How India’s leading manufacturers & exporters of Agro Chemicals increased the Hedge Efficiency by 100%?

How India’s leading manufacturers & exporters of Agro Chemicals increased the Hedge Efficiency by 100%?

How India’s leading manufacturers & exporters of Agro Chemicals increased the Hedge Efficiency by 100%?

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Forwards, Liquidity risk management, Trade finance management, treasury risk management

Company Background

The company is a globally renowned brand in manufacturing as well as exporting Agricultural Chemicals and Specialty & Performance Chemicals products. The company has strong domestic base with 3000 distributors and 38000 dealer’s network. The company also featured as one of the 100 most valuable brands of 2015-16.

Exports are spread to more than 60 countries for both the businesses, including-

Agricultural Chemicals like -Fungicides, Acaricides, Insecticides, Surfactants, Herbicides, and PGR’s.
Specialty & Performance Chemicals for leather, coating, plastic, textile.

The company hedges on for international off shore trade using strategies in Forex and Forward contract.

IBSFINtech’s Integrated Treasury Management System has proven to be a catalyst in strengthening our Treasury Management Processes. In last few months of using the product, we have observed critical transition in our risk management approach from reactive to pro-active. Manual efforts have come down considerably and we have been able to efficiently manage exposures & hedging through forwards. The product integrates with SAP and offers extensive reports/dashboards for effective management of treasury operations. IBSFINtech’s team ranks high on technological capabilities, understanding of corporate treasury management processes and round-the clock customer support.

R Narayan
Treasury Head – Indofil Industries Ltd

Challenges

1. Manual management of treasury operations
2. Adhoc based Hedging Process 3. Accuracy of data captured via manual processes
4. Delayed reports and analytics to take critical decisions
5. Unavailability of customized reports for the department

Solution:

IBSFINtech proposed Innovative Treasury^® 5.1i (including FX & Investments Module) alongwith Innovative Trade Finance^® 5.1i. The solution played a pivotal role in strengthening the overall treasury management processes at the organization.

The solution proved to be the catalyst in strengthening the Treasury Management processes of the client:

Transform from reactive approach to pro-active.
Extensive product customization to suit the business requirements.
Customized reports and intuitive dashboards
Reduce Manual and Mechanical Work
Real-Time access to critical information.

Overall improvement in efficient management of treasury operations by building an Ecosystem that reduces manual intervention, ensures data integrity with built-in validations, achieve visibility & transparency in transaction management enabling seamless straight-thru processing.

The products, Innovative Treasury 5.1i and Innovative Trade Finance 5.1i helped the client client build systematic and organized treasury management processes.

Some Stats

100%

INCREASE IN HEDGE EFFICIENCY

60%

REDUCTION IN ERRORS AS A RESULT OF REDUCED MANUAL INTERVENTION

30%

INCREASE IN BUYERS CREDIT HEDGING

3 PERSON DAYS AVERAGE TIME SAVED DUE TO AUTOMATION OF PROCESSES

Solution Benefits

Reduction of manual efforts and increased accuracy with maker & checker concept.
Better exposure management and Hedging through forwards.
Save time & Increase accuracy in Hedging process due to access to real-time information on ready hedge position.

Transformation from Reactive to Pro-active approach.
Ease of Integration with existing IT infrastructure, SAP etc.
Intuitive Dashboards, Automation Reports and MIS.
Ability to take informed decisions as a result of NOP report and direct view of EEFC statement.