01
Margin Recovery
- Speciality chemicals
- $310M revenue
- Gujarat & Tamil Nadu
A price book nobody had rebuilt in nine years
The situation
Volumes at a record, EBITDA down 340 basis points. The commercial team blamed raw material inflation. The board had stopped believing the monthly pack.
What we did
We rebuilt cost-to-serve for 1,900 SKUs across 640 customers from invoice and freight data. Twenty-two percent of volume — and 41% of the sales bonus base — was priced below fully-loaded cost. We then sat in the customer conversations for eleven weeks, because a price book nobody will defend is just a document.
- Gross margin
- +480 bps
- Volume lost, all of it loss-making
- 3%
- Start to handover
- 19 weeks