Advanced Services Growth
Case Study: Koolmill
“The programme has reinforced my belief that the way forward for Koolmill is through the servitization of the business. The challenge is how to finance the transformation to allow Koolmill to scale up its offer to our customers.”
Koolmill manufactures rice milling machines. It has recently developed a revolutionary rice milling process which it hopes will be adopted by countries around the world. The innovative technology offers millers a low-power, waste-saving milling system, which supports sustainable production.
The company is now moving away from just manufacturing and selling rice milling machines directly, in favour of and advanced service offering – ‘Rice Milling as a Service’. This will see the company supply machines to milling partners and guarantee a set number of milling hours per month, in exchange for a set fee.
Koolmill has been motivated to explore servitization because of the nature of its markets. The company currently operates in predominantly low-income countries, such as India and China, which affects its scope on the pricing of their milling machines. Servitization opened the opportunity to improve the revenue stream, particularly in combination with the ‘milling-by-the-hour’ concept instead of machine purchase.
The current priority for Koolmil is to build and commission a pilot mill. This will enable it to validate its ‘Rice Milling as a Service’ offering, and then replicate this multiple times.
Koolmill sees the ongoing collaboration with the Advanced Services Group as fundamental to the company’s success and they acknowledge that continued collaboration with multiple academic, commercial and technology partners is key.
“Pioneering a new, services-led business model for an antiquated global industry would have been beyond us without access to this programme.”
Increased turnover – estimated turnover has increased from £66,000 to £76,000; and anticipated annual turnover for the coming year of £120,000