CONNECTsmeconnect.in/issues/issue_files/VOL2_ISSUE2.pdf · relations with number of countries. However, the prolonged financial crisis in the EU countries, Indian SME sector is facing

CO NNECTVolume 2 | Issue 2 | July 2012 | Pages 64 | 50`Initiated by SME Chamber of India

MoU Exchange Ceremonyin the presence of

Prime Minister of Malaysia

MAHARASHTRA

SME SUMMIT

GUJARAT SME

MANUFACTURING SUMMITMALAYSIA VISIT

MoU With

INCHEON TECHNOPARK

Connecting Global Indians for Better Business Partnerships

Annual Flagship Event

NRI BUSINESS SUMMIT4 - 6 January 2013 | Hotel Sofitel, BKC, Mumbai, Indiath th4 - 6 January 2013 | Hotel Sofitel, BKC, Mumbai, Indiath th

�

�

�

�

�

�

�

�

�

�

�

�

�

�

�

�

Overview of Indian Economy & Impact of Global Financial Crisis

India's New Manufacturing Policy – Opportunities in Manufacturing Sector

Delhi-Mumbai Industrial Corridor – New arena for investments

Special Economic Zones & Industrial Parks – Opportunities andAdvantages

Double TaxAvoidanceAgreements – Impacts and Benefits

Investments Opportunities, Profitability and Viability of Destinations for NRIs

Role of Reserve Bank of India, Foreign Investment Promotion Board (FIPB)

Role of Department of Industrial Planning & Promotion (DIPP)

Investment Routes for NRIs

Foreign Direct Investments (FDIs) – Rules and Procedures

Foreign Exchange ManagementAct (FEMA) – Relevance,Applicability & Implications

NRI Taxation – Rules and Regulations

Qualified Foreign Investors – New Route for NRI Investments

Opportunities for Public Private Partnerships (PPP)

Joint Ventures – Opportunities in Manufacturing Sector

Investment opportunities in Infrastructure, Health Care, Tourism,Agro and Food Processing Industry, SMEs, Education

TOPICS TO BE COVERED

Mobile: +91 - 98201 79494 | Email: [email protected]

Contact For Sponsorship, Speaking Opportunity

Ms. Saakshi Kulkarni - Director (Business Development)

Contact For Participation

Mr. Omesh Kandalkar - Deputy CEO

Tel: +91 - 22 - 6150 9800 / 6667 4444

www.nribusinesssummit.com

Supported by Supported by Knowledge Partner Event Managed by IT Partner

EUROPE - INDIA

SME BUSINESS COUNCIL

EISBC

PACKAGING INDUSTRY

ASSOCIATION OF INDIA

Solutions Private Limited

®

Industrial and SME

Research Centre of IndiaMacro Events

and Exhibitions Pvt. Ltd.

Supported byJointly Organised by

SMALL & MEDIUM BUSINESS

DEVELOPMENT CHAMBER OF INDIA GOVERNMENT OF MAHARASHTRA

®

IITC-INDIA

INDIA INTERNATIONAL TRADE CENTRE

(IITC-INDIA)

MAHARASHTRA INDUSTRIAL AND

ECONOMIC DEVELOPMENT ASSOCIATION

Dear Patrons,

It gives me immense pleasure to present you the SME Connect

Magazine along with activity report of the Chamber from April to

July, 2012.

As all of you are well aware, Indian economy, over years has become

increasingly integrated with the global economy and developed trade

relations with number of countries. However, the prolonged financial

crisis in the EU countries, Indian SME sector is facing several challenges.

The SMEs are also facing acute problems of global competition, lack of

connectivity, marketing facilities, un-availability of adequate and timely

finance, skilled manpower, decrease in export orders, increase in raw

material cost, quality infrastructure and many others.

Despite various initiatives taken by the Government towards the

development of the SME sector, the sector still finds it difficult to compete

in the local and international markets. It is evident that new path of

economic reforms and policies are required in order to enable these small

units to become competitive, integrate them successfully and operate fully

in the globalised industry.

Recently I have attended two programs in Malaysia and found that the

policy makers and government agencies there are highly proactive to

understand the needs of SME Sector and putting continuous efforts to

connect Malaysian SMEs with worldwide business community.

Our Chamber has also decided to organise many activities to connect

Indian SMEs with global enterprises for better business growth and

expansion.

I express my sincere thanks to the supporters and associates for

organising activities of the Chamber for the growth of SMEs.

Editor

Panel of Advisors

Publicity and Marketing

Team

Layout & Graphics

Mahesh Balasaheb Salunkhe

Chandrakant Salunkhe

A. Rameshkumar

Girish Bhagat

Sai Madhavan

Hemant Salunkhe (Director)

Saakshi Kulkarni

Neera Inamdar

Madhuri Khanwalkar

Omesh Kandalkar

Gandhi Gajelli

V. K. Venkatachalam

Bricks Marketing & Promotion Pvt. Ltd.

CO NNECT

Volume 2 | Issue 2 | July 2012 | 64 Pages

Chandrakant SalunkheFounder & President

Small & Medium Business

Development Chamber of India

Email: [email protected]

© SMALL & MEDIUM BUSINESS DEVELOPMENT CHAMBER OF INDIA

(SME CHAMBER OF INDIA). The concepts, activities and events have

been designed by us and are exclusively the property of SMALL &

MEDIUM BUSINESS DEVELOPMENT CHAMBER OF INDIA (SME

CHAMBER OF INDIA). No part of the titles and contents or images

should be used, reproduced, stored in a retrieval system or

transmitted, in any form or by any means or discussed with any third

party without prior written consent of SME CHAMBER OF INDIA.

Views and opinions expressed in this magazine are not necessarily

those of SME CONNECT, its publisher, printer, owner and / or editors.

We (SME CONNECT) do our best to verify the information published

but do not take any responsibility for the absolute accuracy of the

information. SME Connect does not accept responsibility for any

investment or other decision taken by readers on the basis of

information provided herein.

www.smeconnect.in� �03Volume 2 | Issue 2 | July 2012

Foreword

“SME CONNECT” is Printed, Published & Owned by Mahesh Balasaheb Salunkhe. Printed at Hindustan Packaging, Unit No1, Kembros Industrial Estate, Sonapur

Lane, Off L.B.S Marg, Bhandup (W), Mumbai - 400 078. Published from 101, Murlidhar Baldev Estate, Near Vikas Estate, Off Aarey Road, Goregaon (E), Mumbai -

400 063. Maharashtra. Editor - Mahesh Balasaheb Salunkhe


DEVELOPMENT CHAMBER OF INDIA

Signing of MoU

Between

SME Chamber of India

and Gyeonggi Small &

Medium Business Center

34

CO NNECTContent

www.smeconnect.in � �04 Volume 2 | Issue 2 | July 2012

14MAHARASHTRA SME SUMMITRedefining the Growth of SMEs

15 | Shri Sachin AhirAddress by Hon,ble Minister

of State for Industries, Government of Maharashtra

–

16 |

J. K. Dadoo

Benefits of Anti-dumping measures for

Indian SMEs” –

17 |

Sanjay Sethi

SMEs, Industrial and Economic Scenario

of Maharashtra & New Industrial State Policy

- Impacts and Benefits for SMEs –

18 | Emerging Business Opportunities for SMEs

Dr. Rashid Al Leem

PANEL DISCUSSIONS

20 |

24 |

28 |

Driving Growth of SMEs

Enhancing The Capabilities of SMEs

Empowering SMEs For Better Growth

24 |

Sanjay Bhatia

GST (Goods & Service Tax) –

Impact and Advantages for SMEs –

State Level

GUJARAT ENTREPRENEURSHIP

& SME EXCELLENCE AWARDS61

44 GUJARAT SME

MANUFACTURING SUMMIT46 | Saurabhbhai PatelAddress by – Hon'ble Minister

of State for Industries, Government of Gujarat

47 | Ishwarsinh PatelAddress by – Hon'ble Minister

of State for Cooperation, Sports, Youth Services and

Cultural Affairs, Government of Gujarat

PANEL DISCUSSIONS

52 |

56 |

58 |

Transforming SMEs to create sustainable value

Support Services for better growth of SMEs

Technology & Innovation for sustainable growth

& International Trade & Investment Opportunities

Exchange of MoU

Between


and GMB Malaysia

12

VADODARA SME AND

ENTREPRENEURSHIP MEET36PANEL DISCUSSION

40 | ROLE OF BANKERS | FINANCE

INVESTMENT | INCENTIVES | FACTORING

PROMOTION | MARKETING & BRANDING

07Signing of MoU Between

SME Chamber of India and

Incheon Technopark, Korea

Felicitation by former

Prime Minister of Malaysia

(1981 - 2003) and MoU With

Malaysian Franchise

Association

10

Mr. Prashant Nagre

Chief Operating Officer

Fermenta Biotech Ltd.

ADVISORY BOARD OF

SME CHAMBER OF INDIA

(2011 - 2014)

MR. CHANDRAKANT SALUNKHEFounder and President

Small & Medium Business Development Chamber of India

(SME Chamber of India)

Mr. Sanjay B. Chordiya

Founder President & Chairman, Suryadatta Group of Institutes

Chairman, Pune Region

Ms. Sangeeta Modi

Founder & Managing Partner

Access Asset Managers

Mr. Ashok Sangolli

Project Consultant

MEMBERS

Mr. A. Rameshkumar

MD & CEO, Asia Pragati Capfin Pvt. Ltd.

Chairman, Northern Region

Mr. Sai Madhavan

Director, Nishtha Technologies Pvt. Ltd.

Chairman, Sourthern Region

Mr. Girish Bhagat

Director

India Nivesh Ltd

Mr. Matej Merljak

Chairman, Europe - India

SME Business Council (EISBC)

Mr. Ravindra Kumar

Senior Banker and Regional Adviser

Standard Bank PLC

Mr. V. P. Singh

Partner

Mavenvest Capital Partners LLP

Mr. H. P. Shah

CEO

Value Plus - The Family Office

Ms. Aslesha A Gowariker

Partner

Desai & Diwanji

Mr. Ajit Shah

Executive Consultant

K-Connections

Mr. Pankaj Bhandula

Senior Vice President

Lavasa Corporation Ltd.

Ms. Saakshi Kulkarni

Director


Mr. V. K. Venkatachalam

Advisor


Ms. Neera Inamdar

Deputy Secretary General


Mr. S. Hemant Kumar

Director

Geoptech Solutions Pvt. Ltd.

Mr. S. Maheshkumar

General Secretary



DEVELOPMENT CHAMBER OF INDIA&

Signing Ceremony of Memorandum of UnderstandingBetween

17 July 2012 | Hotel Hyatt Regency, Mumbaith

Mr. Kim, Ho Kyoung Mr. Chandrakant Sakunkhe– Project Group Head, Director General, Incheon Technopark, South Korea and –

President, Small & Medium Business Development Chamber of India signing the Memorandum of Understanding on 17th July 2012 at

mumbai

Mr. Kim, Ho Kyoung Mr. Chandrakant Sakunkhe– Project Group Head, Director General, Incheon Technopark, South Korea and –

President, Small & Medium Business Development Chamber of India exchanging the Memorandum of Understanding


CO NNECT Activity of the Chamber

Mr. Chandrakant Sakunkhe – President, SME Chamber of India

addressing the delegates

Mr. Kim, Ho Kyoung – Project Group Head, Director General,

Incheon Technopark, South Korea addressing the delegates

17 - 22 July 2012 | Hotel Hyatt Regency, Mumbaith nd

KOREA BUSINESS DELEGATION IN INDIA


CO NNECTActivity of the Chamber

ADDRESS BY DIGNITARIES

Mr. Chandrakant Sakunkhe – President, SME Chamber of India with Korea Business Delegation in India

ONE - TO - ONE BUSINESS MEETING BETWEEN KOREAN & INDIAN DELEGATES

FRANCHISE INTERNATIONAL MALAYSIA 201219th International Franchise Conference

Saturday, 7th July 2012 | Putra World Trade Centre, Kuala Lumpur, Malaysia

Mr. Chandrakant Salunkhe - President, Small & Medium Business

Development Chamber of India addressing the delegates

YABhg. Tun Dr. Mahathir bin Mohamad - Former Prime Minister of

Malaysia (1981-2003) felicitating Mr. Chandrakant Salunkhe -

President, SME Chamber of India by presenting the token of Appreciation

Friday, 6th July 2012 | Putra World Trade Kuala Lumpur, MalaysiaCentre,

EXCHANGE OF MoUBetween


DEVELOPMENT CHAMBER OF INDIA& MALAYSIAN

FRANCHISE ASSOCIATION

Mr. Chandrakant Salunkhe Mr. Malik Abdullah

YB Dato' Sri Ismail Sabri Bin Yaakko

YB Dato' Tan Lian Hoe and YB Datuk Rohani Binti Abdul Karim

- President, SME Chamber of India and - Chairman, Malaysian Franchise Association (MFA)

exchanging the MoU in the presence of - Hon'ble Minister of Domestic Trade, Co-operatives &

Consumerism, Malaysia, - Hon'ble Deputy Ministers of Domestic Trade, Co-

operatives & Consumerism, Malaysia on 6th July 2012 at Kuala Lumpur, Malaysia



GLIMPSES OF

FRANCHISE INTERNATIONAL MALAYSIA 201219th International Franchise Conference

6th - 8th July 2012 | Putra World Trade Centre, Kuala Lumpur, Malaysia

YABhg. Tun Dr. Mahathir bin Mohamad - Former Prime Minister of Malaysia (1981-2003) and Mr. Chandrakant Salunkhe - President, SME

Chamber of India with organising Committee of Franchise International Malaysia 2012

Mr. Chandrakant Salunkhe - President, SME Chamber of India with delegation of 2012 Taiwan Franchise and China Store Trade Mission to Malaysia

Mr. Chandrakant Salunkhe

YB Dato' Sri Ismail Sabri Bin Yaakko

- President, SME Chamber of India with

- Hon'ble Minister of Domestic

Trade, Co-operatives & Consumerism, Malaysia

Mr. Chandrakant Salunkhe - President, SME Chamber of India is

being felicitated by the Malaysian Franchise Association (MFA)



Thursday , 21st June 2012 | Kuala Lumpur Convention Centre, Malaysia



YOUNG ENTREPRENEUR ORGANIZATION

MALAYSIA&

EXCHANGE OF MoUBetween

ASEAN - INDIA SME CONFERENCE21st - 22nd June 2012 | Kuala Lumpur, Malaysia

(Left) - President, SME Chamber of India addressing the delegates. (Right)

- Advisor to Malaysian Indian Business Council (MIBC),

- Malaysia Representative to the ASEAN India Business Council, - Chief Executive Officer, SME Corporation

Malaysia and - Adjunct Professor at the Department of Economics, Kulliyyah of Economics and

Management Sciences, International Islamic University Malaysia during the plenary session 2 :


Tan Sri Dato' Ajit Singh Dato' Pradip

Kukreja Dato’ Hafsah Hashim

Datuk Supperamaniam a/l Manickam

ASEAN in India : Blood, Sweat and Glory

Panelists from (L to R)

- President, SME Chamber of India,

Mr. Chandrakant

Salunkhe

Mr. Chandrakant Salunkhe Mr. Agil Faisal Ahmad Fadzi

Datuk Ir. Mohamed Al Amin Hj

Abdul Majid

- President, SME Chamber of India and - President, Young Entrepreneur Organization

(GMB Malaysia) exchanging the MoU in the presence of

- Chairman, SME Corp Malaysia.

YAB Dato' Sri Haji Mohd Najib bin Tun Haji Abdul Razak

Dato Sri Mustapa bin Mohamed

- Hon'ble Prime Minster of

Malaysia, - Hon'ble Minister of International Trade & Industry, Malaysia and





Contact For Sponsorship, Speaking OpportunityContact For Participation

Ms. Neera Inamdar - Deputy Secretary General

Tel: +91 - 22 - 6150 9800 / 6667 4444

2 Edition Annual Flagship Eventnd

YOUNG ENTREPRENEURS SUMMITTheme: "Strengthening the Capabilities for Global Competitiveness”

November 2012 | Mumbai

Jointly Organised by Supported by





In

dia

nY

ou

n

gEntrepreneu

rsF

oru

m

INDIAN YOUNG

ENTREPRENEURS’ FORUM

PROGRAM

Grand Inaugural Session Networking Amongst ParticipantsPlenary Sessions

Lunch on Keynote Addresses Young Entrepreneurs AwardsExhibition and Display Facilities

6th National Level Flagship Event

SME FINANCE AND INVESTMENT SUMMIT

�

�

�

�

�

�

�

�

�

�

�

�

�

�

�

Private Equity and Venture Capital Funding Opportunities

Role of Banks towards growth of SMEs

SME Stock Exchange – New funding opportunities for SMEs

NBFCs Initiatives - Fulfillment of funding needs of SMEs

Business Plan and Strategy for business growth

Financial fundamentals for start-up enterprises

Global Financial Crisis & Recession - Impact on Indian SMEs

Role of CFO for better Financial Management

Importance of Business Ethics and Good Governance for SME

Sector

Importance of Credit Rating to enhance the credit worthiness

Financial Support for Technology Upgradation

Funding facility for Capital Goods and Raw Materials imports

Introduction of New Financial Products & Services for SMEs

Branding and Marketing Strategy for SME Growth

NPAand restructuring procedures – Revival of sick units

Jointly Organised by Supported by



®

IITC-INDIA

INDIA INTERNATIONAL TRADE CENTRE

(IITC-INDIA) GOVERNMENT OF MAHARASHTRA

GOVERNMENT OF MAHARASHTRA


Contact For Sponsorship, Speaking Opportunity


Contact For Participation

Ms. Neera Inamdar - Deputy Secretary General

Tel: +91 - 22 - 6150 9800 / 6667 4444

November 2012 | Hotel Sofitel, BKC, Mumbai

TOPICS TO BE COVERED

Partner Partner Knowledge Partner Knowledge Partner Event Managed by



Industrial and SMEResearch Centre of India

SME BUSINESS

MANAGEMENT INSTITUTE

Macro Eventsand Exhibitions Pvt. Ltd.

