DEPARTMENT OF INDUSTRIES AND COMMERCE,
GOVERNMENT OF TELANGANA
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Telangana, the Youngest state, marches ahead as a torchbearer
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Telangana, the Youngest state, marches ahead as a torchbearer
for the new india of the world.
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Telangana, the Youngest state, marches ahead as a torchbearer
for the new india of the world.
Fifth Year in a row
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ORGANIZATION INTRODUCTION
Telangana Industrial Health Clinic ltd is an innovative NBFC promoted by the Government of Telangana to REVIVE AND REHABILITATE sick and incipient sick micro and small manufacturing enterprises in the state of Telangana. TIHCL serves the larger agenda of UNIDO’s Sustainable Development Goals (Goal 9). Our focus is micro and small manufacturing segment where the investment ceiling in Plant Machinery is Rs 250 million (excluding the cost of land and buildings). This is only NBFC in the entire country which is set up for the revival and rehabilitation of Sick MSEs and came into being on 2nd April 2018.MSME sector contributes enormously to the socio-economic development of the country at a lower cost. TIHCL’s area of operation is limited presently to Telangana which is the most progressive state today in the country though it is youngest by virtue of its formation on 2nd July 2014
How did we come into existence
NPAs in MSMEs segment has being increasing every year and leading to shut down of business in turn impacting employment, growth and sustainability. Banks approach towards stressed enterprises is not welcoming even after RBI guidelines on revival and restructure. Such enterprises should be supported with acceptable solution by conducting diagnostic study, identifying the reason for stress in the enterprise and provide financial or non-financial support to revive the enterprise. There is need of a healthy ecosystem for MSEs and that can be achieved only if we can provide timely support to the enterprises . MSEs are suffering largely with following issues.
- Lack of capacities
- Delayed release of incentives and payments.
- Huge Credit Gap between entrepreneur and Banker.
- Lack of international standards in manufacturing.
- Growing NPAs in SME units.
- No mentoring and consultations to units and others.
To address few of such concerns, TIHCL has come into existence focusing on revival and restructure of stressed micro and small manufacturing enterprises in Telangana state with equity support of Rs. 10.00 Cr from Telangana State government and is registered as NBFC company.Â
Telangana Industrial Health Clinic – Untapped Segment
MSMEs are the livewire of any growing economy and more particularly in the manufacturing sector. Approx. 18% of GDP is contributed by MSMEs segment in India but NPA in micro and small manufacturing enterprises has been increasing and leading to closure of the unit. Opportunities are very limited for manufacturing sector unlike service sector. There is a need for immediate attention for stressed MSE in form of monetary and non- monetary support. TIHCL caters to untapped segment of micro and small manufacturing segment which are in stress.
Social impact
Vision:
To Build and Develop Sustainable entrepreneurial ecosystem dealing with challenges of Manufacturing MSEs in the State of Telangana.
Mission:
To Guide, Mentor & Support Manufacturing MSEs.
Values
Dharma
“Righteousness”
Loka Sangraha
“Public Good”
Kaushalyam
“Skill & Efficiency”
VaiVidhyatha
“Innovation”
Jignasa
“Learning”
Objectives
- To ENSURE healthy manufacturing MSEs through responsive counseling and responsible consulting and other mentoring services
- To ENGAGE Manufacturing MSE’s with a strong and consistent in financial performance through better compliance standards
- To SUPPORT and ENRICH a sustainable working environment that attracts, retains and develops committed team sharing common values
- To play the role of ADVOCACY in assuring prompt payment by the vendees of MSEs
- To PROPEL potential MSE’s to equity platforms like NSE and BSE.
What We Offer
Revival & RehabilitationOverdue Bill PurchaseCritical Amount FundingStressed Asset FinancingNARISWASHAKTIWEBridge Finance
We aim to revive and rehabilitate the sick and incipient sick micro and small manufacturing enterprises.We carry out a diagnostic study and provide the entrepreneur with a specific revival & rehabilitation package. We also handhold the stressed unit till it comes out of stress.
We aid the stressed entrepreneur by providing up to 75% of the overdue bills and prevent the enterprise from turning into NPA.
We Provide loans for repayment of ‘critical amount’ to stressed enterprises which would prevent them from slipping into NPA in the books of Primary Lender (Bank/NBFC/SFC).The critical amount refers to the overdue amount that is required to keep the account as standard lest the account will slip into NPA
Based on the diagnostic study substantiated by TEV study where felt necessary, if the enterprise unit is found to be potentially viable, we would finance the dues to the primary lender and takeover and revive rehabilitate and handhold the unit.
We aim to revive and rehabilitate the sick and incipient sick micro and small manufacturing enterprises of Women entrepreneurs at concessional charges
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We provide financial assistance to existing manufacturing enterprises managed and owned by women entrepreneurs in the State of Telangana
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We provide financial assistance to new manufacturing enterprises to be started by women entrepreneurs in the State of Telangana
We provide finance for short term to those stressed manufacturing MSE‘s of Telangana State against investment subsidies pending.
CASE STUDIES
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Problem: Working capital funds are utilized to pay newly introduced GST on machinery purchased was not part of sanctioned amount. Resultantly factory could not start it’s operations.
Resolution: Revival package was implemented which included restructing the loan, increase moratorium period and additional margin funding from TIHCL providing enough cushion and working capital.
| Key Indicators | Pre Revival | Post TIHCL Intervention |
|---|---|---|
| No of EMI’s pending with primary lender | 6 | 1 |
| Capacity Utilization | 0 | 50% |
| Turnover | 0 | 20 Lakhs |
| Employment | 0 | 6 |
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Problem: Shortage of working capital funds due to increased investment on construction of factory premises, Natural Calamity damaged factory shed and there is delay in delivery of machinery and delayed the commencement of operations. Unit became NPA.
Resolution: TIHCL’s sanctioned CAF loan which reduced the interest burden for the enterprise by 4% and provided much needed relief in working capital cycle. Upgraded to standard asset.
| Key Indicators | Pre Revival | Post TIHCL Intervention |
|---|---|---|
| Overdue amount with primary lender | Rs.24.90 Lakhs | Rs.0.00 |
| Capacity Utilization | 50% | 100% |
| Turnover | 90 Lakhs | 145 Lakhs |
What We Have Achieved
Address:
Invest Telangana Cell,
Industries & Commerce (I&C) Department,
5th Floor, BRKR Bhavan, Hyderabad,
Telangana, India.
Should you have any questions, or wish to speak to our Qualified Financial Advisors at Telangana, Please Contact Us.
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