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Water treatment solution provider speeds up its credit cycle with C2FO’s Early Payment.
The COVID-19 pandemic and its ill effects have instilled increased alertness in people and businesses about impurities and pathogens in water supplied to households, commercial establishments and industries. These concerns have triggered a need for safe and potable water and increased demand for water treatment and purification technologies.
India’s water purifier market is forecasted to reach $4.1 billion by the end of 2024, according to US-based Transparency Market Research (TMR).1 The food and beverage (F&B) industry, health care, hospitality, power generation and transportation are the chief segments of India’s water treatment and purification market on the commercial and industrial front.
Vijayant Kuthari and Rajendra Kumar, two engineer friends and alumni of the same institution, have been engaged in water treatment for the health care, hospitality and F&B industries since 2006. N.K. Sharma, a water purification expert, associated with Kuthari and Kumar in 2010. And seven years later, in 2017, the three of them came together as partners and collaborated to form Osmotech, a commercial water treatment and purification solution provider, based out of Mehrauli, Delhi.
With a strong knowledge of the process and technology, Osmotech has shown tremendous growth from its initial years of operations. In merely five years, Osmotech has exhibited positive results in maintaining quality standards and delivering undisputed services to its end users. Osmotech’s clientele today includes reputed names such as Jubilant Foodworks, PVR, Starbucks and Max Hospitals.
“We service about 1,000+ Domino’s outlets and more than 100 Dunkin’ Donuts outlets across the country, and there is absolutely no margin for error in terms of quality in our business.”
The COVID-19 outbreak led to an uncertain economic climate, negatively affecting the operations of the Indian water treatment and purification industry. For instance, in 2020, food production capacity (apart from packaged food) saw a massive dip due to labor shortages, resulting in a complete shutdown of F&B industries.
As a result, the demand for water purification and treatment technologies in the F&B sector declined. The demand for purified and treated water saw a marked decrease in other business segments, too, as the pandemic negatively affected business in general. Osmotech’s prospects were under a serious threat in the water treatment and purification market, which already was grappling with the challenging aspects of being fiercely competitive, quality-driven and hyper-sensitive to price.
“We are channel partners for Pentair – which is a global leader in the field of water treatment systems. We use their products in our units. From our suppliers to our clients – they are all global names of repute. And there is absolutely no margin for error in terms of financial commitments or quality in our business.”
Furthermore, the extended credit line from clients in conjunction with operational costs and workforce expenditure delayed the credit cycles beyond comfort and created difficulties for the business in general.
Osmotech deals with names of repute among its clientele as well as its associates. Payment commitments to associates for the necessary equipment and technology therefore have to be upheld without fail. Also, recurring payments for utilities, overhead and manpower are central to Osmotech’s business execution, and therefore nonnegotiable.
“We were a little surprised and skeptical initially, but upon speaking to the SRM and researching on the internet, we realized that we were in safe hands.”
The partners learned about the C2FO in 2020 through Jubilant Foodworks, one of their major clients, accounting for about 25% of Osmotech’s business. What followed was a series of discussions between the partners and C2FO’s supply relationship manager (SRM). The discerning partners also did their research diligently to weigh the benefits of this association with C2FO vis-à-vis their business.
Osmotech was convinced of the enhancement that early payment could bring to its cash flow, and it registered for the Jubilant FoodWorks – C2FO Early Payment Program. The results were encouraging, as Osmotech soon realized that the early payment mechanism was effectively shortening its credit cycles, resulting in a positive impact on its overall business.
“We can now plan better, expand further and maintain healthy relationships with our staff, clients and suppliers. All thanks to C2FO.”
“Even during the COVID lockdowns, we ensured that our payments to our suppliers were made on time and our staff members were free from financial worries. Here, C2FO was very helpful with their early payments.”
Osmotech, in the future, aims to tap into the larger market by establishing a Pan-India service and installation network for water treatment and purification solutions. The partners are of the opinion that C2FO will prove to be a worthy associate to Osmotech, in all its prospects of further growth and expansion.
Resources
1 https://www.business-standard.com/content/b2b-manufacturing-industry/indian-water-purifier-market-to-reach-4-1-bn-by-2024-study-117010900558_1.html
Success Snapshot
Osmotech uses C2FO to request early payment on client invoices.
C2FO’s Early Payment allows Osmotech to shorten its credit cycle, benefiting the entire business.
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