Photo of T. R. Sadashivaiah, Renault Nissan Automotive India Pvt Ltd and Rupa Baleskar, BNP Paribas.

Renault Nissan Automative India has secured deep efficiency gains after implementing a ‘revolutionary’ transformation of its treasury. The integrated solution, developed in collaboration with BNP Paribas, encompasses data extraction, encryption and automated bank reconciliation. Key benefits include more efficient liquidity management for maximising yield on surplus funds and accelerated receivables for improved working capital management.

Renault Nissan secures efficiency gains after “revolutionary” treasury transformation

The challenge

Renault Nissan Automotive India’s business has grown tremendously over the years and its treasury model has evolved over time. It is imperative however that the company continues to drive further improvements to the treasury framework as it has huge aspirations to grow and evolve further. Renault Nissan management, through a joint decision by group headquarters and the local office, decided to embark on a treasury transformation initiative with the aim of improving the overall efficiency of treasury.

The solution

The interactive integrated model that is the basis of the solution encompasses data extraction, encryption and automated bank reconciliation. Its implementation has brought about a successful treasury transformation that features many key elements including:

• Robust account structure to accommodate the complex agency matrix and simplify accounting processes.
• Efficient liquidity management for maximising yield on surplus funds.
• Accelerated receivables for improved working capital management.
• Integrated payables processes with a high degree of automation.
• Efficient interface and integration with ERP with automated reconciliation.
• Improved control and visibility with meaningful analytics and statistics for informed decision making.

Best practice and innovation

BNP Paribas was instrumental in the transformation journey and the development of the solution involved close collaboration, with support from the bank ranging from advisory, project management, reporting and execution to client servicing.

Throughout the entire process, BNP Paribas took on the critical role and accountability to ensure that the execution delivers efficiency, ensures minimal interruptions to the company’s daily business operations and is easy to implement at their end. The outcome has been revolutionary for the company as it has fundamentally reshaped their treasury function.

Significant deliverables to have emerged include a faster cash conversion cycle through same day banking of cheques at all locations across India with extended cut-off times; accelerated realisation of receivables; and confirmed credit arrangements.

Automation has enabled better management of the overall process and a single window framework for payables management. It has also resulted in much more timely and accurate receipt of cheque clearance information from the bank.

Improved control, visibility and reconciliation, meanwhile, has led to much enriched remitter information; robust MIS to control and track account receivables and payables; and seamless integration of reverse information to ERP without any manual intervention for accurate and secure data capture.

Key benefits

Overall, it has resulted in simplicity, efficiency and business improvement, achieved via streamlined management of receivables and payables through a single, integrated cash management banking platform.

Key benefits delivered:

• Operational efficiency improved.
• Centralised control and visibility.
• Improved working capital management with accelerated funds realisation and better forecasting.
• Enhanced information management with robust reporting and improved data security and accuracy.
• Automation with advanced ERP integration for payables management across payment types.
• Significant cost savings and errors with elimination of significant manpower for receivables management reconciliation.
• Replicable and scalable solution for future growth.