Udyam Certification: How to update or change details in your Udyam certificate online? Here’s processįor the first seven years, the company was pure-play into lending to enterprises and proprietary firms. This was his eureka moment to replicate the model in India since factoring was almost non-existent here. Was payment delay the reason for that company becoming defunct?). Looking for credit from banks in South Africa to revive the business, Modani came across factoring as a model to unlock money tied up in unpaid invoices. 11 years later, in 2010, he bought a South African PVC pipes manufacturing company Radiant Corporation that had turned sick due to liquidity issues amid delayed payments from its customers. While his family continued with the other business of jute rope manufacturing called Hansa Rope Industries, Modani pursued his doctorate from the same university in working capital management partly to probe deeper into the mistakes they made and rationalise the loss of his family business.īefore he eventually put his PhD into practice and get into the unorganised working capital space, Modani ventured into producing and exporting Silica-based minerals in 1999 to 28 countries across the globe under his first company RSP Corporation. The company “lost all money because of mismanagement of long term and short term funds,” he recalled as banks also shied away from helping recover the business. The reason for failure wasn’t high competition or lack of innovation but inadequate working capital to continue the business operations. Credit and Finance for MSMEs: Jaipur-based third-generation entrepreneur Ravi Modani had just completed his masters in commerce from the University of Rajasthan in 1992 when one of his highly working capital-intensive family businesses of manufacturing laundry soaps - Hansa Soaps went bankrupt and got shut.
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