Despite challenges, this Panipat-based entrepreneur braves odds to survive business

Financial problems can thwart the growth of any sector, and small businesses are no different. The MSME sector is known to be the growth engine of Indian economy. However, many such small businesses have had to put their plans on the back burner due to non-availability of funds.

Sunil Chawla (50) also started an almirah business despite financial difficulties. He says, he grew up seeing his father running an almirah shop in Panipat, Haryana. “During my college days, I would join my father in his shop after attending the college. It was a routine for me,” says Chawla.

After completing his graduation in 1995, Chawla ventured into the business after gaining sufficient knowledge of making almirahs. He says, “I felt confident enough to start a business of my own, but I lacked finances.”

Thankfully, during the same time, Chawla got to know about the government’s Pradhan Mantri Rozgar Yojana (PMRY) scheme. He says, “I applied for a loan of Rs 50,000, and it was sanctioned.”

With this money, Chawla went ahead and established Om Shanti Steel Works in Panipat in 1995. The company initially started by making almirahs, and later diversified and started manufacturing office furniture. However, it mostly sells its products to retailers in Panipat. At present, the company has a turnover of Rs 15 lakh and employs four people.

According to Chawla, the company has taken loans in the range of Rs 50,000 to Rs 1 lakh many times under the PMRY scheme to advance its operations and grow.

Chawla says the business still enjoys its old stature in the market and does not have to put efforts in a conventional sense to sell its products. “There is a demand for our products always. Shop owners have known us for long and they come to us to buy our almirahs,” he says.

However, as every business comes with a host of challenges, Chawla says, for them, shortage of labour poses a big challenge. “There are not many willing to do this work. It is a blue-collar job,” he says.

Despite challenges, Chawla acknowledges the government’s role in letting him start a business. But, he feels the government schemes are not helping businesses in their advanced stage. He says, “I want Rs 15-20 lakh to scale my business. I can increase the turnover by four times since there is a demand for my products. But we don’t get the loan.”

According to Chawla, the loan granted by the banks is usually 1/5th of the turnover. “I am only eligible for Rs 3 lakh loan,” he says.

What further has exacerbated Chawla’s problems is the denial by many business owners with respect to the GST. Chawla says, “Since GST has come into picture, my profit margins have decreased as many of my clients defy it.” He says, “GST works on a chain principle. When we buy the raw material, we pay GST. When we further pass it onto our customer, they deny paying it.”

“I am satisfied with what I am doing. But, I aspire to expand my business. I have the experience, there is a demand for my products and the market is also huge, but I have no capital,” says Chawla.