Sep 29, 2021
Unlike many of the up-and-comers who populate the corridors of The Chemours Company, CFO Sameer Ralhan spent the balance of his career building years with the company inside its manufacturing plants.
It was there where Ralhan says that he observed everyday executives making decisions that routinely impacted the business, and it was there where his M&A activities allowed him to imagine new avenues for value creation.
Says Ralhan: “The heart of this company beats at the plants.”
Still, the many hours that Chemours’s future CFO spent there made him aware of a growing disconnect between finance and the plant’s decision-makers.
According to Ralhan, Chemours, not unlike many U.S. manufacturers, had undergone decades of reorganizations designed to streamline and centralize its operations. However, one consequence of this was that the bond between the plants and the Chemours finance team had become weakened.
“It was really limiting the finance support at the site and undermining decision support that could really drive the right financial outcomes,” recalls Ralhan, who after stepping into the CFO role made reallocating finance resources to support plant decision-making a priority.
Ralhan reports that one of a number of Chemours businesses that have benefited from the reallocation has been the chemical company’s Advanced Performance Materials (APM) business, where the finance and the operations teams came together to build new decision-making models as well as return-on-capital models for each manufacturing site.
Observes Ralhan: “These models really provided the insights to drive the right decisions, and this is evident in the margin improvement that we're seeing today in the APM business.”
Meanwhile, the Chemours manufacturing sites, as well as their bottom lines, are expected to benefit in the coming years from different digital tools and applications that promise to build on APM's recent margin improvement success.
Comments Ralhan: “Once you achieve this, you earn the right to do more things, and that's what I'm really excited about.” -Jack Sweeney