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FICCI CMSME Newsletter


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FICCI Confederation of Micro, Small and Medium Enterprises (CMSME) Newsletter for June 2014 showcases latest initiatives by the confederation around MSME issues, News updates.

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FICCI CMSME Newsletter

  1. 1. Edition: June 2014 Issue: 2 NEWSLETTER In this issue……… FICCI CMSME – Latest Initiatives Release of FICCI CMSME Directory………………………………………. 02 FICCI CMSME and IDBI MoU to offer concession of 100 bps on interest rates for member MSMEs……………………………………... 02 MSME News Update…………………………………………...…………….…….... 04 A .com website is a business must-have : An article by Mr. Nitin Wali……… 09 A Snapshot on SIDBI Schemes: by Raman Kumar……………………………..... 11 FICCI CMSME events Seminar on MSME Prosperity – Delhi……………………………………... 12 FICCI CMSME Participation in INTERPACK- 2014……………………… 14
  2. 2. Latest Initiatives Release of FICCI CMSME Directory FICCI-CMSME has come out with a “Directory of MSMEs” which provides information on MSMEs like their production capacity, joint ventures/technological collaborations, certification of national and/or international quality & energy standards, etc. This would help facilitate dissemination of appropriate information on MSMEs to Government agencies including Central Ministries/State Governments & Departments/Public Sector Undertakings besides large manufacturing units for sourcing product or services from MSMEs. FICCI CMSME and IDBI MoU to offer concession of 100 bps on interest rates for member MSMEs FICCI-CMSME and IDBI announced a partnership through an MoU for Micro, Small and Medium Enterprises (MSME) to make organized finance facility available to MSMEs across the country at competitive interest rates on May 23, 2014 at FICCI, New Delhi. This unique partnership will grant the best pricing offered at the relevant time by IDBI including concession of 100 bps and charging of processing fee as low as 0.10% plus service taxes to the proposals referred by FICCI-CMSME. Dr A Didar Singh, Secretary General, FICCI and FICCI-CMSME and B. K. Batra, Deputy Managing Director, IDBI signed the MoU. Announcing the partnership, Dr Singh said, “Timely availability of credit at the right cost is the key expectation of industry from their banks. While large corporate manage to get the attention of bankers, often the smaller companies have a disadvantage in sourcing credit at right cost and right time. MSME sector is a backbone of economy and banks have an important role in propelling growth of this important segment. Hence, this tie up is towards that direction.” Sanjay Bhatia, President, FICCI CSMME said, “MSMEs are known as highest employment generator after agriculture hence, it is imperative to provide an ecosystem that could facilitate their financing, marketing, technological, infrastructural needs and make them more competitive. Easy & faster financing options could provide a trigger for faster, inclusive growth for MSMEs.” 2
  3. 3. B. K. Batra, Deputy Managing Director, IDBI said “This MOU with FICCI would be a win-win situation for both the organizations for meeting the credit requirements of the MSME sector in a timely and cost effective manner. The MOU would help IDBI Bank in further increasing its reach to the MSME Sector. IDBI Bank is focused on expanding its lending to this sector in view of the fact that the MSME is a key driver of Indian economy in terms of contribution to GDP, employment and exports. IDBI Bank will continue to play a leading and active role in promoting development of MSME sector in the country”. Other present during the ceremony were Sanjay Bhatia, President, FICCI-CMSME and Managing Director, Hindustan Tins Works Ltd; R Narayan, Vice-President, FICCI-CMSME and CEO & Founder, Power2SME; Bipin Kabra, Chairman, Finance Group, FICCI-CMSME and President & CFO, Religare Finvest Ltd; S. K. V. Srinivasan, Executive Director, IDBI; Yashpal Gupta, CGM, IDBI; Ajay Sharma, CGM, IDBI. ************************ 3 Latest Initiatives
