Vishal Industries Accelerates Cash Flow to Undertake Major Infrastructure Investment

A powder coating and assembly business in Goa, India, enhanced production capacity and revenue with smart and proactive cash flow management. 

The perspective

The manufacturing industry in India usually works through a series of manufacturing support and value addition processes. These processes are often outsourced to small and medium-sized business (SMB) units scattered around the country. These units serve as links in the manufacturing chain at different production stages leading up to the roll-out of the finished product. 

Often driven by individual leadership, these SMBs rely on infrastructure development, finance, meticulous production planning and logistics. 

Delayed revenue cycles and arbitrary borrowing can sometimes trap these businesses in a working capital pressure loop. As a result, individual focus on production and delivery — aspects of capacity enhancement that depend on integration — are often neglected.

Essentially individual in character, the past, present and future of such businesses are reflections of their leaders’ vision, courage and ability to innovate and adapt.  

The journey

Anil Kaushik leads Vishal Industries, a powder coating and assembly business created in 2008. Located in Goa, the unit is in strategic proximity to the facility of its major client, Crompton Greaves Consumer Electricals Ltd. 

Kaushik said that Crompton accounts for about 90% of Vishal’s business and Vishal is among Crompton’s top vendors. 

An engineer, Kaushik has had a natural talent with machines since his early days. Before Vishal Industries was established, Kaushik had set up and run businesses in various industries, including office automation and logistics in New Delhi. 

But what brought Kaushik 1,200 miles south of his base to build Vishal Industries is a story of sheer grit, courage and determination.   

The very name Vishal (a Hindi word meaning “gigantic”) reflects Kaushik’s vision for his business. As the famed microbiologist Louis Pasteur said, “‘chance favours the trained mind.” The beginning of Kaushik’s business is rooted in a series of fortunate events.

In 2008, Kaushik had accompanied a family friend on an advisory role to inspect this unit in Goa. This friend later backed out of the proposed deal and Kaushik was offered it. Initially reluctant, he accepted after much deliberation and thought. With Crompton as a steady client and the basic infrastructure in place, Kaushik invested  about 40 to 45 lakh rupees. 

Little did he know that this investment would become one of the two units of Vishal Industries. Totalling 14,000 square feet, the two units now house a workforce of about 60 personnel and more than 20 machine units. 

Kaushik is a firm believer in intention and destiny. He believes that if the intent is right, then destiny gets you closer to success — one step at a time. He believes that the power of courage and positive thinking during difficult times offers unprecedented rewards. 

In 2019, Vishal Industries realised ceiling fans had become a fast-losing market to table and wall-mounted fans, making it imperative that the company escalate and develop their infrastructure to a level that could add assembly to their operation. 

The new infrastructure required a large amount of capital. While Crompton was encouraging and supportive of Vishal’s situation, Crompton had doubts about the magnitude of effort and resources required to bring this to fruition.

Early payment advantage

At the time, Crompton had an early payment program with C2FO and Kaushik was quick to get in touch with C2FO representatives. Kaushik realised that C2FO’s solutions could be an opportunity to get his cash flow and working capital needs in order. 

“With C2FO, I take the amount of money I need from what is already due to me,” Kaushik said. “I don’t have to take working capital finance and commit myself to a hefty interest rate for years.”

Coupled with meticulous financial planning, Vishal Industries was able to enhance its production capacity through Crompton’s Early Payment Program. With the flexibility of C2FO’s solution, Kaushik was soon regulating his cash flow and fuelling his company’s expansion without taking on debt. 

Kaushik said that C2FO’s intuitive online platform made his experience extremely convenient. His dedicated supplier relationship manager ensured complete understanding of the platform and provided continued support throughout the process.  

Kaushik quickly realised that C2FO’s solution provided a much easier way to fund his business than the cumbersome processes of financial institutions. Invoices were now paid within a week,  rather than the usual credit period of 45 to 60 days. In addition, cash flow was improving without disturbing Vishal’s credit line. 

“Who’s going to run from one table to another asking for finance in a bank?” Kaushik said.  “With C2FO, I don’t have to move an inch.”

The Crompton Early Payment Program proved to be both efficient and effective for Vishal Industries. Vishal soon increased its production nearly threefold after a successful implementation of the new infrastructure for assembling table fan guards. To increase capacity and enhance productivity, a second unit was created. The production planning and output had become more accurate and rewarding with each order. 

The steady cash flow from C2FO’s early payment solution helped Vishal Industries during the pandemic as well. The company was protected from all negative financial impacts even after two months of complete closure and no orders during the lockdown. Vishal Industries could continue to pay salaries, rent and utility bills. 

“I didn’t want these expenditures to accumulate.” Kaushik said. “Early payment with C2FO came to my rescue in those difficult times.” 

Kaushik said that C2FO is more than just a partner. Now, the company and its working capital solutions have become an integral part of Vishal’s business.  

The final word

At one point, Kaushik’s current business was in unchartered territory. However, his strategic focus, tech-oriented instinct and business acumen made Vishal Industries what it is today. 

Kaushik said C2FO has been a miracle worker when his company needed the funds and he needed the strength to make crucial, gritty decisions. 

On a scale of one to 10, Kaushik rates C2FO a nine. 

“C2FO’s early payment platform is an integral part of my business now,” Kaushik said. “With funds in control, I have been able to plan my raw material purchases and job scheduling in a much better manner.”

Learn how C2FO can help you take control of your company’s cash flow here.