Case Studies


  LEADING BRASS EXTRUSIONS INDUSTRY IN JAMNAGAR  
     
 

A well known group in the metal market During 90ís, group suffered heavy losses due to worldwide recession as well as adverse trend in the share market. During that time the Group was having 2 main manufacturing Installations One at Jamnagar- the facilities of brass rods and wires and another at Ahmedabad: Manufacturing of menthol products. Both the units were closed due to heavy financial crisis. All the banks and financial institutions had to take steps to recover their dues. At that time the Group approached us and we accepted the challenge to revive the whole group in a span of 3 to 4 years, we were able to revive the whole group through intervention by BIFR, and by offering One time settlement with the all banks and financial institutions and there by changing the manufacturing environment and facilities, development of new management skills, efficient control of working capital management by infusion of capital through private funding.


Today the group has been revived as a whole, and the unit has achieved 100% manufacturing capacity and the profitability is in increasing trend for the last three years.

 

 
    Top  
       
  A TEXTILE PROCESSING HOUSE NEAR AHMEDABAD  
     
 

The company was having the textile process house in the city of Ahmedabad. They established their unit with the financial help of consortium of banks and FIs. Due to certain reasons beyond control of the management, company incurred heavy losses and plant was shut down within a short period of its installation. Banks and institutions had to file the recovery proceedings through DRT and initiated other legal means to recover their dues. One of the residents Director of the Textile Unit had approached us and shown his intention to settle the dues of the bank despite the other Directors of the group left abroad without caring the unit and hence had to abandon the manufacturing activities and business. They requested us to explore the possibility of locating an investor who can take the interest for investment or buying that unit after settlement of all dues towards banks/financial institutions. We were instrumental in finding a suitable buyer who was agreeable to run the unit besides clearing all the dues. We helped them to negotiate with the banks, FIs & other govt. Agencies for settling their dues on reasonable terms & conditions.


An executive of a bank had commended the courage of the resident Director in offering a viable solution for settlement of the dues and also revival of the unit by the then proposed investor and Textile processor. At present the said unit is doing well and established name in Textile Processing industry circle.

 

 
    Top  
       
  ONE OF A LEADING VITAMINS MANUFACTURING COMPANY IN ASIA LOCATED IN CENTRAL MADHYA PRADESH:  
   
 

The company was having manufacturing facilities of Vitamin C at  (MP). It was one the largest manufacturing units of Vitamin C in Asia. The company had very good reputations and brand name. During 1996 onwards, company was in big trouble due to sudden changes in the drug policy and price control policy by Government of India. Due to this, company was not able to compete their competitors and not able to sustain their manufacturing activities. The unit was shut down and all the banks & FIs, State level financial institutions & labour unions also filed the petition at the Mumbai high court for recovery of their respective dues. During the period of 1998-99, company was also filed the reference to the BIFR but due to certain deficiency the reference was rejected by the BIFR. The situation remained till 2008. During the period of 2008, the existing management approached us for reviving the whole group and explore the possibilities to find suitable investors, who can invest the money to revive and start the unit as well as clear all the dues towards banks, FIs, statutory liabilities, labours etc. After detailed study, we had taken the challenge and first we were able to get the registration with BIFR even though that was originally rejected. After getting the registration with BIFR, we approached various agencies, investors to explore the possibilities to revive the company and after detail research we are able to find a suitable investor, who is interested in investing the fund in the company for clearing all liabilities, and revive and restart the manufacturing unit in the interest of all concerned.  The process of revival and clearing of dues of the Banks and financial institutions have started and the entire issues will be sorted out in a phased manner within a period about 1 year.

 

 
    Top  
       
  DEALER OF AUTOMOBILE CARS IN SOUTH GUJARAT  
     
 

It was a partnership firm based in Gujarat, which was an authorized dealer of Maruti-Suzuki. The firm was having very good brand name in the business and servicing in the automobile sector. The firm was doing well in the business but suddenly one of the partners’ family business was disturbed during family participation which has affected the business as well. Banks & other agencies had taken  remedial measures for recovery of dues from the Company.  The family disputes have made vertical division in the family. The adverse reputation enjoyed by one group is attributed to other group and ultimately the Group hitherto enjoyed good reputation has also fallen to bad books of the banks. Due to this the firm was also facing day to day financial crisis  and some banks stopped to give the additional financial assistance which they have earlier promised to this firm because of the family problem of the one partner.


Ultimately the Group approached us and we found suitable and lasting solution for their problem. After detailed study of the crunch issues, we found that firmís business activities were good, they had good reputation in the automobile market and there was very good prospect available for future expansion. Another partnerís family business was very good and it was financially strong. We suggested them to take the entire business in one family and approached to another bank for their financial assistance. We explained all the difficulties faced by the present management of the firm for doing the business. The bank understood the problem thoroughly and analyzed that the business prospect was very good and it will be helpful for the firmís growth. So bank had decided to help them in working capital requirement on condition that take over the business by another partnerís family is a must.


When the party listened to the bank and restructured the constitution of their partnership as suggested by the bank, things started improving and at present the firm is doing well and bankers are also happy with the performance of the firm.

 

 
  SPONGE IRON STEEL PLANT IN KUTCH Ė GUJARAT ((BIFR Consultant, Debt Restructuring, Debt Settlement, Sale of NPA Assets, DRT Consultant)  
     
 

It was a partnership firm based in Gujarat, which was an authorized dealer of Maruti-Suzuki. The firm was having very good brand name in the business and servicing in the automobile sector. The firm was doing well in the business but suddenly one of the partners’ family business was disturbed during family participation which has affected the business as well. Banks & other agencies had taken  remedial measures for recovery of dues from the Company.  The family disputes have made vertical division in the family. The adverse reputation enjoyed by one group is attributed to other group and ultimately the Group hitherto enjoyed good reputation has also fallen to bad books of the banks. Due to this the firm was also facing day to day financial crisis  and some banks stopped to give the additional financial assistance which they have earlier promised to this firm because of the family problem of the one partner.


Ultimately the Group approached us and we found suitable and lasting solution for their problem. After detailed study of the crunch issues, we found that firmís business activities were good, they had good reputation in the automobile market and there was very good prospect available for future expansion. Another partnerís family business was very good and it was financially strong. We suggested them to take the entire business in one family and approached to another bank for their financial assistance. We explained all the difficulties faced by the present management of the firm for doing the business. The bank understood the problem thoroughly and analyzed that the business prospect was very good and it will be helpful for the firmís growth. So bank had decided to help them in working capital requirement on condition that take over the business by another partnerís family is a must.


When the party listened to the bank and restructured the constitution of their partnership as suggested by the bank, things started improving and at present the firm is doing well and bankers are also happy with the performance of the firm.

 

 
  EDIBLE OIL REFINERY AT STATE OF RAJSTHAN  
     
 

We have advised an edible oil refinery having their manufacturing unit in Alwar and the unit was in all practical purposes did not function for the last two years but we have arranged for sale of the unit to one of the leading edible oil corporate houses in Ahmedabad and the entire term loan dues payable to the bank has been paid satisfactorily.

 
    Top