The non-engineered goods manufacturing sector forms a significant part of India’s MSME ecosystem, producing a wide range of products such as textiles, paper, packaging materials, furniture, ceramics, and consumer goods. These industries play a crucial role in domestic consumption as well as exports, contributing to employment generation and economic growth. With the government’s push for self-reliance under initiatives like “Make in India” and “Atmanirbhar Bharat,” MSMEs in this sector have tremendous opportunities for expansion and modernization.
Despite its potential, the sector faces several financial challenges, including working capital constraints, rising raw material costs, and limited access to technology upgrades. To remain competitive and scale operations, MSMEs in non-engineered goods manufacturing require robust financial support. Below are the key funding solutions available:
a. Working Capital Funding
- Cash Credit Facilities: Provides liquidity to manage day-to-day expenses, procure raw materials, and maintain inventory.
- Overdraft Facilities: Helps businesses bridge short-term cash flow gaps and maintain operational stability.
- Invoice & Bill Discounting: Converts unpaid invoices into instant cash, allowing smoother cash flow management.
- Bank Guarantees: Essential for securing contracts with suppliers and large buyers, ensuring credibility in transactions.
- Letter of Credit (LC): Enables businesses to procure raw materials on credit from domestic and international suppliers.
Capstone has successfully structured working capital solutions ranging from INR 3 crore to 250 crore, ensuring uninterrupted business operations for MSMEs in this sector.
b. Long-Term Funding
- Term Loans for Factory Expansion & Modernization: Enables businesses to upgrade machinery, expand production facilities, and enhance automation.
- Machinery Loans: Provides financing for acquiring new or upgraded manufacturing equipment, including both domestic and imported machinery.
- Commercial Property Loans: Supports MSMEs in acquiring warehouses, factory premises, and other infrastructure necessary for manufacturing.
Capstone has facilitated over 200+ long-term funding transactions for non-engineered goods MSMEs, with project values extending up to INR 500 crore.
c. Structured MSME Funding Options
- Bridge Funding (Unsecured Loans): A key financial tool for MSMEs facing short-term liquidity challenges, bridge loans provide immediate funds without requiring collateral. This is particularly useful for businesses dealing with large orders where working capital needs exceed available resources. Capstone arranges bridge funding ranging from INR 2 crore to 25 crore, ensuring smooth financial continuity and business expansion.
- Margin Funding: Helps MSMEs cover gaps when project costs exceed the initially sanctioned loan amount, ensuring uninterrupted execution.
- Performance-Based Financing: Tailored financial solutions based on revenue projections and contract commitments, allowing businesses to scale efficiently.
Capstone specializes in structuring customized financial solutions for MSMEs in non-engineered goods manufacturing, ensuring they receive the right funding at the lowest cost with structured repayment plans.
Special Funding Options
MSMEs registered under “Make in India,” “Start-up India,” and Udyam qualify for special financial incentives, including lower interest rates, subsidies, and priority funding schemes.
With the right financial support, MSMEs in non-engineered goods manufacturing can enhance productivity, increase market reach, and drive India’s industrial growth.
