India is home to a vast cross section of industries, with the micro-small-and-medium enterprise (MSME) sector contributing significantly to most of them. These various industries witness headwinds from both domestic and international factors, as a result of which, the MSMEs involved in them also get the opportunity to capitalize on these trends and get ahead in terms of growth and profitability.
Some traditional industries in India have been reinvigorated with the influx of fresh demand and the implementation of new technologies. Jute is one such product, which continues to have myriad uses, keeping the industry going strong. According to the Ministry of Textiles, India is the leading jute goods-producing country globally, accounting for about 70% of estimated world production. During 2020-21, the value of exports of jute sacking goods from India stood at a whopping $59 million. Worldwide, jute is known as the golden fiber, and meets all the standards for ‘safe’ packaging because of being a natural, renewable, biodegradable, and eco-friendly product.
India’s jute bags market is expected to witness an incremental opportunity of $148 million by the end of 2032, increasing by 2.1x between 2022 and 2032. For many Kinara customers who are makers of jute and jute products, this momentum, combined with financing support, has resulted in successful businesses.
Shaik Husain has been running his jute or burlap bag manufacturing business named Karishma Gunny Traders for more than three decades. The company, located in Nandyal, Andhra Pradesh, had been making and distributing gunny bags, also known as jute bags or burlap bags, are a type of natural fiber bag used across the country. They are made from jute, a vegetable fiber that is strong, durable, and biodegradable.
These bags or sacks are widely used in the agricultural sector in India for the storage and transport of grains and other agricultural products. They are also used in various other industries such as cement and construction, textiles, and chemicals.
Gunny bags are also used for various non-commercial purposes such as making handicrafts, carpets, and home decor. They are an essential part of India’s economy, and contribute to the livelihoods of many farmers and workers in the jute industry.
Jute is one of the oldest and most prominent industries in India, but in recent times, it has received fresh impetus, particularly due to the crackdown on plastic packaging. Due to their eco-friendly nature, they are becoming increasingly popular as an alternative to plastic bags.
Given the growing demand for his product, Shaik Husain decided to look for financing to improve his production capacity and capitalize on the steady growth of the industry. When he found out about Kinara Capital, he immediately sought a collateral-free loan, and was granted the substantial amount of Rs. 25 lakhs.
Getting financing support from Kinara turned out to be the beginning of the real growth journey for shaik. Not only was he able to make the most of the growth momentum of the jute industry, he was also able to create employment for several others, helping them better their standard of living as well.
He shares, “I invested the loan amount in my business and it really helped in growing the capacity and quality of the products. I was able to significantly boost my turnover and double my workforce from 10 employees to 20. Not only is my business doing well, I have also been able to create jobs for other people, all thanks to Kinara!”
Shaik is one of 45000+ MSME entrepreneurs in India who have benefited from Kinara Capital’s collateral-free MSME business loans. Kinara Capital, an RBI-registered, Systemically Important NBFC in India with an aim to empower the MSME sectors has disbursed 75000+ business loans worth INR 3500+ crores to date. With its branches across 3000+ pin codes, Kinara provides doorstep services in vernacular.
To get a business loan for your small business, check your loan eligibility in 1 minute in the myKinara App by downloading it from the Google Play Store, with 7 language options available, choose your preferred vernacular. You can now get a business loan by giving a missed call on 080-68264454 and go from decision to disbursement within 24 hours.