13% EBITDA uplift for a 30YO household FMCG brand
the efficiency
architects
Some businesses grow into trouble. This one grew out of it.
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THE CLIENT

A legacy family-owned FMCG brand in spices, cereals, and instant mixes β€” grown from a single kirana store into a household name.

The business was scaling aggressively with new product lines and distribution channels, but it had inherited decades of rules-of-thumb rather than decision systems. Accounting operations were spread across Tally and other disconnected tools, run on cash-based practices that obscured real performance.

Inventory valuations used archaic methods that inflated the real picture β€” leaving the promoter believing the business was profitable while it was actually bleeding money.

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Industry
FMCG (Spices, Cereals, and Instant Mixes)
Stage
Legacy, family-owned, scaling aggressively
Location
India
Size
National FMCG Brand | 100+ Employees
Our Offering
Financial Clarity & Profitability Partner
theΒ problem
A business that believed it was profitable
01

Hidden losses

Accounting operations spread across Tally and other disconnected tools, with no unified view of performance.

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02

Static architecture

Cash-based accounting practices obscured true performance, masking the real financial picture.

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03

Commercial fragility

Inventory valuations using archaic methods inflated the real picture, hiding losses behind a healthy-looking balance sheet.

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THE SOLUTION
Because you cannot fix a business you don't understand
PHASE 1
Establish

financial truths

Because you cannot fix a business you don't understand.

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STAGE 1
Uncover the financial truths
  • Rebuilt 18 months of historical financials from scratch
  • Replaced cash-based thinking with accrual-based methods that were masking true performance
  • Uncovered that actual EBITDA was (8)%, not what financials showed β€” necessitating intervention

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STAGE 2
Diagnose the cost structure
  • Refreshed COGS showed actual COGS were ~60% vs. management assumptions of ~50%
  • Instituted a comprehensive formula capturing overlooked costs: returns, wastage, and channel discounts
  • Guided a product mix shift toward higher-margin categories

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STAGE 3
Optimize working capital
  • Renegotiated all existing credit facilities to free up cash flows
  • Identified high-buffer stockist arrangements that were trapping cash while showing up well
  • Reduced inventory turnover days from 45 to 38

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BEFORE
Promoter believed the business was profitable, while it was bleeding money Incorrect COGS, with returns, wastage, and discounts unaccounted for Unreliable financial data, no accrual accounting, no standardized reporting
AFTER
True financial position uncovered and accepted β€” mandate shifted to full business transformation Comprehensive COGS formula instituted, capturing wastage, returns, and trade discounts Standardized management reporting frameworks operational across the business
PHASE 2
Engineer

cost efficiency & margin recovery

Because once you know the truth, you engineer your way out.

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COGS mastery
Re-engineered cost control
  • Instituted a comprehensive COGS formula accounting for all previously excluded cost heads
  • Guided a strategic product mix shift toward higher-margin categories
  • Improved procurement practices and inventory management discipline

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Distribution efficiency
Rebuilt the cost architecture
  • Deep-dive analysis of selling & distribution cost structure against category benchmarks
  • Rationalized channel inventory to match actual demand velocity
  • Restructured the stockist network, eliminating cash-trapping buffer arrangements

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Financial reporting & governance
Standardized the numbers
  • Established standardized management reporting frameworks from scratch
  • Implemented accrual-based accounting, replacing cash-based methods
  • Corrected inventory valuation methodology, enabling true asset value realization

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PHASE 3
Drive

disciplined, profitable growth

Because growth without discipline is just delayed crisis.

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01
Establish truth as the baseline
  • Financial data baseline established β€” the business now operating on accurate, accrual-based numbers
  • Reporting frameworks still actively used by the client today

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02
Shift to profitable growth
  • Partnered with management to instill financial discipline into every growth decision
  • Every product and channel now evaluated on margin contribution, not just revenue

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03
Embed capability & earn trust
  • Reporting frameworks and inventory process documents institutionalized; client no longer dependent on external support
  • Prequate became sole custodian of all critical data for a major acquisition bid

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theΒ impact
engineering enterprise value across the organization
The Prequate difference

We operate as an indispensable extension of the Owner's office β€” providing the strategic financial horsepower to spot emergent problems, identify new growth avenues, and achieve the long-term vision.

We are not a consultant. We are a partner in enterprise value creation.

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TRANSFORMED

A 'profitable' FMCG losing money ‴

industry-leading performance

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ESTABLISHED

Confusion on actual performance ‴

financial truths & decision clarity

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REPLACED

Guesswork on critical matters such as COGS ‴

a data-backed structure surpassing benchmarks

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UNLOCKED

Financial uncertainty ‴

a green-flagged external due diligence

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THE RESULT
13pts
EBITDA swing, from -8% to +5% over 24 months
60β†’48%
COGS reduced below the industry benchmark target
18β†’12%
S&D costs cut through channel rationalization
9mo
Time to breakeven after engagement began
We rebuilt the financial foundations of a household brand that had been running on assumptions and gut for decades. We told the promoter the truths about his business and stayed until the numbers became something worth showing to investors. That is the kind of partner we are.
– Prequate Team
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