Annual Flagship Event

MAHARASHTRA SME SUMMITRedefining the Growth of SMEs

Friday, 15 June 2012 | Hotel Sofitel, Bandra - Kurla Complex, Mumbaith

INAUGURATION

(From L to R) – Development Commissioner (Industries) & Secretary, MSME, Govt. of Maharashtra,

– President, SME Chamber of India & MIEDA, – Hon'ble Minister of State for Industry, – Joint

Secretary, Department of Commerce, Ministry of Commerce and Industry, Government of India, – Chief General Manager, State

Bank of India, Maharashtra, – Director General, Sharjah Sea Ports, Customs & Sharjah Free Zones Authority and

– Managing Director, ONIDA

Shri Sanjay Sethi Shri Chandrakant

Salunkhe Shri Sachin Ahir Shri J. K. Dadoo

Dr. J. N. Misra

Dr. Rashid Al Leem Shri Vijay

Mansukhani

Shri Sachin Ahir – Hon'ble Minister of State for Industry inaugurating the Summit



Shri Sachin Ahir, Hon'ble Minister of State

for Industry, during his inaugural address,

observed that Maharashtra is the largest

economy of the country contributing 13% to

the national income. Over the last four years,

the State's economy has registered an

average growth of 9%. The State contributes

20% of country's industrial output and net

value addition. Maharashtra ranks number

one in manufacturing value output in 15 out

of 25 industry sectors. The service sector

has 62% share in the state GDP built on a

strong industrial base.

Commenting on the SMEs sector of the State,

Shri Sachin Ahir said that the State has

1,43,950 registered micro and small

enterprises providing employment to 19

lakh people. There are 4,221 Foreign Direct

Investment proposals amounting to Rs.

84,958 crores for the State amounting to

22% of the overall FDI coming to India. The

State has implemented Micro and Small

E n t e r p r i s e s C l u s t e r D e ve l o p m e n t

Programme (MSE-CDP) in order to support

the growth and development of the State

SME Sector.

Talking on the policies of the State for

developing and boosting new age

industries, he mentioned the State has been

giving more emphasis on the industries

based on Information Technology (IT) and

Bio technology (BT). The government is also

focusing on Agro and Food processing

industries in order to give a boost to the SME

sector. The State has also been giving fiscal

and non-fiscal support to promote and

sustain industries.

The Government is envisaging to attract

new investment of minimum Rs. 5 lakh crore

in the industrial sector over next 5 years to

achieve growth rate of 12 to 13 percent in

the manufacturing sector and create 20 lakh

new jobs.

He further observed that in order to achieve

the targets envisaged for growth of

manufacturing sector, the Government

intends to continue to encourage mega and

large investments, make land available for

new industrial development, improve

infrastructure , channel ise f low of

investments to lesser developed areas of the

State, create investor friendly environment,

ease of doing business and develop skilled

manpower required for the industry.

Fo r e m p l o y m e n t g e n e r a t i o n , t h e

Government intends to renew focus on

MSME, expedite launch of agro processing

policy, leverage State and Central

Government's skill development schemes,

assist unviable sick units with exit policies

and viable sick units with rehabilitation as

well as reserve adequate land for MSMEs in

industrial estates.

To improve the industrial infrastructure of

the State the Government intends to develop

industrial corridors, develop adequate

i n f ra s t r u c t u re , fa c i l i t a te l o g i s t i c s

infrastructure, leveraging setting-up

exhibition-cum-convention centres by

various agencies.

He concluded by saying that Maharashtra

Government is adopting a holistic approach

to the development of MSMEs by providing

fiscal and non-fiscal support, by enhancing

their competitiveness. He also encouraged

the SMEs to take advantage of the

opportunities thrown open by the Delhi-

Mumbai Industrial Corridor for their

growth.

Shri Sachin Ahir - Hon’ble Minister of State for Industries, Housing, Slum Improvement, Repairs & Re-

Constructions, Urban Land Ceiling, Mines, Social Justice, De-Addiction Activities & Environment, Government

of Maharashtra

Shri Sachin Ahir Dr. Rashid

Al Leem Shri Sanjay Sethi

Shri Chandrakant Salunkhe Shri J. K. Dadoo

Dr. J. N. Misra Shri Vijay

Mansukhani Shri V. K. Venkatachalam

– Hon'ble Minister of State for Industry delivering the inaugural address. Other dignitaries (from R to L) on the dais

– DG, Sharjah Sea Ports, Customs & Sharjah Free Zones Authority, – Development Commissioner (Industries) &

Secretary, MSME, Govt. of Maharashtra, – President, SME Chamber of India & MIEDA, – Joint

Secretary, Ministry of Commerce and Industry, Government of India, – CGM, State Bank of India, Maharashtra,

– MD, ONIDA and – Secretary General, SME Chamber of India

Shri Chandrakant Salunkhe – President, SME

Chamber of India & MIEDA welcoming Shri Sachin

Ahir – Hon'ble Minister of State for Industry with

bouquet of flowers



Talking on Anti-Dumping measures for

SMEs, Shri J.K. Dadoo explained that when

the normal value of a product in the

exporting country is greater than the export

price of a product, it is called “Dumping”.

Defining the Anti dumping of goods, he

explained that the Law was framed in order

to protect the domestic industry from an

uncontrolled flow of foreign goods at price

lower than the domestic prices. He also

explained Margin of Dumping which is the

difference between Normal Value and

Export Price of the product based on fair

comparison

Explaining the process of anti-dumping, Shri

J. K. Dadoo said that antidumping

investigations are initiated when a country

suspects that its domestic industry is

threatened by imports sold at unfairly cheap

rates. They may result in the levying of extra

duties on “Dumped” goods. He observed

that dumping is considered as an unfair

trade practice that can have a distorted

effect on international trade. As a result

most of the countries have anti-dumping

duty in order to rectify the trade distortive

effect of dumping and reestablish fair trade.

The antidumping is an instrument for

ensuring fair rate and is not a measure of

protection per se for the domestic industry.

It provides relief to the domestic industry

against the injury caused by dumping.

He concluded by saying that The Directorate

General of Anti-dumping and Allied Duties

(DGAD) administers the Anti-dumping

measures in India. It functions in the

Department of Commerce in the Ministry of

Commerce and Industry. The Designated

Authority's function is to conduct the anti-

dumping invest igat ions and make

r e c o m m e n d a t i o n s t o t h e C e n t r a l

Government (DOR) for imposition of anti-

dumping duty.

Special Address by – Joint Secretary, Department of Commerce, Ministry of Commerce and

Industry, Government of India addressing the delegates on “

Shri J. K. Dadoo

Benefits of Anti-dumping measures for

Indian SMEs”

Shri Chandrakant Salunkhe observed that

for a long time Maharashtra was considered

as the leading industrial State of India.

However, now many neighbouring States

like Gujarat, Karnataka and MP have

achieved a great industrial progress. It is

important therefore to give a much needed

thrust for the industrial and economic

development of Maharashtra in order to

sustain the growth of the State.

He stated that as finance is the life-line of

enterprises, the credit flow from the Banks

and Financial Institutions to the SME Sector

should be adequate and smooth. However,

recently the credit flow to the sector has

witnessed the slowdown mainly due to the

rising impact of the crisis as well as the high

interest costs. He also observed that the

industrial policy of the State should focus on

creating more employment opportunities,

education and skill development and other

measures to empower SMEs of the State to

succeed. Investor friendly policies and

removing the bottlenecks will go a long way

in attracting the much needed investments

into the State.

Address by – President, Small & Medium Business Development Chamber of

India and Maharashtra Industrial and Economic Development Association (MIEDA)

Shri Chandrakant Salunkhe



Keynote Address by Shri Sanjay Sethi

SMEs, Industrial and Economic Scenario

of Maharashtra and New Industrial State Policy - Impacts and Benefits for SMEs”

– Development Commissioner (Industries) & Secretary, MSME,

Government of Maharashtra delivering the Keynote address on “

Dr. J. N. Misra observed that as SMEs are very

heterogeneous in their sectoral composition

and size, their need is also very much

diversified. He commented that in order to

assist the SMEs, SBI has reached every nook

and corner of the country with the portfolio

of more than Rs. 1.2 lakh cores in MSME

Advances. The Bank has also developed a

wide array of products to meet the changing

needs of the industry. The Bank has 600

SME intensive branches and has set up

centralized processing cells (CPC) for

processing and sanctioning loans. Through

a special scheme called SBI Small and Micro

Interest Free Loan as equity (SBI SMILE)

loans are granted to entrepreneurs free of

interest payable over a long period to meet

the share of Promoters Equity.

While talking on other products for SMEs, he

said Cluster financing, collateral free loans

under CGTMSE and Supply Chain Finance

are some of the other initiatives towards

assisting SMEs. He concluded by mentioning

about relationship managers who have been

specifically appointed to provide required

guidance and assistance to the SMEs in all

matters related to the Bank.

Address by Dr. J. N. Misra –

“Banks' support towards Growth of SMEs”

Chief General Manager, State Bank of India, Maharashtra addressing the

delegates on

Shri Sanjay Sethi observed that Maharashtra

is considered as one of the largest State

economy contributing 13% towards India's

GDP and growing at an average rate of more

than 9% in last three years. The State

manufacturing output (21%) is higher than

India's manufacturing output (16%).

He observed that over period of time the

focus of the economy shifted towards

service sector and manufacturing activity

dropped down on the priority list of the

economy. However the importance of

manufacturing sector towards the growth of

the economy cannot be overlooked as it is

the real contributor towards the economic

development.

He also mentioned that the Government is

concentrating more on creating industrial

clusters where the SMEs can come together.

Maharashtra though for a long time has

remained the industrialist State of India,

other states are matching the rate of

Maharashtra's growth. However, due to

natural advantage of the State, it has

competitive edge over other states

especially in the manufacturing sector. He

also highlighted that the State is ahead of

other states in terms of implementation of

several mega projects.

He also mentioned that the State

Government has renewed its focus on

development of MSME Sector through

C l u s t e r d e v e l o p m e n t , E n h a n c e

competitiveness of MSMEs and provide

incentives to units to reduce burden of initial

set up cost and working capital. He also

mentioned about the manufacturing

competitiveness program to enhance the

competitiveness of MSMEs and enable them

compete in the domestic as well as

international markets.

Talking on the various incentives of the

Government for the State MSME sector, he

mentioned about the packaged scheme of

i n c e n t i v e s o n e o f w h i c h b e i n g

reimbursement of VAT on a yearly basis. The

Government also provides interest

subsidies to those companies He also spoke

on District Industry Centres (DICs) that have

been empowered to support the industries

in the State and for enhancing capability of

MSMEs in respective jurisdictions. He

concluded with several Incentive packages

for SMEs in order to assist them strengthen

their operations and improve their

competitiveness.



Knowing and doing are two different things,

commented Dr. Rashid Al Leem, Director

General, Sharjah Sea Ports, Custom &

Sharjah Free Zones Authority. Throughout

the world, over 70% of the employment is

generated by the SME Sector. The SMEs in

order to become competitive should

enhance and develop their knowledge and

capabilities in their field of activities and

implement them. Differentiation is the key

to success in a competitive environment,

observed Dr. Leem. Wherever necessary the

SME should also look for diversification

opportunities. Quoting the example of

NOKIA, who is the leading mobile handset

manufacturers, he mentioned that their

original business was manufacturing paper,

however sensing the upcoming opportunity

in field of telecommunication, the company

diversified its business in to the field of

mobile handsets manufacturing making it to

be the World's largest mobile handset

manufacturers. He encouraged the SMEs to

keep track of upcoming opportunities in the

market and grab them in order to stay ahead

of the competition.

He also observed that all the business

activities should address the economic,

social and environmental concerns. The

SMEs should also focus on their core

activities and add value to the customers.

While Disney Land is focused on children it

also adds value to their parents. The success

of the Wal-Mart lies in their effective cash

flow management.

He concluded by stating the importance of

benchmarking practice for SMEs that will

enable them to become more competitive

and also expand their business operations

as per the industry standards.

No enterprise big or small can progress

without a proper business strategy,

observed Shri Vijay Mansukhani, An

enterprise can be very good in operations

however, unfocussed strategy can adversely

impact the organization. The strategies

should strengthen the core business

activities and hence it is important to

consider all the business functions in order

to devise appropriate business strategy. He

also commented that Automation and

economies of scale are the two aspects for

growth of the SMEs. SMEs need to have a

clear cut policy regarding “make or buy”

decisions in order to effectively compete in

the market. He observed that Indian SMEs

have the ability to produce variety of

products and can effectively compete with

countries including China. However, the

Indian SMEs suffer from lack of focus on

quality of products and services. SMEs

therefore should focus their attention on

improving the quality of products to meet

international standards.

In order to improve the skill development

and standards of the workers he appealed to

the Government to formulate policies and

framework for employment. He suggested

that the Indian Government should

benchmark the same level of incentives

offered by the Chinese to their SMEs instead

of subsidising diesel, food etc in order to

support the growth and development of the

Indian SMEs.

Address by Shri Vijay Mansukhani –

“Industrial Slowdown - Impact on SMEs”

Managing Director, MIRC Electronics Ltd. (ONIDA) addressed the

delegates on

Address by – Director General, Sharjah Sea Ports, Customs & Sharjah Free Zones

Authority addressing the delegates on

Dr. Rashid Al Leem

“Emerging Business Opportunities for SMEs”



Shri Ravindra Kumar Shri Rakesh Singh

“Enhancing Cash Flows through Invoice

Discounting”

– Senior Regional Advisor, South Asia,

Standard Bank PLC and Member, Advisory Board, SME

Chamber of India.

- CEO, Aditya Birla Finance Ltd addressed

the delegates on

Shri Ravindra Kumar observed that

with the current economic situation,

b u s i n e s s e n v i r o n m e n t h a s

undergone rapid changes. The crisis

in PIIGS countries has affected

economies worldwide including the

BRICS economies. This has thrown

number of challenges especially

infront of the SMEs.

He concluded by encouraging SMEs to stay abreast of worldwide

economic situation, new technology development and maneuver

their businesses in order to stay ahead of the competition.

Shri Rakesh Singh observed that

Indian SMEs contributes 12-15% of

GDP which is far less when compared

to 51% in the Developed Economies.

He also noted that 59% of SMEs in

India do not have access to formalized

lending such as Bank Credit and the

situation of SMEs in India is

comparable to that of SMEs in low

income/Developing countries.

He further commented that the most essential criterion for the

success of an enterprise is the effective management of cash-flow.

Well managed cash flows will translate into increased turnover

through greater churning, reduced cost of goods due to greater

credit periods, continuous stock repurchase which will ensure less

downtime. Increased profits through reduced debt charges, efficient

fund utilization via focused Investment in assets / expansion needs

and Improved cost and balance sheet structure are other

advantages of good cash flow management. This will also result in

better debt ratios for greater leverage.

He also encouraged SMEs to clearly differentiate between profit and

cash flow, realised and unrealized payments.

He concluded by stating the recent CRISIL study that a decline of 1%

in raw material prices could increase the Operating Profit Margin for

SMEs to 6.32% from 5.62%, indicating a rise of 12.5%.There is a huge

gap between demand and supplies and the SMEs should opt for

appropriate funding options including invoice discounting facilities.

PANEL DISCUSSION ON

DRIVING GROWTH OF SMEs

Panelists from (L to R) – CEO, Continental Capital Advisors, – Managing Director & CEO, Invent

Assets Securitisation & Reconstruction Pvt. Ltd., – Sales Head, ClApp , Trimax IT Infrastructure & Services Ltd.,

– Senior Regional Advisor, South Asia, Standard Bank LLC and Member, Advisory Board, SME Chamber of India,

– Head Product Sales – Data Services, Bharti Airtel Ltd., – MD, Proquest Solutions and – CEO, Aditya

Birla Finance Ltd.