  4. 4. Kalraj Mishra assumes charge as MSME Minister BJP leader Kalraj Mishra on May 25 formally took charge as the Minister for Micro, Small & Medium Enterprises (MSME). As he took charge, he highlighted the importance of the sector in creating jobs for youth and opportunities for educated unemployed persons in backward regions. “The objective of the Ministry is to make the common man self-dependent. Optimum utilization of human resources and establishing a framework for this purpose is the need of the hour, and this Ministry will work towards that goal,” he told reporters. Born in 1941 in Ghazipur District of Uttar Pradesh, Mr. Mishra is a veteran leader of BJP in Uttar Pradesh. He has served as the state chief of the party and was a Cabinet Minister in state government holding the portfolios of Public Works, Medical Education and Tourism between March 1997 and August 2000. Mr. Mishra won the 2014 Lok Sabha elections from Deoria constituency. (The Hindu, May 28th, 2014) MSME News Update FDI in multi-brand retail unlikely for now: Sitharaman Commerce & Industry minister Nirmala Sitharaman indicated that the BJP-led government may not immediately allow foreign supermarket chains to open multi-brand retail outlets, arguing that opening the floodgates may impact small traders and farmers. "At this stage, the party position is very, very clear. We have explained about FDI in multi-brand retail that it probably is not best opened up now, because medium- and small-sized traders or small farmers have not been adequately empowered... if you open up the floodgates of FDI in multi-brand retail, it may affect them," she told reporters after taking charge. "We do not have a fixed approach. We would like to look at FDI in each sector in a much calibrated fashion," she said. On her priorities, Sitharaman said she would sit with officials to understand what has happened all this while and further the manifesto-based agenda of BJP. The minister said that boosting exports and creation of jobs will be top priorities. (The Times of India May 28th, 2014) Labour ministry to examine laws with a focus on MSMEs Amid the BJP-led Central government talking about reviewing ‘outdated’ labour laws, a committee, under the ministry of labour, has called a meeting on May 28 to “examine all aspects of labour laws affecting micro and small enterprises”. The key agenda item for the meeting was to relax labour laws for small scale units. A senior official said that given the new government’s intention to make India a hub for cost-competitive, labour-intensive mass manufacturing, the timing of the meeting is significant. “The committee will consider how to amend the definition of factory in small scale industry,” the official added. The committee has representations from all the concerned stakeholders. It would also discuss issues ranging from multiplicity and complexities of labour laws, rationalisation of inspections to difficulty in affecting changes in service conditions and maintenance of records. Amendments in the labour laws have also been sought by the ministry of commerce and industry to promote manufacturing in India under the national manufacturing policy. The meeting would also see discussion on labour law flexibilities sought by the ministry including employment of women in three shifts, temporary status of employees; flexibility to downsize; number of hours per shift; social security scheme for the work force among others. The Indian Express, May 26th, 2014) 4
  5. 5. SMEs raise Rs 317 crore via IPOs in FY'14 As many as 37 small and medium enterprises (SMEs) got listed on Indian bourses in 2013-14, with public issues worth Rs 317 crore. It was 32.63 per cent more than Rs 239 crore garnered by 24 companies on the SME platform of the stock exchanges in 2012-13, as per the latest data with market regulator Sebi. Leading bourses BSE and the National Stock Exchange (NSE) had launched the SME platforms in March 2012, the only two bourses with such a segment in the country. BSE has 57, and NSE has 5 firms listed on their respective SME platforms. The platforms provide opportunity to SME entrepreneurs to raise equity capital for growth and expansion. They also provide opportunity for investors to identify and invest in good SMEs in early stages of growth. (The Economic Times, May 21st, 2014) ECGC to offer factoring facility for MSMEs The government-owned Export Credit Guarantee Corporation of India (ECGC) reported profit after tax of Rs 360.69 crore for the year 2013-14, a growth of 48.5 per cent over the corresponding period in 2012-13. During the year, risk value covered by ECGC rose 7 per cent to 2,79,354 crore, gross premium covered rose 12.7 per cent to Rs 1,304 crore and gross claims paid was up 64 per cent at Rs 898 crore. The Board of directors has proposed a dividend of Rs 88 crore (Rs 60 crore) to be paid to the government for 2013-14. Addressing media, N. Shankar, CMD, ECGC said, the corporation will offer direct factoring facility for micro, small and medium enterprises (MSMEs) in 2014-15 to ``help meet their working capital requirements.’’ (The Hindu, May 20th, 2014) FICCI projects weak outlook for manufacturing in April-June Projecting a weak outlook for the manufacturing sector in April-June quarter of financial year 2014-15 (Q1), a recent FICCI survey has indicated moderation in manufacturing activity in Q1 of fiscal 2014-15 as compared to Q4 of fiscal 2013-14. The survey gauged expectations of manufacturers for this quarter for 14 major sectors textiles, capital goods, metals, chemicals, cement, electronics, automotive, leather & footwear, machine tools, food processing, paper, tyre, textiles machinery, ceramics and others. Responses have been drawn from 352 manufacturing units from both large and SME segments with a combined annual turnover of over Rs 3.75 lakh crore. The weakened prospects for the sector are also reflected in the order books of the manufacturers, noted the survey. The demand seems to have slowed down as a result of which moderation in manufacturing activity is expected. While 44 per cent respondents reported higher order books for January-March 2013-14 quarter in the last survey, for this quarter only 36 per cent respondents have reported higher order books for April-June 2014-15. The survey observed that this time it is not just domestic factors but more importantly on the export front that the outlook seems to be weakening as a result of which manufacturing growth is likely to be pulled down. In terms of investment, it remained subdued in manufacturing sector as was the case for previous quarters also, the survey pointed out. In terms of investment though the outlook seemed to be slightly better than the previous quarters, it remained pessimistic. For Q1 of fiscal 2014-15, 69 per cent respondents, as against 71 per cent respondents in Q4 and 72 per cent respondents in Q3 of fiscal 2013-14, reported that they don't have any plans for capacity additions for the next six months. In many sectors, average capacity utilisation has remained same in Q4 of 2013-14 as was in Q3 of 2013-14. These are sectors such as capital goods, chemicals, metals and textiles machinery. The Statesman, May 13th, 2014) MSME News Update 5
  6. 6. Strict rule on independent directors in small, unlisted cos In what may impact lakhs of small, unlisted companies, stringent conditions have been mandated on the appointment of independent directors in companies with only three directors or less on their board. In the fine-print of rules notified to the Companies Act of 2013, that came into effect last month, rule 4 of the companies (appointment and qualification of directors) rules, mandates the appointment of at least two independent directors on the board of such companies whether listed or unlisted. (Financial Express, May 29th, 2014) MSME News Update Strengthening MSMEs must to create new jobs The Reserve Bank of India governor recently acknowledged that MSMEs face difficulties in accessing credit and has suggested the use of technology to facilitate such flow of credit. KC Chakrabarty, deputy governor, also observed recently that inadequate flow of credit to MSMEs has been one of the factors constraining growth of the sector. Again, according to recent reports, the Standing Committee of RBI has been working on this problem. The growth in the sector has been slowing down in recent years. Hence, there is a need to think out of the box to ensure flow of credit to MSMEs. But first, some facts about the highly heterogeneous MSME sector where 94% of units are unregistered. Given the demographic patterns in India, more jobs would have to be created outside the government sector. In this context, the role of MSMEs assumes great significance and needs to be strengthened. In addition to technological solutions, which would generally take a long time to implement and fructify, the banking system could use a time-tested approach exemplified in SHGs to extend credit to MSMEs. A strong and flourishing MSME sector would contribute to growth and higher exports. (Financial Express, May 5th, 2014) One-fifth of Auto MSMEs to Shut Down One-fifth of micro small and medium enterprises (MSMEs) in Chennai are on the verge of closure with the automobile sector hit by the economic downturn. Additional industrial advisor, MSME Development Institute, S Sivagnanam and president of Tamil Nadu Small and Tiny Industries Association (TANSTIA) K Gopalakrishnan said that around 20 to 30 per cent of auto ancillaries in the city are facing closure as they don’t have any orders to cater to. Gopalakrishnan said that entrepreneurs wouldn’t be able to close their enterprises for fear it would immediately result in harassment by money lending