structured solutions helped the company better allocate its capital for its growth requirements.