CASE STUDY: Manufacturing
At a glance
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MEET THE CLIENT
Fostering worldwide growth, innovation and sustainability
Botanicoir is a leading manufacturer of calcium-enriched coir substrate products – coconut fibre growing materials used instead of soil or peat to help plants grow. Since 2005, this family-run enterprise has expanded its reach across 72 countries, including Australia, the US, Mexico, Morocco, Spain, and China. After starting with three co-founders, Botanicoir now boasts a workforce of 600 employees and owns production units in Sri Lanka and India, facilitating robust R&D, traceability, and quality control.
With a sales and marketing office in the UK, and its own production facilities in Sri Lanka and India, Botanicoir guarantees the consistent supply and traceability of high-quality coir products. As a result of pioneering research alongside German engineers, Botanicoir now holds the distinction of being the first coir producer to mechanically dry material, enabling uninterrupted year-round supply regardless of weather conditions. The business was also the first to introduce compressed buffered grow bags into the UK soft fruit market.
THE CHALLENGE
Finding a working capital partner in tune with the needs of the business.
Botanicoir’s previous long-standing finance provider had strict limitations on exports and debtor concentrations, which severely impacted Botanicoir’s funding availability. Despite the company’s profitable growth, this stance remained unchanged and unreviewed, until the founders went looking for a suitable replacement.
Limited credit availability in Sri Lanka means we have to pay all our suppliers up front, including the bag manufacturers. In the UK, growers also face several tough challenges, ranging from weather dependency to the necessity of extending longer credit periods to accommodate their customers’ needs.
THE SOLUTION
Opening up more flexible working capital.
Recognising the need to bridge the working capital gap, the company contacted its finance broker. As Samantha Balasuriya explains: “Right from the outset, we instructed them to find a bank that would work with us, offer timely responses, and offer us help in times of need – all without excessive red tape. They introduced us to Investec, who ticked all the boxes. In addition, what clinched it for us was the discovery that our bank’s former relationship manager had joined Investec, someone we’ve always held in high regard.”
The team at Investec Capital Solutions took time to understand Botanicoir’s growth aspirations. Following a deeper analysis of the underlying counterparties and international risk profile, they were able to structure a working capital facility utilising Intelligent Cash Flow technology across multiple currencies, opening up significant additional funding.
Investec invested the time and care to understand our business. Investec’s team is always open to discussing ideas, even making exceptions to accommodate invoices for well-established customers in specific regions that fall outside their usual criteria.
THE OUTCOME
A trusted financing relationship.
Botanicoir now enjoys enhanced funding certainty and is well positioned to pursue its growth objectives. With the company’s sights set high on expansion, Investec’s supportive partnership stands as a foundation for its global ambitions.
Summing up, Samantha Balasuriya emphasises: “At present, we’re concentrating on Asia Pacific and North American markets. Recognising the significance of the Asian market, our next move is to establish a stronger presence there. This step aligns perfectly with our strategic vision of sustained growth through expanding our global footprint.”
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