Red Fort Capital provides ₹9.25 Cr business loan to cotton mill Venkata Krishna Spinners within five days.
Venkata Krishna Spinners is a 26-year-old public unlisted company with a fully automated 16000 spindle cotton mill located in Hyderabad, Telangana. The loan will assist the company in securing raw material contracts at a fixed price for its cotton mill, helping to improve margins that were affected by the sharp increase in cotton prices throughout FY22.
Red Fort Capital’s provision of quick business loans for working capital is a cheaper alternative to costly trade credit and can directly improve margins by at least 3-5%. In addition to improving margins, the loan will help Venkata Krishna Spinners meet an unanticipated surge in product demand and also opens up the possibility of taking up new contracts and providing additional services.
Loan Amount: ₹9.25 Crores
Type of Loan: Working Capital Business Loan
Location: Hyderabad, Telangana
Collateral Cover: 2X (Residential land)
Disbursed On: October 2022
Red Fort Capital disbursed 14 crores of business loans in October 2022.
