Driving Margins through Localisation & Digital Enablement
Case Study:
Client Context
A global company expanding into India struggled with lower-than-expected margins. The business had imported processes from its parent country, but the flagship product was too capital-intensive for the Indian market.
Challenge
The model created pressure on returns due to:
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High capital cost
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Higher operating overheads
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Slow cash flows
Our Approach
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Engaged leadership and stakeholders in structured discussions to identify margin leakages.
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Challenged assumptions behind parent-country processes and tested alternatives for Indian market realities.
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Focused on interventions that balanced capital efficiency, operational optimisation, and digital leverage.
The Solution
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Localised Production – Reduced capital cost by 10% through sourcing and manufacturing within India.
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B2B Mobile App – Introduced a parallel, asset-light digital channel to reduce upfront capital requirements and expand reach.
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Hub-and-Spoke Model – Streamlined servicing and collection to lower operational costs.
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Dealer Wallet System – Deployed a closed-loop wallet for dealers to accelerate collections and strengthen cash flow.
Impact
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Localised production lowered borrowing needs, increasing ROI and RoA.
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B2B mobile app expanded market presence by 150% YoY, while cutting investment burden.
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Hub-and-spoke reduced costs, optimised cash holdings, and improved user convenience.
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Dealer wallet system improved cash flows, converting arrears into accrued revenue.
Takeaway
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With the right balance of localisation, digital tools, and financial discipline, even capital-heavy businesses can achieve scale while protecting margins.