Shri Shailendra Jindal Shri P. H. Ravikumar

Shri Sanjay Mukhopadhyay Shri

Ravindra Kumar Shri Divya

Sethi Shri Biswas Nair Shri Rakesh Singh

Delegates at the Summit



Shri Divya Sethi

. “Telecom Solutions to

Fuel Business Growth”

Shri Sanjay Mukhopadhyay -

“Low Cost IT

Infrastructure and Software Solutions for SMEs”

- Head Products Sales, Data Services, Bharti

Airtel Ltd addressed the delegates on

Sales Head, CIAPP, Trimax IT

Industries. addressed the delegates on

Shri Biswas Nair

“Advantage of Cloud / ERP Solutions for SMEs”

- Managing Director, Proquest Solutions addressed

the delegates on

Shri Divya Sethi, Head Products Sales,

Data Services, Bharti Airtel Ltd.,

observed that there are around 1

billion people utilise online services

w h i c h s h o w s t h e s c o p e o f

opportunities in the telecom

business. Companies have started

g i v i n g e q u a l i m p o r t a n c e t o

as much as to

. The meaning of

business communication is changing continuously and there is a

need for real time information to empower businesses located at

remotest locations.

There is a digital divide in the country, which needs to be bridged in

order to bring digital revolution in the country. The enterprises

should change their focus from physical transaction to m-Commerce,

e-Commerce and Social Networking for providing the customer ease

of transaction, convenience and choice and also to drive efficiency in

the organization.

He also observed that Information Technology has changed the face

of the entire education industry transforming Instructor Dependent

System into learner empowerment models. This has facilitated the

interaction between teacher and students and also offers “any-time,

anywhere learning”. This has reduced costs on infrastructure and

classrooms. This has also facilitated real time assessments of

performance and skill-up gradation for teachers thus transforming

the entire education system

In the health care sector, IT solutions have enabled the patients from

accessing the inaccessible health care facilities and also obtain

preventive medical aid 24x7. Remote data collection, remote

monitoring, remote diagnostic and treatment support and disease

and epidemic outbreak tracking are the latest innovations that have

changed the healthcare sector and transformed it to benefit society

at large.

He concluded by commenting that due to every changing business

environment and rapidly changing consumer needs and demands,

there are plenty of opportunities for ICT solution providers to match

the changing business dynamics.

Shri Biswas Nair observed that the

Small and Medium Enterprises

understand the importance and

usefulness of the ICT solutions but

are reluctant to go in for the same due

to constraints on budget. However,

cloud computing offers the best

substitute for SMEs as it does not

block their valuable capital in the

hardware and software expenses and

give them freedom to choose a system

that matches their requirements.

Elaborating on cloud computing, he said that the main attraction of

the solution is that it enables the customers to pay as per the usage

and outsource the installing, upgrading and maintenance of

hardware and software to the service provider.

Automated backups, maintenance, Automated upgrades, hosting of

Solution, Modern web based integration and accessibility of data

through web and mobile from anywhere are the benefits of cloud

computing, said Shri Biswas Nair. The other characteristics of cloud

computing are – Easy Accessibility of data, Service Management,

Agility, Flexibility, User Metering, Cost Efficiency, Automation and

Virtualization.

Further he observed that Cloud computing enables businesses to

stay abreast of latest accounting and regulatory changes, more easily

scale a distributed global organization and reallocate IT budget from

maintenance to innovation. It also helps to get automated upgrades

and eliminate “wasted” maintenance, benefits from economies of

scale for security and data management, use a modern and easier to

integrate solutions and typically get more tightly integrated

analytics

Shri Sanjay Mukhopadhyay observed

that the current scenario of Indian

SME Sector is not encouraging. The

sector consists of Small and

fragmented business entities with

over 95% having no access to any

formal institutional credit from banks

or financial institutions and are

mostly proprietorship or partnership

based.

With globalisation and liberalisation picking pace, SMEs are finding

it difficult to survive and sustain in the competitive and globalised

market place. Due to their small nature and lack of access to the

capital around 80% of the industrial enterprises lack technological

know-how, managerial and financial resources, working capital and

marketing support. This has resulted in lack of innovation ability,

sub-optimal scales of operations, low R&D investment,

Technological obsolescence and lack of management skills & trained

personnel.

In order to grow, it is necessary for SMEs to upgrade skills, develop

systems and processes, invest in technology, scale up operations,

speed-up processes and delivery time, attract and identify right

talent, cut down on response time, maintain a repository of past

projects as well as delivery details and details of customers. It will

enable SMEs to bring down cost of operation, aid penetration into

the global markets, drive efficiency in the business and enable them

to set newer and higher standards for growth.

He concluded by saying that the SMEs can benefit immensely by

adopting Cloud Computing Services to obtain value for money. Cloud

solution allows SMEs run their business without owning anything

and help them to be part of global ecosystem which was till recently

meant for only large enterprises.

“Information Flow”

“Cash Flow”



Shri P.H. Ravikumar

“Restructuring and Business Improvement

Strategies for SMEs”

- Managing Director & CEO, Invent Assets

Securitisation & Reconstruction Pvt. Ltd. addressed the

delegates on

Shri P.H. Ravikumar commented that

the SMEs normally become sick due

to various reasons - 75% of which are

self created due to ignorance of few

critical aspects of the business, 15%

is due to technology and 10% is due to

external reasons. The primary reason

for SMEs falling sick is mainly due to

the lack of financial management

ability where in the entrepreneur

utilizes working capital funds to

acquire fixed assets rather than financing the business operations.

The second is expanding the business without adequate capital. The

third one is the diversification of funds to ventures other than the

core business. The fourth one is the delayed payments from the

customer or shipment and lack of actions for receiving the payment.

He asserted that SMEs should keep in mind various financial ratios

for better financial management and to avoid becoming sick.

Explaining various financial ratios he said that not more than 40% of

EBIDTA should be used towards repayment of principal and interest.

The entrepreneur should track total debt and not just long term debt

–total debt which should not exceed 2.25 times the net worth plus

quasi equity. Total debt should not exceed 4 times the EBIDTA

margin.

Further, he added that SMEs should regularly write off old and non-

moving stock and focus on speedy recovery of payments. The

entrepreneur should avoid borrowing money from private parties to

pay interest. He also encouraged the SMEs to share the cordial

relations with their bankers and share all their business issues and

challenges with the banks. This would help SMEs during challenging

situations wherein banks can assist them in restructuring their

debts.

Highlighting the benefits of restructuring, he said that restructuring

would help SMEs in many ways i.e.

Portions of problems areas are separated and moved to long-

term loan category with low interest rates

Lower interest rates on working capital and other borrowings

Repayments are aligned to expected cash flows

Pain of restructuring to be borne by both borrower & the bank/s

�

�

�

�

INTERACTIVE SESSION WITH SPEAKERS

DELEGATES AT THE SUMMIT



PANEL DISCUSSION ON

ENHANCING THE CAPABILITIES OF SMEs

Panelists from (L to R) – CEO, Continental Capital Advisors, – GM, (Priority Sector), Central Bank of India

– MD, The Maharashtra Agro Industries Development Corporation Ltd (MAIDC),

e – President, SME Chamber of India & MIEDA, – Partner,

Smart Head Strategy Solutions Pvt Ltd. and –Manager(SME), Mahindra & Mahindra Financial Services Ltd.

Shri Shailendra Jindal Shri R. B. Gupta

Smt. Meeta Rajivlochan Shri Sanjay Bhatia

Shri Chandrakant Salunkh Shri Sanjiv Nanda

Shri Rohit Kumar Sinha

– Commissioner of

Sales Tax, Government of Maharashtra,

Shri Sanjay Bhatia observed that Goods and

Service Tax (GST) is set to be one of the

biggest taxation reforms in India and

integrate economies of all states and boost

overall growth of India. GST will create a

single, unified Indian market to make the

economy stronger. In 160 countries around

the world, GST is in place.

He further explained that implementation of

GST will lead to the abolition of other taxes

such as VAT, Entertainment Tax, Sales Tax,

Service Tax etc. It will avoid multiplicity of

Central and State Taxes and the cascading

effects thereby reducing the tax burden on

the entire industry. This will result in lower

tax rate by increasing the tax base and

minimizing the exemptions. He also

observed that the biggest challenge for GST

implementation is obtaining the full support

of all the states. This has portrayed

Maharashtra to be the biggest hurdle in the

implementation of GST due to its prevalent

Octroi duty and is the only State where

Octroi duty is imposed.

Explaining the benefits arising from

implementation of GST, he said that there

will be a single common registration on

national level and common returns. The

registration, submitting returns and

payment will be through electronic mode.

Further, for companies with turnover of less

than Rs. 50 lakhs, GST may not be

c o m p u l s o r y. T h e G o v e r n m e n t i s

concentrating on automation of all

operations before introduction of GST. PAN

will be the common identifier and there will

be only one reporting authority. Rates for

Goods and Services should be the same. It is

expected to help build a transparent and

corruption free tax administration. GST will

be levied only at the destination point and

not at various points from manufacturing to

retail outlets.

He concluded saying that introduction of

GST will bring lots of benefits for SMEs as it

will reduce the impact of taxation on SMEs.

Keynote Address by – Commissioner of Sales Tax, Maharashtra State addressed the

delegates on

Shri Sanjay Bhatia

“GST (Goods & Service Tax) – Impact and Advantages for SMEs”



Smt. Meeta Rajivlochan introduced MAIDC

as a 40 years old organisation with a

turnover of around 100 Crore and with the

objective to make available the standard

quality fertilizers, pesticides, agro

engineering implements and annual feeding

at competitive rates to the farmers of

Maharashtra.

MAIDC provides lot of assistance to the SME

Sector engaged in food processing industry.

They supply fertilizers and pesticides

including bio-fertilizers under the brand

name Krishi Udyog through a network of

over 1500 dealers. It has its own R&D centre

and is also engaged in developing

infrastructure and industrial estates and

food parks.

She also mentioned about the quality

certification for branding, retailing and

energy audit services for SMEs. Other skill

up-gradation initiatives include short-term

courses on seed upgradation, food

processing and packaging. Assistance is also

provided for customer information,

advertisement, automation, testing, safety

standards etc. For development of cold

storage facilities incentives are available.

She encouraged the SMEs to enter into the

agro and food processing industry business

because it is sunrise industry providing lots

of opportunities.

Keynote Address by – Managing Director, Maharashtra Agro Industries

Development Corporation Ltd. (MAIDC) addressed the delegates on

Smt. Meeta Rajivlochan

“Role of MAIDC for the growth of SMEs

in Food Processing Industry”

Shri U.R. Tata

“Collateral Free Loan and Financial Facilities for Startups

–Role of CGTMSE”

Shri R.B. Gupta

“Financial Support for Marketing

and Promotion for SMEs”

– CEO, Credit Guarantee Fund Trust for Micro

and Small Enterprises (CGTMSE) addressed the delegates on

– GM (Priority Sector), Central Bank of India

addressed the delegates on

While explaining the difficulty of

SMEs in accessing the finance, Shri

U.R. Tata mentioned that the first

generation entrepreneurs with any

legacy find it difficult to provide

collaterals and 3rd party guarantees

to avail bank credit. Credit Guarantee

Fund trust for Micro and Small

Enterprises (CGTMSE) was set up by

the Government of India and SIDBI

mainly to assist and encourage such entrepreneurs to start their

business operations without providing any collaterals.

The main objective of CGTMSE is to make credit facility available

based only on the primary assets created out of the funds disbursed

by the banks. The projects should be self sustainable and is available

to existing and new Micro and Small Enterprises, including service

enterprises with a maximum credit limit of Rs. 1 crore. The scheme

guarantees to the extent of 75 to 80% of the sanctioned amount of

the credit facility to the member lending institutions (Banks). Many

banks are the members of this scheme except cooperative banks. The

scheme is not available to traders and training and institutional

institutes.

For credit facility upto Rs. 5 lakh, the guarantee fee is 1% of the

amount sanctioned. For amounts beyond Rs. 5 lakh and upto Rs. 1

crore the guarantee fee is 1.5%. Some of the banks share this fee with

the SMEs.

Shri R.B. Gupta mentioned about the

new product introduced by the Bank

for the benefit of SMEs who are

desirous of participating in various

exhibitions and trade shows around

the world. There is an increased

awareness amongst the SMEs to

attend such events to identify new

business opportunities.

The essence of the scheme is that the borrower should provide 25%

margin money. For loans upto Rs. 1 lakh, no collateral security is

required. Beyond Rs. 1 lakh collateral will be required in the form of

LIC Policies, Government Bonds etc. The rate of interest is 4% above

the base lending rate.

He concluded by saying that SMEs should take advantage of such

schemes to promote their products and services in the domestic as

well as international market.



Shri Sanjiv Nanda

“Transforming SMEs into

emerging Corporate – By Reengineering the Systems and

Processes”

Shri Rohit Kumar Sinha

“Alternative Financial Sources for SMEs”

Shri Shailendra Jindal

“International Trade Finance –

Opportunities for SMEs”

– Partner, Smart Head Strategy Solutions

Pvt. Ltd. addressed the delegates on

Manager (SME, Mahindra &

Mahindra Financial Services Ltd. addressed the delegates on

– CEO, Continental Capital Advisors

addressed the delegates on

–

Shri Sanjiv Nanda commented that

for SMEs to succeed in the long run it

is necessary for them to create a

common goal for the enterprise and it

should be percolated to all the

employees in order to make them

aware of the objectives and goals and

action to be taken to achieve them as a

team. There should be clear idea and

plans for business growth in the areas

of revenue, geographic spread, product development and services.

He also encouraged the entrepreneurs to adopt changes and

transform the business in order to respond swiftly to the challenges

arising due to changing business environment. It is important for

businesses to attract the right human talents and it is all the more

important to retain them. The entire activities of the business should

be process driven and should not be dependent on any individual

said Shri Sanjiv Nanda.

Talking on the importance of business plan he said that

organisations should prepare business plan on the quarterly, half

yearly and yearly basis in order to keep the track of the business. Due

importance should also be given to Corporate Governance, Ethics

and Compliance. In order to achieve success the SMEs should

continuously improve the quality of the products and services and be

responsive to the needs of market, customers and society.

He concluded by stressing on the importance of having right talent of

the right job as they are the most important stakeholders for the

company.

Shri Rohit Kumar Sinha spoke on the

role of NBFCs towards financing the

SME sector. He observed that Non-

banking financial companies (NBFCs)

are an alternative source of funds for

the SMEs apart from banks and other

institutions.

The traditional lending finds SMEs to

be risky clients mainly due to the lack

of transparency in their businesses

and financial statements. The traditional sources rates the SMEs as

per their risk perceptions which are mainly the risks associated with

the operations of the enterprise. Also the conventional sources of the

finance have financing limit as they can't finance more than 4 times

the finance limit in the year mainly because they find it extremely

risky to invest such a big amount in any of the small businesses and

are averse to multiple financing. Also there is a large number of

documentation involved in the conventional sources of financing.

He commented that risk averse nature of the conventional sources of

financing provides ample opportunities for NBFCs to tap in to. The

advantages NBFCs enjoy over conventional sources are that the

NBFCs are sector focused and lending is done only to specific sectors

mainly due to their association with those sectors in the past or due

to the inherent understanding of those sectors. This understanding

of the sectors enables the NBFCs to eliminate the information

asymmetry that the conventional lenders face thereby reducing

their loan sanctioning time.

He also observed that NBFCs tend to be more flexible in their

approach as compared to the conventional lenders mainly due to

their targeted approach, quick processes, minimum documentation

besides little mandatory and regulatory documentation.

He concluded by saying that NBFCs have been more effective in

lending to SMEs mainly due to their understanding the customer

needs better than the conventional lenders and more emphasis on

Management and Value chain partners apart from financials. The

NBFCs' process of lending involves financial analysis, due diligence,

meeting with customers, collateral verification and valuation and

credit rating. .

Shri Shailendra Jindal noted that

there are three major sources of

international f inance namely,

External Commercial Borrowings

(ECB), Normal Trade Finance and

Equity Capital.

External Commercial Borrowings

(ECBs) are one of the modes for

sourcing of funds for corporate. ECB

can be accessed under two routes, Automatic Route and Approval

Route. ECB is useful for investment in real sector-industrial sector,

infrastructure sector-in India, and specific service sectors as

indicated are under Automatic Route.

International Methods of Payment consists of Open Account,

Documentary Collection (Time), Documentary Collection (Sight),

Letters of Credit (Time), Letters of Credit (Sight) and Payment in

Advance.

Explaining international trade finance, he said that there are many

avenues to avail international trade finance. They are - Letters of

credit (L/Cs), Import bills for collection, Import financing, Shipping

guarantees, Pre-shipment export financing, Post-shipment credit,

Invoice financing, receivables, purchase and Export credit

guarantees or insurance.

Trade Credits (TC) refer to credits extended for imports directly by

the overseas supplier, bank and financial institution for maturity of

less than three years. Depending on the source of finance, such trade

credits include suppliers' credit or buyers' credit.

Suppliers' credit relates to credit for imports into India extended by

the overseas supplier. Buyers' credit refers to loans for payment of

imports into India arranged by the importer from a bank or financial

institution outside India.

SMEs face problems in accessing the above type of financing mainly

due to Higher Transaction Costs, their diverse and more opaque

nature than large firms, ability to give limited collateral, higher risk

of default, less transparency in operations.



