Turnaround of a Standstill Garment Export Manufacturer Losing Millions into a Group Company with Turnover Above 100Cr. With Zero Debt Today
Once grown to a turnover of 400 Cr., an unrelenting decline and losses resulting to a mere turnover of 10-15 Cr., the owners of a leading Garment Exporter in NCR decided to bring in outside help to turn things around. The situation was deadly with all 7-8 Manufacturing plants closed, only 1 unit was operational & that too was performing Job work for other operators. Everything was at standstill with tax liabilities pending; bank overdue with account getting NPA, no salaries to employees; vendor payments lingering, and so on.
AAAPL Team took charge and could foresee that it is still a viable business, and the culture within the Company began to transform. We studied, analyzed, and conduct due diligence required. Progress was immediate. Within few days, we uncovered a major amount in missing profits.
We sold some of the completely non-performing units and the fund received was utilized to pay taxes and overdue vendors and banks were settled with meticulous planning. The remaining units were revived, business orders revoked, re-establish production, operations and developed a strong business relation network with vendors and suppliers.
Core and Non-core assets were segregated and non-core assets were sold and the funds were utilized accordingly. With Restructuring and OTS with multiple Banks, Strict contingent procedures, and cooperation, now more quality versus quantity is permeated throughout the whole company. Over the ensuing year, we reorganized the internal team, most departments of the division, leading to permanent improvements in profits, performance, efficiency, and growth.
The Company is revived successfully with Zero debt today along with a group turnover of Rs. 1000 Cr.