A171 - Working capital assistance for manufacturing of drip irrigation products, Alur, Hassan District, Karnataka

Project Financials

http://spreadsheets.google.com/pub?key=pwRdPi0mYDcKj0JF80sjcXA

Project Details

This project is to develop entrepreneur Mr Arun kumar proprietor of M/s Boomika irrigation systems, vijayanagar extension, 1^st stage, B M road, Hassan. He is into manufacturing and marketing of drip irrigation spare parts. The customers of the product will be farmers and drip irrigation dealers. To stock and sell the products, the entrepreneur will be given working capital support from canara bank. S3IDF will facilitate working capital support for the entrepreneur from canara bank by providing security in the bank in the form of fixed deposit. Wherever possible, the entrepreneur will sell their products on a cash basis and where required financing for the products will be provided through local banks and micro finance institutions. In addition to providing the entrepreneur financial support, S3IDF will provide business development assistance to the selected end users/customers.

Project Size Details

The working capital loan provided to entrepreneur from Canara bank is Rs 50,000.So the project size is Rs 50,000.

Project Impact Details

This project will provide employment to Mr. Arun Kumar

Project Risks

Since the business is existing one the risk factor is low.

Project Owner/operator risk:

The risk of the entrepreneur who will be the project owner is the biggest risk of this project. The risk is that the entrepreneur misuses the support provided to him or proves to be incapable to deliver as per expectations. To reduce this, we will be following a rigorous selection process for selecting entrepreneurs. This will ensure only the most suitable are selected. Additionally, the support provided to the entrepreneur will be backed up by necessary legal documents so that immediate legal action can be taken if the entrepreneur does not go as per the agreed terms and conditions. Also, the performance of the entrepreneurs will be closely monitored on a regular basis (weekly).

Market risk:

Since we will be focusing on the bottom of the pyramid market, which is largely untapped, this risk will be less. In case at a particular location, such a risk arises, the products will be shifted to another location.

Technology risk:

No technology risk.

Portfolio risk:

No portfolio risk

Mission risk:

No mission risk

Partners

Mr. Arun Kumar, Canara Bank