institutions and private moneylenders. (New India Express, May 3rd, 2014) MSMEs should take listing route to raise funds: BSE Micro, Small & Medium Enterprises (MSMEs) in the northern region should get their companies listed at stock exchanges in order to raise funds and gain footprint, a top official of Bombay Stock Exchange (BSE) said. "MSME, especially in Punjab, Chandigarh, Himachal Pradesh and Haryana need to diversify their focus from wealth creation model to value creation model and hence realize the importance of getting listed on the stock market to be able to raise funds easily and compete globally", said Ajay Thakur, Head-SME, BSE, here today. "Listing on stock exchanges is the only way forward for the small players, if they wish to enhance their brand image, gain market presence, expand their roots, maximize returns and introduce corporate governance which is very critical but lacking in the present market structure, especially in this region", he added. (The Economic times, April 30th, 2014) 6
  7. 7. FinMin directs banks to deal firmly with fraud, wilful default As part of the strategy to contain bad debts, the Finance Ministry has directed all public sector banks to accord top priority to cases of fraud and wilful default and take legal action against those responsible. “Cases of fraud have been detected in many banks. There is no difference in fraud and wilful default as both are intentional in nature,” Financial Services Secretary Gurdial Singh Sandhu said. “So banks have been asked to declare such cases as wilful default and appropriate legal action should be initiated by banks,” he said. “Banks have to make all out efforts for NPA recovery and reducing level of NPA and cost of funds. Government would be working very closely with banks,” he added. Non-Performing Assets (NPAs) or bad loans of state-owned banks rose by 28.5 per cent from Rs. 1.83 lakh crore in March, 2013 to Rs. 2.36 lakh crore in September last year. PSU banks accounted for the disproportionate share in this increase in NPAs, while the new private sector banks managed to lower their NPA ratio. (Hindu, April, 28th, 2014) MSME News Update 46% SMEs under credit stress, may default: India Ratings Nearly half of bank loans extended to listed small businesses, having a revenue of under R300 crore, are under stress. “As much as 46.3% of bank loans extended to listed small and medium companies are in significant stress, and at least one out of four such companies may face a challenge in servicing even interest,” India Ratings said. SMEs are the ‘first casualty’ in a downturn, and their revenue growth slipped into the single-digit from FY11, while the same happened for large corporates only from FY13. The median revenue of SMEs is unlikely to improve in the next 12-18 months, it said. Smaller companies have a lower bargaining power than bigger ones, and there is a gap of 10-12% in the pre-tax margins between the two groups. (Financial Express, April 25th, 2014) RBI Suggests finer loan pricing for MSEs The Reserve Bank of India (RBI) on April 15 said banks should take into account the benefits of credit guarantee schemes before pricing loans to the micro and small enterprises (MSE). The scheme, covered by the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGT MSE), allows banks to recoup their losses if a loan goes bad. Because of this guarantee, banks do not have to provide more weight for the loans. A borrower falling in the MSE category can borrow up to 1crore. The guarantee scheme should enable banks to provide cheaper loans to micro and small enterprise borrowers. However, the rate of interest should not be less than the bank’s base rate, RBI said in a notification on its website. The central bank also said while extending credit facilities to MSEs, banks should use a credit scoring model approved by the bank’s board. (MINT, April, 16th, 2014) BSE eyes hi-tech cos for SME segment BSE, which earlier this month crossed the $1-billion market capitalization mark in its dedicated SME segment with about 55 companies, is on track to list another 14-15 companies in the next one month or so. With the segment showing good traction, Asia’s oldest exchange is also putting in place a strategy to attract hi-tech companies to list on the SME platform. Such companies are small in size and have immense potential to make a mark in the technology space, but need growth capital for the next few years. To keep pace with the changing times and connect better with such hi-tech firms, BSE is also considering a trendy name for its SME Platform. (Times of India, April 14th, 2014) 7
