Transforming Hikal’s IT landscape to be future ready
Our technology and tax experts work together to help Hikal meet their business needs and be GST compliant
Client issue
Hikal, India’s leading pharmaceuticals & chemical company, had a system that was not meeting the current business requirements; nor was it ready for GST compliance. It was on the lookout for a partner who could advise and help chalk out its IT transformation roadmap.
PwC approach
Hikal’s product OEM had not provide the GST solution for the version which they were using and Hikal feared non-compliance looking at the stringent timeline.
Our team had developed a similar solution for another customer and leveraged the same to bring value to Hikal and enabled it to be GST compliant. Our joint proposition of a technology solution and tax expertise served as a key differentiator and helped us work collaboratively to deliver on the engagement.
A xLoS team comprising technology consulting professionals (Oracle and Data & Analytics) and Indirect Tax & Direct Tax experts worked together adopting a multi-phased implementation approach:
- Phase 1 entailed making Hikal GST ready from a technology perspective
- Phase 2 entailed re-implementing the overall system as a new version with advanced features and functions
- Phase 3 covered enhancing operations with planning and budgeting
Impact
- Hikal was able to complete the period closure activity on a monthly and quarterly basis 50% faster than it did before the new system was put in place
- The entire formula and recipe definition across the manufacturing line helped the production employees record material movement data more efficiently
- Redesigning the existing bill of materials helped the Management understand the actual resource efficiency and utilisation
- Improved planning accuracy lead to better inventory management and reduction in inventory carrying costs
- Helped the management to enforce control over the budgets in system and track budget vis-a-vis actual numbers on a month-on-month basis
