02 Rupa Naik

1,124 views
1,041 views

Published on

fashion garments textile ppt style ramp apparel clothing meetings

Published in: Lifestyle, Business
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
1,124
On SlideShare
0
From Embeds
0
Number of Embeds
16
Actions
Shares
0
Downloads
27
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

02 Rupa Naik

  1. 1. PRESENTATION ON DEVELOPMENT OF SMEs IN INDIA & RETAIL INDUSTRY 1
  2. 2. CONTRIBUTION OF SMEs TO THE ECONOMY - <ul><li>REGIONAL DEVELOPMENT </li></ul><ul><li>COMPLEMENTARY ROLE TO SUPPORT THE LARGE SECTOR </li></ul><ul><li>BASIS FOR INNOVATIONS AND ADAPTATIONS </li></ul><ul><li>EMPLOYMENT GENERATION </li></ul><ul><li>DIRECT MULTIPLIER EFFECT OF THE PERFORMANCE ON THE GROWTH OF THE NATIONAL ECONOMY </li></ul>2
  3. 3. PREDOMINANT ROLE OF SMEs IN THE ECONOMY DUE TO – <ul><li>ITS NUMBER </li></ul><ul><li>VARIETY </li></ul><ul><li>INVOLVEMENT IN ALL ASPECTS OF THE ECONOMY </li></ul>3
  4. 4. INDIAN DEFINITION OF SMALL SCALE INDUSTRY (SSI) <ul><li>INVESTMENT IN PLANT AND MACHINERY DOES NOT EXCEED Rs. 10 MILLION (US$1-Rs.49) – </li></ul><ul><li>WHETHER HELD ON OWNERSHIP/LEASE/HIRE PURCHASE </li></ul>4
  5. 5. THE THIRD ALL-INDIA CENSUS OF SMALL SCALE INDUSTRIES (AUGUST 2004) <ul><li>Size – approx.10.52 million units compared to 80,000 units in the late 1940s </li></ul><ul><li>Total employment contribution – 24.93 million with a per unit contribution of 2.37 </li></ul><ul><li>Export contribution – Rs.14,199 crores </li></ul><ul><li>Number of exporting units – 50,606 </li></ul><ul><li>Contribution to GDP – 7% </li></ul><ul><li>Approx. 7,500 different products produced by SSIs in India </li></ul><ul><li>Out of 878 items reserved for the sector, only 672 are actually produced by SSIs </li></ul>2
  6. 6. Based on products, SMEs in India can be broadly classified into the following groups: <ul><li>Food products </li></ul><ul><li>Chemicals and chemical products </li></ul><ul><li>Basic metal industry </li></ul><ul><li>Electrical machinery and parts </li></ul><ul><li>Rubber and plastic products </li></ul><ul><li>Machinery and parts excluding electrical goods </li></ul><ul><li>Hosiery and garments </li></ul><ul><li>Wood products </li></ul><ul><li>Nonmetallic mineral products </li></ul><ul><li>Paper products and Printing </li></ul><ul><li>Transport equipment and parts </li></ul><ul><li>Leather and leather products </li></ul><ul><li>Miscellaneous manufacturing industries </li></ul><ul><li>Other services and products </li></ul><ul><li>Beverages, tobacco / tobacco products </li></ul><ul><li>Repair services </li></ul><ul><li>Cotton textiles </li></ul><ul><li>Wool, silk and synthetic fibre textiles </li></ul><ul><li>Jute, hemp and mesta textiles </li></ul><ul><li>Other services </li></ul>6
  7. 7. Contributions of Indian SSIs to total exports by sector (%) 7 Ready-made garments Woollen garments, knitwear 30 Engineering goods 55 Cosmetics, basic chemicals & pharmaceuticals 45 Plastic products 29 Marine Products 35 100 Sporting goods 80 Leather products 65 Processed foods 90 SSI share in total exports Product
  8. 8. Indian Government’s development strategy <ul><li>Protective discrimination e.g. reservation, priority-sector lending </li></ul><ul><li>Integration between large and small e.g. subcontracting, ancillarization and vendor development </li></ul><ul><li>Institutional support through a network of testing centres, tool rooms, entrepreneurship development institutes </li></ul><ul><li>The setting up of a separate Ministry of Small Scale Industries in 1999 marked a major step towards providing a policy platform for the SME sector. </li></ul>8
