Packaged Drinking Water Unit: ₹55 Lakh Term Loan
Industry: Packaged Drinking Water (FSSAI-certified) | Location: Madhya Pradesh
“I had already been rejected twice before I came to Sharda Associates. Both times, the bank manager said the same thing in different words — ‘your numbers don’t add up.’ I didn’t understand why. My business was doing fine, I had customers, I just needed the loan to grow.”
What the promoter didn’t know — but the bank could see immediately:
His first report claimed sales would triple in Year 1 from “expanding into new markets” — but there wasn’t a single distributor agreement or institutional order to back it up. His second report fixed the sales number but forgot something basic to his own industry: the 20-litre jars aren’t sold, they’re deposited and refunded. That entire cash cycle was missing from his working capital calculation.
“When their CA explained the jar deposit cycle to me, I actually said — ‘but I’ve been running this business for 3 years, why didn’t I think of that?’ It’s because I was so used to how my business runs day-to-day, I never thought to explain it on paper the way a bank needed to see it.”
What changed:
- Two real institutional supply agreements (a hospital chain, a corporate park) replaced the vague “market expansion” claim
- The jar deposit-refund cycle was built into working capital properly for the first time
- DSCR moved from an unverifiable number to a documented 1.34 in Year 1, rising to 2.18 by Year 3
“The sanction came in 17 days. Faster than I expected, honestly — after two rejections I thought this would take months again. But the difference was, this time every question the bank asked, their CA already had the answer ready.”
Final outcome: ₹55 Lakh sanctioned, RO plant upgraded, 20-litre jar segment launched, ₹50 lakh/year in new institutional contracts secured.