  8. 8. U'khand notifies new policy for small units The Uttarakhand government has come out with a new purchase preference policy for micro and small enterprises (MSEs) in the hill state. Under the new policy, the government will give purchase preference to all the state-based local MSEs in case their tenders are within the range of 20 per cent of the L1 (lowest quotation). The measure would benefit the state's khadi and village industry, particularly in the handicraft and handloom sectors. (Business Standard, April 1st, 2014) ******************************* MSME News Update 8
  9. 9. A .com website is a business must- have he Internet has revolutionized the way the world communicates and searches for information and services. This change is evident in various aspects of our daily lives. The Internet is increasingly being used, among other things, to book tickets for travel, run a job search, to chat, e-mail, trade and bank online. Irrespective of its size or type, having a website has become a prerequisite for any successful business. Being the world’s third largest internet population, India will be second to China in terms of people using Internet, as more than 330 million Indians are expected to be connected online by 2015. Your business can ill afford to ignore this medium to create awareness, make business connections and to find customers for its products and services. Additionally, a website opens your doors for business 24 hours a day, 7 days a week and therefore increases the number of opportunities to engage your customers even when your business is closed or no one is available to answer your phone. While having a business website is clearly a business imperative, it is just not enough to have a web presence, your website should provide your business a competitive edge and should work to meet your objectives of achieving greater visibility and find-ability of your business online, enhance credibility and lend a professional image to your business. Prior to building a website, it is therefore critical to register a .com domain name for your business, which has become the standard for doing business online. A .com domain conveys your unique identity and builds brand recognition. Just like putting your business in the proper location in the physical world, might be the single most important thing you do to bring in customers through the door, similarly, selecting and registering a .com domain name might be the single most important thing you can do for your T ArticleArticleArticleArticle 9
  10. 10. business location in the virtual world. Here’s why a .com website is a must have for your business – • Improved Visibility - A .com website can give your business the right advantage in a populated online landscape. It helps business websites rise to the top of search engines. 90% of top brands today use .com today. • Competitive Advantage – A .com website gives your business a competitive edge and helps business websites rise to the top of search engines. • Enhances Reputation–Most, if not all of the biggest corporations around the world use and promote their websites with a .com domain extension. 97% of the top 100 brands have a registered domain in the .com TLD Creates a Positive Perception – A website with a .com domain name extension suggests that you are serious about doing business and lends credibility. Establishes Longevity – .com is one of the oldest extensions and your business website with a .com domain name extension suggests a well-established presence on the Internet. A .com website can help even the playing field between large and small companies. It allows smaller businesses an opportunity to compete with their bigger rivals. By building a .com website that makes for an effective online presence, a small business can play to its strengths. Your website is an important part of your business and by having a .com website you have to treat it as such. ***************** 10
