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Sugar Pledge Loan Case Study

The process of sugar pledge loan

John owns a chain of sugar factories in Maharashtra named ‘JB Sugar Production Private Limited. His business has been doing well with a turnover of Rs. 4500 crores this year. He started the manufacturing unit in 2015. As his business is growing, he has realized some issues which he is facing in the sugar industry.

The sugar industry is one of the most capital-intensive industries. It is with a huge amount of capital involved to start and run the sugar factories. The turnaround time for sugarcane to cash is also very high. Therefore, one of the foremost issues John is facing is financing sugar mills. The time gap between the production of sugar and the selling of sugar to the market is also very high. Most of the time the sale of sugar is controlled by the government. John’s sugar factories have sugar stock that is worth crores of rupees. But this stock is basically just idle unless it gets converted to capital.

Sugar pledge loan process

With this working capital crunch, he is not able to expand his business as fast as he wants to. He is also not able to diversify his business due to the issues of working capital. Thus, John is looking for a financial consulting firm for financial advice on his situation. One of his business friends recommended Terkar Capital to him. So, John approached us and we set up a meeting with him to discuss his requirements and expectations further.

Financial Snapshot

Company Turnover Rs. 4500 Crores
Amount Required Rs. 350 Crores
Mortgage Availability Sugar Stock
Company IndustrySugar Manufacturing

Financial Analysis

After listening to John’s business situation, we suggested a sugar pledge loan to him. The process of a sugar pledge loan is an efficient way to raise capital funding. In a Sugar Pledge Loan, sugar factories get the required funds against sugar as a pledge. So, this option is very convenient for sugar factories because they generally have huge stocks of sugar that are idle. Taking a pledge loan for sugar mills against that sugar is thus a good option. 

At first, we explained the entire sugar mill loan procedure to John and then helped John to execute the end-to-end process. After the registration of the application at the respective financial institution, the application was considered by the sub-committee and the standing committee. The advice and opinion of the standing committee were processed further for the approval of the government. Thus, the loans for sugar industries were disbursed in two installments after John complied with the conditions mentioned in the approval. Sometimes the amount of funds is so huge, that it cannot be funded by a single financial institution. It needs multiple banking institutions and arrangements for the consortium. Thus, we suggest to our clients whether the required amount can go in a single stand or if there is a need to arrange a cartel pool regarding the arrangement of the amount.


Business Commencement Year 2015
Amount of FundingRs. 350 Crores
Total Execution Time 7 Working Days. 
Customer Service Experience 4.3/5

With Terkar Capital’s assistance, John got his funding at the minimum rate of interest available in the market within 7 working days from the date he approached us. Since then Terkar Capital has been the preferred corporate debt fundraising partner for Mr. John and his company. 

The process of sugar pledge loan at Terkar Capital

We at Terkar Capital understand the requirements of the client and explain the entire procedure involved in getting the funding before starting the process. We believe in complete transparency of the process of a sugar pledge loan and professional execution of the proposal. Our executives are well trained to speed up the procedure with accuracy. We understand the compliance complications involved in the fundraising process. So, if you are looking for financial assistance, Terkar Capital is the right fit!!


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