In recent years, India has become the world's fastest-growing economy. This rapid expansion, combined with rising incomes, more spending on infrastructure and increased manufacturing incentives, has boosted the automobile sector. Because of the Indian middle class, the two-wheeler segment dominated the automobile industry, with automobile sales totaling 17.51 million units in FY22. Due to the high demand for automobiles, more original equipment and auto component manufacturers have emerged. As a result, India developed expertise in autos and auto components, which aided in increasing international demand for Indian automobiles and auto components. As a result, the Indian automobile industry has a large impact on the auto component industry.
The auto component industry in India is a significant contributor to macroeconomic growth and employment. The industry includes players of various sizes, from huge enterprises to micro entities, scattered around the country in clusters. The industry provides 2.3% to GDP and directly and indirectly employs around 3 million people. According to the Indian Brand Equity Foundation, the Indian automobile component business had a turnover of $26.6 billion in 2021 and is expected to grow at a rate of 15-17% in the future. Exports of auto components rose by 76% to $9.3 billion in the first half of FY22.
Jaanu Industries is an auto parts manufacturing company in Bengaluru, Karnataka founded by Manjunath Janamatti. This MSME business is engaged in manufacturing auto parts moulds and delivers its services to different companies.
Manjunath decided to launch Jaanu Industries in 2015, and by 2017, he had successfully established and registered the company. His initial investment was Rs. 3 lakhs, which he used to purchase a DRO milling machine. It was going alright but later he wanted to upgrade his business and get more machinery and manpower.
Manjunath was looking for a business loan to help him grow his company. He approached several banks but was turned down. As a result, he was extremely disappointed. Later, he approached Kinara Capital about obtaining a business loan. He received a loan of Rs. 4 lakhs in a short period of time without having to provide any property collateral. He used the loan to buy another machine for his business.
The first loan was very useful to Manjunath as it helped him grow Jaanu Industries to a higher level. It led him to approach Kinara Capital for another loan. After a year, he received a second loan, amounting to Rs. 2.7 lakhs, which was also used for machinery purchases. When he started getting more profit, he applied for three more loans to improve his business. He received a 3rd loan of 2lakhs, a 4th loan of 11lakhs, and a 5th loan of 2 lakhs. When he started Jaanu Industries, he had only 2 employees and today he has 6 employees as the business is doing better now. This demonstrates how much his company has developed in the previous five years as a result of Kinara Capital's business loans.
Manjunath Janamatti said, “the loans Kinara provided by Kinara have improved my business. Kinara is very supportive and they are the best!”
Kinara Capital provides collateral-free business loans to MSME businesses in the trading, service, and manufacturing industries. These loans can assist business owners in expanding and improving their operations, as well as seizing new business prospects by funding essentials such as timely raw material purchases. The online business loan application process is simple and quick, and it can be performed by the customer or with the assistance of a Kinara representative. The loan can be disbursed in as soon as 24 hours once the application process is finished. Kinara Capital's Doorstep customer care can assist the MSME business entrepreneurs throughout the application process if they experience any difficulties.
Kinara Capital, an RBI-registered Systemically Important NBFC in India has disbursed 75000+ business loans worth INR 3500+ crores so far. To develop your business, verify your loan eligibility in 1 minute on the myKinara app from the Google Playstore, or give our in-house customer care staff a missed call at 080-68264454.