  11. 11. A SNAPSHOT ON SIDBI SCHEMES: BY RAMAN KUMAR* Small Industries Development Bank of India (SIDBI) was established on April 02, 1990 and subsequent to the amendment in SIDBI Act, delinked from IDBI w.e.f March 27,2000. It has an authorized capital of Rs. 1,000 crore and paid up capital of Rs. 450 crore held by 33 financial institutions/public sector banks/insurance companies owned or controlled by Government of India. SIDBI serves as Principal Financial Institution for Promotion, Financing, Development of Industries in Micro, Small and Medium Enterprises sector and Co-ordinates the functions of the institutions engaged in the similar activities. Various Schemes of Financing by SIDBI: Risk Capital Assistance: SIDBI offers special financial assistance to bridge the gap between the two sources of finance viz. bank loans (senior debt) and promoter’s capital. SIDBI offers this assistance in the form of mezzanine/convertible instruments, subordinated debt and equity in deserving cases. This quasi-assistance has higher moratorium on repayment and flexible structuring. Energy Efficiency: SIDBI promotes sustainable finance by providing loans to MSMEs for improving energy efficiency, protecting environment and maintaining social standards under different bilateral/multilateral lines of credit (LoC) at concessional rate of interest. Receivable Finance Scheme: The scheme enables MSMEs selling their components, parts, sub-assemblies, service etc. to Medium & Large scale units to realize their sale proceeds quickly by discounting of bills of exchange/invoices accepted by the Purchaser companies. Service Sector Assistance: SIDBI provides financial assistance to existing and new MSMEs in the Service Sector. Though all types of projects under the sector may be considered for assistance, the Bank will focus on select segments such as Budget Hotels, Small Hospitals, Restaurants/Restaurant Chains, Auto Dealers/Workshops. Transport Services, Franchising, IT and IT enabled Services etc. Secured Business Loan: SIDBI provides business loan to MSMEs secured by immovable property. The objective is to provide fast disbursement of credit to MSMEs for planned or unplanned requirements. The scheme is aimed at dispensation using simplified appraisal and is offered at competitive interest rates International Finance Schemes: SIDBI offers forex services to MSME customers out of the foreign currency resources raised from various multilateral agencies. Eligible MSMEs are provided with the option of availing Foreign Currency Term Loans (FCTL) denominated in USD and EUR which are linked to LIBOR or EURIBOR rate of interest. This allows the MSME customers to borrow in Foreign Currency at competitive rates of interest. Nodal /Implementing Agency : SIDBI acts as a Nodal/Implementing agency for various Govt. of India Schemes viz. CLCSS, TUFS, IDLSSS. SIDBI’s subsidiaries and Associates: These include SIDBI Venture Capital Ltd. (for venture capital), Credit Guarantee Trust for Micro and Small Enterprises(for credit guarantee) SME Rating Agency of India Ltd (for credit rating), India SME Technology Services Ltd (for technology transfer) and India SME Asset Reconstruction Ltd. (for asset reconstruction). Promotional & Development Activities: SIDBI conducts programs viz. Rural Industries Program, Entrepreneurship Development Program, STUPs/SIMAPs, etc. For details, Please visit: and *Raman Kumar, Knowledge Partner, SIDBI is a retired senior Banker with rich experience in credit delivery process. Mr. Kumar is available at FICCI every Tuesday between 11.00 a.m to 1.00 p.m. for advisory services organized by SIDBI free of cost for members. 11 ArticleArticleArticleArticle
  12. 12. FICCI-CMSME SEMINAR ON MSME PROSPERITY APRIL 02, 2014 – FICCI, Delhi The second of the series of five-city seminars on MSME-Prosperity was organised by FICCI-CMSME in New Delhi on April 02, 2014 at FICCI, New Delhi. In the inaugural session Mr. Rajiv Kale, Special Commissioner of Industries, Government of NCT Delhi in his address underlined the need to redefine and elaborate rules and policies governing MSMEs particularly the MSMED Act as these are sketchy at present. The time had come to move from regulatory legislation to a progressive mindset, he added. Mr. Kale proposed that FICCI should take a lead and help in resolving the prevailing issues regarding definition of terms such as supplier and delay and non-payment to MSMEs by large corporates. On ease of doing business, Mr. Kale said that it was very difficult for the prospective entrepreneurs to enter the business. He suggested that FICCI should walk with the prospective entrepreneurs and experience the journey with them and understand what impacts and hinders their progress. On this note, he announced that for filing Entrepreneur Memorandum –I (EM-I), the government has done away with the requirement from MSMEs to get DPCC clearance and factory license from the concerned authority though it would be required for filing EM-II. Mr. Kale also urged that the State Level Advisory Board (SLAB) to expand its scope and focus on a wide range of issues. Mr. Jasbir Singh, Zonal General Manager-NCR, National Small Industries Corporation (NSIC), highlighted the initiatives undertaken by NSIC. One of the most