Case Example

Assessing Credit Management Practices of Yeast Manufacturers

Client Challenge

● Client was the India subsidiary of a Japanese food company with major presence in bakery ingredients including yeast
● Client is the first company in Japan to successfully mass produce yeast for bread, and through the
fermentation technology, over these years client has contributed to supply high- quality biochemical
and research
● The company in India currently involved in manufacturing of different bio products such as coenzyme,
recombinant enzyme, enzyme, substrate, antibody, buffer, extract, cytokine, drug selection marker, control, etc.
● The Top management at client requested Universal Consulting India Pvt. Ltd. (UCIPL) to conduct a
study on ‘Credit management practices followed by yeast manufacturers in India’
● The objective of conducting this study was to build insights on how client can manage the risk of credit
default while dealing with customers and distributors in Indian market

Our Approach

To conduct this engagement, UC 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 the following results:
● Learning on credit management practices currently being followed in yeast sector in India
● Steps client can use to avoid risk of credit default while dealing with distributors in India