Meghmani Deploys SAP To Aid Global Expansion

by Amit Tripathi    Jul 14, 2005

Global expansion puts an enterprise face to face with two ‘Cs’ of business namely, competition, and more prominently, compliance. While competition necessitates a relook at the quality and market intelligence, compliance forces an enterprise to adhere to newer financial and market specification. Meghmani Organics Ltd., a leading manufacturer of pigment and pesticide products, answered all of those by deciding to deploy SAP Netweaver platform.

Stating the need for the initiative, Rajesh Rathod, head-IT, Meghmani Organics Ltd. said, “Last year our IPO was released in Singapore, which lead to newer financial compliances. Similarly, we also need to adhere to Indian GAAP requirements. More importantly we needed to put a stable system in place to facilitate efficient financial analysis.”

Apart from the financial compulsions, there were other reasons too for the ERP initiative. The company has always been in a diversification mode since its formation in 1995. In the last 10 years, it’s customer base, for more than 130 products (100 pigment products customers, 30 pesticide customers), has spread across the continents of North America, South America, Europe and APAC countries. The business of the company is managed by 20 overseas distributors catering to international markets, two warehouses (in Belgium and Uruguay) and, a chain of over 1,000 stockists, agents, distributors, and dealers covering the domestic market in India.

In such a scenario all that was needed was a stable system that could be scaled up as needed to obtain sales and distribution data, provide financial and market analytics in a timely and accurate manner. “SAP was selected as it met all those requirements. In addition, the ERP provider has adequate global service, support and security policy in place that ensures protection of our investment,” added Shah.

The company has procured 28 concurrent licenses of SAP Netweaver 4.7.6C and plans to increase the number to around 50 in the coming months as per the necessity of the company. The modules in use at present are those of FICO, MM, and SD. In the next phase of deployment, Meghmani Organics plans to bring the module PP into use. The company has spent Rs one crore on the intiative.

Currently all the four plants (in Gujarat) are being connected with 256 kbps leased lines through, which the ERP is being deployed to those locations. Within a month, the ERP will be extended to all the distributors and warehouses. The company uses HP dual processor servers that run on Windows 2000, and hosts the MS SQL database as well as the enterprise applications. The deployment is being undertaken by Unisoft.

The company with a workforce of over 600 employees, manufactures three main category of pesticides used in crop protection, public health, termite & insect control, and veterinary applications. Its two pigment products (pigment green, pigment blue) are used in making printing inks, plastics, paints, textiles, leather, paper and rubber.

Tags: SAP, expansion