Gold medalist engineer leaves corporate world to start precast concrete business, earns crores

Founder and Executive Director of Srishti Precast Private Limited and Partner at Rainbow Precast Pvt Ltd, Sujitha Reddy Chityala, is into manufacturing of precast concrete products. Hailing from a family of businessmen she shattered stereotypes to enter an unconventional field as a businesswoman. “While growing up, this stereotype that a woman cannot be an entrepreneur was always daunting. Being a bright student, the unspoken rule was to secure a good job. But I always wanted to be an entrepreneur; the seed was sown very early as I grew up seeing my father run a business. I believe that everything happens for a reason. Due to personal reasons I had to quit my job despite being recognised as the best employee in the corporate world. From being the best employee I am now an employer providing jobs to others,” says Sujitha Reddy Chityala in an interaction with Bizz Buzz

How did the transition happen from IT professional to entrepreneur?

I am a gold medalist in Electronics Engineering and the best outgoing student at St Martin’s Engineering College in Hyderabad. In the third year of my course I was recruited by Infosys. But after graduation I got married and moved to the US. After 18 months we were back in India, hence I got back into corporate job. In 2013, I had to quit that job after giving birth to my second child. While my younger one was in play school I entered my husband’s business to understand its intricacies.

Very few women are involved in businesses related to civil works…

My father is a manufacturer of RCC hume pipes and father in-law was a manufacturer and supplier of casting spares and casting grades. So, manufacturing business was a natural choice. The idea of making precast products came from my father. While supplying hume pipes he got to know that there is a demand for concrete precast. My husband started Rainbow Precast and I joined in as a partner in 2015. Here, we manufacture drain and manhole covers. During this period I enrolled myself as a member of FLO (FICCI Ladies Organisation). Meanwhile, the demand for other precast products started pouring in. At that time, FLO was coming up with an industrial park and I was looking at setting up another entity to cater to the demand. This is how Srishti Precast was formed. Here we make jersey barriers, electrical and water chambers. Srishti has supplied inspection chambers to Mission Bhagiratha and many major infra, developers are our clients. We also supply precast product for rainwater harvesting at gated communities.

Tell us more about Srishti Precast Pvt Ltd…

The manufacturing unit is set up on three acres of land in the 32 acres industry park at Sultanpur, developed by FLO for women-owned and run enterprises. The land was given by TSIC at a subsidised rate in 2018. In February 2020 I started constructing the facility and by February 2021, Srishti Precast was operational. After the land was allotted it took me two years to clear the rocks and level the land to make it suitable for setting up the unit. I was the first one out of the 26 units to commence production. A total of Rs 7 crore was invested into Srishti Precast. I started the facility with five employees and now we have 25, 10 on permanent role and 15 on contract, depending on the business demand. Rainbow Precast and Srishti together has served over 100 clients, till date.

Any plan of expansion?

I am planning to scale up in terms of technology as there is a scope for concrete precasts in the designing and construction of residences and buildings. Few of the opportunities are in making of wall panels, planters, and designed exterior walls. Right now the focus is on Research and Development of this new line of products. The other plan is to work on precasts for multi storey buildings or residences which brings down the construction time at the site to two months. The pillar, columns, beam, staircases and walls are all made at the factory and assembled at the site. For manufacturing the new products a bigger space will be needed. Scaling up is the way ahead as I do not say no to any of the clients that reach out to Srishti. Due to this approach, I have a new client asking for precasts to construct a farm house, if this deal finalises then in the next six months we will be working on precast building construction.

How do you find business growth in this segment?

The demand for precast products is at all-time high. Want for aesthetic and uniform products, besides space constraint and adverse effects of weather at construction site drives our business. At Srishti, the products are made in a controlled environment and monitored by our team of civil engineers. Last year we were at Rs 3 crore, the target is to double revenue by next year. We are half way through to reach the target and I am confident that in the next six months I will be able to reach Rs 6 crore, with the new plans and clientele coming in.

How was the experience of raising funds as a woman entrepreneur?

Investors do not take women entrepreneurs seriously. This is a major issue that needs to be addressed. Their question is, whose support and backing do you have? Fortunately, my husband supported me, and other male members of the family who are also into businesses provided me with the needed information. My first experience was with State Financial Corporation, they sanctioned on paper Rs 5.5 crore and gave us a rebate too. After waiting for six months, the loan did not move forward, because of separation of the States they did not have the funds. Then I had to approach the banks. Collateral free loans are given on an amount of up to Rs 1 - 2 crore. Not many women have the property in their name, so she needs a man’s helping-hand while applying for loan of a higher amount. If you have good connect with bank then your work is done. A bank cannot expect us to show profits in six months, they go by the basis of balance sheet and balance sheet will not show profits until two years. Moreover, the government speaks of rebate on loans’ interest only on paper, actually there is no rebate provided to women entrepreneurs. I had raised this issue in front of the MSME officials too. Now coming to the Telangana government, it has provisions for women run enterprises wherein Rs 30 lakh subsidy is given on the machinery cost. I have all of this ready on paper but when is the amount going to come in. Are they helping when the entrepreneur is looking for support? My paper work for Rs 80 lakh of subsidy is ready, when will the amount be sanctioned? I need the amount to scale up. From 2014, after the formation of Telangana, first batch of subsidy amount of Rs 200 crore was released in February 2023, by the government. This amount is not even close to a per cent of the actual subsidy amount that has to be released. Also, there is lapse of information between women entrepreneurs and the government, in terms of awareness about subsidy. Only 10 per cent of the women are aware about the schemes, while the rest do not know even the process, formality or papers needed to be eligible for subsidy. In our industrial park, out of the 32 units, I am the only one who has applied. When a woman entrepreneur is setting up an industry the government should have provided her with this information. There are subsidies available under Central schemes, which I have not yet applied for.

According to you, what is the reason behind investment disparity?

I was heading a financial literacy programme for women entrepreneurs. Women assume that they cannot handle finance, while unknowingly they are managing finance at home. Women have always been saving emergency funds for adverse times. We cannot blame others as women underestimate their potential. They are also stereotyped at home. The first change has to happen at her home. While a family support is must, she has to actively step forward and prove that they are equal players as men in business. Women can handle money better than men. When they are given certain amount at home, she knows how to allocate it. She is actually budgeting as a homemaker. Why can’t she take it up outside those four walls? No one is going to give an opportunity, she has to grab it.

As the former Treasurer at FLO, what is your take on the financial health of women-run businesses?

Women do not take huge risks so they do not have to face huge losses. She takes one step at a time and makes calculative decisions, unlike men. This is a woman’s tendency. So if women handle the finance department the business will flourish. I can say they are better risk managers. To further boost the women entrepreneur ecosystem, organisations like FLO are partnering with other ecosystem enablers in the city to convert ideas into business, accelerate, scale up, and provide the right direction. Also, women in manufacturing are doing wonders which has not got the due attention and projection. Its high time to shift the focus and write about them.