Activity Based Costing for Cost Leadership

Bussiness Profile

Our Client is a known manufacturer in Indian food processing industry. It is one of the trusted brand in food and confectionary segment in north region of the country

Business Challenge

There is a continuous increase in raw material prices, labour cost, power and fuel prices due to external factors. The competition is becoming tough as multinational firms are intensifying the competition which is creating difficulty to sustain even single digit profitability to the company. The future outlook to business seems very scary to the promoters

Our Intervention

The initial diagnostic study conducted. Activity Based Costing exercise conducted for each SKU. Projects Identified and implemented to improve the profitability

Results

Profitability

20%

Improved by

Raw Material Wastage

23%

Reduced by

Productivity

29%

Improved by

Energy Cost

15%

Reduced by

Impact Stories

Activity Based Costing for Cost Leadership