Case Study - 09

Industry

EPC

Activity

Civil construction activities like construction of buildings, and other civil construction activities mainly in Tamil Nadu. The company majorly works for the government entities such as Public Works Department (PWD) Tamil Nadu, Puducherry, and AP.

About the Company

Company was initially established in 2009, as a partnership and reconstituted as a private limited company in 2012. The company is engaged in civil construction activities like construction of Buildings, and other civil construction activities mainly in Tamil Nadu.

Highlight:

  • CPWD CLASS 1AA Registered Company along with TN PWD
  • Tamil Nadu State Highways, Greater Corporation of Chennai Registered Company
  • Member of Builders Association of India
  • 80 Plus Engineers + 900 Skilled & Non-Skilled Labor

Challenges Faced by the Company

Despite its sales growth Company was not able to arrange additional working capital due to Various issue in Banking Transaction as Low collateral Coverage

VGro Assignment & Transaction Target

To arrange Additional WC and Reduce the collateral coverage and Reduce ROI, BG Commission and BG Margin

Result

Company has able to reduce BG margin from 25% to 15% with saving of almost 5 Crores and reduce collateral coverage from 50% to 35% with Reduced ROI, BG commission

Summary of the Transaction

Company was not able to arrange addition WC for last 15 Month which was leading to cash crunch in the company, VGRO has not only help company to execute their project smoothly but also able to help them in reducing BG margin and collateral coverage.

Case Study