“Capital 9 has been very enterprising in coming forward at crucial times with
innovative solutions in tight timelines.”
Ashwin Precision is an export company involved in the manufacturing of precision products for hydraulic equipments. They required setting up a third party warehouse in Germany which was making working capital cycle elongated without much increase in turnover. Since our client’s customer was a fortune 100 company and the business was exports, our client was keen to forge the deal which would help in long term association. Real challenge in the deal was to convince the banker about change in business model which was leading to increase in working capital cycle without much change in drawing power. We thus had to find a banker which had new age banking norms and was also able to meet the unique requirement of client.
THE CAPITAL 9 ADVANTAGE
We aligned Ashwin Precision with new age bankers, which not only allowed increased working capital cycle but also linked interest rates to the exports thereby reducing the cost of borrowing by 8 % p.a. This helped in increasing the profitability for the client substantially.
THE SUCCESS STORY
The advantage of setting up their warehouse in Germany close to one of their major clients helped get an increased order of services, thus spiking their turnover. This, along with reduced costing helped in improving the financials of the company in a significant manner. Enthused by the success of this location advantage, Ashwin Precision is confidently poised to set up similar facility for their other clients across world.