Industrial Health Clinics for MSME
Today, Deccan Chronicle has mentioned that Mr.Suresh Prabhu, Honorable minister for commerce and Industry has probably accepted the model of our state Govt, Telanaga Industrial Health Clinic which was inaugurated in 02/4/2018. This is a welcome move. If implemented properly, it can save 1cr jobs and put industrial assets of more than 1 lacs cr which can generate 20000cr by way of taxes to both state and central Govt.
It is possible to save one job in loan range of 1cr to 10cr by as little as 15000/- only.
M/S GROWTH IDEA LAB is working on this and highlights of the proposed model are as follows:
Highlights of the proposed model for the revival of sick MSME units Only Turnaround
- Neither bank nor entrepreneur is bringing any funds
- We bring in funds from our sources
What is selection criteria
1.Unit shall have loan liability of 1 to 10cr
2.Shall be running
3.His bankers shall be willing to revive/restructure
4.Entrepreneur shall have passion/desire to revive and ready to work smart
5.EBID(Earnings Before Interest Depreciation Amortization) Zero or positive.
What we bring to the table
1.We will bring fund and short-term funding and equity
2.We also bring short-term manpower
What we will do
We will depute one full time dedicated person, an initial phase to resolve entrepreneurs dilemmas according to his priorities and help to increase cash flow by balancing activity.
Identify idle assets and inventory and help him to use/liquidate.
Our back office will prepare a market development plan and be using his manpower execute or get it executed.
Data mining and use/strategies to use towards the desired goal.
Prepare ageing statement and priorities payment to various suppliers.
How do we make money
The unit will be strengthened so that it reaches 10x growth in 3 to 5 years and it can be listed on SME exchange so our equity will be encased or any other exit route will be predetermined.
M/S Growth Idea Lab has invested 40 lacs in last 30 months and ready to bootstraps further 25 lacs and are looking to raise 4cr in next 12 months to have a portfolio of 60 units.
Happy Ahskaya Tritya