  9. 9. CHALLENGES FACED BY SME SECTOR IN INDIA <ul><li>The term “economic globalization” implies an evolving pattern of cross-border enterprise activities. It implies a change, broadly on the following lines : </li></ul>9 Survival of the fittest Protective policies Focus on growth Limited economic interest Flexible production system Rigid production system World market Local market Outsourcing-local/international Manufacturing for self-identified market Strategic alliances Single-firm activity Collaborations Local/National Investment Post-Globalisation Pre-Globalisation
  10. 10. NEED FOR NEW APPROACH <ul><li>New policy for development of SMEs in regional setting by encouraging Foreign Direct Investment </li></ul><ul><li>Innovative bottom-up development policies endowing individuals, firms and territories with factors to place their skills, products or services in the global competitive market </li></ul><ul><li>Encouraging Private-public partnerships which will generate employment and stimulate economic activity </li></ul><ul><li>Modernizing the export-oriented clusters for enhancing global competitiveness </li></ul><ul><li>Consortia approach for enhancing exports from SMEs </li></ul><ul><li>Fostering linkages between Indian SME clusters and similar product cluster overseas for mutual benefit </li></ul><ul><li>Organizing product specific trade fairs with international participation </li></ul><ul><li>Concentrate on developing and promoting service sector </li></ul>10
  11. 11. RETAIL INDUSTRY IN INDIA <ul><li>Some countries include retailing in its definition of SMEs alongwith manufacturing and services </li></ul><ul><li>Indian retailing – largest industry – 14% of GDP </li></ul><ul><ul><li>Second largest source of employment next to agriculture </li></ul></ul><ul><ul><li>Organized retailing accounts for just 3% of the total retail market; </li></ul></ul><ul><ul><li>projected to grow at 25-30 per cent a year </li></ul></ul><ul><ul><li>Annual growth rate of 8.5% and amounting to Rs. 200 billion in 2003-04 </li></ul></ul><ul><ul><li>Untapped segment amounts to a whopping Rs. 9,800 billion (approx.$222 billion) </li></ul></ul><ul><ul><li>India’s estimated total retail market to be around $202.6 billion which is expected to grow at a compounded 30% over the next five years </li></ul></ul><ul><li>Government unlikely to announce any decision on allowing FDI in retail. Revised safeguards for ensuring “livelihood protection” to ‘mom & pop’ stores are yet to be finalized </li></ul><ul><li>FDI regime would provide opportunity for joint ventures, ease financial crunch, bring in technical know-how and best management practices </li></ul>11
  12. 12. ALL INDIA ASSOCIATION OF INDUSTRIES Building bridges of prosperity through Industry <ul><li>Serving industry since 1956 </li></ul><ul><li>India’s premier business networking organisation and a centre for excellence for international trade </li></ul><ul><li>Membership - open to all sectors of the industry including agriculture, service, entertainment, finance and also to professionals </li></ul><ul><li>Representation - </li></ul><ul><li>- AIAI has representations on various national and regional governmental bodies and financial institutions to address the issues of its members. </li></ul><ul><li>Agreements for co-operation </li></ul><ul><li>The All India Association of Industries (AIAI) has signed agreements for co-operation with 70 international Trade Promotion Organizations and Chambers of Commerce across the globe to promote bilateral trade, exchange of trade-related information, trade delegations, joint ventures and technology transfers </li></ul>12
