Untitled Document

Wired for Success

Shashi is a 3rd cycle customer in the Vijaynagar branch (Ghaziabad, UP). She and her family are a true example of perseverance when it comes to building up their business and supporting themselves. She and her husband own an electrical shop, in a space that they rent for Rs 1,000. The shop is set up right below their house which they also rent for Rs 2,000 per month. Shashi is illiterate but despite this, she manages the accounts of the shop as well as the daily sales and retail. Her husband suffers from Polio in both legs but he is able to walk and ride a cycle. He helps manage the shop and earns extra income by providing full electrical fitting to houses. Shashi and her husband have two sons and a daughter. Recently, Shashi has learnt that her daughter suffers from a brain tumor and has to undergo treatment for three years which will cost the family Rs 3,000 per month without including the cost for scans and tests. Despite all these hardships, Shashi has been taking business loans from Ujjivan to scale her business since August 2010 and is a model customer with her repayments. With all the hardships and the savings couple was able to buy a 450 sq feet plot nearby. Shashi has now applied for an Individual Business Loan (IBL) for Rs 60,000 to further build her business.

Business Snapshot:

Shashi and her husband own an electrical shop and provide services of electrical fitting for homes. They sell electrical fitting material such as tube lights, bulbs, heaters, and coolers. Some costs include hiring daily wage laborers at Rs 250-Rs350 per day when they need help. They hire help for electrical fitting sometimes during the peak seasons in the shop. Shashi's spouse used to work in a shoe store earlier. He then started his own business without any training. He started this shop 5 years ago with his provident fund amount of Rs 16,000. Since then they have taken loans from Ujjivan to scale up their business.

As said: "The man who moves a mountain begins by carrying away small stones."

He initially experimented with the electrical fitting in his own house and was successful with the basic tasks that he needed to do. He then tried in his neighbor's house and slowly gained confidence in his skills. Soon after, he started the shop and electrical fitting business. He charges his customers about Rs 8-10 per square foot and the material costs. The summers are particularly busy in the shop, to the point that it is packed with customers. Most of the demand and subsequent profits come from the sale of coolers and Shashi wants to take a loan from Ujjivan to build this aspect of the business.

Shashi has applied for an Individual Loan of Rs 60,000 now. Using this, they want to buy cooler parts to sell assembled coolers in the summers. Without this working capital they could only be able to buy coolers form a vendor and sell them in the shop with a margin of Rs 500. They want to completely utilize the seasonality and use the loan to scale up the business as they can earn Rs 1,500 margin per cooler by assembling.

Undying Aspirations:

Shashi and her family want to add a new category of inventory to their shop and sell TVs, DVDs and various other electronic equipments. They currently have some aluminum furniture fitting but planning ahead, they have left space for the selling of TVs and DVDs and other things. In case this shop is too small for their inventory, they aspire to have a 2nd shop which Shashi wants to manage by herself. As for their family, they want their children to study and get a good education so that they do not suffer in the same way as their parents have. They believe their shop could be bigger and business can be scaled up tremendously if they can overcome their restrictions due to the daughter's illness and husband's polio. Rabindranath Tagore's quote proves true for their perseverance and their aspirations -

"Clouds come floating into my life, no longer to carry rain or usher storm, but to add color to my sunset sky."

© 2015 Ujjivan Financial Services Ltd. CIN NO: L65999KA2004PLC035329
Powered by Infopine