1. N U R T U R I N G E N T R E P R E N E U R S ’
S E E D I N G W O R K I N G C A P I TA L

2. E M P O W E R I N G E C O N O M Y
11.5%
Growth Per Year
69 Million
Employment
29.8 Mn
Enterprises
32.5 Tr
Finance
Need
MSME sector plays a significant role in the Indian economy
Catalyst for socio-economic transformation of the country
Generates employment, discourages rural-urban migration
Helps to build a thriving entrepreneurial eco-system
Promotes use of indigenous technologies
MSMEs in India
Source: IFC MSME Report

3. Lack of Infrastructure
Obsolete Technology
Inadequate Market Linkages
Lack of Managerial Competence
Inadequate Finance
Lack of Sound Policies
Total finance requirement of INR 32.5 trillion in the MSME sector
 INR 26 trillion of debt demand and
 INR 6.5 trillion of equity demand
R o a d b l o c k s !
Source: IFC MSME Report

4. Need For Working Capital…

5. Types of Working Capital
Working Capital
Basis of Concept Basis of Time
Gross Working
Capital
Net Working
Capital
Permanent or Fixed
Working Capital
Temporary or Variable
Working Capital
Seasonal
Working Capital
Special
Working Capital
Regular
Working Capital
Reserve
Working Capital
Procuring Raw Material
Plant & Machinery
Salaries of Staff
Pay Expenses
Pay Short Term Debts
Measure of Liquidity Measure of Future Credit Worthiness

6. Operating Cycle Of A Typical Company
Raw Material
Work In
Progress
Finished Goods
Sales
Accounts
Receivable
Cash
Accounts Payable Value Addition
Working Capital Cycle

7. Fixed Assets
Permanent Current Assets
Total Assets
Fluctuating Current Assets
Time
Short-term
Debt
Long-term
Debt +
Equity Capital
Aggressive Approach to Asset Financing
Challenges in Accessing Finance
Unavailability of collateral free loan
Delayed payments
Credit Rating
Traditional banking products are
inadequate to meet working capital
requirements
Exhausted OD Limits leads to
more requirement of WC

8. Who We Are

9. Religare Finvest Limited – About Us
Saluting The
Spirit Of
Entrepreneurship!
www.religarefinvest.com
RFL is committed to providing debt capital to power the
growth of the SME’s which constitute as the backbone
of India’s economy.
The diversified suite of lending solutions include:
 SME Working Capital Loans
 SME Mortgage Loans
 Loans Against Marketable Securities
Customized Solutions for SMEs

10. Success Story
Machine Tools

11. 3 Years of Vintage
Initial Capital of 30 Lacs
Invested in Product Development, Machinery, Marketing
Managed initial years from savings & borrowings from
acquaintances
Background
Disclaimer: Illustrative example of success on our 360 client coverage model. Any resemblance to anyone is coincidental.
Aspires to be leader in
supplier of mould tool to
leading blue chip
manufacturing companies
Prasanna Naidu: Mechanical engineer
from a reputed institute and a post
graduate in tool design & manufacture…

12. Current market Size In India is approximately INR 10236 cr
Indian Machine tool industry has around 1000 units
Total exports stands at around INR 90 cr
Employs a workforce totaling 65000 skilled and unskilled
personnel
Why Machine Tools
Source : www.imtma.in
User Sectors
Automotive
Auto Ancillary
Electricals & Electronics
Ball & Roller Bearings
Consumer Durables

13. Key Challenges Faced By Prasanna
Hurdles Faced
Financial Need:
 Requirement of capital: INR 12 cr
 Working capital required for buying machinery
 Maintenance, staff salaries
Competition
 Import of machine tools from
China, Taiwan, and Korea posing
stiff competition.
 Rapid increase in raw material
cost and longer delivery times
resulting into pressure on profit
margins
Networking
Unable to connect
with key buyers

14. How We Helped

15. How RFL Helped
Future Capability
Utilize Religare Eco-System
Business Development
 Introduced Prasanna to Credit and Investment banking teams
 Referred for business transactions to other RFL entities
 Introduction to CII mentor programs
 Market analysis
 Financial plan
 Risk analysis
 Marketing & Sales plan
 Business approach
 Future potential
 Owners capability
 Credit rating

16. Advantage RFL
Brand and marketing strategy
Export related consultancy
Training support for employees
RFL Advantage
Revamp of website
Communication Packs
Senior management team
trained by top consultants
Development of in house
training module
 Project exceedingly successful
 Market share quadrupled
 Religare network advantage

17. T h a n k Y o u
For feedback & suggestions please write to marketing.rfl@religare.com
Facebook.com/Religare Finvest
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