India\u2019s petrochemical industry, valued at approximately $220 billion, supports over 5 million jobs and contributes 6 percent to GDP<\/a>, driving economic growth. The sector is set to transform, but challenges remain in the landscape. The global industry is navigating with decreasing margins and unpredictable prices. Additionally, the domestic market also faces increased pressure from low-cost imports and slow receivables, leading to rising operational costs. In this landscape, inconsistent cash flow and extended payment cycles often disrupt operations, preventing timely investment in innovation and competitiveness.<\/p>\n TReDS is a digital platform introduced by the Reserve Bank of India in 2014 to facilitate the financing of trade receivables. The TReDS platform in India<\/a> enables MSMEs, NBFCs, and enterprises to digitally finance receivables by speeding up liquidity and eliminating borrowing costs. It ensures full transparency, faster processing, and reduced friction, making it easier for businesses to digitise and scale their supply chain finance operations.<\/p>\n A Domestic Trade Exchange (DTX)<\/a> is an RBI-licensed digital TReDS platform that enables MSMEs, NBFCs, and enterprises to trade receivables, process invoices, and access financing options seamlessly. The digital platform offers an innovative, smarter framework to overcome the industrial finance issues affecting the workflow operations.<\/p>\n Early payments improve supplier satisfaction and retention, reducing friction and bolstering supply chain resilience.<\/p>\n DTX ensures 100% adherence to the 45-day payment rule under the recent norms without straining cash flow<\/p>\n Alongside MSMEs, DTX by KredX<\/a> supports invoices from mid-market suppliers, service providers, including small-scale corporates that cater to the diverse needs of petrochemical supply chains.<\/p>\n Financing under DTX depends on the financier\u2019s credit profile, not the supplier\u2019s, which provides seamless,quick working capital access to more suppliers within 24 hours.<\/p>\n DTX platforms invite multiple financiers to bid, creating competitive interest rates and saving MSMEs money on each transaction.<\/p>\n Enterprises retain their internal cash reserves while still ensuring suppliers are paid on time.<\/p>\n TReDS resolves the financing of trade receivables by interconnecting MSMEs (suppliers) with financiers and large corporate buyers. Digital TReDS platforms like KredX\u2019s DTX<\/a> are revolutionising supply chains by ensuring seamless working capital management and regulating efficient operations.<\/p>\n In the highly competitive landscape, a polyester manufacturing company faced delayed working capital challenges. Despite a growing order book worth \u20b94 crores, liquidity constraints from delayed payments and traditional loans hindered growth in the sector.<\/p>\n By adopting KredX DTX, an RBI-regulated TReDS platform, the company transitioned from prolonged processing delays to instant working capital access within 24 hours, without pledging assets. The competitive bidding system helped lower borrowing costs and buyer settled payments on time to the financier, ensuring zero operational friction.<\/p>\n After onboarding with DTX by KredX, the company saw measurable results:<\/p>\n The petrochemical industry is navigating a period of low-cost imports, thin margins, and global uncertainty in the working capital challenges. The above context indicates that TReDS is a strategic, modern platform to cope with the volatile financial challenges in the sector. It helps petrochemical firms and their suppliers stabilise liquidity and support growth investments, which implies the growing role of fintech in building resilient supply chains.<\/a><\/p>\n","protected":false},"excerpt":{"rendered":" Industry Overview India\u2019s petrochemical industry, valued at approximately $220 billion, supports over 5 million jobs and contributes 6 percent to GDP, driving economic growth. The sector is set to transform, but challenges remain in the landscape. The global industry is navigating with decreasing margins and unpredictable prices. Additionally, the domestic market also faces increased pressure…<\/p>\n","protected":false},"author":5,"featured_media":3278,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[24,3],"tags":[],"class_list":["post-3277","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blog","category-finance"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.dtxindia.in\/knowledge-center\/wp-json\/wp\/v2\/posts\/3277","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.dtxindia.in\/knowledge-center\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.dtxindia.in\/knowledge-center\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.dtxindia.in\/knowledge-center\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/www.dtxindia.in\/knowledge-center\/wp-json\/wp\/v2\/comments?post=3277"}],"version-history":[{"count":33,"href":"https:\/\/www.dtxindia.in\/knowledge-center\/wp-json\/wp\/v2\/posts\/3277\/revisions"}],"predecessor-version":[{"id":3597,"href":"https:\/\/www.dtxindia.in\/knowledge-center\/wp-json\/wp\/v2\/posts\/3277\/revisions\/3597"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.dtxindia.in\/knowledge-center\/wp-json\/wp\/v2\/media\/3278"}],"wp:attachment":[{"href":"https:\/\/www.dtxindia.in\/knowledge-center\/wp-json\/wp\/v2\/media?parent=3277"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.dtxindia.in\/knowledge-center\/wp-json\/wp\/v2\/categories?post=3277"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.dtxindia.in\/knowledge-center\/wp-json\/wp\/v2\/tags?post=3277"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}TReDS as the First Step in Strengthening Cash Flow<\/b><\/h2>\n
KredX DTX: Enhancing Liquidity Across Supply Chains<\/b><\/h2>\n
Stronger Vendor Relationships<\/b><\/h4>\n
Regulatory Compliance<\/b><\/h4>\n
Diverse Supplier Aid<\/b><\/h4>\n
Instant, Collateral-Free Access<\/b><\/h4>\n
Competitive Financing Rates<\/b><\/h4>\n
Extended Payable Timeline<\/b><\/h4>\n
Why Petrochemical Firms Should Adopt TReDS<\/b><\/h2>\n
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Real Impact: Use Case<\/b><\/h3>\n
Key Issues:<\/b><\/h4>\n
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Accelerating Liquidity with KredX DTX<\/b><\/h3>\n
How It Worked:<\/b><\/h4>\n
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The KredX DTX Transformation<\/b><\/h4>\n
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Final Thoughts<\/b><\/h5>\n