Kinara empowers Manjunath Hydroflexibles
Saktivel at work

Kinara empowers Manjunath Hydroflexibles

Business: Manjunatha Hydroflexibles

Owners: Sakthivel (son) and Annamalai (father)

Sector: Manufacturing

Sub-Sector: Auto Components

Loans Taken: 2 long-term loans; 38 bills discounted


My name is Annamalai and I live in Hosur, Tamil Nadu. I never completed high school, but I have always been very good with my hands. I started working in the auto part manufacturing industry more than 25 years ago. In my first job, I worked on small machines creating bicycle parts. I wanted to own my own business so my son wouldn’t have to struggle like I did.

Kinara Capital giving a loan to Sakthivel
Kinara Capital giving them their first cheque

In 2011, I started Manjunatha Hydroflexibles with my son, Sakthivel. I am very proud because he is the first child in our family to get a diploma and a MBA. Our company produces parts that go into trucks and lorries. To start our company, I purchased my first CNC machine by selling off my property. We were doing a turn over of about Rs. 1 lakh ($2,000) per month, but I needed to add another CNC machine to increase revenue. I identified a good quality second hand machine and I needed to get financing quickly. I approached my bank but they would not give me a business loan because we had only been operating for eight months. I was even willing to pledge my house, but they refused. Before we learned about Kinara, our only option was to go to a moneylender and pay 60% interest per annum.

Kinara solved our challenge of access to capital. In March 2012, Kinara gave me a loan of Rs. 400,000 ($6,700) to buy a used CNC machine. I was able to expand production, increasing the number from four to seven employees and to increase revenue from Rs. 150,000 to Rs. 200,000 ($2,500 to $3,300). My income also increased by Rs. 3,000 ($50). After we paid off our first loan, in May of 2014, we got a second loan from Kinara for Rs. 600,000 ($10,000) to purchase another CNC machine. We were able to expand to ten employees and double our revenue to Rs. 600,000 (from $5,000 to $10,000). With this loan and the growth of our company, my income was also able to increase by an additional Rs. 5,000 ($83).  We have also taken advantage of Kinara’s receivables financing product where we take short term working capital to help manage our business cashflows.  This allows us to purchase good quality materials without paying a surcharge and deliver to our buyers on time., thus, easing the cash crunch in the business.

It has been a great year, both for our business and for our family. We recently purchased some land in a nearby town, which we plan to use for a new manufacturing unit. And my son just got married!

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