The automobile component industry accounts for manufacturing various pieces of cars which are later used to build or repair cars. This industry in India is bifurcated into two parts that is organised and unorganised sector. The organised segment of the Indian automobile component industry caters to original equipment manufacturers and consists of high-value precision instruments. With continuous demand and growth, this sector’s turnover stood at around USD 27 billion in 2021 and is expected to witness revenue growth of 15-17% during this fiscal year.
Shri Gajanan Industries - Introduction
Shri Gajanan Industries located in Kolhapur, Maharashtra was established in 2015 by Sushant Dipak Mudagal, an MSME entrepreneur. They manufacture various components which are required to build or repair automobiles and purchased by wholesalers or traders. With the increase in demand in the market, Sushant Dipak Mudagal wanted to meet the customer requirements.
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Problem Statement - Shri Gajanan Industries
As Sushant was looking at ways to meet the market demand, he needed financial support to invest in new machinery to improve the efficiency of production of automobile components. For verification and sanction of business loans there are certain documents required to be submitted by any small business owner. Although Sushant had all the documents required for the loan process, he was still unable to receive a loan from various banks. While he was looking for solutions one of his friends recommended Kinara Capital and he immediately approached a nearby branch office.
Solutions offered by Kinara Capital
Once Sushant approached Kinara Capital and provided minimum documents required for verification, a loan officer visited his industry and checked the manufacturing process and his business. He was then sanctioned his first loan of INR 4 lakhs within a few days. With this fund, Sushant was able to invest in two new machines required for his business and was able to meet customer demands and witnessed an increase in turnover.
As his business was growing, the demand increased and he needed more funds. This time he directly went to Kinara Capital and applied for a second loan, upon seeing his annual turnover he was sanctioned another INR 4 lakhs which supported his business growth. This was followed by a third loan of INR 1.2 lakhs and a fourth loan of INR 5.4 lakhs.
Impact of Kinara Capital
With the loans availed from Kinara Capital, Sushant was able to grow his business rapidly. Earlier he had an annual turnover of INR 15 lakh which has now increased to INR 36 lakh. Also, when he started his business there were only 4 employees working for him whereas now there are 15 employees working in two shifts. Not only has the annual turnover increased but they witnessed a 3x growth in manpower, giving many people opportunities.
Sushant shares, “After I added the machinery, my turnover increased and I was able to handle the increasing volume of orders I started receiving. A couple of years later, I needed another loan to expand my business further, and this time I approached Kinara without a second thought, and got the capital right away. The two loans have really helped me stabilise and grow my business. I'll be grateful to Kinara for the rest of my life!"
Kinara Capital offers various products and services to support the growth of the MSME sector. With the collateral-free asset purchase loan from Kinara, MSME entrepreneurs can purchase new or second-hand machinery to grow their small businesses and accelerate their production capacity. Kinara Capital’s 3-step eligibility process is a fast and digital-first solution that reaches millions of MSMEs operating in India. Kinara Capital offers security free loans, to avail a fast and flexible loan download the myKinara app and check your loan eligibility in just a minute or give us a missed call at 080-68264454.
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