{"id":12275,"date":"2019-04-17T16:29:27","date_gmt":"2019-04-17T16:29:27","guid":{"rendered":"https:\/\/blog.kredx.com\/?p=2901"},"modified":"2024-03-21T11:14:50","modified_gmt":"2024-03-21T11:14:50","slug":"tracing-the-story-of-a-leading-steel-producer-with-kredx","status":"publish","type":"post","link":"https:\/\/www.kredx.com\/blog\/tracing-the-story-of-a-leading-steel-producer-with-kredx\/","title":{"rendered":"Tracing The Journey Of India&#8217;s Leading Steel Producer With KredX"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-post\" data-elementor-id=\"12275\" class=\"elementor elementor-12275\">\n\t\t\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-7a706979 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"7a706979\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-5ec3abe\" data-id=\"5ec3abe\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-3c627c8c elementor-widget elementor-widget-text-editor\" data-id=\"3c627c8c\" data-element_type=\"widget\" data-settings=\"{&quot;ekit_we_effect_on&quot;:&quot;none&quot;}\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p style=\"text-align: justify;\">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.<\/p><p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">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.<\/span><\/p><h3 style=\"text-align: justify;\"><b>Snapshot Of The Company<\/b><\/h3><p style=\"text-align: justify;\"><b>Product:<\/b><span style=\"font-weight: 400;\"> Production of <a href=\"https:\/\/primefabrication.com.au\/articles\/differences-between-mild-steel-and-stainless-steel\/\" target=\"_blank\" rel=\"noopener\">stainless steel<\/a> billets, Special steel wire rods and Black Bars, EOT and Gantry Cranes, Port and Shipyard Cranes, Rolling Mills among others<\/span><\/p><p style=\"text-align: justify;\"><b>On The KredX Platform Since:\u00a0<\/b><span style=\"font-weight: 400;\">25 November 2018<\/span><\/p><p style=\"text-align: justify;\"><b>Invoice Amount Discounted Till Date:\u00a0<\/b><span style=\"font-weight: 400;\">\u20b942 Cr<\/span><\/p><h2 style=\"text-align: justify;\"><b>A Quick Glimpse Of The Steel Manufacturer&#8217;s Journey So Far With KredX<\/b><\/h2><p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">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. <\/span><\/p><p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">Although the company approached Banks &amp; NBFCs, there were several challenges with the offerings; primarily around the time involved aside from:<\/span><\/p><ul style=\"text-align: justify;\"><li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Lower funding limit as per existing norms and procedures<\/span><\/li><li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Requirement for collaterals<\/span><\/li><li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Challenges availing funds for liquidity and growth <\/span><\/li><li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Expensive when exploring other forms of short term and long term borrowing<\/span><\/li><\/ul><h3 style=\"text-align: justify;\">\u00a0<\/h3><h3 style=\"text-align: justify;\"><b>The KredX Offering<\/b><\/h3><p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">We offered the company a customised \u2018Receivables Financing\u2019 product for the company\u2019s vendors that provided them with 90 days of additional working capital, wherein:<\/span><\/p><ul style=\"text-align: justify;\"><li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">The company raises invoices against their customers payable within 90 days<\/span><\/li><li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">KredX offers finance to the company and receives money from the enterprise on the due date<\/span><\/li><li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Discounted invoices are listed on the KredX\u2019s platform for 90 days<\/span><\/li><li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">KredX\u2019s investors purchase invoices as per the terms and conditions<\/span><\/li><li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">At the end of 90 days, KredX investors receive the principal amount invested along with the profit earned<\/span><\/li><\/ul><h3 style=\"text-align: justify;\">\u00a0<\/h3><h3 style=\"text-align: justify;\"><b>How We Helped The Steel Manufacturer<\/b><\/h3><p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">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.<\/span><\/p><p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">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.<\/span><\/p><p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">Also read:<\/span><a href=\"https:\/\/kredx.com\/blog\/bringing-indias-isd-code-into-the-premium-beer-limelight\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\"> Bringing India\u2019s ISD Code Into The Premium <\/span><span style=\"font-weight: 400;\">Beer <\/span><span style=\"font-weight: 400;\">Limeligh<\/span><span style=\"font-weight: 400;\">t<\/span><\/a><\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>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 [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":5254,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[89,255,256,246,94,103],"tags":[655,656,657,658,659],"class_list":["post-12275","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-alternative-investments","category-economy","category-finance-planning","category-investments","category-investor","category-short-term-investments","tag-borrowing","tag-companies","tag-discounted-invoices","tag-enterprise","tag-production"],"_links":{"self":[{"href":"https:\/\/www.kredx.com\/blog\/wp-json\/wp\/v2\/posts\/12275","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.kredx.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.kredx.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.kredx.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.kredx.com\/blog\/wp-json\/wp\/v2\/comments?post=12275"}],"version-history":[{"count":4,"href":"https:\/\/www.kredx.com\/blog\/wp-json\/wp\/v2\/posts\/12275\/revisions"}],"predecessor-version":[{"id":18940,"href":"https:\/\/www.kredx.com\/blog\/wp-json\/wp\/v2\/posts\/12275\/revisions\/18940"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.kredx.com\/blog\/wp-json\/wp\/v2\/media\/5254"}],"wp:attachment":[{"href":"https:\/\/www.kredx.com\/blog\/wp-json\/wp\/v2\/media?parent=12275"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.kredx.com\/blog\/wp-json\/wp\/v2\/categories?post=12275"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.kredx.com\/blog\/wp-json\/wp\/v2\/tags?post=12275"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}