Success Stories
Uzbekistan

EDP Assists Client In Freeing Up Working Capital

Kinder-Q, a shoe producer, gets EDP help to successfully balance a large institutional order from the Government Security Organization with sales to other customers.

Founded in 2002, Kinder-Q produces a range of men’s and children’s shoes in the Ferghana region. The company became a client of the Ferghana Enterprise Development Center (EDC) in April 2004 and has taken advantage of many of EDP’s services. EDC evaluated the company and, having determined that it needed assistance in marketing and Operations Management (order tracking, inventory control, delegation of responsibilities), began to work with Kinder-Q to improve its operations.

Marketing Practice Specialist Jamil Maksudi assisted Kinder-Q in developing a marketing plan. With good products and a sound marketing strategy, Kinder-Q secured a large institutional order from the Government Security Organization in the fall of 2004. The company was concerned, however, that to fulfill the order and meet the delivery deadline, it would have to burn through all of its working capital. Kinder-Q realized that by focusing only on the institutional order, it would compromise its sales to other customers and potentially lose valuable market share.

To expand production and meet the demands of the market and its institutional buyer, the firm needed additional working capital. Relation-ship Manager Saidaziz Turdaliev suggested bringing in a Financial Practice Specialist (FPS) to identify and evaluate internal and external sources of working capital.

FPS Muminjon Hasanov analyzed the client’s internal finances, and identified $20,000 that could be freed up to be used as working capital. With their working capital crunch solved, the client decided it did not need to resort to external financing mechanisms.

The manager of Kinder-Q, Mr. Alisher Gapparov commented: “With the help of EDP consultants, we are reaching new markets and have added a valuable new customer in the form of the Government Security Organization.”

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