PRESENTATION TO IIFT STRATEGIC MANAGEMENT

Dream > Believe > PursueAICH

INDRANIL 1

ROLE OF STRATEGY IN MSME’S AND START UP ORGANISATIONS GROWTH

Wednesday, November 18, 2015

1

DREAM>BELIEVE>PURSUE

MODULES OF THE PRESENTATION

• MSME’S IN INDIA OVERVIEW • MSME’S STRATEGIES FOR GROWTH ,TYPES OF GROWTH • MSME’S BARRIERS FOR GROWTH • CONCLUDING REMARKS AND PROFILE OF AICH GROUP .


2



3

The definition of MSMEs/SMEs differ from country to country. Most countries have adopted the benchmarks of employment . Some define them in terms of assets, a few in terms of sales and yet others, in terms of shareholders fund.

MSMEs comprise widely divergent spectrum of establishment engaged in economic activities ranging from micro and rural enterprise to modern industrial units using sophisticated technologies. They comprise of half – to – two third of the business globally.

Definition differ across countries, but they have one thing in common; the vast majority of MSMEs are relatively small (in terms of employee strength).

MSMEs

MSME’S IN INDIA



4

Creates more than 1 Million

jobs annually.

Contribution to GDP set to

expand to 25% by 2022 from current

22%.

40% - Total Exports

Employs –More than 60

Million

45% - Total Industrial Output

MSME’S ADVANTAGES

-

-



5

Generates more jobs per unit of capital investment.

Requires relatively less start-up capital.

Facilitates entrepreneurship.

Promotes / accelerates growth of the region.



6

Traditionally Indian SMEs have had the following characteristics:

• Born out of individual initiatives &skills• Greater operational flexibility• Low cost of production• High propensity to adapt technology• High capacity to export• High employment orientation• Utilization of locally available human & material resources • Critical for poverty reduction *

MSMEs: Characteristics

DREAM>BELIEVE>PURSUE 7


7

Indian MSMEs can be divided into three classes:

• Predominantly rural , traditional household industries,• Small and medium industries functioning with obsolete technologies,• Modern, small and medium enterprises which are owned and operated by mostly young techno-entrepreneurs operating in relatively newer fields like Bio-technology.

MSME CHARACTERISTICS



8

MSMEs growth is often closely associated with firm’s overall success and survival.

Strong growth may reduce the firm’s profitability temporarily, but increases it in the long run.

The path to growth for a MSME may differ depending upon various factors like the age of firm, its size, location, industry affiliation, stage of its life cycle, etc.

MSMEs: GROWTH STRATEGIES



9


Entrepreneur's growth orientation

Factors shaping growth orientation:

Ownership structureMotivationEducation

Adequate Firm resources

Necessity for sustained Growth:

Resources:FinancialPolicy FrameworkHuman

Market Opportunity

Market:

Ability to identify customer needs and need-gaps.

Market accessibility



10

Organic Strategies1. New Customers 2. New product / technology3. New Markets




11


In-organic Growth

a Mergers & Acquisition

Strategic Partnership Joint Venture

MSME’S GROWTH STRATEGIES



12

Indian industry and MSMEs in particular needs to better understand about IPRs. Majority of countries specially developed are resorting to stringent IPRs for protecting their industries. • IPRs help SMEs in value creation by enabling them to capitalize on their intangible assets.• Govt./Industry should make concerted efforts to spread awareness about IPRs.• One industry that definitely needs to understands and use IPR is “Handicrafts”. Machine made fakes are eating into the potential market for genuine “Indian Handmade handicrafts”.

• Another way in which IPRs can be of immense help is “Geographical Indications”. For e.g. “Pashmina Shawl” or “Banarsi Silk”.



13

MSME’S BARRIER’S TO GROWTH



14

MSMEs across the globe face almost similar problems affecting their growth:

• Source of funding / credit• Access to technology• Skilled Manpower• Infrastructure support




15

The key financial constraints afRfecting growth of MSMEs are:• Availability of timely and adequate credit• High cost of credit• Collateral requirement

MSMEs have to accept technologically advanced process and systems to take on the global competition:• More than half the MSMEs are in rural areas where they is no or low access to modern technology. • In today’s globalised world technology is important to fight competition as customer demands best products at lowest prices.




Other reasons which hamper the growth of MSMEs are: • Local Orientation –

The business strategy aims for a geographically delimited market. This caps the size and growth of the business.

