The Indian coir industry is a substantial cottage industry that has a significant economic impact on the major coconut-growing States and Union Territories, including Kerala, Tamil Nadu, Andhra Pradesh, Karnataka, Maharashtra, Goa, Orissa, Andaman & Nicobar Islands, Pondicherry, etc.
This industry employs approximately 5.5 lakh people, mainly on a part-time basis, and exports around Rs. 70 crores. For coir products, coconut husk serves as the primary raw material. Coir goods are made with about half of the coir husk that is readily available. This means that the coir sector has room to grow. According to a report from India Brand Equity Foundation, India exports coir and coir products to more than 100 countries around the globe. The exports hit an all-time high in 2020-21, with a total value of $487 million, marking an increase of 37% from the previous year.
The Coir Board of India has introduced programs including the Mahila Coir Yojana, Coir Sector Technology Upgradation Scheme, and Coir Vikas Yojana (Coir Development Scheme) to advance the coir industry in India. The Domestic Market Promotion Program and the Export Market Promotion Program both aim to increase domestic and export sales of coir and coir products.
Sri Durga Raja Rajeswari Coir Industry is a coir manufacturing company that extracts the fibre from the coconut and exports it to China. Nageswara Rao, an MSME entrepreneur, founded the business, which is based in Thagale West Godavari in Andhra Pradesh.
He started his business 10 years ago and it was doing well until it started struggling around three years ago. He needed some assistance to get the business back to the previous state. Hence, he applied for a business loan from Kinara Capital to get sufficient funding to upgrade the business.
A representative from Kinara Capital approached Nageswara Rao a year ago. He initially declined because he already had a loan in progress. The same executive returned a year later and went over the various lending programs that Kinara Capital offers. He had paid off all of his previous loans by that time. So, he applied for a business loan from Kinara by submitting all the required paperwork. The loan was disbursed swiftly without submitting any property collateral.
He used his first loan of Rs. 8 lakhs to invest in his company. After receiving the money, his production went up by a ton. He utilised it to purchase equipment and raw material. Later, he requested a second loan of Rs. 1.4 lakh and a third loan of Rs. 8 lakh. Over time, the company's productivity improved, and today they export up to 20 tons of products daily. It demonstrates the rise in output and level of business expansion brought about by Kinara Capital's business loans.
Nageswara Rao tells Kinara that they dry and process the product and send it to Vizag Shipyard, which is later exported to China. They have no problem with the payments as they receive the amount once the shipment is done. Nageswara also has an agreement with his Chinese clients that they will purchase the maximum product that Sri Durga Raja Rajeswari Coir Industry produces.
We invested as much as we could in the business. I have been able to produce an extra ton of material each day since taking the loan. We make an additional Rs. 10000 per day as a result of that. Thankyou Kinara Capital for guiding us when we needed the support.
Kinara Capital is a socially responsible fintech company that makes it possible for small business entrepreneurs to bring economic prosperity in their communities with their income generation and job creation. With the grit and perseverance, MSME entrepreneurs can go on to create local jobs and grow India’s economy. Kinara’s tech-enabled application process and data-led decision process enable them to provide easy business loans to customers much faster and more efficiently than traditional lenders. The unsecured business loans from Kinara Capital are the best option for small business owners looking for a business loan without submitting any property collateral.
Micro, Small, and Medium Entrepreneurs who are into Manufacturing, Trading or Service sectors can apply for a working capital or asset purchase loan which is available in the range of Rs. 1 lakh to Rs. 30 lakh. They can download the myKinara app from Kinara Capital to receive fast and flexible business loans within 24 hours. myKinara is available in 7 vernacular languages including Telugu, Kannada, Hindi, Gujarati, Marathi2, and English for the convenience of the customers. Visit Kinara Capital’s official website for more information about collateral-free business loans.