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India Poised[1]
India Poised[1]
India Poised[1]
India Poised[1]
India Poised[1]
India Poised[1]
India Poised[1]
India Poised[1]
India Poised[1]
India Poised[1]
India Poised[1]
India Poised[1]
India Poised[1]
India Poised[1]
India Poised[1]
India Poised[1]
India Poised[1]
India Poised[1]
India Poised[1]
India Poised[1]
India Poised[1]
India Poised[1]
India Poised[1]
India Poised[1]
India Poised[1]
India Poised[1]
India Poised[1]
India Poised[1]
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India Poised[1]

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  • 1. Business Environment <ul><li>INDIA POISED… </li></ul>Presented By Sameer Khair 83 Kunal Kurani 85 Aditya Shah 106
  • 2. Indian Industry Public Sector Unit Private Sector Enterprise Small Scale Industries Small & Medium Business Family Managed Business Large Companies
  • 3. SSI <ul><li>An industrial undertaking in which the investment in fixed assets in plant and machinery whether held on ownership terms or lease or on hire purchase does not exceed Rs 10 million </li></ul>
  • 4. SSI in India <ul><li>Contributes 40% of gross manufacture </li></ul><ul><li>Small-scale units has increased from 0.87 million 1981 to approx. 3 million in 2000 </li></ul><ul><li>After agriculture, 2 nd largest in creating job opportunities </li></ul><ul><li>Contributes 45% - 50% of the Indian Exports </li></ul><ul><li>Dominates in exports of sports goods, readymade garments, plastic products, processed foods & leather goods </li></ul>
  • 5. SSIs in India (Figures for 2002-2003) 675 <ul><li>No. of Reserved Items </li></ul>Over 8000 <ul><li>Total No. of Items Produced </li></ul>34% <ul><li>Share in Total Exports </li></ul>39% <ul><li>Share in Industrial Value Added </li></ul>19.96 Million <ul><li>Employment </li></ul>3.57 Million <ul><li>Estimated No. of units </li></ul>
  • 6. Measures <ul><li>Industrial extension services </li></ul><ul><li>Institutional support in respect of credit Provision of training facilities </li></ul><ul><li>Supply of machinery on hire purchase terms </li></ul><ul><li>Special incentive for setting up enterprises in backward areas </li></ul><ul><li>Technical consultancy & financial assistance for technological upgradation </li></ul>
  • 7. Opportunities <ul><li>Less Capital Intensive </li></ul><ul><li>Extensive Promotion & Support by Government </li></ul><ul><li>Reservation for Exclusive Manufacture by small scale sector </li></ul><ul><li>Reservation for Exclusive Purchase by Government </li></ul><ul><li>Export Promotion </li></ul><ul><li>Increasing Export Potential for Indian products </li></ul>
  • 8. Major Issues <ul><li>Technology obsolescence </li></ul><ul><li>Managerial inadequacies </li></ul><ul><li>Delayed Payments </li></ul><ul><li>Poor Quality </li></ul><ul><li>Incidence of Sickness </li></ul><ul><li>Lack of Appropriate Infrastructure and </li></ul><ul><li>Lack of Marketing Network </li></ul>
  • 9. <ul><li>All firms with an investment of over Rs 5cr but less than Rs 10cr in plant and machinery are called Small and Medium Enterprises. </li></ul><ul><li>But private and foreign banks have their own definitions of SME’s, which can be a turnover of anything between Rs 10cr and Rs 700cr. </li></ul><ul><li>Huge contribution to the economy </li></ul><ul><ul><li>Employment – more than 28 million people </li></ul></ul><ul><ul><li>Contributes 40 % of gross industrial value addition </li></ul></ul><ul><ul><li>Accounts for 50 % of direct and indirect exports </li></ul></ul><ul><li>SME’s are generally more labour intensive than large firms and therefore have lower capital costs associated with job creation. </li></ul><ul><li>Indian SME’s have become globally competitive in sectors like Auto components, textiles, food processing, pharma, engineering and chemicals and it is expected average growth rate of 32% over the next two years. </li></ul>SMALL AND MEDIUM ENTERPRISES
  • 10. SMALL AND MEDIUM ENTERPRISES (SMEs) <ul><li>It was said that the sectors under capitalized, technology-deficient, skill starved companies would drop like flies in the face of global competition. </li></ul><ul><li>Small and Medium enterprises have become the darlings of corporate India. </li></ul><ul><li>Today SME’s are a different breed, they have acquired companies abroad become part and parcel of global supply chains and are even convincing foreign manufacturers to outsource patented design work to them. </li></ul>
  • 11. Figures are growth in percentage between 2001 and 2006 143.8 61.1 63.1 Rs 500 cr – 1000 cr 559.0 89.7 89.2 Rs 400 cr – 500 cr 153.7 97.9 86.6 Rs 300 cr – 400 cr 169.9 92.4 86.4 > Rs 1000 cr 365.9 90.8 79.6 Rs 200 cr – 300 cr 713.7 115.5 102.5 Rs 100 cr – 200 cr 961.1 101 125 Rs 50 cr – 100 cr 701.8 301.6 175 Rs 10 cr – 50 cr Net Profit Operating Profit Net Sales SMEs With Turnover Of
  • 12. Auto Components Sector <ul><li>Current trends indicate a smooth run for the auto component industry. In fact, since 2000, this is one sector which has made a global mark and has been identified as a sunrise industry. The industry is transforming from being highly domestic-centric, to a force ready to face global competition. </li></ul>
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  • 14.  