• Arrested Development –Once a specific scale has been reached the owner sees the rate of return on

further scaling-up as unviable.


16



Skilled Manpower:• Framework for vocational education and training needs to be reworked.• Matching demand and supply of skills and bringing in contemporary and advanced courses will facilitate skill development and ultimately lead to employability.

Infrastructure:• Potential of a MSME to grow and nurture innovation is greatly supported by the kind of infrastructure, both physical and economic.• Common infrastructural problems faced by MSMEs in our country are:

Dependable supply of powerTransportation facilitiesProvision of water


17

WE VALUE EVERYTHING UNDER THE SUN 10/14/2013 44

18

AICH APPRAISERSAUCTIONERS AND VALUERSWe value every thing under the sun

EMPANELMENTS


19

AICH APPRAISERSAUCTIONERS AND VALUERSWe value every thing under the sun

•EMPANELMENTS

WE VALUE EVERYTHING UNDER THE SUN 47

20

•200% Year on year Growthbothbottomline and topline

•Strong credit rating•Qualtrics Rated top 3 in India in Valuation

Services•Finalist forAIMA -Dr J.S Juneja Award for

Innovation and creativity for MSMEenterprises for 2012 -2013 and ICICI -

CNBC India Emerging India Awards 2013

LUE EVERYTHING UNDER THE SUN 10/14/2013 48

21


22

• KATAICH INFRACORE ENGINEERING PVT. LTD.•Started with Changling construction machinery distribution and Nawa

crushers•Year on year growth 200%

•Revenue of ½ million USD in 2011-2012•Shantui heavy machinery dealership

•Spare parts supplier company•Started as the flagship company and diversified


23

•

AICH MINING RESOURCES PVT. LTD.Opencast & Underground Mining of ferrous & non ferrous metal & non

metal mines concept to commisioning projects

•Opencast & Underground Equipment Selection, installation

•Concept to commissioning Technical Consulting & Mining Consulting

•Coal Washers Consulting

•CHF Concept to Concept to commissioning projects


24

•

AICH MINING RESOURCES PVT. LTD.Opencast & Underground Mining of ferrous & non ferrous metal & non

metal mines concept to commisioning projects

•Opencast & Underground Equipment Selection, installation

•Concept to commissioning Technical Consulting & Mining Consulting

•Coal Washers Consulting

•CHF Concept to Concept to commissioning projects


25

A BREIF PROFILE OF INDRANILAICH F ABOUT INDRANIL AICH

Chequered career of 19+ years in the industry out of which 14 yearsin multinationals of repute

Worked in Titagarh Wagons Ltd GoIndustry - Dovebid (FormerlyHenry Butcher) ,UT Limited (JV between Usha Group and

Telehoist of U.K.) Ingersoll Rand India Ltd,TIL (Tractors IndiaLimited) -Jayashree Textiles, Indian Rayon Group -Rishra.

Award winning Production engineer with MBA

Publications and teaching assignments in several institutions ofrepute .


26

A BRIEF ABOUT INDRANIL AICH

PROFESSIONAL MEMBERSHIPSInternational Memberships

Honorary Life member of Royal Institute of Chartered Surveyors (RICS),London.

Life member American Society of Mechnical Engineers USALife member of the Mining ,geological and metallurgical Society of India .Life Member of Operational Society of India, Quality Circle Forum of India,

Systems Dynamics Society of IndiaLife Member of Institution of Engineers (Membership No.M-132302-9) and

Chartered Engineer from Institution of Engineers (AM 092132-5).Approved valuer (Registration No.18328) Category - Production & Industrial

Engineering and Fellow and Life Member of Institution of Valuers.Member of Indian Council of Arbitration, New Delhi an organization of FICCI

and Ministry of Commerce.Member of Practicing Valuers Association of India


27

A BRIEF ABOUT INDRANIL AICH

A BRIEF ABOUT INDRANIL AICHINDUSTRY CHAMBER MEMBERSHIPSMember of Confederation of India Industry Eastern RegionMember of MSME National council CIIMember of West bengal state councilMember of the economic affairs ,taxation and finance subcommitteeMember of the Safety subcommitteeMember of the MSME subcommittee


28

You can reach me @

[email protected]@outlook.comMobile +919831088204/+919038088204


29


QUESTIONS AND ANSWERS SESSION

10/14/2013DREAM>BELIEVE>PURSUE 2


30

Small Business & Entrepreneurship

PRESENTATION TO IIFT STRATEGIC MANAGEMENT