PANEL DISCUSSION ON

EMPOWERING SMEs FOR BETTER GROWTH

Panelists from (L to R) – Credit Manager, SME Division, Corporation Bank, – Avighnaa Advisory Services,

– Coordinator, Design Clinic Scheme, National Institute of Design, – Secretary General,

SME Chamber of India, – Director, SME Testing Centre (WR), Ministry of MSME, Govt. of India and –

Executive Director, National Centre for Quality Management

Shri Kunal Dhoke Smt. Manisha Gupta

Shri Jitendra Singh Rajput Shri V. K. Venkatachalam

Shri S. Vijay Kumar Shri Uday M. Gaitonde

Shri Sunil Kakkar

“Importance of finance for the SME sector”

Shri Vijay Kumar

“Testing

facilities for better quality improvement”

– Circle Head, UCO Bank, Mumbai addressing the

delegates on

– Director, SME Testing Centre (WR), Ministry of

MSME, Government of India addressed the delegates on

Shri Sunil Kakkar mentioned that the

Bank has 12 SME hubs to cater to the

n e e d s o f S m a l l a n d M e d i u m

Enterprises. Finance is the very

critical element for the success of any

enterprise. He suggested SMEs to

take advantage of non-fund based

facilities such as letter of credit and

bank guarantee. There should be a

judicious mix of fund and non-fund

portfolios in order to effectively manage the finances for the business

operations.

He observed that SMEs normally overstate their working capital

requirements while applying for a loan and end up paying more

interest. It is advisable to avail only what is required by keeping a

peak limit for future requirements and use it wisely only to finance

the business operations. He also encouraged importance of ICT for

driving efficiency in the business and also manage their finance

effectively. He also encouraged the SMEs to maintain cordial

relationship with the concerned officials of the banks in order to get

required assistance from the bank at the right time.

He stressed on the fact that SMEs need to understand that under the

current economic circumstances the business cycle have become

shorter and with severe impact. Hence it is important for SMEs to

concentrate more the quality of the products as well as tapping in to

the large customer base.

He called upon the SMEs to be transparent in their financial

statements especially while dealing with banks and other financial

institutions as the banks judge the performance of an enterprise

through its financial statements. This is very crucial for SMEs in

order to enhance their access to finance.

He concluded by stressing that SMEs should not depend on a single

customer or single supplier as it would be detrimental for the

survival of the enterprise.

Shri Vijay Kumar highlighted the key

services of MSME-DO - advising the

Government in policy formulation for

the promotion and development of

MSMEs, providing techno-economic

a n d m a n a g e r i a l c o n s u l t a n c y,

common facilities and extension

services to MSMEs and providing

facilities for technology upgradation,

modernisation, quality improvement

and infrastructure. Apart from the above, the organisation is also

engaged in developing Human Resources through training and skill

upgradation as well as evolving and coordinating Policies and

Programmes for the development of MSMEs as ancillaries to large

industries, said Shri Vijay Kumar.

He also commented that the objective of the MSME Testing Centre is

to provide testing facilities to MSME units as per national &

international standards specifications. It also assists in improving

the quality of products of MSME units to participate in government

store purchase programme, defense establishments, Railways,

CPWD etc. Assistance is also provided for calibration of their

instruments and gauges, etc. and imparting trainings for testing

professionals.

He concluded by listing the facilities the Centre provides for carrying

out the testing facilities - Well equipped Mechanical, Electrical,

Chemical and Meteorological laboratories.



Shri Uday Gaitonde

“Business

Improvement Initiatives for SMEs”

Shri Kunal Dhoke

“Innovative

Credit Schemes for SMEs”

“Importance of Project Management for

SMEs”

Shri Jitendra Singh Rajput

“Design Needs for SMEs”

– Executive Director, National Centre for

Quality Management addressed the delegates on

– Credit Manager, SME Division,

Corporation Bank addressed the delegates on

Smt. Manisha Gupta – Avighnna Advisory Services addressed

the delegates on

– Coordinator, Design Clinic

Scheme, National Institute of Design addressed the delegates on

Shri Uday Gaitonde commented that

in business operations SMEs face

many problems such as Breakdowns

/ Downtimes, Product Rejections,

High Cost, Delays in Delivery,

Accidents due to Poor Safety

Practices, Dissatisfied Customers,

High Employee Attrition, Untidy

Workplace and Mixed-up Inventory.

The traditional characteristics of SME

is One Man Management, Untrained Manpower, Unstructured Way

of Working, Poor Empowerment and Involvement by employees,

little exposure to modern manufacturing practices, absence of long-

term planning, obsolete technology etc. Large numbers of small

enterprises focus on higher production to reap higher profits,

however, due to unplanned production end with lots of inventory

thereby increasing the entire cost of operations.

Business can be improved only if SME adopt steps to improve the

productivity and quality, reduce the cost of production, adhere to

environmental protection norms, health and safety policies as well

as adopting good manufacturing practices. He discussed various

ways in which the company can improve its productivity, quality,

innovate and the benefits arising due to the adoption of those

practices.

He concluded by saying that on the supply side, the need is to

concentrate on improved services, keep up on time delivery,

motivation of employees and constantly innovate the products and

services to meet the market demands.

Shri Kunal Dhoke highlighted various

services devised by the banks

especially for the SMEs. 'SME

P ro c e s s i n g C e l l s ' h ave b e e n

established in all Zonal Offices and

SME Nodal Officers have been

designated in all the zones to attend

to the grievances of SME clients.

The Bank has adopted Cluster Based

Approach for Lending to SMEs and signed an MoU with SIDBI for

financing SMEs. It has also signed MoUs with reputed rating agencies

to rate its SME customers and offer them an interest rate concession

of 0.5% to 0.25% for rates SMEs. He spoke on exclusive SME Loan

Centres the bank has started to service its SME clients engaged in

production, processing and service activities. It consists of a

dedicated centralised processing centre and a team of Relationship

Managers who would provide guidance / counseling to SME

entrepreneurs as well as liaise with CCPC, Branches, Valuers and

Advocates.

He concluded by highlighting the special scheme focused on SMEs

engaged in textile and auto industries.

Smt. Manisha Gupta observed that

Small and Medium Enterprises

undertake several projects and it is

important for them to understand the

methods of managing the projects. A

well-managed project will result in

higher Quality of product / service,

better risk assessment and control,

l o w e r c o s t , e f f i c i e n t t i m e

management and improved customer satisfaction levels. Explaining

project management process, she said that a project is technically

defined as a temporary endeavor to create a unique product or

service. Project management is the application skills to execute the

project effectively and efficiently which in-turn leads to a better

quality of products and services. A Project Management Life Cycle

consists of five stages namely Initiation, Planning, Execution,

Monitoring & Control and Closing. She also explained the each stage

of the project life-cycle.

She concluded by saying that it is important to note how to execute

the project to meet the specified scope with acceptable quality and

within the targeted time and cost as it is very crucial for the SMEs.

Normally projects end up with “cost and time overrun” which should

be avoided. She encouraged the SMEs to take advantage of the latest

IT packages to monitor and control the projects.

Shri Jitendra Singh Rajput observed

that Design is recognised as an

innovative discipline that can help the

SMEs to sustain and grow in the

competitive market.

E n t r e p r e n e u r s m a n u f a c t u r e

products either by copying the

existing one or by incorporating some

modifications in the design and other

attributes. He stressed that improving the design of the product is

very much necessary to sustain in the competitive world. Design is

not simply about new products or technology. It is about how to

improve the products of everyday use, leading to reduced cost,

increased utility, acceptability and resulting in new business

opportunities.

He concluded by mentioning various services of the Institute offers

to helps SMEs create awareness about designing products such as

assisting them in creating the design, handholding and support in

finalising the design as well as provide financial assistance.



I

Entrepreneurial

Locational expansions

Growth Spurts

In Transit

Contract Duration

On the Move

ndia has become a prime investment destination for global

businesses. The spurting economy has also fuelled a spate of

new businesses and expansions domestically. This in turn has

fired a huge demand for more office space, causing rents and real

estate prices at commercial hubs to skyrocket even further.

The basic types of these new businesses which have fuelled the

spurting space demand are:

– New set ups, with dynamic needs, do not need to

make long term commitments as they are still assessing their needs

– typically headquartered elsewhere,

exploring a new territory to establish a business presence, mostly

sales and business development outfits

companies that have outgrown their current

spaces and need more while they plan their long term

accommodation strategy

moving out of one space to occupy newer/ bigger offices

which have some time to go before they are ready for occupancy

executing a project or an off-site

Traveling executives, who need a place that answers

their phones and collects their mails and acts as a communication

hub

In all these cases, the business teams have little time to spare for

setting up elaborate office space, but need state of the art premises

with fully loaded support functions. As such, cost effective, fully

furnished, ready to occupy serviced offices and virtual offices are

seen as ideal solutions.

Internationally, the market for serviced offices is quite developed

although in India, it's still in nascent stage. However, mushrooming

economic growth will open up the opportunities for the market for

the serviced offices and virtual offices industry in a very short time.

Global leaders in the 'Serviced Offices' space, like Servcorp have

developed total business solutions which offer maximum flexibility

to the occupant. Clients can literally walk in with their laptops, select

from a bouquet of services – secretarial, administrative,

communication infrastructure, meeting and conferencing facilities,

even pantry services - according to their needs and get on with the

business of business. The best part is, these international quality

services are 'pay per use', so no standing costs. In India K Raheja Corp

has an exclusive franchise agreement with Servcorp to offer these

business solutions.

To support those businesses that do not have a requirement for

physical office space, there are Virtual Office packages. Virtual Office

clients can take advantage of the prestigious addresses utilizing it on

business cards and letterheads, be assisted by a dedicated

receptionist who'll answer calls in their company name or gain

international access to boardrooms and meeting rooms when they

need. Servcorp's state-of-the-art virtual product 'Servcorp Online'

allows the delivery of services and products online and in real time.

Clients can store data online, check emails, make boardroom

bookings, request translations, utilize a remote data storage system,

print, book a courier and much more. Anywhere the internet is

available clients can access their data online.

I believe market demand for these services will soon outstrip supply,

but we at Imperial Servcorp are gearing up to extend our facilities

wherever need arises.

–

–

–

–


CO NNECTAdvertorial

Right Office Solution for SMEs

Hyderabad

Mindspace Complex

Mumbai

Vibgyor, BKC

Authored by

– AVP, Servcorp IndiaMs. Meenal Sinha

Real Solutions

to help your business succeed

Servcorp Virtual Office®

provides tailored solutions that save you

time and money and let you focus on driving your business.

Our exclusive offer for SME Chamber of India members is:

free trial on a Servcorp Virtual Office with a setup fee of only INR 100.00®*

@ half price – No further obligations*

�

�

One month

Next Two months

* This offer is only valid for packages starting in July 2012, Security Deposit as per package opted for will be applicable. To avail the

offer, this coupon needs to be presented. Offer valid only for SME members. Valid only for Servcorp Indian locations.

AUSTRALIA | NEW ZEALAND | INDIA | SOUTH EAST ASIA CHINA | JAPAN | EUROPE | MIDDLE EAST | USA | UK

www.servcorp.co.in

To avail the offer or for any queries,

Call / at 022 - 4090 7000 / 040 - 4033 9800Monika Misra Shreekanth Pranjal

Servcorp Virtual Office provides you:

�

�

�

�

�

�

Prestigious business address

Dedicated landline number with professional call answering

Trained team support

Technology to support your office requirements

Access to our global network in over 130 locations and

Manymore value addition features

Seminar on

DOING BUSINESS IN SOUTH AFRICAWednesday, 23rd May 2012 | SME Chamber of India Conference Hall, Andheri (E), Mumbai

From (L to R) Ms. Sushama Kanetkar Ms. Seema Sardha

Mr. Richard Zurba Mr. Chandrakant Salunkhe

- SRK and Associates, Bangalore, - Consul (Economic),Consulate of South Africa in

Mumbai, - Director, Zurcom International (Pty) Ltd., South Africa and - President, SME Chamber

of India during the Seminar


President, Small & Medium Business

Development Chamber of India

Ms. Seema Sardha

Consul (Economic),Consulate of South Africa

in Mumbai

Mr. Richard Zurba

Director, Zurcom International (Pty) Ltd.,

South Africa




Keep Succeeding. This is the instinct that we, at Onicra Credit Rating Agency of India, have encouraged in India's

finest SME business owner's minds over the years. And now, we can propel your dreams through our belief in the

power of relationships. With us, every day, year after year, you get quality rating and service that is simple, friendly,

and customized just for you. So, whatever the size of your business, the only question is, how big do you want to be?

Get your business rated by us and we shall help you grow faster and smoother.

�

�

�

�

MSME Rating

Vendor and Associate Rating

Education Grading

Employee Background Assessment and Profiling

Business Solutions

ASSESSMENT, RATING, GRADING, IMPACT

To know more: Call: 0124-3076004


11th Floor, Vatika City Point, MG Road, Gurgaon-122002

GROWFASTER

Signing of Memorandum of Understanding Between



Mr. Ki-Hwa Hong Mr. Chandrakant Sakunkhe– President & CEO, Gyeonggi Small & Medium Business Center and – President, Small & Medium

Business Development Chamber of India signing and exchanging the Memorandum of Understanding

H. E. Mr. Kim Young-geol

Mr. Kyung-Sun Min

– Deputy Consul General, Consulate General of the Republic of Korea in Mumbai,

– Executive Director, Trade Support

Division, Gyeonggi Small & Medium Business Center during the MoU signing Ceremony between SME Chamber of India and Gyeonggi Small &

Medium Business Center

Mr. Ki-Hwa Hong

H. E. Mr. Kim Sung-Lyul Mr. Chandrakant

Sakunkhe

– President & CEO,

Gyeonggi Small & Medium Business Center, – Vice Governor, Gyeonggi Province, Republic of Korea,

– President, Small & Medium Business Development Chamber of India and

SIGNING CEREMONY OF

MEMORANDUM OF UNDERSTANDING

15 May 2012 | Hotel InterContinental The Lalit, Mumbaith



H. E. Mr. Kim Young-geol – Dy. Consul General,

Consulate General of the Korea, Mumbai

Dr. K. Shivaji (IAS) – CEO, Maharashtra

Industrial Development Corporation (MIDC)

H. E. Mr. Kim Sung-Lyul – Vice Governor,

Gyeonggi Province, Republic of Korea


Mr. Ki-Hwa Hong – President & CEO,

Gyeonggi Small & Medium Business Center

Mr. Chandrakant Sakunkhe – President,


Mr. Chandrakant Sakunkhe H. E. Mr. Kim

Sung-Lyul

&

– Vice Governor, Gyeonggi Province

OPENING CEREMONY OF THE FAIR

H. E. Mr. Kim Sung-Lyul Dr. K. Shivaji (IAS)

Mr. Chandrakant Sakunkhe

H. E. Mr. Kim Young-geol

Mr. Kyung-Sun Min

– Vice Governor, Gyeonggi Province, Republic of Korea and – CEO, Maharashtra Industrial

Development Corporation (MIDC) inaugurating the G-Fair, – President, Small & Medium Business Development

Chamber of India, – Deputy Consul General, Consulate General of the Republic of Korea in Mumbai,

– Executive Director, Trade Support Division, Gyeonggi

Small & Medium Business Center were present

Mr. Ki-Hwa Hong –

President & CEO, Gyeonggi Small & Medium Business Center, and

15 - 17 May 2012 | Hotel InterContinental The Lalit, Mumbaith th

G-FAIR - KOREA SOURCING FAIR





State Level Flagship Event

VADODARA SME AND ENTREPRENEURSHIP MEETTheme: STRATEGIES AND INITIATIVES FOR BETTER GROWTH

Friday, 4th May 2012 | Hotel Surya Palace, Vadodara

Panelists – President, SME Chamber of India,

– Managing Director, Ram Ratna Group of Companies, Vadodara,

Shri Chandrakant Salunkhe

Shri

Tribhuvanprasad Kabra

(L to R) – Managing Director,

Century Pharmaceuticals Ltd, – Director, MSME Development Institute, Ahmedabad,

– Zonal General

Manager – Gujarat Region, Central Bank of India, Deputy Commissioner of Industries, Gujarat and

– CEO, Value Plus - The Family Office, Vadodara

Shri Janak Sheth

Shri Arvind Patwari

Shri B. K. Singhal

Shri R. N. Raval – Shri H .P.

Shah

PANEL DISCUSSION ON

MANUFACTURING & SERVICE SECTOR | GOVERNMENT POLICIES | TECHNOLOGY

INTERNATIONAL MARKET & COMPETITION | NURTURING FAMILY AND BUSINESS

Speaking on the economic prosperity of Gujarat, Mr. R. N. Rawal

observed that socio-economic development is the main essence of

the Gujarat Industrial policy. The State Government has been very

particular about ensuring inclusive growth by passing on the

benefits of economic growth to the people in rural areas. The focus

of the government has simply not been on attracting investments but

having quality investments in those projects that are going to add

value towards the economic development of the State. He also

commented that the government has accorded high priority to

infrastructure development with public-private participation

model. Innovative projects, development of ports and logistic

supports have been created with a view to create employment

opportunities. In order to enhance the competitiveness of the SMEs,

the development of human resources has also been given due

importance.

He also gave an overview of different incentives and benefits for the

development of SMEs and 25 District Industry Centers (DICs) have

been empowered to scrutinize the proposal and sanction benefits as

necessary. This has been done mainly with the purpose to speed up

the availability of incentives and the benefits of the various schemes

and strengthen the State SME sector.

