Leading international fashion and lifestyle accessories company ILG has improved its financial management across its global brands by deploying a cloud-based treasury and risk management solution from Kyriba.
International Luxury Group (ILG) owns a portfolio of internationally renowned licensed brands that are distributed worldwide. It is a recognized leader in the watchmaking market and an established player in the branded eyewear, jewellery and leather goods markets.
Location-agnostic solution required
ILG recognized that it needed a solution to help reconcile its total cash inflows and outflows, irrespective of where they occurred. The treasury team selected Kyriba’s treasury management solution in July 2015 and went live within three months. “Having access to a mission-critical platform from any location - without any hardware investment or the headache of upgrades - was a vital element in ILG’s decision to choose a cloud-based solution,” said ILG Group Treasurer Hozefa Kapasi.
“Unlike on-premise deployment, other than the implementation fee, you are not committing to a huge upfront expense without first experiencing the benefits of the application,” he said.
As a global organization with a distribution network spanning 90 countries, ILG had multiple channels in multiple geographies that gave rise to the need for operational and cash visibility optimization. In fact, most of the company’s excess cash was sitting idle in one set of entities, while external cash commitments were placed with another set of entities.
Significant, immediate benefits
ILG now has a tool to centrally manage inter-dependent companies, identifying trends in terms of cash generation and EBITDA, where its working capital cycles need improvement and how much cash is realistically available.
“We are connected to nine banks through Kyriba and we have five users at ILG creating consolidated cash positions (current and future) from across 16 entities in multiple currencies including AED, USD, GBP, EUR, CHF, SEK, HKD and CNY,” said Kapasi. “Using Kyriba to consolidate our FX exposure and hedge currency risk centrally has a direct and positive impact on our bottom line.”
“The benefit is most notable when we need to reduce our leverage without affecting any subsidiary’s working capital requirement,” said Kapasi. “Overall, Kyriba is adding value through improved operational efficiency and productivity while reducing costs to drive growth.”
For the full interview with ILG, download the PDF “Sixty Second with ILG”