Excel Crop

Working Capital Management at Excel Crop Care Ltd

Author Language Length Discipline

: Vishwanath S R : English : 22 pages : Finance

Description: In 2006 a divisional manager at ECCL commissioned a study to improve the overall working capital management. Students are asked to make inter firm comparisons and estimate the likely savings from improvements. Learning Objective: To introduce issues in overall working capital management. To explore a range of issues in working capital management with a primary focus on accounts receivable and inventory; extend students' skills in financial statement modeling and analysis; and examine some of the challenges in financial (and general) management of firms in developing countries.

Subjects Covered: Financial Management, Working Capital management

Electronic copy available at: http://ssrn.com/abstract=1233123

In the summer of 2006, Nirmal Raj, a Zonal manager at Excel Crop Care Ltd, commissioned a study to analyze the components of working capital and compare them with the company’s peer group. In particular, he wanted to understand the impact of bringing down the components of the working capital cycle to the level of competition. Company Background Excel Industries Limited, ECCL’s founding company, started off in a Kitchen laboratory in 19411. The company achieved over 100 product and process breakthroughs that were serving the specific needs of various clients even now. Excel Industries was the first company in Asia and third in the world to make Endosulfan Technical; the first in Asia to make Butene Diol; the second in the world to develop Glyphosate Technical and the third company in the world to develop Aluminium Phosphide. Excel Industries had received various awards in recognition of their dedication and excellence in the field of chemicals. In 2003 Excel Industries spun off the Agriculture business unit into Excel Crop Care Ltd and got it listed on National Stock Exchange, Bombay Stock Exchange and...