Talking about the statistics of the State SMEs, he mentioned that

there were only 2169 SSI Units in 1961 and during 2010-2011, the

number of MSMEs in the State reached 4,30,139. In 2011-2012 alone

51,781 MSME Units have been registered. In 2010-11, total of

11,700 MSMEs had availed the benefits of various incentives.

Address by Shri R. N. Raval – Deputy Commissioner of Industries, Gujarat

Address by Mr. Tribhuvanprasad Kabra – MD, Ram Ratna Group of Companies, Vadodara,

“Make a business plan ready for the next 10 years if you

want to succeed” commented Mr. Kabra which is pre-requisite for

any company to succeed. He also suggested that SMEs, in order to

grow, should focus on building cohesive team. A great team can be

formed only if all the members of the team are driven by single

organizational goals and hence it is necessary to carefully select

every team member and they should function under a team leader. It

is also necessary for the leader to provide all the necessary

resources, authority and directions to the team members in order to

ensure smooth flow of operations. He also encouraged SMEs to not

treat problems as problems but opportunities for growth. It is

important for SMEs to dream big if they wish to grow fast and it is

only through a detailed business plan can dream become a reality. It

is also important for SMEs to increase their risk appetite by taking

calculated risks at regular intervals in order to touch fast growth

track. He suggested SMEs to focus to inter-personal relations of the

team members and also on building customer relationships in order

to retain the team members as well as to retain the customers. He

concluded by giving examples of various small time entrepreneurs

who dreamt big and achieved great successes with proper planning,

risk taking attitude and passion.

Address by Shri Chandrakant Salunkhe – President, SME Chamber of India

“Gujarat State is surging ahead because SMEs in Gujarat are very

enterprising and they mean business”, observed Mr. Chandrakant

Salunkhe. Speaking on the role of the Chamber he mentioned that the

Chamber works towards bringing together entrepreneurs,

Government Officials, Bankers and Experts from different fields to

interact and allow them to understand each others' view points. The

motto of the Chamber is to provide all necessary support for the

growth of the SME Sector. Many seminars, conferences and

interactive meets are organized in different metros, but the Chamber

wants to extend its services to a wide spectrum of SMEs and hence

organizing these events in smaller cities to support the local SMEs.

He called upon the entrepreneurs to take advantage of the support

services of the Chamber and its networked connections in 40

countries for their business growth.

He reiterated that the idea of the Chamber is not to compete with the

local organizations but to complement them in their activities.

Mr. Arvind Patwari, while talking on the assistance provided by the

government explained vividly the schemes by the Ministry of MSME

and its benefits to the MSME Sector. He touched upon the various

schemes such as Market Development Assistance, National

Manufacturing Competitiveness Program, scheme for capacity

building, credit linked capital subsidy scheme for technology

upgradation, credit guarantee scheme, ISO Certification

reimbursement scheme and the incentives for participating in

exhibitions in India and abroad He further said that many SMEs are

either not aware of the schemes or know little about the same. The

MSME Development Institutes and the District Industry Centers are

functioning mainly with the aim of promoting facilitating and

developing the industries in the State.

Briefing on various schemes, SMEs can avail 15% subsidy for

technology upgradation, market development assistance up to Rs.

20,000/- if they wish to participate in the local exhibitions. With a

view to encourage the women entrepreneurs, the market

development assistance is enhanced up to Rs. 30,000/-. In the same

way for participating in international exhibitions up to Rs.

1,25,000/- is available per unit per year.

The Gujarat Government also supports MSMEs in all possible ways,

observed Mr. Patwari. 358 items are reserved for procurement from

small industries. There are various schemes to promote lean

manufacturing, design clinics, information technology, packaging

and energy conservation.

Address by Mr. Arvind Patwari – Director, MSME Development Institute, Ahmedabad



PANEL DISCUSSION ON

ROLE OF BANKERS | FINANCE | INVESTMENT | INCENTIVES

FACTORING | PROMOTION | MARKETING & BRANDING

Shri Manojkumar Singh Shri Rakesh Jain Smt Sangeeta

Modi Shri Ajay Shad Shri Ashwin J.

Mehta Shri Dhanesh Chander

Shri Soumendra Ghosh

– Senior Manager, NSIC, Ahmedabad, – CEO, RGB Education, Vadodara,

– Access Asset Managers (PE Fund), Mumbai, – Chief Mentor, Value Education, Ahmedabad ,

– DGM – Vadodara Region, State Bank of India, – Chief Regional Manager, Indian Overseas Bank,

Gujarat and – Chief Strategy & Marketing Head, IFCI Factors Ltd.

Mr. Soumendra Ghosh – Chief Strategist and Marketing

Head, IFCI Factors Ltd.

Mr. Danesh Chander – Chief Regional Manager, Indian

Overseas Bank, Gujarat.

Mr. Soumedra Ghosh observed that

timely access to capital is one of the

major problems of SMEs. They also

have problems in providing

collateral security as these units are

very small and due to their small

financial requirements. In most of

the SMEs, financing receivables

assumes greater importance and the

delayed payments by the customers is choke their working capital

which in turn is affecting their growth. Most of the times SMEs are

forced to extend unreasonable credit terms to their key customers

mainly to maintain the relationships with them. These considerably

freeze their working capital, affecting their operations and in turn

their profits. At the same time they have limited drawing power from

the banks and in event if the payments are not received from the

customers in time it creates major cash flow problems to the small

entrepreneurs, sometimes even leading to the closure of the

business.

Explaining factoring facility, he mentioned that the facility enables

the company to manage its cash flows more effectively. The facility is

especially useful for SMEs as it helps them to convert their accounts

receivables in to cash and there by manage their working capital

effectively. While giving an overview of the factoring facility, he

explained that in factoring arrangement SMEs sell their accounts

receivables to a company commonly known as factors. The factors,

after assessing the SME standing, its debtors viability provide the

necessary working after discounting and certain interest charges.

The facility is available for both manufacturing as well as services

sector companies and also for domestic and international

operations including exports.

He also highlighted on the fact that though factoring concept has

been long established in various advanced economies it is relatively

new to India and many of the SMEs are not aware of this product. He

urged SMEs to familiarize themselves with the procedures and

formalities associated with the facility and also the benefits

associated with factoring.

Mr. Dhanesh Chander explained in

details about various financial

products of the bank meant for SMEs.

He has emphasized on Collateral free

loans under the CGTMSE scheme. was

elaborated in detail. Under this

s c h e m e , M i c r o a n d S m a l l

Entrepreneurs can avail credit up to

Rupees One Crore without providing

collateral security. The primary securities will be the assets created

by the funds sanctioned by the bank.

He also mentioned about special credit facilities for engineers,

doctors, chartered accountants and other professionals and also the

scheme to provide credit facilities to fishermen.

He concluded by giving an overview of the scheme where SMEs

holding a certificate from credit rating agencies getting additional

incentives in interest rates.



Ms. Sangeeta Modi, Access Asset

Manager (PE Fund), Mumbai

Mr. Ajay Shad – Chief Mentor, Value Education

Mr. Rakesh Jain – CEO, REGB Eduction, Vadodara

While explaining the trends in private

equity investments in India, Smt.

Sangeeta Modi noted that over 30%

of the FDI coming into India are is

from venture capital and private

equity funds. There are around 300

venture capital and private equity

300 funds in India. They are ready to invest in SMEs that are growing

at phenomenal rate which should be higher than the average growth

of the SME sector.

The PE/VC investors perform the due diligence on SMEs planning for

PE/VC funds in order to understand the business and also the

promoter's vision before making the investment. The due diligence

is also performed in order to estimate the growth potential of the

company and risks involved. Once the business is found viable for

investment, the PE/VC funds invest in the equity of the business

which is complete different from the bank lending as the company is

not required to pay the interest on the investment made, observed

Ms. Modi.

PE/VC funds after entering into equity agreements with the

company, work like partners and assist the company to revamp their

entire business processes and systems in order to make the business

more efficient and productive. The only focus of PE and VC funds is to

maximize their profits and hence they are more concerned on

increasing the profitability of the company. As a result, PE and VC

funds bring more value to the organization along with the profits;

suggested Ms. Modi.

She concluded by saying that it is important for SMEs to understand

their requirement of PE or VC funds, and once the need is identified

they have prepare a structured business plan explaining the vision of

the business as well as that of promoter. Also SMEs have to prepare

their terms and conditions to be negotiated with funds, the equity

structure, the control over the management as well the exit routes.

“Make yourself dispensable if you

want your organization to grow”,

observed Mr. Shad. In many of the

enterprises, the owner makes

himself indispensable, by attending

to every routine functions which is a

waste of time and skills. It is

important for the promoter to focus

on important productive work and

leave the standardized and less

important tasks to people down the line in the organization. It is

necessary for entrepreneurs to empower and delegate the

responsibilities to people below them. This will spare more time for

the owners to concentrate on critical activities of the business.

Moreover by delegating the tasks, the sub-ordinates get an

opportunity to upgrade themselves which will create empowered

people in the organization who can run the business operations even

in absence of the owner.

should be the mantra for progress, stressed Mr.

Shad. The SMEs should groom their employees in their respective

fields through periodical training for enhancement of their

knowledge and skill. Preparing oneself to meet the future challenges

is of utmost importance for any organization and more so in the case

of SMEs.

He concluded by saying that the most important quality of an

entrepreneur is to have trust in his abilities and also in the abilities of

his sub-ordinates. It is only then it is possible to encourage the

employees of the organization to contribute efficiently towards the

growth of the organization.

Mr. Rakesh Jain stressed upon the

importance of knowledge in today's

competitive world and the necessity

to train employees at all levels in the

SME Sector in order to equip them to

meet the challenges. Knowledge

makes a huge difference between the

winners and losers as it enables

companies to keep themselves

updated on economic situations and

take appropriate actions in order to succeed.

Change is very evident in every business environment and it brings

along with it challenges as well as opportunity, observed Mr. Rakesh

Jain. In order to win over challenges, he suggested that it should be

the endeavour of an entrepreneur to constantly resort to change

management by adopting new technologies and processes as the

economic situations across the world are changing drastically. SMEs

do not have any option than to inculcate change in its day-to-day

operations in order to survive.

The second important thing is about the vision building, said Mr. Jain.

Although the owners and the promoters have a clear vision, most of

the times the sub-ordinates do not know or share the same vision.

This results in a huge communication gap in the organizational

structure thereby impacting the overall organizational performance.

Therefore, the SMEs have to take initiatives to educate their

employees about the goal and vision of the organization so that they

can perform as required. As human resources are the core for the

success of the enterprise, knowledge and skill enhancement should

be on a continual basis.

He concluded by saying that in order to succeed in the tough

competitive environment, it is important for SMEs to develop sound

business strategy. It is also important to do periodic review of the

business strategy and adjust it to suit the macro and micro economic

conditions. Also the customer-centric approach should form the

major focus of business strategy, and it is only then SMEs would be

able to establish a strong business presence.

“Grooming to Grow”



Mr. Ashwin Mehta – DGM – Vadodara Region, SBI Mr. Manoj Kumar Singh – Senior Branch Manager, Gujarat

Region, NSIC, AhmedabadExplaining State Bank of India's

p ro d u c t s , M r. A s hw i n M e h t a

mentioned the three categories of

banking products - for corporate,

accounts, mid-corporate groups and

SMEs. The Bank has been supporting

the SME Sector in a big way and has

hundreds of branches in the

Vadodara region specifically catering

to the needs of SMEs, providing both

fund and non-fund based products. The bank has been specifically

giving more thrust on the collateral free loans under CGTMSE

Scheme in order to aide small and medium enterprises .

He also highlighted the issues facing the SME sector and hence the

bank is taking initiatives to address the requirements and problems

of the SMEs in obtaining credit and with its highly networked

branches it has been supporting SMEs engaged in both

manufacturing and service sector. The branches are empowered to

sanction loans on the merits of the case.

He concluded by expressing the commitment of his bank towards the

development of the Indian SME sector by extending the lines of

credit to the SME sector.

Mr. Manoj Kumar Singh outlined

various schemes of NSIC for the

development as well as explained

how they will be useful for the SMEs.

He elaborated about single point

registration scheme by which the

SMEs are exempted from payment of

earnest money and security deposits,

participating in various tenders

floated by the Government Depts

Under the Bill financing scheme, bills drawn by small scale units for

the supplies made to the reputed and well established enterprises

are discounted by NSIC for a maximum of 90 days. Working capital

finance is made available to well managed units to meet emergency

payments. The equipment leasing scheme assists the small

entrepreneurs to procure the industrial equipment for

modernization, expansion and diversification activities. Assistance

for sourcing raw material from local and overseas markets as well as

assistance for attending exhibitions and trade fairs are also available

for the MSMEs. NSIC also provides subsidiary to obtain credit

ratings from the approved credit rating agencies. He emphasized

that the NSIC is the partner in the progress for the SMEs and

encouraged the SMEs to take advantage of all the facilities and

incentives offered by the Government.

Question and Answer Session

Delegates At The Meet



Mr. Janak Sheth – MD, Century Pharmaceuticals Ltd

–

Mr. H. P. Shah – CEO, Value Plus-The Family Office, Vadodara

.

Mr. B. K. Singhal Zonal General Manager, Gujarat Region,

Central Bank of India.

Speaking on importance of quality for

international competitiveness, Mr.

Janak Sheth observed that SMEs

should focus more on the quality of

the product and the price of the

product in order to become

successful. If the quality of the

products of SMEs and price meet the

expectations of the customers, it

would help SMEs build a strong

customer base and also help them to retain their customers. Many of

the MNCs and Corporate are looking for small manufacturers to

enable them to reduce the manufacturing cost. This offers a golden

opportunity for the deserving SMEs in the form of contract

manufacturing, commented Mr. Sheth.

Quality is nothing but the ability of a product or service to do what it

is supposed to do and meet the customer expectations completly.

The magic for creating quality products is “Doing Right the First

Time”. This can be done only if proper systems and parameters are

introduced, implemented and monitored, said Mr. Sheth.

Stressing on the importance of quality he suggested the SMEs to

concentrate more on quality as the customers are becoming

knowledgeable and demanding with customer having larger

bargaining power. The quality of products and service assume more

importance in case of exports and international operations.

Mr. H. P. Shah observed that there

should be a well defined balance

between the business and family

orientation of an entrepreneur to

achieve success and happiness. The

three major focus areas of every

enterprise should be growth, safety

and happiness. He suggested that

every entrepreneur in order to

succeed should fol low three

important days namely – Focus Day, Buffer Day and Free Day. In

order to achieve business – family balance, some days should be

focused only for revenue generating activities. In similar way certain

days are to be reserved for family, which is called free days where no

business activities should be undertaken. The buffer day is one in

which non-revenue generation activities which are related to the

business are to be carried out. This is enable the entrepreneur to

become more efficient thereby taking better business decisions and

driving efficiency of the business.

Financial planning and wealth management should be accorded

priority and handled carefully with transparency, recommended Mr.

Shah. In the family owned businesses, succession planning should be

designed in advance in order to ensure the continuity of the business

operations. He also suggested that family life should not be sacrificed

for the sake of business life and both business as well as family

should be sufficiently insured in order to protect the business and

family.

He concluded by stressing on the importance of proper

documentation of all the assets and liabilities in order to take right

business decisions. Also it is necessary to document a proper will in

order to empower the family members to take decisions in an event

of any unfortunate death or any mishaps with entrepreneur.

Therefore, proper documentations including a will should be

created for the benefit of the family members as well as the business.

Giving a brief over of Central Bank of

India, Mr. B. K. Singhal commented

that in Gujarat Region the bank has

set up 200 special branches to cater

to the needs of SMEs. Apart from the

regulatory requirements for lending

to priority sector, the bank always

considered lending to SMEs as its

thrust area. In order to the address

the financing challenges facing the SME sector, the Bank has taken

the initiative to help the SMEs obtain adequate finance and at

reasonable rates, observed Mr. Singhal. Most of the times SMEs do

not get access to sufficient funds when they are really required which

has been the major reason for their hardships. Many a times the

proposal has to pass through many levels which causes delays in the

loan sanctioning process. Hence, the Bank has empowered the

branch managers to sanction SME loans in order to speed up the loan

sanctioning process after scrutinizing the proposal in accordance

with the guidelines, observed Mr. Singhal.

