VXL Ltd. is a company dealing in dairy products. It procures these products from Rajasthan and sells them to various parts of Delhi. A month before ‘Merio Ltd.’ a Haryana based company entered Delhi market with a similar range of products. State the impact of entry of Haryana based ‘Merio Ltd.’ on the working capital requirements of VXL Ltd. Also, name the factor affecting the working capital requirements of VXL Ltd.