Centralized planning – group-wide implementation
The RENOLIT Group is an international leader in the manufacturing of high-quality plastic films and related products for technical applications. This independent, family-owned business was founded in 1946 in Worms, Germany. Very early on, RENOLIT established connections abroad and the group’s expansion has been entirely self-funded. Today, they boast over 30 production sites and distribution companies in Europe and overseas, as well as affiliated companies and franchises around the world. RENOLIT has become a truly global company, and with around 4,500 employees, achieved a turnover of 963.5 million euros in the fiscal year of 2015.
Carsten van Rahden
Head of Treasury and Insurance, Renolit SE
Prompt decision-making about expanding their product range, new developments, and new markets has had a very positive influence on the company’s progress. For decades, a strong capital base has allowed RENOLIT to grow from within. The group’s decentralized approach has left local entities largely in charge of their own business. This was one of the main factors that allowed RENOLIT to grow rapidly. It also meant that the local entities had established their own infrastructure, bank connections and accounts – they were not managed centrally. In early 2015, a central corporate treasury was established and was faced with the challenges of achieving a group-wide liquidity overview, highlighting group-wide opportunities, optimizing processes, and strengthening visibility for group companies and banks.
The Solution: A diplomatic approach to a sensitive topic
RENOLIT started off by establishing a standardized framework for available liquidity. In the past, funding was made available as needed. tm5 has enabled a centralized process that allows the corporate treasury to be aware of the financing requirements within the group before they are raised. They can now manage group-wide cash more efficiently.
The move from decentralized to centralized cash management was a sensitive issue that required tactful communication. From the very start of the project, the user-friendly and intuitive tm5 user interface has been a great help in facilitating the dialogue between central treasury and group entities. RENOLIT aims to also make use of group-wide visibility in order to improve self-funded intercompany financing. Thanks to integrated and efficient liquidity planning, RENOLIT is now able to use funds with greater effectiveness, providing a sound footing for any plans and future growth. Following the group-wide rollout of tm5, RENOLIT plans to consolidate bank connections. The central treasury based in Worms is set to be a center of competence providing fresh ideas and impetus. For example, the financial instruments in use are to be refined in order to be used for investments and borrowing.
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