Delegates At The Meet



State Level Flagship Event

GUJARAT SME MANUFACTURING SUMMITTuesday, 17 April 2012 | Hotel Courtyard by Marriott, Ahmedabad

th

INAUGURATION

Mr. Saurabhbhai Patel

Mr. Ishwarsinh Patel

) H. E. Shaikh Humaid Al-Maani Mr A.Ramesh Kumar

Mr. R. K. Dubey Mr. Chandrakant Salunkhe

Mr. D. R. Dogra

– Hon'ble Minister of State for Industries, Civil Aviation (Independent Charge), Mines, Minerals, Finance, Energy &

Petrochemicals, Gujarat and – Hon'ble Minister of State for Cooperation, Sports, Youth Services &Cultural Affairs. Gujarat

inaugurating the Summit. Others from (L to R – Ambassador of Oman to India, . – MD &

CEO, Asia Pragati Capfin Ltd., – Executive Director, Central Bank of India, – President, SME Chamber

of India and – MD & CEO, CARE Ratings


Mr. A.Ramesh Kumar

Mr. R. K. Dubey Mr. Chandrakant Salunkhe

Mr. Ishwarsinh Patel H.E. Shaikh Humaid Al-Maani

Mr. D. R. Dogra

– Hon'ble Minister of State for Industries, Civil Aviation (Independent Charge), Mines, Minerals, Finance, Energy &

Petrochemicals, Gujarat delivering the inaugural address Others (L to R) on the dais – MD & CEO, Asia Pragati Capfin

Ltd., New Delhi, – Executive Director, Central Bank of India, – President, SME Chamber of India,

– Hon'ble Minister of State for Cooperation, Sports, Youth Services &Cultural Affairs,

Ambassador of Oman to India and – MD & CEO, CARE Ratings

–

ADDRESS BY CHIEF GUEST





State's consistent policy of inclusive

growth that was laid down 10 years

back has made Gujarat the fastest

growing State in the country and led to

monumental development across the

State. Appreciating the role of Gujarat SME

Sector, he said that around 16-18% of

manufacturing activities as well as 21-22%

exports in India take place in the State of

Gujarat. Highlighting the strengths of

Gujarat he mentioned that the State has

always emphasized on implementation of

clear policies, which led to awareness

amongst people of Gujarat as to what

benefits they will be getting from the State

Government. The second strength he

mentioned was the availability of good

infrastructure. While comparing Gujarat

with rest of the country, he mentioned that

the State has a surplus power position;

meeting not only the energy needs of the

State, but also to sell it to other states. By

the end of this year, Gujarat will be

touching power generation of 18000 MW

and for this year alone, it plans to generate

4000 MW, in order to drive efficiency

across the industries and boost industrial

development of the State.

He also mentioned about the harmonious

employer-employees relationship as the

major of the strengths of the State leading

to zero industrial disputes and creating

win-win situations for industrialists and

unions. This has led to the least man-days

lost at work thereby increasing the

efficiency of the industries. While speaking

on the infrastructure development along

1600 Kms coast line, he said that the State

has developed a large number of minor

ports, which has been another important

reason for attracting industries to the

State.

Mr. Patel highlighted that the State has

given subsidies only to those projects or

sectors that are development related

g iv i n g e m p h a s i s o n e m p l oy m e n t

generation. The State intends to increase

the share of manufacturing in its GDP by

focusing on few major manufacturing

industries like technical, textiles,

automobiles and auto parts, spinning and

food industry in order to develop value

added products and achieve growth.

While focusing on the challenges on the

industry, he mentioned that after a decade

availability of water to be the major

challenge facing the industry and hence

Gujarat has initiated measures to address

this challenge. The State is setting up the

biggest desalination plant in the region of

Dahej in order to purify sea water for

agricultural and industrial usage. He also

said that the availability of land to be

another challenge for industrial growth.

The State, in order to address the land

issue, has developed industrial parks in

areas where agriculture is the least or has

zero agricultural activity. The State has

also framed policies to take land only with

farmers' consent and make farmers as its

partners. This has resulted in the growth

and development of various industrial

areas along with development of farmers

who are given certain percentage of profits

made from selling the land to the

industries. In order to address the

challenge of availability of technical

manpower, the State is coming up with

huge quantum of ITIs and also forming

partnerships with the associations to train

the manpower. He stated that the energy

consumption of Gujarat Industrial sector

increased manifolds compared to last year.

He further stated that the VAT rates in the

State have increased 30 to 33% over last

year indicating the prosperity of the State.

He commented that Banks have found it

difficult to finance SMEs as compared to

large companies. In Gujarat, SMEs have

been able to access finance due to the

major role played by the Cooperate Banks.

He stressed the need for the scheduled

commercial bank to be aggressive in

lending to SMEs in order to achieve the

desired inclusive growth, as; such a growth

is possible only through SMEs. Hence, he

highlighted the importance of promoting

SMEs and assured that the State will give

all support for the growth of SME Sector.

He concluded by saying that the State will

take all possible measures to handle

challenges facing the industry and ensure

industrial growth and development in

Gujarat. Further he mentioned about the

upcoming Vibrant Gujarat Summit 2013

with special focus on SMEs and SME

Chamber of India can play an important

role to encourage SMEs from India and

other countries to participate in the same

for enhancing their business activities in

Gujarat. Mr. Patel congratulated SME

Chamber of India for organising this

maiden exclusive activity for SME Sector of

Gujarat.

Mr. Saurabhbhai Patel – Hon'ble Minister of State for Industries, Civil Aviation (Independent Charge),

Mines, Minerals, Finance, Energy & Petrochemicals, Gujarat delivering the inaugural address

Gujarat contributes

16-18% to the total

manufacturing

output and 21-22 %

to the total exports

of India

Special Address by – Hon'ble Minister of State for Cooperation, Sports, Youth Services

and Cultural Affairs, Government of Gujarat


At the outset Mr. Patel congratulated Mr.

Chandrakant Salunkhe, SME Chamber of

India for initiating this special activity to

assembly the SMEs of Gujarat and for

inviting the luminaries and experts from

various fields who are conversant with the

SME Sector to share their experience and

thought. This will definitely be of immense

help to the SMEs and Young Entrepreneurs

for their business growth. He highlighted

the role of SMEs towards economic growth

of India by contributing 45% to the

industrial output and 40% towards the

growth of the nation. He also observed that

over 60% of all the SMEs belong to young

entrepreneurs mainly in the age group of

21-45 years.

He also encouraged young generation

entrepreneurs to involve themselves in

various business activities and use

knowledge obtained at various Forums to

identify new and emerging business

opportunities and also on various

challenges related to finance, marketing,

infrastructure, technology and other related

matters.

“OMAN” An Entry Port to the Gulf CountriesObserved H.E. Shaikh Humaid Al-Maani-Ambassador of Oman to India. With the advent of globalization, there is tremendous surge in

international trade. Oman offers plenty of trade and investment opportunities to the Indian SMEs. Infrastructure facilities, tourism and

transportation are some of the flourishing sectors. He also highlighted on various benefits Oman offers to business which include 100%

ownership of companies, no personal income tax, no custom duty on raw material, full repatriation of profits and royalties are available to the

investors. Oman is a member of GCC and hence by setting up Units in Oman, the Companies can access a larger global market.

Address by – Ambassador of Oman to India, New DelhiH. E. Shaikh Humaid Al-Maani



Keynote Address by – Executive Director, Central Bank of IndiaMr. R. K. Dubey

Mr. R. K Dubey, ED Central Bank of India,

reiterated the role and importance of MSME

sector towards the economic development

of India. He highlighted various challenges

of Indian MSME sector including access to

finance, raising equity capital, risk

capital/angel capital, suitable technology,

skilled manpower, non-availability of

adequate infrastructural facilities, delayed

settlement of dues and over dependence on

single customers all of which restricts the

development of the sector. He gave an

overview of various Government initiatives

and support mechanisms initiated for

support and development of MSME sector

like 40% of advances of banks directed

towards the sector as well as Public

Procurement Policy that makes it

mandatory for PSUs and Government

departments to procure 20% of their

products and services requirements from

MSME sector.

Talking on the importance of manufacturing

sector towards the economic development

of India, Mr. R. K. Dubey highlighted on

several reasons for lack of competitiveness

in Indian manufacturing sector few of them

being: lack of infrastructure, technology and

skilled manpower, high cost of power, high

cost of capital which is higher than the

international average. He also exerted on the

role the Government has to play for uplifting

India's manufacturing sector with special

focus on improvement of infrastructure.

He spoke on the banks role for MSMEs that

goes far beyond mere lending. Banks try and

become strategic partner of MSE and

nurture budding entrepreneurs; supports

SMEs in rural areas for inclusive growth, and

also initiatives for timely rehabilitation of

sick units in order to increase the survival

rate being few. He also highlighted the role

Central Bank of India is playing towards the

growth and development of MSME sector by

introducing new products and policy

measures.

He concluded by encouraging SMEs to focus

on long term vision, professional

management of the enterprise including

adopting new production and marketing

techniques, attract talent and access

marketing intelligence, adopt sound

financial management practices and

corporate governance in order to become

c o m p e t i t ive i n t h e m a rke t p l a c e .

Government , Banks and Financia l

Institutions, Associations and Chambers

entrusted with development of the SME

sector need to focus on providing an

enabling environment complete with

required infrastructures and forward and

backward linkages for promoting inclusive

growth of the sector



Mr. Chandrakant Salunkhe, explained about the initiatives of the

Chamber's activities in India and abroad for the development of SME

Sector. The very purpose of starting the activities of the Chamber in

Gujarat and organising the “Gujarat SME Manufacturing Summit is to

bring together the Manufacturing SMEs under one platform for

better interaction and connectivity said Mr. Salunkhe.

Highlighting the important role and contributions of SMEs towards

national GDP, employment, exports, industrial output, Mr. Salunkhe

mentioned that SMEs are not getting the required attention from the

concerned State and Central Government Departments to tackle its

manifold problem areas. Although there are many schemes meant

for SME Sector from Banks, it does not reach to them due to lack of

knowledge. He requested to the Banks to give special consideration

while dealing with financial proposals of the SMEs especially from

rural areas.

Mr. Salunkhe also explained about the various support services of

the Chamber like Capacity Building, Connectivity and Networking,

Market Development, Export promotion, Quality Improvement,

Technology Transfer, Joint Ventures, Contract Manufacturing,

Channelising Bank Finance, PE/VC Funds, Training Programs &

Education etc.

Skill Development, Inadequate Finance, New Technology, Non-

availability of funds for market development, quality infrastructure,

Uninterrupted power supply in Some States in India, lack of positive

support from various Government Departments, non-availability of

skilled manpower.

Mr. Salunkhe also informed about exclusive support services for

Gujarat SMEs for new technology, market development and

branding, international finance at lower rates, technology transfer,

channeling bank finance and PE/VC Funds contract manufacturing

tie-ups, Support to participate in business delegations, trade fairs

and exhibitions in India and abroad, Training in various aspects to

Workers and Executives for skill developments

Address by – President, SME Chamber of IndiaMr. Chandrakant Salunkhe

Dignitaries (L to R) on the dais – MD & CEO, Asia Pragati Capfin Ltd., New Delhi, – Executive Director,

Central Bank of India, – President, SME Chamber of India,

– Hon'ble

Minister of State for Cooperation, Sports, Youth Services & Cultural Affairs, Ambassador of Oman to India and

– MD & CEO, CARE Ratings during the inaugural session

Mr. A.Ramesh Kumar Mr. R. K. Dubey



H.E. Shaikh Humaid Al-Maani

Mr. D. R. Dogra

Mr. Saurabhbhai Patel – Hon'ble Minister of State for

Industries, Civil Aviation (Independent Charge), Mines, Minerals, Finance, Energy & Petrochemicals, Gujarat,

–



Keynote Address by – MD & CEO, CARE Ratings addressing the delegatesMr. D. R. Dogra

SMEs play a critical role in the

economic and social development of

any country by creating jobs and

generating income for low-income groups,

observed Mr. D. R. Dogra, which in turn helps

to bring about economic growth and social

stability, while supporting critically the

private sector. They are important even in

countries like USA, UK and Germany. Studies

indicate that SMEs could contribute up to

40-50% of employment and up to between a

fourth and third of GDP in developing

economies.

He observed that the nature of economic

activity of SMEs makes them vital in

stimulating local demand and consumption

on the one hand, and on the other provide

the necessary forward and backward

linkages with big corporate in the

productivity and logistics chain. This

enables them to address the issues of

employment generation, which is an

important consideration for Indian

economy.

Focusing on the issues faced by the SME

sector, he commented, that the availability of

timely and adequate finance and access to

affordable inputs are the major challenges

faced by the sector as these are critical to

their profitability. He also observed that

tec h n o l o g i c a l ob s o l e s c e a n d n o n -

availability of skilled manpower has

restricted the growth of SMEs and made

them less competitive in the market. Also,

the quality of products manufactured by

SMEs fail to meet the international

standards as a result of which their products

fail to compete with those of large scale

enterprises or which in turn as the adverse

impact on their profitability. In recent times,

the wide currency fluctuations have and

high interest rates have eaten on the profits

of these small enterprises as their input

costs have risen substantially.

Besides bank finance, he urged the need to

provide venture/risk capital for financing

high-growth-potential and start-up SMEs.

He also urged the need to provide adequate

support and assistance to these units in

order to enable them use the latest

technology, provide them with adequate

infrastructure, assistance for marketing and

skill development in order to increase the

scope of operations of SMEs and to make

them more effective and competitive.

Stressing on the importance of credit ratings

for SMEs, he said that in a rating exercise for

SMEs such credit enhancements are

explicitly taken into account as positive

factors for the unit, adding to its financial

capabilities and supporting operations. It is

important for SMEs to widen the sources of

finance. Currently SMEs survive primarily

on the capital base of the proprietor, which is

rather limited. At the most, SMEs resort to

borrowings from commercial banks. Banks,

however, refrain from such lending as far as

possible, it is hence, by far restricted to the

obligatory priority sector lending quota.

Lack of borrower credit history inhibits

bank lending. This is where Credit ratings

play an important role here in diminishing

informational asymmetries and expanding

access to formal financing for SMEs.

He also highlighted the importance of SME

exchange, which allows SMEs to access

finance from mainstream financial markets.

Access to equity financing and eventually,

venture capitalists would undoubtedly

allow SMEs to expand their scale. He also

mentioned that establishment of strong

supporting infrastructure - be it in the form

of research and development, use of

intellectual property rights, technology

acquisit ion through SME clusters ,

framework for marketing intelligence

and/or network for customer service has

been a pertinent challenge facing towards

development of SMEs. Hence Government of

India is encouraging the private sector to

participate in such projects through PPP

mode of investments.

Mr. Dogra highlighted the reasons why

Gujarat has been successful in charting the

growth story are – a proactive government,

urging private investors to divert funds in

building infrastructure through such

summits sets the stage for development

blocks to fall in place and make a strong

economy. Moreover, private players not only

bring in the required capital but also

technical expertise and managerial support

to face global competition. The government

has been working on the creation of

innovation and incubation centre to address

all needs of budding ventures. He also

mentioned the proactive steps taken by the

Central Government in order to reduce the

impact of adverse economic conditions in

the global markets mainly due to the Euro-

zone crisis that has resulted in the reduction

of Indian exports to Europe, And lastly, the

government - less the state government and

more the centre actually - also has the very

important part of policy formulation to

perform. He observed that Gujarat is already

witnessing a paradigm shift with its

governing institutions bearing the ever-

increasing onus of creating and maintaining

progress friendly policies that promote

strategic growth. It is the stated objective of

the government to identify a niche and to

provide incentives and assistance to SMEs

while promoting entrepreneurship, assist

new and existing ventures shoulder the

contemporary calls of environment friendly

manufacturing practices and promoting the

IT and ITES industry.



Mr. A. Ramesh Kumar

Dr. Harish Patnaik

– MD & CEO, Asia Pragati Capfin Ltd

presenting the bouquet of flowers to – Executive

Director, Gujarat Venture Finance Limited


Mr. Matej Merljak

– Hon'ble Minister of State for Industries,

Gujarat presenting the bouquet of flowers to –

Chairman, Europe - India SME Business Council (EISBC), Slovenia

Mr. A. Ramesh Kumar

Mr. Souvik Sengupta


presenting the bouquet of flowers to –

Business Head SME Loans, Reliance Commercial Finance

Mr. A. Ramesh Kumar

Mr. Kaushal Gupta


presenting the bouquet of flowers to – Managing

Director, Bansal Roofing Pvt.Ltd.

Mr. A. Ramesh Kumar

Mr. Ramesh Rangan


presenting the bouquet of flowers to – CGM,

State Bank of India, Ahmedabad

Mr. A. Ramesh Kumar

Mr Jigneshbhai Kayastha


presenting the bouquet of flowers to –

MD, Steelfur Systems Pvt. Ltd.

FELICITATION

In conclusion, he mentioned that India's

manufacturing activity could become

competitive only by increasing the efficiency

and competitiveness of the enterprises

t h ro u gh c o n t i n u o u s te c h n o l o g i c a l

innovation, quality improvement, better

access to finance, diversification into new

geographies and markets, modernization,

better risk management and corporate

governance practices, better human

resources etc. He urged the need for all

stakeholders to work together i.e. union and

state governments, RBI, banks and other

niche agencies like MSME associations /

chambers to provide an enabl ing

environment to the SMEs for taking them to

a higher and sustained growth trajectory. He

also urged SMEs, on their part, should strive

hard to take advantage of the available

opportunities while staying clear of the

potential pitfalls that confront them in their

natural progression into large corporations

or even into multi-national corporations of

the future. More importantly, they also have

to take some initiative in this direction by

implementing sound business practices and

continuously investing in good internal

management systems: in accounting,

planning, financial, operations and human

resource management.



