TM

Industry

Geography

Chemical

India

The Client

Aarti Industries is a global developer and manufacturer of basic bulk chemicals, dyes

and pigment intermediates, pharmaceuticals, agrochemicals, and other specialty

chemicals. Aarti is the leading producer of Benzene-based basic and intermediate

chemicals in India. Subsidiaries include Aarti Healthcare, Alchemie Europe, and

Anushakti Chemicals and Drugs.

SAP ERP Success Story @ YASH

Chemical Company Achieved

Operational Excellence with Robust ERP Solution

Legacy System Hindered Quality of Customer Service and

Operational Visibility

YASH Created a Customer-Specific Solution to Address

Unique Challenges

Aarti experienced rapid growth via global expansion with annual revenues doubling to

reach $400 million in 2008. Aarti was utilizing Tally, a legacy application used by Small to

Medium Enterprises (SMEs) in India, for their financial reporting needs. However, the

financial management capabilities of Tally could not keep pace with the high volume of

business and became increasingly difficult to use.

Without a cohesive system in place to provide visibility of operations across the

enterprise, Aarti's customers began to feel the effects and voiced complaints about

delivery delays, order errors, billing issues, and lack of quality assurance. In order to

sustain their growth rate and scale their operations, Aarti felt compelled to implement an

Enterprise Resource Planning (ERP) system.

YASH Technologies was selected as the strategic partner to implement SAP ERP, for their

deep chemical industry expertise and for their recognition as a contributing and testing

partner for the Indian localization of SAP Best Practices for the Chemical Industry.

Aarti was very cautious about the new SAP ERP ECC 6.0 implementation. YASH addressed

these concerns by utilizing their proprietary implementation methodology, S-Imple

(Streamlined Implementations). S-Imple, a processed-based methodology, transforms

how enterprises deploy SAP by dramatically reducing time from project start to

realization of tangible benefits. By leveraging pre-configured business scenarios, cycle

times for blueprinting, development and testing phases were dramatically reduced. In

addition, the S-Imple methodology provided early adoption for Aarti users through play

back sessions that allowed customers to see what business scenario was going to be

implemented, make slight changes as needed, and visually experience the changes as it

was developed. The playback sessions meant that Aarti would not have to wait until the

end for their first exposure to the solution, but was able to be involved in every stage of

this rapid deployment process, getting the right solution the first time.

Core ERP modules of FI, CO, SD, and MM were implemented at Aarti's headquarters in

Mumbai, and at six manufacturing plants of its subsidiary company, Anushakti Chemicals

and Drugs. Dealing with very complex production operations, YASH integrated over 16,000

material, 4000 vendor, 2400 customer, and 500 asset class data to achieve an enterprise-

wide ERP solution.

As a chemical manufacturer in India, Aarti faced several unique challenges towards the

effectiveness of this solution. First, they operate in a very dynamic and rapidly changing

industry. Aarti must supply high-quality, lower cost products to the marketplace, while

expanding manufacturing and distribution capabilities. Aarti needed minimal risk and

disruption to their business, along with a rapidly deployable solution to contend with

extremely tight deadlines.

Secondly, India has one of the most complex tax structures in the world. Different tax

rates are applied to purchasing and selling for each state and region within the country, as

well as tax variations based on material components and end use of the product. Finally,

Aarti postponed the implementation of the Production Planning module of SAP ERP during

this phase, which posed a significant challenge to track the production confirmations and

inventory levels within SAP.

To overcome these challenges and ensure success, YASH incorporated their proprietary

ChemOne solution, based on SAP Best Practices for the chemical industry. ChemOne,

recognized by SAP India as a highly capable solution for chemical companies in India,

provided out-of-the-box functionality using preconfigured business scenarios that

significantly reduced the ERP implementation risk, time, and costs. One of the most

important features of ChemOne is the prebuilt tax functionality, which eased Aarti's

compliance issues with the Indian excise and statutory requirements. In addition, YASH

utilized ChemOne's production order functionality to track ongoing production operations

without the need for the PP module of ECC 6.0.

Aarti realized many benefits from the comprehensive and successful ERP implementation.

They now have better visibility into global business operations and have the process

support required to grow profitably in a demanding market. Additional benefits realized

were:

Improved business processes eliminated time-consuming manual processes

Integrated processes tightened the billing cycle, resulting in a 50% decrease in

month-end closing cycle time

Fully operational system provided functionality to accurately track and maintain

inventory

Customer service issues were significantly decreased

Rapid return on investment with streamlined regulatory compliance

YASH Delivered Complete Integration Across Business Processes

We couldn't spare the resources or invest in a long term project. YASH delivered a

creative and effective solution with the deployment of ChemOne and the newly

integrated ERP platform. This provided significant savings for us and positively

reinforced our decision to invest in SAP. YASH has given us the foundation to support

our continued growth and profitability for the future.

CIO

Aarti Industries

SAP-E

RP-C

hem

224-1

009TM

YASH Technologies www.yash.com/contactus

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About YASH Technologies

www.yash.com info@yash.com.

YASH Technologies focuses on customer success. As a leading enterprise business and

technology partner for medium and large global customers, we leverage technology and

our flexible delivery models to drive performance and business value throughout a

customer's enterprise. YASH's comprehensive service approach incorporates a holistic

view of our customers that extends beyond delivery. This approach integrates enterprise

solutions and services, proprietary best practice offerings, strategic application and

maintenance outsourcing, as well as consulting and integration services. YASH is a SEI

CMMI (Level 3) and an ISO 9001:2000 certified company with US and India headquarters

and regional sales and development offices spread across 3 continents. For more

information, please visit or email

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