Case Studies

Helped the client secure credit facilities worth INR 1000 million based on preparation of elaborate projections and a detailed study of the project. This helped the management get the right amount of funds through a suitable medium at a low cost.

Project Finance | Credit Assessment and Advisory Financial Projections | CFO Consulting | Expansion Strategy

Industry : Manufacturing
Sub Industry : Pharmaceutical


  • Successful procurement of term loan and working capital finance through appropriate channels

Cashcow CFO Services

  • Project finance
  • Credit Assessment and Advisory
  • Financial Projections
  • CFO Consulting
  • Expansion Strategy

Situation :

The client, a pharmaceutical manufacturing company, with units at different locations in India wanted to expand its presence in Western India by setting up a plant in the state of Gujarat. The client had revenue of ~INR 2500 million (combined with its subsidiary) of which ~70% were exports.

Our Approach :

  1. Firstly, our debt team had an extensive discussion with the promoters to understand the project thoroughly.
  2. We then prepared a project plan and arrived at the project cost detailing each cost component.
  3. We prepared the project timelines, studied the financials and collated the necessary documents (blue prints, drawings, maps, title deeds, agreements, instruments and other papers related to primary and collateral property) for valuation & legality check of the project to decide the correct means of the finance.
  4. We also coordinated with external parties for Techno-Economic Viability (“TEV”) report, Valuation Report, and Title Search Report (“TSR”) and arranged the factory visits with the teams.
  5. Since ~70% of the company’s revenue was in foreign currency (majorly in US dollars), we decided for an External Commercial Borrowing (ECB) route for their term loan requirements worth INR 850 million; while the working capital requirements worth INR 150 Million could be secured through domestic channels.
  6. After prepping the client for approaching bankers: completing our in-house credit analysis and documentation, we met different bankers sharing the details and clarifying their queries to get their proposals.

Result :

After all the above processes and active follow ups with the banks and the other involved parties, we received the sanction and disbursement from a banking consortium (lead bank: 60%): INR 850 million ECB term loan and INR 150 million worth working capital from domestic banking channel. Leveraging on our expertise, experience and network in the debt industry we helped our clients to prepare for availing the requisite credit facilities w.r.t. documentation, financials and other requirements before approaching the bankers. We also helped them choose the right mode and amount of finance and avail it through the preferred bankers at low costs.

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