PANEL DISCUSSION ON

TRANSFORMING SMEs TO CREATE SUSTAINABLE VALUE

Panelist (L to R) – Executive Director, Gujarat Venture Finance Limited, – Director, Indian Institute of

Financial Services Pvt. Ltd., – Business Head, SME Loans, Reliance Commercial Finance, – MD & CEO,

Asia Pragati Capfin Ltd., – IPS-CEO, BSE SME Exchange, Mumbai, – CEO, Value Plus Investment Advisors

Pvt. Ltd. and – MD, Smart Head Strategy Solutions Pvt. Ltd.

Dr. Harish Patnaik Mr. D. C. Anjaria

Mr. Souvik Sengupta Mr. A. Ramesh Kumar

Mr. Lakshman Gugulothu Mr. H. P. Shah

Mr. Pramod Bapna

Mr. A.Ramesh Kumar – MD & CEO, Asia Pragati Capfin Ltd.,

Mr. D. C. Anjaria – Director, Indian Institute of Financial

Services Pvt. Ltd., Ahmedabad

Mr. Harish Patnaik, CEO, Gujarat Venture Fund Ltd.

Explaining the theme of the plenary

Session “Transforming the SMEs to

Create Sustainable Value” Mr. Ramesh

Kumar stressed the need for financial

discipl ine amongst SMEs. He

observed that in recent future SMEs

are going to play major role in the

development of India, and success of

these small units would depend on

their innovation ability, obtain

knowledge and their ability to

collaborate. He emphasized that

SMEs should constantly scan their environment to identify their

innovativeness, their ability to access vast pool of knowledge and

identify the extent to which they are applying the knowledge in order

to create sustainable value for the company and ensure customer

satisfaction. Also in the highly globalised environment

collaborations become very important for SMEs. He stressed that

SMEs should learn art of inter-organizational collaboration, intra-

organizational collaboration, collaborations with competitors as

well as collaborations with complementary firms in order to become

competitive and grow rapidly and contribute towards India's growth

story. He suggested that the SMEs should be aware of various

changes taking place in their business environment and rethink and

redesign their policies in order prepare themselves for upcoming

challenges and opportunities.

Mr. D. C. Anjaria observed that failure

rate in SMEs is high mainly due to lack

of financial management than

technical management. Many of the

SMEs are not able to obtain funds

from right source and also lack

working capital management skills. It

is mainly due to these reasons that

banks and other investors consider

SMEs as risky clients.

He also observed that there is no shortage of funds and deserving

SMEs are easily able to access these funds. However, he urged the

need to educate the SMEs on various aspects of financial

management. With an efficient financial management, a company

can become financially healthy. This will increase the credit

worthiness amongst stake holders and accessing markets become

easy. He concluded saying that the cost of in-house management of

finance is very high and hence it is advisable to outsource this

activity. A good cash flow management can avoid liquidity crisis. He

also encouraged the SMEs to look at the Corporate picture in order to

grow and do not remain small forever.

Patnaik explained in detail about the GVFL and was initiated by

World Bank. Giving an overview of 7

funds created by GVFL, he explained

the 6th fund which was dedicated for

SMEs. He explained how SMEs can

attract the private equity or venture

capital fund. He stressed that SMEs

need to prepare themselves in order

to able to attract these funds and in

starts right from entrepreneur's

ability to start a business. He also

focused on lack of entrepreneurship

training as one of the reasons why

entrepreneurs fail during the initial growth stage. Hence it is

necessary to impart entrepreneurship training in order to enable

SMEs become sustainable. He commented on the need of venture

capital for SMEs as they lack sufficient access to finance right from

bringing their initial capital to difficulty in accessing the bank loans.

He observed that the capital needed by the entrepreneurs to start or

to grow his enterprise can only be provided by venture capital fund

which are still quite few in the country. However, the number of units

financed by these funds is still very low. While highlighting the funds

sanctioned by GVFL, Mr. Patnaik observed that in last 22 years of its

operations, only 75 units were financed by GVFL. He concluded

saying that GVFL is planning to create a separate fund of Rs 100 Crore

for Micro sector of SME Sector and also for social enterprises. As per

the latest SEBI guidelines, every PE and VC funds are expected to

create separate fund for each sector. E.g. an SME fund should invest

only in SMEs and not in other sectors.





Mr. Souvik Sengupta Business Head, SME Loans, Reliance

Commercial Finance.

Mr. H. P. Shah CEO, Value Plus

Investment Advisors Pvt. Ltd.

Mr. Lakshman Gugulothu CEO, BSE SME Exchange

Mr. Pramod Bapna Managing Director, Smart Head

Strategy Solutions Pvt. Ltd.

–

–

Mr. Souvik Sengupta emphasized on

the core competencies of the SME

sector, which include their small size

which makes their operations flexible

and make them more adaptable to the

changing needs of the business

environment; products and processes

are specialized that lead to cost

competencies; innovative suppliers

and proximity to the vendors. While

highlighting the basic challenges of SMEs from financing

perspective, he said that they do not get timely and adequate finance,

difficulty in accessing capital markets and considerable delays in

payments from Corporate which increases their working capital

cycles, lack of access to cheap funds like ECBs due to lack of

knowledge and negotiating ability and other issues related to

finance.

He encouraged SMEs to manage their businesses professionally by

ensuring transparency in the financial statements which would

make their businesses more credible to banks and other sources of

finance. He advised SMEs on managing their funds and finances

properly in order to avoid shortage of funds for business operations.

He also advised them on maintaining the proper books of accounts

and adopting adequate regulatory compliances by paying all the

taxes and duties which would give enough confidence to banks and

other sources of finance.

Mr. H. P. Shah observed that SMEs

struggle hard to create an enterprise,

run it efficiently and earn profits.

However, most of the times they fail to

manage their finances which in turn

results in lower profit margins. It is

observed that 5% of the profits of an

enterprise goes to the bank by way of

interest and service charges.

He also highlighted on several different ways by which SMEs can

accumulate wealth and grow simultaneously. He also encouraged

SMEs to pay tax rather than defer the payments. This would

indirectly help SMEs as it would make their business operations

more viable and credible and would enable them to access sufficient

finance from banks and other funding agencies. Payment of tax is

more profitable than payment of interest advised Mr. H. P. Shah. He

also advised SMEs to separate the funds used for business and for

family. Tax free strategies can be employed to legally create wealth as

the Government of India has devised various tax free income

schemes, however SMEs are unaware of such schemes due to their

concentration on business activities and lack of awareness of various

government policies and schemes and their impact of the business.

He concluded saying the entrepreneurs must also plan their

business carefully taking in to consideration the possible crisis that

make arise in event of their absence. He also highlighted on various

risk management strategies that SMEs need to develop in order to

safeguard their businesses in event of various changing external

business environment.

Giving an overview of SME Exchange

Mr. Lakshman Gugulothu observed

that the Exchange is an ideal avenue to

raise low cost capital from the market

by the SMEs. If the valuation of the

Company is attractive, raising funds is

not difficult. The listing norms for

SME Exchange are liberalized. Any

enterprise upto Rs. 10 crore paid up

capital can go to SME Exchange. He

explained the market making support of the Exchange designed for

SMEs planning to get listed on the Exchange. He also mentioned that

though credit rating is optional for SMEs planning to get listed on the

Exchange, it is considered desirable as it gives merchant bankers and

investment banks enough credibility to trust the business of the

SMEs. The major investors would be banks, financial institutions,

VC/PE, HNI and others.

He also encouraged SMEs to concentrate on their core competencies

and outsource non-core activities in order to make their operations

more sustainable and efficient. They should also adopt professional

centric approach rather than promoter centric approach for

managing the enterprise which would in turn enable them to get

better valuations.

Mr. Pramod Bapna highlighted the

importance of having clear vision

amongst promoter of SMEs in order to

succeed and also on the importance of

sharing the same vision with other

team members. He also stressed that

most of the SMEs in their quest for

success tend to overlook changing

economic trends which has adversely

impacts their business even leading to their failure. Hence he advised

SMEs to scan their environment thoroughly and take careful actions

in order to ensure success of their enterprise.

Highlighting the importance of innovation and adopting quickly to

the changing situations, he gave example of Bajaj which dominated

the scooters markets until recently where their failed to notice the

changing customers preferences. As a result, the new entrants took

advantage and changed the designed to suit the customer needs and

slowly captured the market share of Bajaj. He also gave example of

Moserbaer, one of the largest CD manufacturers which was driven

out of business by the arrival of alternative and convenient storage

devices like pen drive.

In talent management exercise, he advised SMEs to devote 50% of

the time in developing a team. A well documented process and

procedures should be available for all its operations with a view to

avoid over dependence on any individual. Finally, for an

organization to be efficient, the SME should adopt “Employee First”

approach than “Customer First Approach”.

–

–

Mr. Venkat Ramineni, while speaking on various opportunities available in USA for SMEs,

explained the rules and regulations governing the establishment of offices in the US. He

mentioned that the establishment of company in the US is governed by State Laws and not the

Federal Laws. Also the cost incurred for opening the business in the US is very minimum and

can be done from India directly. He explained the entire process required to start successful

business operations in the US right from opening the bank account to registering the

company under the US laws to tax planning in the US.

He also explained different types of visas required for conducting business in the US and their

various purposes. He also explained various ways of obtaining visas in order to suit the needs

for setting the business operations.

Explaining the services VisaPro Immigration Services, he explained how his company can

enable SMEs to set-up operations in the US, promote SMEs at various trade shows, helping

them to launch the products in the US and various other services that would enable the SME

to successfully begins its operations in the US.

Mr. Venkat Ramineni – Executive Director, VisaPro Immigration Services LLC, USA addressing the delegates

Question and Answer Session



MSME NATIONAL AWARD WINNER – 2009(For Out Standing Entrepreneurship)

H T PHimachal Terepene Products Pvt. Ltd.

(An ISO 9001:2008 Certified Company)

Registered Office & Works

Kala Amb, Road, Distt. Nahan (Sirmour),

Himachal Pradesh - 173030, India.

Tel.: +91 – 1702 – 238 543, Fax: 238 515

Mobile : +91 – 9816380001

Email: [email protected], [email protected]

Corporate Office

203, Nadiadwala Market,

Podar Road Malad (E),

Mumbai - 400 097, India

Tel.: +91 – 22 – 2881 4383 | Telefax: 2881 4356


Website: www.httpl.co.in

�

�

�

�

�

�

Alpha Pinene

D.D. Turpentine

Dipentine

Delta 3 Carene

Pine Oil (All Grades)

Pine Tar

�

�

�

�

�

Terpineol Perfumery

Alpha Terpineol (Borneol Free)

Terpineol Beta Rich

Terpinolene

Longifolene

�

�

�

Terpineol B.P.

Turpentine Oil I.P. (Tarpin Ka Tel)

Terpin Hydrare I.P.

Manufacturers of:-

For Paints / Dyes & Colours / Solvents /

Phenyl / Floor Cleaners / Pesticides /

Disinfectants / Toiletries / Rubber

Reclamation etc

For Perfumery / Fragrance / Flavours

For Pharmaceuticals

Asian Paints, Kansai Nerolac, Berger Paints, Akzonobel India Ltd., BASF, Hindustan Uni Lever, Reckitt Benckiser,

Amrutanjan Health care, Paras Pharma, Dabur India, Bayer India, Glaxo Smithkline Pharma, Hindustan copper,

Hindustan Zinc, Ordanance Factory, Opto Electronics, Johnson & Johson India Ltd., Robertet, Symrise, Fivaudan

Flavors, Firmenich Aromatics, Jubiliant Life Sciences, Vivimeds Ltd., Systopic Labs, IFF-International Flavours &

Fragrance and Huntsman International India Ltd.

MAJOR SUPPLIERS

CERTIFICATIONS : 1. An ISO 9001:2008 Certified Company

2. Bulk Drug Licence &

3. GMP

Mr. Ramnath Pradeep – Former CMD, Corporation Bank.

Mr. Ajay Nayak – Director, CBS Pacific Limited, Hong Kong

Ms. Asles ha Gowarikar –

Partner, Desai and Diwanji

Mr. Ramnath Pradeep, highlighted

various challenges SMEs are facing

right from obtaining funds from the

banks like delays in clearing the

proposals, follow-up with various

executives, inability to provide

collateral security and insufficient

k n o w l e d g e a b o u t f i n a n c i a l

management.

He suggested that the SMEs should

maintain a good relationship with the banks in order to maintain the

credit flow required for the enterprise. SMEs should also be

transparent in their dealings and comply with rules and regulations

of the bank. They should also approach venture capital and private

equity funds if they are a high growth company as well as their

project proposals are viable.

Mr. Ajay Nayak, observed that in order

to become successful it is important to

have passion for success. While

speaking on the cost of obtaining

capital in India, he commented that in

India it is between 13%-15% while in

Hong Kong it is 4% - 5%. While

speaking on the economy of Hong

Kong, he mentioned that Hong Kong is

a free economy and is the window to

mainland China which is already growing at 8%-9%. He also

mentioned the ease of setting up the company in Hong Kong and can

be done within an hour and within one day it is possible to open the

bank account. Also obtaining visa for business purpose is easy for

Indian. Speaking on various types of credit available, Mr. Nayak

mentioned the in event of term loan, the interest rates ranges

between 4%-5%; trade finance, working capital, capital expenditure

all of which are available at a very low cost. Also the tax regime in

Hong Kong is very less ranging from 15%-16% and there are various

medium in order reduce the taxes to largest possible extent. All these

factors make Hong Kong a ideal trade and investment destination.

Ms. Aslesha Gowarikar spoke on

various legal issues involved in

getting the desired funding. iBankers

help companies to find the required

l e g a l c o n s u l t a n t s , c h a r t e r e d

accountant and any other skill sets

that area required to make the

transactions successful. While

speaking on due diligence aspects of attracting funds, she explained

the 4 Ws of due diligence which are What, Why, Who and When.

During Due Diligence the companies are analyzed to identify the

prospects of the company and level of success it is going to achieve.

This is equally true when the company is going for an IPO where

entire capital restructuring is done in order to make the organization

more attractive to the investors, observed Ms. Aslesha Gowarikar.

The main reason why due diligence is conducted in order to see the

how much value the business can create for the investor's money. In

such cases SMEs would have to look at its assets and also negotiating

a good price for itself so that the valuations are right and to structure

the financial documents as per the findings of the due diligence

exercise, explained Ms. Gowarikar.

Depending on the industry in which the company is operating, the

due diligence would involve experts from various fields coming for

due diligence. In event where there are large projects, there is

environmental due diligence. She have a brief overview of the entire

due diligence process, scope and depth of which depends on the

extent to which company what to access the funds.

PANEL DISCUSSION ON

SUPPORT SERVICES FOR BETTER GROWTH OF SMEs

Panelist (L to R) – Partner, Gaja Capital, Mumbai, Director, CBS Pacific Limited, Hong Kong,

– Former CMD, Corporation Bank, – Sr. Vice President, Link Intime India Pvt. Ltd., Mumbai, –

General Manager and Regional Head, CARE Ratings, Ahmedabad and – Partner, Desai & Diwanji

Mr. Imran Jafar Mr. Ajay Nayak – Mr. Ramnath

Pradeep Mr. Haresh Hinduja Mr. Mehul Pandya

Ms. Aslesha Gowarikar



Mr. Imran Jafar – Partner, Gaja Capital, Mumbai

Mr. Haresh Hinduja – Sr. VP, Link

Intime India Pvt. Ltd.

Mr. Mehul Pandya – General Manager and Regional Head,

CARE Ratings, Ahmedabad

Mr. Imran Jafar, while talking about

private equity in India, mentioned

that his company invests in the range

of Rs 25 Crore to Rs 750 Crore. He also

observed that most of the SMEs face

challenges for accessing finance and

most of the private equity funds are

not directed to meet the seed capital

or the angel capital need of these

firms. However, now the banks and

government agencies are taking initiatives to meet the funding gaps.

It is only when the company posts a good growth record, private

equity can play a major role towards the growth of the fund,

observed Mr. Jafar. He observed that the key difference between

larger and smaller firms is the access to the source of finance which is

quite informal and expensive for smaller firms. He gave various

examples of private equity investments that have been made and

how the companies have grown due to the private equity

investments. Though private equity is more expensive than debt

funding, it allows the company to diversify its asset class and

strengthen its balance sheet by lowering overall cost of financing.

While talking on the venture capital he said that it is important for

SMEs to understand that every SME won't be able to tap in to venture

capital as such form of funding tend to flow to those companies that

are in leadership positions, have very high scalability, and require

least innovation of differentiation in products. Private equity

partnership with any company depends on transformation of the

company which creates a win-win situation for both company and

PE investors.

While talking on IPO issue and

procedure, Mr. Haresh Hinduja

commented that capital market is the

greatest opportunity for SMEs to raise

money in the capital markets. Though

IPO market is currently become lull,

there are several companies keen on getting listed on the stock

exchange. He suggested that before going for an IPO, SMEs need to

identify the right merchant banker who will assist the company go

through the entire IPO process. He mentioned that his company

assists the merchant bankers in finalizing the IPO allotment process.

