Case Studies
Closing the Circuit: How a Leading E&E Corporate Solved its Liquidity and Dealer Challenges
The Electronics and Electricals (E&E) sector is intricately wired into India’s manufacturing growth story, spanning everything from electrical cables and wiring solutions to advanced technologies that power industries and homes alike. In fact, a report by PWC suggests that the Per capita GDP is set to cross USD 3,000 by 2025, further accelerating discretionary spending and fuelling demand in the electronics sector.
However, behind the glowing LED dashboard of numbers lies a tangle of challenges that can short-circuit the flow of working capital: capital-intensive projects with long, staggered payment milestones, prolonged order-to-cash cycles that strain liquidity, and a fragmented dealer base with varying invoice quality and credit needs.
One of India’s leading multinational electronics and electricals companies, a subsidiary of a global cable and connection technology pioneer, found itself constantly grappling with these very issues. While it enjoyed strong market leadership and trust, its dealers found it hard to access timely credit, resulting in slower order placements, strained business relationships, and cash flow inefficiencies.
To solve this, the company approached Vayana and one of India’s largest government-owned banks to design and implement a tailored Dealer Financing Program that empowered its dealers while optimizing its own working capital.
The Challenge: A Stretched Supply Chain
As is typical of an E&E supply chain, the dealer base of the corporate was wide and diverse. This was being managed through largely manual processes, resulting in multiple bottlenecks such as:
- Dealers facing liquidity challenges with the inability to keep up with pre-shipment payments and extended credit terms,
- The long order-to-cash cycle of the corporate leaving limited room for financial flexibility,
- And a fragmented dealer base, making onboarding new partners time-consuming and paper-heavy
With the corporate’s business scaling up, these inefficiencies became more pronounced, threatening to undermine growth and dealer confidence.
The Solution: A Fully Automated Dealer Financing Ecosystem
Vayana, with its deep domain expertise and robust technology platform, transformed the dealer financing program into a streamlined, scalable, and dealer-friendly financing framework:
1. Tailored Financing:
The workflow was curated to enable deferred financing, aligned with the corporate’s specific credit period requirements. The new solution was capable of accommodating the long payment milestones that accompany capital-intensive E&E projects.
2. Digital Onboarding:
Digital onboarding of dealers through an intuitive process eliminated the hassle of manual paperwork. This helped Vayana’s dedicated Network Sales Team source and onboard 47 dealers quickly and efficiently.
3. Automatic Workflows and ERP Integration:
The entire financing lifecycle was integrated into the corporate’s Enterprise Resource Planning (ERP) system, which made everything, from invoicing to disbursal, automatic. This ensured accuracy and saved significant time.
4. Transparent Dealer Experience:
A centralized digital dashboard for dealers provided real-time visibility into their financing, repayment schedules, and credit utilization. This transparency improved trust and made credit usage easier and more predictable.
The Impact: Strengthened Partnerships, Enhanced Liquidity
The program produced transformative results
- Over INR 100 crore credit limit was extended to dealers through the program
- The utilization rate was above 50%, demonstrating strong adoption and dealer confidence
- Dealers gained access to credit that aligned with their business needs, which improved their ability to place timely orders and pursue business growth
- The corporate was able to optimize its own working capital cycle to attain sustained growth without compromising liquidity
- Relationships with dealers became stronger, reinforcing loyalty and reducing supply chain volatility
Just by partnering with Vayana and adopting a fully digital, automated dealer financing solution, the corporate could turn a key operational challenge into an advantage.
In the E&E industry, where capital intensity and supply chain complexity are inherent and dealer relationships are highly valued, such technology-led supply chain finance solutions can deliver measurable business outcomes.
At Vayana, we aim to help companies unlock liquidity, enhance partner relationships, and build resilient supply chains, one program at a time.
Contact us to learn how we can help you transform your working capital and strengthen your business ecosystem.
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