Gujarat Ginners, Most efficient in Payment…
The chain of industrial activity of textiles starts with ginning. Such factories are located in cotton-growing belts and hence away from cities and towns. There are two types of ginning factories, firstly those which do job work on behalf of cotton merchants/traders/mills etc and secondly those which purchase kapas (unginned cotton) and sell pressed-bales to trade/mills, etc. Ginning is a seasonal activity and functions from the time of first cotton picking till the last picking of the crop. Ginners which do ginning on their own require larger dose of working capital credit than ginners which do job-processing.
TVC had a chat with a bank & a Chartered Accountant in Kadi, Gujrat,
TVC : Level of banking finance required by ginners
Ans : Depend on size of production capacity, i.e for 48 gin Term loan required 3.25 crore and CC 7.50 crores.
TVC : Level of financial discipline in ginning factories
Ans : As concern as north Gujarat ginners very regular.
TVC : How the loan account is operated – regularity, no delay in payment of interest, repayment of loan amounts etc.
Ans : No delay and no defaulter due to regular collection.
TVC: Is the working capital loan sanctioned to individual ginners adequate or there are unfulfilled demands for enhancement of working capital?
Ans : During season time ie. For 2-3 months, take more amount for WC, they repay immediately after season.
TVC : Did security offered by ginners give rise to any issues subsequently?
Ans : Ginner gives Fixed asset for security. Till now not find any defaulters.