Why Your Manufacturing Business is Cash-Poor Despite Being Profitable
TL;DR Log9 Materials was a ₹200+ crore company. Venture-backed. Building the future of EV batteries. Then, in 2024, it ran out of cash. The company spiraled into a “borrow-to-repay cycle,” taking loans to repay previous loans at increasingly higher interest rates. By September, they laid off 180 employees out of 220. Employees went unpaid for […]
5 Cash Flow Problems in Manufacturing And How to Fix Them
TL;DR Let’s talk about “The Winner’s Curse.” In February 2018, a UK manufacturing company sought to integrate a pre-existing business to drive revenues. On paper, it was a masterstroke: they secured a diverse customer base with specialist requirements and projected massive cost synergies. Within six months, the company faced a severe cash flow crisis despite […]