Assessing Credit Management Practices of Yeast Manufacturers in India

Agribusiness Consulting Firm

Client Challenge

The client was the India subsidiary of a Japanese food company with major presence in bakery ingredients including yeast. The company in India was involved in the manufacturing of different bioproducts such as coenzyme, recombinant enzyme, enzyme, substrate, antibody, buffer, extract, cytokine, drug selection marker, control, etc. The top management requested UC Strategy to conduct a study on ‘Credit management practices followed by yeast manufacturers in India’

Our Approach

To conduct this engagement, UC Strategy adopted the following approach:

  • Conducted ~30 interviews across the entities in value chain including bakery of all types and sizes, yeast manufacturers, channel entities and industry experts
  • Analysis conducted
    • Analysis of channel partner management process being followed in yeast industry in India
    • Analysis of credit management process followed by yeast companies at different stages, including
      • Onboarding of distributors
      • Conducting transactions with distributors (defining payment terms, receivables collection, credit default management, etc.)
    • Assessment of credit management practices followed in other bakery ingredient segment and FMCG industry in general

Our Impact

The adoption of the above approach provided positive results, it included learning on credit management practices currently being followed in yeast sector in India. We also provided the steps which client could use to avoid the risk of credit default while dealing with distributors in India.

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