Large manufacturing companies have the advantage of implementing the latest technologies to optimize their operations and output. However, small business entrepreneurs often struggle to afford these upgrades and therefore suffer from efficiency issues. Micro-small-and-medium enterprise (MSME) entrepreneurs in India often struggle to afford the latest upgrades in technology and machinery, leading to significant efficiency issues that can adversely impact their competitiveness in the market. They face several challenges in upgrading their technology and machinery. Firstly, the high cost of technology and machinery can be a significant barrier to adoption for many MSMEs, who often operate with limited financial resources. The lack of awareness of the latest technologies and their benefits can also hinder the adoption of new technology by MSMEs.
The lack of access to financing is a major challenge for MSMEs in India, which can further limit their ability to invest in new technology and machinery. In many cases, MSMEs in India lack the collateral and creditworthiness needed to access formal credit from financial institutions. The consequences of these challenges are often felt by MSMEs in the form of lower productivity, higher production costs, and lower competitiveness in the market. For instance, a small manufacturer may rely on outdated machinery, leading to higher production costs and longer lead times, affecting the quality and delivery of products. For over a decade, Kinara Capital has been supporting thousands of such entrepreneurs with access to capital, with the aim of taking their businesses to the next level.
Basavraj has been running his company, Gajalakshmi Engineering for the past 6-7 years. His business is involved in the manufacturing of injection molding components and auto parts for a variety of purposes. The Indian automotive parts industry is promising due to factors such as a large domestic market, increasing vehicle production, low labor costs, government support, and the availability of skilled labor. These factors create a conducive environment for the growth and development of the industry, making it a promising sector for investment and expansion.
When he started out, Basavraj had one machine and one operator working for him, but his business suffered from major efficiency issues. Since he worked with only one small machine, his energy consumption was high, while his production speed and output remained low. A single batch would take 1.5 to 3 hours to produce, which meant that his electricity bills were steep and unserviceable.
Basavraj desperately needed to upgrade to a bigger, more efficient machine, but given the costs involved, he simply couldn’t afford it. All that changed in 2017, when he was approached by a Kinara Capital executive and offered a collateral-free business loan. He seized the opportunity, and that became a turning point for his business.
Like many small business owners, he had been stuck in a rut that he was unable to break out of on his own. Upgrading machinery and streamlining processes can be an expensive affair that many MSME entrepreneurs in India fail to afford on their own. Kinara Capital has been bridging this gap by providing these business owners with easy access to collateral-free loans to solve this issue.
Basavraj put Kinara’s funding to good use, immediately investing in measures and machinery that would minimize his energy consumption and maximize his output. He shares, “I upgraded to a bigger machine, which cut my production time down from 3 hours to 1 hour, and my energy utilization also improved drastically. With Kinara’s support, I have been able to up the number of machines I have to 7, and now employ 8 operators. My turnover has also shot up, and now I make Rs. 10-13 lakhs a month. This transformation was made possible by Kinara. The simple documentation and quick disbursement made the loans easy to avail of and worked wonders for my business. Now I’m content on both the personal and professional fronts.”
Basavraj is one of thousands of women entrepreneurs who have benefited from Kinara’s HerVikas loans. If you are a woman entrepreneur, it’s time to get your growth journey started with HerVikas. 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. Also, we have a dedicated customer support team available between Monday – Friday (9.30 AM – 6.00 PM) at our toll free number 1800-103-2683 for any questions or assistance. This ensures that entrepreneurs can get the help they need throughout the loan process.