important initiatives was that as a nodal agency, NSIC operates a Single Point Registration Scheme under the Government Purchase Programme, wherein the registered Small Scale Industries (SSI) units get purchase preference in government purchase programme, exemption from payment of Earnest Money Deposit and other such benefits. Mr. Sanjay Bhatia, President, FICCI-CMSME and MD, Hindustan Tin Works Pvt Ltd. said that it is imperative to work towards removing the bottlenecks inhibiting the growth of MSMEs so as to enable the sector to respond effectively to challenges. Hence, providing a favourable ecosystem was a necessary part of enabling growth of MSME sector. This in turn required reliable partners who could provide these enterprises with requisite help in scaling up their business and making them competitive for entry into the global value chain. In his concluding remarks Mr. R. Narayan, Vice-President, FICCI CMSME and Founder & CEO, Power2 SME, said that the role of the MSME sector as a development partner of Government in India faces fundamental challenges, including insufficient infrastructure and inadequate access to power and financing. Furthermore, the sector was largely dominated by informal sector. It was imperative for government-led sector development programmes to give a high EventsEventsEventsEvents 12
  13. 13. priority to the development of MSMEs, and promote entrepreneurship and ownership of enterprises, especially among first generation entrepreneurs. The inaugural session was followed by sessions to create awareness about innovative ways of doing business. The Seminar had a session around the advantage of technology to redefine procurement for the SMEs. The session also touched upon bringing about cost reduction through modern technology and the internet. Power2SME educated the participating entrepreneurs about its innovative business model and how it could enable MSMEs to buy raw materials from quality suppliers, at competitive price points, through an online technology. Since raw material costs is one of the primary expenditures of any manufacturing set –up ranging between 75-80% of their cost, this could have a considerable impact on any MSMEs bottom-line. The session helped the MSMEs to understand how they can use modern technology and internet as the medium to reduce their procurement costs and thus reduce their overall cost of goods sold (COGS) to improve profitability. Insurance is an extremely important component of the MSME’s business. Currently MSMEs do not get quality insurance advice because of the size of their business as well as lack of subject matter experts. The session by ICICI Lombard addressed this issue by apprising the attendees about the cost-effective & useful MSME Insurance services. Mainstream banks and other financial institutions have typically viewed MSMEs as high-risk investments and have shied away from serving these businesses. More MSMEs are suffering from this noticeably widening gap, which is called the MSME financing gap. The need of the hour is for both the lender and the business to get together and arrive at a mutually beneficial stance. An expert from Religare Finvest shared insights on inclusive SME financing proposition. The company also shared a copy of the guidebook on family managed businesses with all the attendees. Since marketing has emerged as one of the core challenges for any MSME, especially so in the internet era, a session from a senior spokesperson from VeriSign was designed especially to apprise the MSMEs about the importance of protection of online reputation and use of a .com (dot com) domain that is gaining special significance to increase brand value and revenue/leads. The participants were also given tips on creating effective brand and establishing their own identity via a .com (dot com) website at very minimal cost. FICCI-CMSME also conducted the third in the series of the 5-city seminar in Chennai on May 02, 2014 in which Mr. Sivagnanam S, Additional Industrial Adviser, MSME -DI, Chennai was the Chief Guest. 13
