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Working Capital Management

30 May 2026

Strategic Inventory Rationalisation

We helped an electrical & lighting products manufacturer release trapped working capital, reduce warehouse drag, and improve inventory control without disrupting supply continuity.

The leadership brief

Inventory had become a balance sheet and warehouse burden.

The work cleared dead stock, recovered space, and protected continuity while the business kept serving current demand.

Situation

Obsolete and slow-moving stock had accumulated across the warehouse, tying up capital and pushing up storage pressure.

  • Board needed a clean way to release value without affecting supply.
  • Stock visibility and control had weakened across the warehouse.
  • Operations still had to keep moving while inventory was rationalised.
Client profile

An electrical & lighting products manufacturer

  • Working capital was tied up in stock that was no longer productive.
  • High cost warehouse space was occupied by non-moving inventory.
  • Leadership needed a low-disruption path to improve liquidity.

The intervention

A simple process replaced ad hoc inventory clean-up.

The engagement followed a clear execution path so the business could move quickly without losing oversight.

  1. 01

    Diagnose inventory layers

    Reviewed stock by age, movement, and recoverability to separate usable inventory from trapped value.

  2. 02

    Segment obsolete and slow stock

    Grouped inventory into action buckets so the team could decide what to retain, reclassify, or release.

  3. 03

    Liquidate through specialist channels

    Moved dead stock into targeted liquidation routes while protecting supply continuity for current demand.

What changed

One control move unlocked capital, space, and operating flexibility.

The outcome was not just a balance sheet improvement. It improved the day-to-day operating posture of the business.

Liquidity

Capital stopped sitting in dead stock and became available for higher-value use.

Control

Inventory status became clearer, which reduced the noise around stock decisions.

Continuity

The business improved without forcing a disruptive reset in supply operations.

We freed INR 12 Cr of trapped capital by rationalising obsolete inventory and converting dead stock into liquidity.

Practical questions

What leaders usually ask next.

Concise answers on the operating change, the delivery path, and the relevance for a comparable business.

What problem was this engagement solving?

Too much obsolete inventory was tying up capital and space, while supply continuity still had to be protected.

Keep exploring

Related capabilities and proof points.