Smart Risk Management in Action
FMCG Plant Achieves 10x ROI in 12 Months with RiskMantra
Client Profile
- Industry: FMCG (Food Processing – Namkeen & Snacks)
- Location: Indore, Madhya Pradesh
- Facility Size: 1,20,000 sq. ft.
- Annual Turnover: ₹145 Crore
- Previous Insurance Premium: ₹52 Lakhs
- RiskMantra Annual Cost: ₹25 Lakhs
Challenges Before RiskMantra
Despite being insured, the client faced recurring issues impacting safety and finances:
- Frequent fire hazards due to oil-based fryers, old cabling, and poor panel ventilation
- Manual hydrant testing, delaying Fire NOC compliance
- Poorly valued assets leading to underinsurance penalties during claims
- Scattered policies with gaps and restrictive clauses (e.g., exclusion of PUF panel fires)
- Ineffective claim settlements due to poor documentation and delayed intimation
- Lack of a proactive risk detection or monitoring system
RiskMantra Implementation: 6-Step Transformation
- Detailed walkthrough of manufacturing, warehousing, and dispatch operations
- Identification of high-risk zones like transformer area, fryer zones, and packaging rooms
- Custom occupancy-based insurance advisory
- Asset revaluation using RiskBirbal’s proprietary Asset Valuation Tool
- Sum Insured revised from ₹33 Cr → ₹45.5 Cr (avoiding a ₹12.5 Cr underinsurance gap)
- Aligning insurance declarations with accounting records
IoT devices were deployed across the plant:
| Sensor Type | Purpose |
|---|---|
| Water Level Sensors | Monitor hydrant tanks and raise low-level alarms |
| Extinguisher Movement | Alert for missing/fire-extinguisher misuse |
| Pressure & Voltage Sensors | Prevent panel short-circuits |
| Hydrant Flow Sensors | Monitor actual water flow in emergency drills |
| Proximity Sensors | Detect human movement in hazardous areas at odd hours |
- Alert system deployed on the client’s internal server — no external data sharing
- Response time to hazards reduced from 23 minutes → under 6 minutes
- Shifted from fragmented SFSP + MBD to a comprehensive Industrial All Risk (IAR) Policy
- Clauses like depreciation, underinsurance, and PUF exclusions negotiated and removed
- Premium reduced by ₹5 Lakhs despite increased coverage
- Fire Incident (Feb): Short-circuit triggered packaging room fire
- IoT alert + prompt internal SOP action → 80% plant operations unaffected
- Loss Assessed: ₹2.1 Cr
- Claim Paid: ₹1.98 Cr due to proper documentation and coverage
- Previous trends (before RiskMantra): Same event would’ve yielded only ₹1.38 Cr
- Quarterly risk inspections for fire, electrical, and natural catastrophe risks
- Policy audit vs. operational change report sent every 90 days
- Dynamic add-on suggestions and insurance upgrades initiated proactively
Results & ROI Calculation
| Financial Benefit Area | Value Realized (INR) |
|---|---|
| Claim Optimization | ₹60,00,000 |
| Premium Optimization | ₹5,00,000 |
| Underinsurance Loss Avoided | ₹1,60,00,000 |
| Fire Loss Mitigation (via IoT) | ₹25,00,000 |
| Total Financial Benefit | ₹2,50,00,000+ |
- RiskMantra Program Cost: ₹25,00,000
- ROI Achieved: >10x in one year
Conclusion
Through real-time risk tracking, smarter underwriting, data-backed asset valuation, and AI-integrated IoT monitoring — RiskMantra transformed passive insurance into an intelligent, proactive profit center.
The client's management now has complete visibility of risk, confidence in claim outcomes, and the assurance that every rupee spent on risk management is delivering multi-fold value.