  13. 13. OVERSEAS MEMBERSHIP of All India Association of Industries <ul><li>Our Overseas Membership scheme allows non-Indian based companies with no Indian registered office to : </li></ul><ul><ul><li>Make new contacts by being part of one of India’s biggest business organisations </li></ul></ul><ul><ul><li>Use AIAI’s Members’ Lounge as your base and meeting place and enjoy a range of member benefits when visiting India. Located in the heart of the business capital, the Members’ lounge offers a space from where you can work, connect your laptop, use the internet or invite your Indian clients for meetings. Refreshments available. </li></ul></ul><ul><ul><li>Raise your company profile by association with the recognised and respected AIAI brand </li></ul></ul><ul><ul><li>Receive the AIAI Newsletter </li></ul></ul><ul><ul><li>AIAI’s team can help you identify organisations in India which can help you with your business </li></ul></ul><ul><ul><li>Make new business contacts and gain information by participating in AIAI’s programme of networking events and seminars </li></ul></ul><ul><li>How much does it cost ? </li></ul><ul><ul><li>Our Overseas Membership costs US$ 225/- per annum. Payment must be made on-line by credit card </li></ul></ul><ul><li>Terms and conditions </li></ul><ul><ul><li>Only non-Indian companies with no office in India may apply for overseas membership </li></ul></ul><ul><ul><li>AIAI reserves the right to refuse an application from any overseas company at our discretion </li></ul></ul><ul><ul><li>AIAI reserves the right to revoke membership at any point without refund </li></ul></ul><ul><ul><li>AIAI is not responsible for the conduct or actions of its members </li></ul></ul>13
  14. 14. ECONOMIC INDICATORS (2004-2005) <ul><li>Population 1 billion+ </li></ul><ul><li>GDP (in $ billion) 520 </li></ul><ul><li>GDP growth rate (%) 7.0 </li></ul><ul><li>Foreign Exchange Reserves (US$ billion) 143.5 </li></ul><ul><li>Inflation (%) 4.0 </li></ul><ul><li>Agriculture (% of GDP) 22 </li></ul><ul><li>Industry (% of GDP) 28 </li></ul><ul><li>Services, etc. (% of GDP) 48 </li></ul><ul><li>Source : Tata Services </li></ul>14
  15. 15. MARKET OPPORTUNITIES <ul><li>Women’s wear - 37.5% of the clothing market – US$3.93bn </li></ul><ul><li>Women’s western wear - $ 157 million </li></ul><ul><li>Organized apparel retailing – to grow 5 times over next 5 years </li></ul><ul><li>Fire fighting equipment estimated at about $34-40 million </li></ul><ul><li>E-commerce – </li></ul><ul><ul><li>PC penetration – 14 million users (March 2005) </li></ul></ul><ul><ul><li>E-commerce activity in 2004 – US$ 350 million (NASSCOM) </li></ul></ul><ul><ul><li>B2C E-commerce to grow to $489 million by end of 2006 </li></ul></ul>15
  16. 16. I N D I A O F F E R S <ul><li>Good command on English language </li></ul><ul><li>Large, well-trained, low-cost workforce </li></ul><ul><li>Very good pool of engineers, accountants, technicians </li></ul><ul><li>Well developed R & D Infrastructure </li></ul><ul><li>Well established legal system/courts </li></ul><ul><li>Mature, nation-wide distribution system </li></ul><ul><li>Foreign Investment regulations that provide freedom of entry, investment, location, choice of technology for import & export </li></ul><ul><li>Current account convertibility, capital account convertibility for foreign investors </li></ul><ul><li>Investment & tax incentives for exports </li></ul>16
  17. 17. Why you can’t ignore India <ul><li>A bridge between East and West </li></ul><ul><li>Vast market: a fast-growing consumer market </li></ul><ul><li>Growing economy: from agriculture to industry and now to services, the Indian economy is acquiring depth and maturity </li></ul><ul><li>Legal System: Well laid out legal procedures & systems </li></ul><ul><li>Systems in place : India is one of those rare third world countries where democratic systems are all in place, and though it takes some time, the rule of law prevails </li></ul><ul><li>Market-friendly approach : Successive governments from across the political spectrum have committed themselves to a market-friendly economic approach </li></ul>17

×