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January 4, 2024

Bhanu Farms Limited

A Journey of Transformation and Growth

Case Study

Client Overview: For several years, Bhanu Farms Limited (BFL) is a family-owned agricultural company operating in the farming and agribusiness sector. Despite their steady growth, the company faced challenges in scaling operations, improving governance, and accessing the right capital to drive future expansion.

Challenge: BFL struggled with limited private equity access, outdated operational systems, and insufficient governance practices. The company needed to be positioned to meet the rigorous demands of potential investors, and it was prepared for large-scale expansion. The management needed to have structured processes for internal audits, financial reporting, and overall business operations, which hindered its ability to attract top-tier investors and scale efficiently.

Solution by VDBL: When BFL partnered with VD Business Labs (VDBL), they trusted our expertise to help them navigate these challenges. We quickly formulated a comprehensive strategy to overhaul their operations, governance, and financial structures. Here’s how we transformed BFL:

· Private Equity Round in Record Time:

VDBL led BFL through a successful private equity round, completing the process in a record-breaking 20 days. This was a significant breakthrough for the company, which had previously struggled to access capital.

VDBL’s strategic advisory and expert network enabled a seamless transaction, securing vital capital from renowned investors.

· Successful Secondary Placement of Shares:

VDBL facilitated the placement of 30% shares via secondary placement to high-profile investors, injecting the company with the capital and credibility needed to unlock future opportunities.

· Building a Robust Team:

We worked on building an exhaustive, skilled team across various departments within BFL. This empowered the company to tackle its operations with greater efficiency and precision.

· Operational Overhaul:

  • SOP Implementation: Standard Operating Procedures (SOPs) were implemented across the company, streamlining operations and ensuring consistency in all business processes.
  • Internal Audit & MIS Reporting: We introduced regular internal audits and implemented a strong Management Information System (MIS) to improve decision-making and clearly track business performance.

· Global Expansion and Strategic Partnerships:

VDBL helped BFL build a strategic roadmap that now includes negotiations with a Japanese partner for contract manufacturing, opening doors to international markets, and enabling BFL to tap into new revenue streams.

· 2.5x Growth in Topline & 4x Growth in Bottomline:

These efforts culminated in a 2.5x growth in the company’s top line and a 4x growth in the company’s bottom line. The infusion of capital helped reduce the cost of funds, improve the debt-to-equity ratio, and drastically cut operating costs, all contributing to significant growth.

· Improved Supply Chain and Sustainability:

With the support of our renowned investors and their resources, BFL revamped its supply chain, leading to increased revenue generation. They also took a significant step towards sustainability by ordering a captive solar power plant with Tata Power , which will help reduce their electricity costs and promote eco-friendly practices.

· Corporate Transformation:

VDBL helped BFL transform its corporate profile by launching a new website, upgrading corporate communications, and refining HR policies aligning with top-generation unicorns. These changes have helped the company become a formidable presence in the corporate battlefield.

· Capacity Enhancement and Future Planning:

BFL has initiated steps for capacity enhancement by utilizing approximately 10 acres of vacant land at its existing manufacturing facility. This will enable them to scale up production and meet increasing demand.

· IPO Readiness:

With all the strategic transformations in place, BFL is now IPO-ready. However, the company is awaiting the go-ahead from Krishna (VDBL) at the right time to unlock its value and create the best outcome for the company and its investors.

Impact and Results:

Thanks to VDBL’s comprehensive support, BFL has undergone a complete transformation quickly. The company now has:

  • A robust governance and operational structure
  • A more substantial market presence with expanded supply chain capabilities
  • Clear paths toward growth through strategic partnerships and capacity enhancements
  • A firm foundation for future expansion, with IPO readiness just on the horizon.

The Journey Continues

As we look ahead, BFL is ready to face the future with confidence, knowing that it is equipped with the tools, systems, and support to thrive. VDBL will continue to guide the company, ensuring that the right time is chosen to unlock its full potential and achieve the best value for the company and its investors.

This case study encapsulates how VDBL’s vision and action have profoundly impacted Bhanu Farms Limited’s growth and transformation. It highlights the key steps that led to the company’s remarkable success and readiness for its next journey phase.