Once the merchant banker has been appointed, it is necessary for

SMEs to undergo capital restructuring in order to make themselves

more presentable and transparent to the merchant bankers. He also

explained the entire pre-IPO procedure right from capital lock-in of

the promoter, entering in MOUs with various intermediaries,

registrars and legal people. He also gave an overview of post-issue

IPP work, which has clearly been streamlined by SEBI guideline. As a

result, the entire post-issue IPO work has to be completed within 12

working days in order to ensure good return on investments to all

the investors including the promoter.

Highlighting the importance of credit

rating, Mr. Mehul Pandya mentioned

that 3rd Party Credit Ratings adds

greater value to an enterprise. A good

rating enables SMEs to obtain loan at a

concessional interest rates from the

banks. It also enables SMEs to have a

good view of their enterprise from an

external party and enables them to understand all the loopholes in

their businesses. It also helps them to scan their internal

environment and prepare themselves for the challenges arising due

to changing business environment. Credit rating also enables SMEs

to improve its credibility amongst its stake holders like customers,

suppliers, employees, regulators, importers, exporters and

Government Departments.

The rating agencies not only rate the financial performance of a

company but also its dealings with the employees and creditors.

Credit Rating improves the visibility and credibility of an enterprise.

He concluded by giving an overview of his company and mentioned

the initiatives his company has taken to extend the rating facilities to

SME clusters spread across the country.



Mr. Rishi Bansal – Vice President – Global Business, Merino

Services Limited

Mr. Ajay Shad – Chief Mentor, Value Education, Ahmedabad

Innovation is the key to survival and

success of any business, commented

Mr. Rishi Bansal. Whether its product

innovation or process innovation, it

enables the company to enhance its

business operations and improve its

productivity. While the quoting

various examples of innovation he

mentioned about Black colour dial

t e l e p h o n e , p o s t c a r d s , c a s h

transactions being replaced by mobile, email and credit/debit cards.

He observed that technology has changed the way we live today and

the way we manage the operations of the Company. Innovative IT

products and IT enabled services add more value to the organization

as they make the processes more efficient and thereby saving

considerable costs arising out of inefficiencies.

It also aides simplification of operations, assist in developing new

product designs and development, data storing and management,

quicker decision making etc. IT solutions like ERP, CRM etc. enhance

competitive advantage of the company as they enable it to link all the

potential customers, suppliers and all its business processes thereby

increasing the business efficiency. Instant status to customers, stock

management, maintenance, and project management are some of

the other benefits available to multi locational companies by

adopting latest information and communication technologies.

He concluded by saying all the SMEs should take more care about

data management, business intelligence and human capital to

improve their efficiency and ensure growth of their business.

Mr. Shad while narrating his success

story mentioned the pre-requisites

for starting the business which

involves passion, dedication and

focusing the energy on growth and

success of the enterprise. He observed

that over the generations as

businesses become affluent, the

young generations do not show the

same amount of devotion and

enthusiasm for the business which in turn leads to discontinuity of

business. Hence it is important to inculcate a sense of responsibility

and business acumen amongst the youngsters in order to carry on

the entrepreneurial spirit of the enterprise.

said Mr. Shad. It is imperative for the

promoters to groom their children with required knowledge and

skill in order to ensure continuity of business operations. He

stressed that young generations should be well trained in all aspects

of business activities in order to prepare them to take the reins of the

businesses after the promoter. He also commented on the

importance of identifying the good and bad employees and train

them accordingly to maintain discipline and improve the

productivity. Employees with high performance should be identified

and suitably rewarded while the less performing once should be

given guidance and training to elevate them to a higher level.

Rewards and punishment should be in place to maintain discipline

and order in the company.

He concluded saying that education and training at regular intervals

at all levels of an enterprise is a necessity of the day and is very much

applicable to the SMEs in order to grow continuously.

“Invest in your children”

PANEL DISCUSSION ON

TECHNOLOGY AND INNOVATION FOR SUSTAINABLE GROWTH

& INTERNATIONAL TRADE AND INVESTMENT OPPORTUNITIES

Panelist (L to R) – Chief Mentor, Value Education, Ahmedabad, – Solution Architect – Key Accounts, CSMB,

Dell India, – Professional Director, Steelfur Systems Pvt. Ltd., – Chairman, Europe - India SME Business

Council (EISBC), Slovenia – Secretary General, SME Chamber of India, Mumbai, – Minister

Counselor (Economic Affairs), High Commission of Malaysia, – First Counselor, High Commission of Rwanda in India,

– AVP – NPD & Partnership – Corporate Enterprise Business, Vodafone India and – Vice President – Global

Business, Merino Services Limited

Mr. Ajay Shad Mr. Ashish Hingorani

Dr. Mukesh Dalal Mr. Matej Merljak

, Mr. V. K. Venkatachalam Mr. Muthafa Yusof

Mr. Alfred NDABARASA Mr.

Nitin Bhandari Mr. Rishi Bansal



Mr. Nitin Bhandari – AVP – NPD & Partnership – Corporate

Enterprise Business, Vodafone India

Dr. Mukesh Dalal – Professional Director, Steelfur Systems

Pvt. Ltd.

Mr. Ashish Hingorani – Solution Architect – Key Accounts,

CSMB, Dell India

Mr. Matej Merljak Chairman, Europe-India SME Business

Council (EISBC), Slovenia

–

Mr. Nitin Bhandari observed that

communication is one of the major

attributes of a successful enterprise.

Effective communication within the

organisation between different

functional areas as well as outside the

organisat ion with customers ,

suppliers and other stake holders is

extremely important in the smooth

functioning of the enterprise and also to drive efficiency in the

organization.

He further observed that in the technologically advanced world

where communication between machines is faster and accurate than

between humans, a well defined and implemented communication

system in a work place will improve the productivity to a greater

extent. He also commented that enterprise communication proves to

be a useful tool to build cooperation and collaboration between

several people associated with the organisation. Hence it is

important for SMEs to accord priority in identifying the

communication gaps and implement appropriate communication

systems in order to ensure the success of the enterprise.

Every organisation should adopt

change in all operations of the

enterprise to equip themselves to face

competition and merge successfully,

observed Dr. Mukesh Dalal.

is applicable to all kinds

of companies in the present highly

c o m p e t i t i v e e c o n o m y w h e r e

innovation has become key to success.

Dr. Dalal observed that in many organisations, enough attention is

not focused on managing the space. Apart from managing the other

resources of an organisation, it is also very much important to

manage the space as the cost of the land and buildings are rising

every day. The first benefit of space management is the orderly

arrangement of the products which enhances the aesthetic look.

Secondly, it frees a lot of extra space for storing. For example, by

stacking the shelves vertically more products can be displayed in a

limited space by using minimum area on the floor. This results in a

considerable saving of cost per square feet as the rents are

substantially high. The other advantage of an orderly arrangement is

extra safety within the premises.

Therefore, the small enterprises with the limited space should resort

to space management as it would allow them to save considerable

costs on rent and also allow them to stack maximum products and

ensure efficiency of the business process.

Mr. Ashish Hingorani while speaking

on innovation commented that Dell

started as an SME and grown to the

present status due to innovative

strategies. The company understood

its market better than its competitors

enabling it to offer products

c u s t o m i z e d t o t h e s p e c i f i c

requirements of its customers while

its competitors continued selling standard products.

The major problems with SMEs, he observed are time, money and

manpower which they should manage with utmost care and utilize

these resources efficiently for their growth.

He recommended SMEs to take Dell as an example and customize

their end to end solutions for their customers by understanding their

needs. Designing appropriate products and services targeted at the

right audience, supplying them at the right time and providing back

up support with efficient servicing will enable SMEs to succeed in

long run.

With the formation of the European

Union (EU), doing business in

countries constituting EU has become

easier, observed Mr. Merljak. EU has

made it possible for the free

movement of goods, capital, and

people across the Member countries.

Europe mainly thrives on knowledge

based industries and as a result the

region is losing its competitiveness in the mass manufactured

market. Therefore, various manufacturing companies in Europe

have started looking for profitable destinations in India and China

for outsourcing their manufacturing activities. Indian SMEs can take

advantage of this situation and look for contract manufacturing

activities with European companies, suggested Mr. Merljak.

Explaining about Europe-India SME Business Council (EISBC), Mr.

Merljak mentioned that the Council provides useful information,

guidance and assistance to Indian SMEs to do business with EU

Countries. The Council also offers support in understanding the EU

market, conduct market survey, identify business partners, arrange

joint ventures, technology transfers, contract manufacturing and

other business activities including follow up activities.

He also mentioned various trades and investment opportunities in

Europe and also various technology transfer arrangements that are

possible between India and EU.

“Update

or outdate”



Mr. Muthafa Yusof – Minister Counselor (Economic Affairs),

High Commission of Malaysia

Mr. Alfred NDABARASA – First Counselor, High Commission

of Rwanda in India

Highlighting on similarities between

India and Malaysia, Mr. Yusof

observed that both the countries

share a lot of common economic and

cultural aspects. In the last 10 years

the trade between Indian and

Malaysia has increased 6 folds, which

shows that a huge potential exist

between both the countries for bi-

lateral trade and investment. The

India-Malaysia Comprehensive Economic Cooperation Agreement

will give the necessary fillip in this direction, commented Mr. Yusof.

Although there are opportunities in many sectors to import and

export various products and services, information technology and

Telecommunication sectors provide maximum opportunities as

these sectors are growing rapidly. Even in the service sector,

opportunities exist for many professionals engaged in engineering,

agriculture and other fields, observed Mr. Yusof.

He appealed to the Indian SMEs to take advantage of conducive

business relations between Indian and Malaysia and explore

business opportunities for a greater cooperation and collaborations.

Speaking about his country, Mr. Alfred

NDABARASA gave an overview of

Rwanda. Rwanda is located at the

cross roads of Central and East Africa.

Mr. Alfred explained in detail about

the economic situation in Rwanda

and the initiatives taken by the

Government for the promotion bi-

lateral trade and investment between

India and Rwanda.

There are numerous opportunities for Indian SMEs to promote trade

and investments in Rwanda. Renewable energy is one of the major

areas for investment. Infrastructure development, information and

communication technologies and construction sectors offer

tremendous scope for investment, project management and supply

of products in country, commented Mr. Alfred.

He appealed to the Indian SMEs to visit Rwanda to understand the

business opportunities and assured all necessary assistance in this

regard.

(L to R) – Chief Mentor, Value Education, Ahmedabad,

– Solution Architect – Key Accounts, CSMB, Dell India, –

First Counselor, High Commission of Rwanda in India and

Mr. Ajay Shad

Mr. Ashish Hingorani Mr. Alfred NDABARASA

Dr. Mukesh Dalal Mr.

Matej Merljak , Mr. Chandrakant Salunkhe

Mr. V. K. Venkatachalam Mr. Muthafa Yusof

Mr. Nitin Bhandari

– Professional Director, Steelfur Systems Pvt. Ltd.,

– Chairman, Europe - India SME Business Council (EISBC), Slovenia – President, SME Chamber of

India, – Secretary General, SME Chamber of India, Mumbai, – Minister Counselor (Economic

Affairs), High Commission of Malaysia,

– AVP – NPD & Partnership – Corporate Enterprise Business,

Vodafone India



Mr. H. P. Shah - Gujarat

Entrepreneurship Excellence Award For Service Sector

CEO, Value Plus Investment Advisors Pvt. Ltd. Mr. Maulik V. Dave Gujarat

SME Excellence Award for Manufacturing Sector

- CMD, Harikrushna Machinetech Pvt. Ltd.

Mr. Sharad Jobanputra - Gujarat SME

Excellence Award for Service Sector

CMD, Sequel Logistics Pvt. Ltd. Mr. D. K. Parikh -

Gujarat SME Excellence Award for Manufacturing Sector

Chairman & Group Founder, Techflow Enterprises

Pvt. Ltd.

Mr. Dinesh Khanpara

Gujarat SME Excellence Award for Manufacturing Sector

- Partner, Khedut Agro Engineering Ltd. Mr. Kishor Shah Gujarat SME

Excellence Award for Manufacturing Sector

- MD, Gurudev Dyestuff India Pvt. Ltd.

Mr. Chaitya Dhanvi Shah Gujarat

SME Excellence Award - Emerging Entrepreneur for Service

Sector

– MD, Marvel Art Gallery Pvt. Ltd. Ms. Shilpa Choksi

Gujarat SME Excellence Award - Emerging Woman Entrepreneur

for Manufacturing Sector

- Proprietor & Designer, Marigold Watches.

State Level

GUJARAT ENTREPRENEURSHIP & SME EXCELLENCE AWARDSTuesday, 17 April 2012 | Hotel Courtyard by Marriott, Ahmedabad

th



SME BUSINESS MANAGEMENT INSTITUTE

OBJECTIVES

�

�

�

�

�

�

�

�

�

�

�

�

�

�

�

�

�

Preparation of Project Reports

Financial and Business Proposals

Conduct sector-wise market surveys and reports

Schemes and Incentive facilities

Financial Management Services

Project Management Consultancy

Set up new enterprises or industrial units

Export Documentation and Procedures

Joint Ventures and Technology Transfers

Private Equity and Venture Capital

Survey Reports on Potential Markets

NPAs & Sick Industrial Units Revival / Re-structuring

Logistics and supply-chain Management

Cloud Computing

Online and Internet Marketing

Group Marketing Strategy

Franchises and Business partnerships

SUPPORT SERVICES

�

�

�

�

�

�

�

To educate and train SMEs from manufacturing and

service sector

To integrate business tycoons and promising

entrepreneurs - Young and Women Entrepreneurs

To empower entrepreneurs to become competitive

To accomplish India's inclusive growth

To impart business management skills & concepts

To identify training needs of prospective and existing

entrepreneurs

To enhance business performance

�

�

�

�

�

�

�

�

�

�

�

Training Programs, seminars, workshops

Conferences, Conclaves, Deliberations

Courses and Programs

Mentoring Sessions

Interactive Sessions

Project, Plants and Factory Visits

Study tours

Awareness programs

Research Programs and Initiatives

Consultancy Programs and Initiatives

Publish periodicals and magazines

ACTIVITIES

Education | Knowledge | Competence | Empowerment

For More Information and Details Please Contact

Mr. Omesh Khandlkar - Deputy CEO (Business Development & Coordination)

Tel: +91 – 22 – 6150 9800 / 6667 4444 | Fax: +91 – 22 – 2825 0414 / 2927 1750

Email: [email protected] | Website: www.smebschool.com

Registered & Head Office: 3, Upper Ground Floor, Samruddhi Venture Park, Marol MIDC Industrial Estate, Andheri (E), Mumbai – 400 093.

Empowering SMEs for Global Competitiveness

SMALL & MEDIUM BUSINESS DEVELOPMENT CHAMBER OF INDIA

OBJECTIVES

ACTIVITIES

Identify emerging business opportunities Empowerment for Competitiveness

Connectivity with Global Market

Entrepreneurship Development

Interface with the policy makers

Imparting knowledge and Education

OUR INITIATIVES BI-LATERAL TRADE PROMOTION DIVISIONS

�

�

�

�

�

�

�

�

�

�

Europe - India SME Business Council (EISBC)

SME Export Promotion Council

SME Business Management Institute

Indian Young Entrepreneurs Forum

Indian SME Knowledge Forum

Industrial and SME Research Centre of India (ISRCI)

SME Technology Development Council

SME Connect - Magazine and Portal

SME Business Club

SME Grievance Forum

�

�

�

�

�

�

�

�

�

�

India – ASEAN SME Council

India – China SME Council

India – GCC SME Council

India – Korea SME Council

India – USA SME Council

India – Canada SME Council

India – UK SME Council

India – Turkey SME Council

India – Zambia SME Council

India – Malaysia SME Council

Registered & Head Office

3, Upper Ground Floor, Samruddhi Venture Park, Marol MIDC, Industrial Estate, Andheri (E), Mumbai:- 400 093.

FOUNDER & PRESIDENT

CHANDRAKANT SALUNKHE

Regional Offices:

Representative Office:

Delhi, Bangalore, Ahmedabad, Pune, Chandigarh, Hyderabad, Chennai and Indore

USA, UK, France, Turkey, China, Malaysia, South Korea, South Africa, Dubai, Singapore, Hong Kong and Mauritius

The Chamber is a Private Organisation and Registered Under Section 25 of The Indian Companies Act, 1956.

Tel: +91 - 22 - 6150 9800 / 6667 4444 | Fax: +91 - 22 - 2825 0414 / 2927 1750

[email protected] | [email protected] | [email protected] | www.smechamberofindia.com

�

�

�

�

�

�

�

�

�

�

�

�

�

�

�

�

�

Export & Trade Promotion

Bank Finance, PE/VC and Investments

Technology Upgradation

Joint ventures and technology transfers

Contract manufacturing tie-ups

International collaborations and alliance

Marketing, Branding and Promotion

Connectivity with potential business partners

Survey and Research

Mergers and Acquisitions

Set up new Enterprises in India and abroad

Conference, Seminars, Workshops and training programs

Exhibition, Trade Fairs, Display Centres

Delegation and Trade Missions

Redressal of issues and problems with concerned authorities

Rehabilitation / Revival of Sick Units

Recognition and Appreciation Awards

Documents

CONNECTsmeconnect.in/issues/issue_files/VOL2_ISSUE2.pdf · relations with number of countries. However, the prolonged financial crisis in the EU countries, Indian SME sector is facing