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ERP cost-cutting win

Khimji Ramdas cuts SAP costs by 80% with Rimini Street

Khimji Ramdas Group, a 150-year-old Omani conglomerate, slashed its SAP support costs by 80% using Rimini Street, freeing up budget for innovation.
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Foto: Symbolbild | Wikimedia Commons · Symbolbild (Wikimedia Commons: Prashant Kumar) - nicht das Originalfoto der Quelle.
The essentials
  • The firm preserved 700+ custom codes without downtime.
  • Savings are being reinvested into AI and new Salesforce CRM.

From SAP to savings: A new model for ERP support

Prashant Kumar, the company’s Chief Technology Officer, has said this change led to a budget savings of up to 80%. The group, a large conglomerate with deep roots in consumer products, retail, and logistics, was originally under pressure to make the switch to SAP S/4HANA. However, the associated costs and challenges of this migration were prohibitive, prompting the company to opt for third-party support from Rimini Street, which operates out of Las Vegas.

Khimji Ramdas Group’s SAP infrastructure plays a pivotal role in managing key operational areas such as finance, supply chain, and sales. Over the years, the company developed over 700 custom codes to tailor the system to its unique business needs. Other service providers were unwilling to handle such a high level of customization, but Rimini Street accepted the challenge.

Custom code is a lifeline, not a legacy problem

Khimji Ramdas Group has decided not to leave SAP ECC behind. As Kumar explained, this is a deliberate business choice. He added, “We have the same budget that we had when we were working with SAP, but now I can do more with it.”

The company’s SAP environment operates within a complex and multifaceted business landscape. The over 700 custom codes have been developed over many years to meet specific requirements of the company. Kumar also noted that the team at Rimini Street has been a consistent source of support and expertise. He remarked, “When I talk to my people, they say the level of support and professionalism from the Rimini Street engineering team is unmatched.”

By having Rimini Street manage their SAP platform, the company has relieved itself of the burden to transition to S/4HANA. This strategic move has created opportunities for the company to focus on AI-driven innovation, enhance e-commerce operations, and develop an in-house large language model for its data analytics platform.

Compliance challenges met with tailored solutions

Navigating Oman’s labor regulations presented another layer of difficulty for Khimji Ramdas Group. The company faced a complex HR and payroll compliance issue, which required a carefully crafted solution. Rimini Street played a key role in designing a strategy that enabled the company to transfer employees across business units without disrupting payroll alignment.

Kumar emphasized that this solution prevented potential costly fines.

The ability to prioritize business needs rather than vendor demands is now a reality for Khimji Ramdas Group. Nancy Lyskawa, Rimini Street’s Chief Client Officer, highlighted that the company’s approach demonstrates how IT leaders can achieve both growth and profitability without having to compromise one for the other.

Khimji Ramdas Group, which operates in a highly competitive business landscape, is now focusing on launching new initiatives. These include a new Salesforce CRM program, the expansion of e-commerce capabilities, and the development of a large language model integrated with its data analytics platform. Kumar stated, “We plan to stay on ECC until further notice because we have such outstanding support and the freedom to prioritize our business needs over vendor demands.”

The group is also leveraging its savings from the support transition to invest in innovation. By avoiding the need for a full migration to S/4HANA, the company has preserved its customizations and retained control over its IT strategy. Kumar noted that this approach is allowing Khimji Ramdas to remain agile and competitive, adapting its technology strategy to align with business goals.

Khimji Ramdas Group has a long history of operating in diverse sectors, including consumer products, retail, infrastructure, and logistics. Its SAP environment has grown over decades, becoming a central part of the company’s operations. The decision to partner with Rimini Street was driven by the need to find a support solution that could handle this complexity while delivering cost savings.

Kumar explained that the group’s initial inquiry into alternative support options led to a recommendation from an industry analyst. After evaluating the market, the company found that Rimini Street was the only provider willing to handle its large volume of custom code. This compatibility was essential for maintaining business continuity without the risk of system failure or disruption.

The partnership with Rimini Street has also provided peace of mind in terms of system reliability. Kumar shared that in the past four years of working with the third-party support provider, there has not been a single instance of SAP downtime. This level of performance, he said, is a clear indicator of the company’s expertise and commitment to excellence.

Beyond the immediate cost and compliance benefits, the move has also allowed the company to focus on future growth. By avoiding forced migrations and vendor-driven timelines, Khimji Ramdas has retained the ability to control its IT roadmap. This flexibility is crucial in a rapidly evolving business environment where digital innovation is key to staying ahead.

Kumar emphasized that the savings achieved through the new support model are being reinvested into strategic projects, including AI and data analytics. This shift aligns with the company’s broader vision of leveraging technology to drive operational efficiency and customer engagement.

Looking ahead, the company plans to continue working with Rimini Street to explore new opportunities for innovation. The partnership is expected to play a key role in the group’s digital transformation strategy, enabling it to maintain its competitive edge in the markets it serves.

“We have the same budget that we had when we were working with SAP, but now I can do more with it.”

Frequently asked questions

How much did Khimji Ramdas save by switching SAP support providers?

Khimji Ramdas Group reduced its SAP support costs by 80% after switching to Rimini Street.

What is the main benefit of staying on SAP ECC instead of migrating to S/4HANA?

Khimji Ramdas chose to stay on SAP ECC to preserve its 700+ custom codes without incurring the high cost and disruption of migration.

How is the budget saved being used by Khimji Ramdas?

Savings from reduced SAP costs are being reinvested into AI innovation, Salesforce CRM expansion, and data analytics projects.

Based on reporting by Financial Post, compiled by the Tradingbird newsroom. Published 06 Aug 2026, 14:58.
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