The age-old tradition of exchanging gifts, personal or professional, in India has contributed to the growth and expansion of the Indian gifting industry to grow manifolds in the present era. According to research by Technopak, “the total size of the Indian gifting industry is INR 250,000 crores”.
With the variety of options available in the gifting stores like personalised notes, handcrafted items, engraved wooden boxes, creative packaging has made customers buy great gifts for their friends and family. The estimated size of the current online gifting market is USD 65 million and is expected to grow up to USD 84 billion by 2024.
Introduction: Sai Santhoshi Fancy and Gifts
Sai Santhoshi Fancy and Gifts was established in the year 2005, by P.V. Rammana and his wife Pentakota Ramalakshmi. Rammana started his business in Yalamanchi, Visakhapatnam after working in the Vizag Steel Plant for 30 years. The entrepreneur chose the area with no prior experience and knowledge about it, with minimal competition due to the limited number of similar businesses in the nearby localities, his gift shop gained popularity and profits in a very small period of time.
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Choosing an out of the box business, Rammana soon earned customer satisfaction leading to higher trajectory for his small gift shop. The growth of Sai Santhoshi had simultaneous growth in the gift market with an increase in the number of gifting options. As the Indian gifting market expanded including personalised gifts, handcrafted goods, notes, resin statues etc.
Even the successful businesses have to upgrade themselves to keep up with the market, Rammana had to increase the options for his customers which was a challenge for him to crack and look for funds.
Solution Offered by Kinara Capital
In 2019, Rammana with his wife Ramalakshmi approached Kinara Capital to avail a business loan, after successful submission of the documents and their first loan worth INR 8 lakhs was quickly disbursed to ensure expansion of their business. To grow further they took another loan worth INR 8 lakhs.
Impact of Solution Offered by Kinara Capital
With the loan of INR 8 lakhs Sai Santhoshi expanded their business and earned large profits after which they again turned towards Kinara Capital for another MSME business loan worth INR 8 lakhs. They utilised the second loan by investing into property in order to expand their business to the next level.
The expansion of their business led to increment in the profits resulting in increased turnover for Sai Santhoshi to INR 1.8 lakhs per month. Rammana tells, “Kinara’s loan has been extremely helpful in improving my business and staying competitive in just a few years, our turnover has gone up to INR 1.8 lakhs per month, which is an unprecedented amount of growth. In the future too, we will rely on Kinara for capital support whenever our business needs it”.
Kinara Capital an RBI registered, Systemically Important NBFC in India with an aim to empower the MSME sectors has disbursed 75000+ business loans worth INR 3500+ crores till date. With its branches across 3000+ pincodes Kinara provides doorstep services in vernacular.
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 languages option available, choose your preferred vernac. You can now get a business loan by giving a missed call on 080-68264454 and go from decision to disbursement within 24 hours.
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