Case Study

Case Studies

Leasing of Freezers by one of India’s largest dairy products company

Requirement

The key need was for outreach of freezers across India to make Ice Cream available to consumers. The distributors or retailers had resistance to invest in this infrastructure, Company was seeking a solution to enhance its retail reach by increasing number of freezers and freezer on wheels.

Solution

They opted for operating lease solution by Rent Alpha and launched “Aap Ka Apna Deep Freezer” scheme, where the freezer is provided on Operating lease to the company and delivered to the retailer, Retainer now stocks ice cream and pays nominal rent which in certain cases is waived on achievement of sales targets. The company was able to touch about 10000 new retail points, and continues adding since The key advantages were conserving initial capital investment, very low cost of rental, sale incentives of waiver, and tax advantage.

Leasing of IT Equipment by one of India’s largest information technology service and consulting company

Requirement

They had to conduct examination for Railways and other govt agencies periodically. They required desktops & laptops across India during these examinations. They did not want to own these assets as their revenue was billed periodically as per their contract, due to high obsolescence of these assets, asset audit for statutory purposes, high uptime requirement at each examination center.

Solution :
  • Rental Expense: Rent Alpha provided an operating lease for desktops & laptops along with onsite warranty & Insurance was for 3 years.
  • Back up: Rent Alpha also provided refurbished back up laptops at each center.
  • Insurance: Rent Alpha insured the assets.
  • Obsolescence risk: As equipment was not owned by client, Rent Alpha assumed the obsolescence risk as the client will refresh these assets in 3 years.
  • Lower cost of funds: Rent Alpha provided a low IRR.
  • Vendor independence: The client chose the vendor & the pricing.