  14. 14. FICCI CMSME PARTICIPATION IN INTERPACK- 2014 In pursuit to expand global outreach for Micro, Small and Medium Enterprises (MSME), FICCI with support of the Ministry of MSME, GOI organized a 7 member MSME delegation from packaging industry to Dusseldorf (Germany) to participate in the “INTERPACK- 2014 ‘the Leading Trade Fair on Processes and Packaging’” held in Dusseldorf, Germany from May 8-14, 2014. The seven-member delegation consisted of MSMEs engaged in packaging industries viz. Penguin Engineers, Dodia Establishment, Specialty Polyfilms (I) Pvt. Ltd, Safepack Industries Ltd. and Skypack India Pvt Ltd. besides Hindustan Tin Work Limited exhibited in the fair through FICCI. The broad objective of participation was to gain hands on experience of the global best practices followed and interact with experts in packaging industry for knowledge enhancement; showcase state-of-the-art Indian materials, machinery and methods for packaging and processing produced by MSMEs; understand global strategies of production, explore technology up-gradation, joint ventures & marketing for the MSMEs engaged in processes & packaging industry; understand expectations and requirements of global counterparts from Indian companies; promote Indian MSMEs’ export capabilities and forging business alliances among Indian and Global companies and increasing market access for Indian companies engaged in processes and packaging. Mr. Sanjay Bhatia, President, FICCI CMSME & Managing Director, Hindustan Tin Work Pvt Ltd was the leader of the delegation. Interpack 2014 was characterized by an outstanding atmosphere prevailing amongst the approx. 2,700 exhibitors and 175,000 visitors. The signs for this were already apparent at a very early stage of the world’s most important trade fair for the packaging sector and its associated process industries. The exhibitors at Interpack 2014 met with numerous high-ranking visitors from all over the world already from the start of the trade fair. Many companies experienced such a rush that their stands reached their capacity limits several times. Visitor interest and qualification as well as their willingness to invest is said to have been clearly higher than the expected. Participating delegates got the unique opportunity to interface with the buyers and decision makers from the core packaging industry, along with marketing managers, designers, brand directors and communication directors, and an insight of innovative approaches to develop product's packaging. MSMEs from packaging industry has benefitted from this global-level platform in terms of brand-building or creating a new marketing campaign, new ways to improve the environmental impact of their packaging and sourcing new suppliers. EventsEventsEventsEvents 14
  15. 15. During the course of the visit Mr. Bhatia and FICCI CMSME secretariat called on Dr. Gerhard Eschenbaum, Director of International Business Division, Dusseldorf Chamber of Commerce, Germany. During the meeting synergies in creating a linkage between the SME’s of both the sides were discussed. Mr. Bhatia briefed Dr. Eschenbaum on the possible areas for cooperation and stated that there is a lot of scope for synergy between India and German SMEs in the area of cluster & cluster management and technology wherein technology is the main focus for India. He pointed out that there is lot of similarities in the business culture of both the countries and the Indian side is very keen of doing business with Germany. He also explored the possibilities in organizing a SME delegation to Germany again & invited him to visit India as well. Dr. Eschenbaum informed that for SME cooperation between India and Germany can be looked in the sectors like Food Processing, Packaging, Automobile, etc. He also said that from Germany the Dusseldorf Chamber of Commerce would be happy to participate in conferences & seminar organised by FICCI and would like to speak on the topics such as Export Promotion (SME internationalization) and Vocational Training as they have an expertise in these areas. A call on meeting with Dr. (Mrs) Bärbel Naderer, Managing Director, Kunststoffland NRW (Plastic Cluster Management Association) was also organised to explore learning from German SME cluster management association. Dr. Naderer has given a presentation explaining the sustainable economic development by regionally strengthening the plastics value creation chain on management of plastic cluster in kunststoffland NRW. On the cluster policy at a regional and local level she explained that clusters are instruments of successful industrial promotion and securing of employment, precisely at a regional level because the cluster approach is extremely flexible, considers needs and interests of the stakeholders and has interdisciplinary character. Thus cluster approach strengthens permanent structures and therefore as a sustainable impact. It was also learned from Dr. Nadrerer that each region have specific cluster and regional clusters in Germany are supported by the respective regional Government whereas the Federal Government provide support to a very few clusters. ************************************* 15