  • 15. Reasons for Hindrances to Growth <ul><li>A global slowdown can derail the prospects of the industry. </li></ul><ul><li>Volatility in the prices of metals and other inputs could erode the industry’s cost competitiveness. Further, global OEMs expect a commitment of 5 – 10% reduction in prices every year. </li></ul><ul><li>Intense competition from counterparts in other emerging economies may add pressure on margins of manufacturers. </li></ul>
  • 16.  
  • 17. Family Business <ul><li>A family business is a company owned, controlled, and operated by members of one or several families </li></ul>
  • 18. Some Facts <ul><li>Family business contributes 60-70 percent of GDP of most developed & developing countries – India is no exception </li></ul><ul><li>Business families face unique management challenges because of differences in the attitude & aspirations of family members </li></ul><ul><li>It has been observed that 13% survive the 3 rd generation & 4% go beyond </li></ul>
  • 19. Attributes <ul><li>Core competence </li></ul><ul><li>Familiarity with the ever changing environment </li></ul><ul><li>Formation of relevant Joint Ventures for its corporate excellence </li></ul><ul><li>Level of Competitiveness & Professionalism </li></ul><ul><li>Level of Transparency & Stability </li></ul>
  • 20. Parameters For Evaluation INVESTOR FRIENDLINESS OPERATIONAL EFFICIENCY VALUE ADDED FINANCIALS ADAPTABILITY LEADERSHIP STABILITY PORTFOLIO STRATEGY Family Business
  • 21. <ul><ul><li>Understanding of environment </li></ul></ul><ul><ul><li>Political Savvy </li></ul></ul><ul><ul><li>Mutual trust among members </li></ul></ul><ul><ul><li>Distribution Capabilities </li></ul></ul><ul><ul><li>Goodwill </li></ul></ul><ul><ul><li>Splits </li></ul></ul><ul><ul><li>Succession Planning </li></ul></ul><ul><ul><li>Takeovers </li></ul></ul><ul><ul><li>Transnational organization </li></ul></ul><ul><ul><li>Lack of focus </li></ul></ul><ul><li>Strengths </li></ul><ul><li>Threats </li></ul>
  • 22. Areas of Improvement <ul><li>Family owned business are the least preferred employers </li></ul><ul><li>Career development is uncertain in family owned business </li></ul><ul><li>Business families strategize by lobbying for protection </li></ul>
  • 23. Evolution of Family Business <ul><li>Customer inputs </li></ul><ul><li>drives priorities </li></ul><ul><li>Nimble in execution </li></ul><ul><li>to end goals </li></ul><ul><li>Growth & scale </li></ul><ul><li>are priorities </li></ul><ul><li>Control outweighs </li></ul><ul><li>flexibility </li></ul><ul><li>Execute across </li></ul><ul><li>core competencies </li></ul><ul><li>Compete on </li></ul><ul><li>customer satisfaction </li></ul><ul><li>Leverage developed </li></ul><ul><li>competencies </li></ul><ul><li>Selectively </li></ul><ul><li>entrepreneurial in </li></ul><ul><li>nature </li></ul>ENTREPRENEURIAL FUNCTIONALLY – SPECIALIZED PROCESS DRIVEN MARKET DRIVEN 1900 2048 The Priorities of family Nature of Business
  • 24. <ul><li>LIST OF FAMILY MANAGED </li></ul><ul><li>BUSINESSES </li></ul>
  • 25. Global Scenario… <ul><li>WALMART </li></ul><ul><li>HYUNDAI </li></ul><ul><li>FORD </li></ul><ul><li>LG </li></ul><ul><li>SAMSUNG </li></ul><ul><li>HUTCHISON WHAMPOA </li></ul><ul><li>FIAT GROUP </li></ul><ul><li>MARRIOT INTERNATIONAL </li></ul><ul><li>NOVARTIS GROUP </li></ul>
  • 26. Indian Scenario… <ul><li>RELIANCE GROUP </li></ul><ul><li>WADIA </li></ul><ul><li>NANDA </li></ul><ul><li>BIRLA </li></ul><ul><li>PIRAMAL </li></ul><ul><li>SINGHANIA </li></ul><ul><li>MALLYA </li></ul><ul><li>TATA </li></ul><ul><li>BAJAJ </li></ul><ul><li>The list is Endless……… </li></ul>
  • 27. ONE CAN ALWAYS ANALYSE THE PAST BUT WHAT IS NEEDED IS A BLUEPRINT FOR THE FUTURE
  • 28. GEAR UP.... FOLKS

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