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India Poised[1]

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  • 1. Business Environment
    • INDIA POISED…
    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
    • 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
  • 4. SSI in India
    • Contributes 40% of gross manufacture
    • Small-scale units has increased from 0.87 million 1981 to approx. 3 million in 2000
    • After agriculture, 2 nd largest in creating job opportunities
    • Contributes 45% - 50% of the Indian Exports
    • Dominates in exports of sports goods, readymade garments, plastic products, processed foods & leather goods
  • 5. SSIs in India (Figures for 2002-2003) 675
    • No. of Reserved Items
    Over 8000
    • Total No. of Items Produced
    34%
    • Share in Total Exports
    39%
    • Share in Industrial Value Added
    19.96 Million
    • Employment
    3.57 Million
    • Estimated No. of units
  • 6. Measures
    • Industrial extension services
    • Institutional support in respect of credit Provision of training facilities
    • Supply of machinery on hire purchase terms
    • Special incentive for setting up enterprises in backward areas
    • Technical consultancy & financial assistance for technological upgradation
  • 7. Opportunities
    • Less Capital Intensive
    • Extensive Promotion & Support by Government
    • Reservation for Exclusive Manufacture by small scale sector
    • Reservation for Exclusive Purchase by Government
    • Export Promotion
    • Increasing Export Potential for Indian products
  • 8. Major Issues
    • Technology obsolescence
    • Managerial inadequacies
    • Delayed Payments
    • Poor Quality
    • Incidence of Sickness
    • Lack of Appropriate Infrastructure and
    • Lack of Marketing Network
  • 9.
    • All firms with an investment of over Rs 5cr but less than Rs 10cr in plant and machinery are called Small and Medium Enterprises.
    • 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.
    • Huge contribution to the economy
      • Employment – more than 28 million people
      • Contributes 40 % of gross industrial value addition
      • Accounts for 50 % of direct and indirect exports
    • SME’s are generally more labour intensive than large firms and therefore have lower capital costs associated with job creation.
    • 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.
    SMALL AND MEDIUM ENTERPRISES
  • 10. SMALL AND MEDIUM ENTERPRISES (SMEs)
    • It was said that the sectors under capitalized, technology-deficient, skill starved companies would drop like flies in the face of global competition.
    • Small and Medium enterprises have become the darlings of corporate India.
    • 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.
  • 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
    • 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.
  • 13.  
  • 14.  
  • 15. Reasons for Hindrances to Growth
    • A global slowdown can derail the prospects of the industry.
    • 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.
    • Intense competition from counterparts in other emerging economies may add pressure on margins of manufacturers.
  • 16.  
  • 17. Family Business
    • A family business is a company owned, controlled, and operated by members of one or several families
  • 18. Some Facts
    • Family business contributes 60-70 percent of GDP of most developed & developing countries – India is no exception
    • Business families face unique management challenges because of differences in the attitude & aspirations of family members
    • It has been observed that 13% survive the 3 rd generation & 4% go beyond
  • 19. Attributes
    • Core competence
    • Familiarity with the ever changing environment
    • Formation of relevant Joint Ventures for its corporate excellence
    • Level of Competitiveness & Professionalism
    • Level of Transparency & Stability
  • 20. Parameters For Evaluation INVESTOR FRIENDLINESS OPERATIONAL EFFICIENCY VALUE ADDED FINANCIALS ADAPTABILITY LEADERSHIP STABILITY PORTFOLIO STRATEGY Family Business
  • 21.
      • Understanding of environment
      • Political Savvy
      • Mutual trust among members
      • Distribution Capabilities
      • Goodwill
      • Splits
      • Succession Planning
      • Takeovers
      • Transnational organization
      • Lack of focus
    • Strengths
    • Threats
  • 22. Areas of Improvement
    • Family owned business are the least preferred employers
    • Career development is uncertain in family owned business
    • Business families strategize by lobbying for protection
  • 23. Evolution of Family Business
    • Customer inputs
    • drives priorities
    • Nimble in execution
    • to end goals
    • Growth & scale
    • are priorities
    • Control outweighs
    • flexibility
    • Execute across
    • core competencies
    • Compete on
    • customer satisfaction
    • Leverage developed
    • competencies
    • Selectively
    • entrepreneurial in
    • nature
    ENTREPRENEURIAL FUNCTIONALLY – SPECIALIZED PROCESS DRIVEN MARKET DRIVEN 1900 2048 The Priorities of family Nature of Business
  • 24.
    • LIST OF FAMILY MANAGED
    • BUSINESSES
  • 25. Global Scenario…
    • WALMART
    • HYUNDAI
    • FORD
    • LG
    • SAMSUNG
    • HUTCHISON WHAMPOA
    • FIAT GROUP
    • MARRIOT INTERNATIONAL
    • NOVARTIS GROUP
  • 26. Indian Scenario…
    • RELIANCE GROUP
    • WADIA
    • NANDA
    • BIRLA
    • PIRAMAL
    • SINGHANIA
    • MALLYA
    • TATA
    • BAJAJ
    • The list is Endless………
  • 27. ONE CAN ALWAYS ANALYSE THE PAST BUT WHAT IS NEEDED IS A BLUEPRINT FOR THE FUTURE
  • 28. GEAR UP.... FOLKS