Al Dahra: advantages of an international cash pooling project
Intesa Sanpaolo confirms its key role in supporting international clients by offering tailor-made working capital management solutions to support the digital transition.
Head of Global Transaction Banking, Divisione IMI Corporate & Investment Banking
Al Dahra Group was best supported by Intesa Sanpaolo, our partner of choice not only for the European cash pooling project.
Al Dahra Group Treasury Director
IL BACKGROUND AND GOALS
Al Dahra is a prominent multinational agribusiness specialised in the cultivation, production and marketing of animal feed and essential food products as well as end-to-end supply chain management. Serving a broad customer base spanning the government and commercial sectors, Al Dahra has an extensive geographical presence, with a workforce of 5,000 employees, operates in over 20 countries and serves more than 45 markets, with a leading position in Asia and the Middle East.
In October 2021, having identified the need to centralise treasury management in order to achieve greater efficiency in liquidity management, the Al Dahra Group mandated Intesa Sanpaolo to set up a tailor-made cash pooling structure in Italy that would support the use of euro funds from multiple locations and improve working capital control.
THE PROJECT
Intesa Sanpaolo used its international footprint, strong digital expertise and the flexibility offered by its membership in the international banking alliance IBOS Association to implement the required service in the European countries where Al Dahra operates.
With complex requirements and a tough timeline, made even more challenging by the constraints imposed by the Covid-19 pandemic, a Cash Management focal point team and an implementation manager were identified and worked together with Al Dahra's finance department to implement an international cash pooling structure with a tailor-made design for the client.
RESULTS
The dynamism and innovation of the service provided enabled Al Dahra Group to centralise and optimise its cash management through intercompany accounts.
Intesa Sanpaolo's proactive approach and the fruitful partnership with Al Dahra were key factors that made this international cash pooling solution a market best practice.
KEY ELEMENTS OF SUCCESS
- Flexibility and liquidity optimisation
The client obtained full control over its European branches, deposits and management of short-term credit lines by rationalising and maximising the working capital. - Optimisation of interests and fees
By delegating the automated management of treasury transactions to the Bank, Al Dahra has obtained a reduction in operational and administrative costs. - Improved risk management
Thanks to the complete automation of processes and the absence of manual intervention in cash handling, the possibility of errors and fraud has been reduced. - Exploiting the potential of ERP (Enterprise Resource Planning) and TMS (Treasury Management System)
An automated monthly reporting system was developed and fully integrated into the client’s treasury system.