National Small Industries Corporation Limited (NSIC) is engaged in providing support
for the growth and development of Micro, Small and Medium Enterprises (MSMEs) in the
country. As it plans to expand its reach and coverage of its schemes and programs, we come up with a balanced strategy for NSIC that shall be best-suited under
current market scenario as well as in the years to come.
The document summarizes the services provided by the National Small Industries Corporation (NSIC) to support small and medium enterprises in India. NSIC provides integrated support services including marketing support, technology support, credit support, and other services. It operates through various zonal offices, branch offices, sub-offices, and technical centers to deliver schemes focused on enhancing competitiveness through finance, marketing, and technology assistance.
The National Small Industries Corporation Ltd. (NSIC) was established in 1955 with the objective of promoting, aiding and fostering small and medium enterprises in India. NSIC provides integrated support services including marketing support, credit support, technology support, training and incubation centers, and an e-commerce portal. Marketing support includes helping SMEs participate in exhibitions, consortia and tender marketing, and buyer-seller meets. Credit support includes tie-ups with banks for financing and procuring raw materials. Technology support offers services like product design, testing, and skills training. Training centers incubate entrepreneurs and provide hands-on experience in business operations. The e-commerce portal aims to help SMEs sell products online through a low
The District Industries Centre (DIC) program was started in 1978 to promote small, tiny, cottage and village industries at the district level by providing services and facilities. DICs are responsible for economic investigations, credit facilities, marketing assistance, and more to help small businesses. By 1991, 422 DICs had been established across India assisting over 1.5 lakh business units and generating employment for more than 10.3 lakh people.
The District Industries Centre was established to promote small, village, and cottage industries at the district level. The key objectives are to accelerate industrialization, support rural industries, provide equal economic opportunities across regions, and help entrepreneurs access government schemes by streamlining procedures. DICs act as the main agency for industrial promotion, collecting industry data and statistics, providing entrepreneur guidance and training, and assisting entrepreneurs in obtaining necessary approvals and financing. They aim to promote industries under a single roof. Over 400 DICs have been established, supporting millions of jobs and businesses through credit provision and new unit establishment.
Small Industries Services Institutes (SISIs) were set up in each Indian state to provide consultancy and training to small and prospective entrepreneurs. There are 28 SISIs and 30 branch SISIs located in state capitals and other areas. SISIs assist in utilizing assets, promoting employment-oriented industries, and expanding marketing channels as small industries contribute 40% to total output and 35% to exports. SISIs provide assistance to existing and prospective entrepreneurs, conduct entrepreneurship and management training programs, perform industrial surveys, and assist with issues like pollution control and export promotion.
National small industries corporation (NSIC)DesignedEra
The National Small Industries Corporation Ltd. (NSIC) was established in 1955 to aid and foster the growth of small and medium enterprises in India. It provides various support services to small businesses, including marketing support through exhibitions, buyer-seller meets, and export assistance. It also offers credit support through equipment financing, tie-ups with banks, and financing for procurement of raw materials and marketing activities. Additionally, NSIC provides technology support such as product design, testing facilities, and training as well as operating business incubators to help entrepreneurs start small businesses.
• The 'District Industries Centre' (DICs) programme was started by the central government in 1978 with the objective of providing a focal point for promoting small, tiny, cottage and village industries in a particular area and to make available to them all necessary services and facilities at one place.
• The District Industries Centre is the institution at the District level, which provides all the services and support facilities to the entrepreneur for setting up Micro, Small and Medium Enterprises. This included identification of suitable schemes, preparation of feasibility reports, arrangements for credit facilities, machinery and equipments, provision of raw materials and development of industrial clusters etc.
• Established in 1940
• Vision is to be primary driving force of commercially sustainable industrial development .
• Industrial development Corporations are companies or agencies in India which were established at various times under the policy of Government of India for the promotion of small - scale industries.
• A Central Industrial Finance corporation was set up under the industrial Finance corporations Act, 1948 in order to provide medium and long term credit to industrial undertakings which fall outside normal activities of commercial banks.
• The State governments expressed their desire that similar corporations be set up in states to supplement the work of the Industrial financial corporation. State governments also expressed that the State corporations be established under a special statue in order to make it possible to incorporate in the constitutions necessary provisions in regard to majority control by the government, guaranteed by the State government in regard to the payment principal. In order to implement the views Expressed by the State governments the State Financial Corporation bill was introduced in the Parliament.
• Small Industries Development Bank of India (SIDBI), set up on April 2, 1990 under an Act of Indian Parliament, is the Principal Financial Institution for the Promotion, Financing and Development of the Micro, Small and Medium Enterprise (MSME) sector and for Co-ordination of the functions of the institutions engaged in similar activities.
• It was incorporated initially as a wholly owned subsidiary of Industrial Development Bank of India.
• The purpose is to provide refinance facilities and short term lending to industries. Its headquarters is in Lucknow.
• Former Deputy Managing Director is Shri N.K. Maini. Dr. Kshatrapati Shivaji is the new Chairman and Managing Director of the organisation.
incentives to SSI( small sector industry) and MSMESunny Gandhi
The document summarizes the various support services provided by NSIC to help strengthen the MSME sector in India. NSIC provides integrated support in marketing, technology, finance, and other areas. Key services include marketing assistance through participation in exhibitions and buyer-seller meets; technology support through testing facilities and skill training; credit support through bank tie-ups and financing schemes; and business incubation centers. NSIC also facilitates government procurement opportunities and international cooperation activities to help MSMEs expand globally.
The document summarizes the services provided by the National Small Industries Corporation (NSIC) to support small and medium enterprises in India. NSIC provides integrated support services including marketing support, technology support, credit support, and other services. It operates through various zonal offices, branch offices, sub-offices, and technical centers to deliver schemes focused on enhancing competitiveness through finance, marketing, and technology assistance.
The National Small Industries Corporation Ltd. (NSIC) was established in 1955 with the objective of promoting, aiding and fostering small and medium enterprises in India. NSIC provides integrated support services including marketing support, credit support, technology support, training and incubation centers, and an e-commerce portal. Marketing support includes helping SMEs participate in exhibitions, consortia and tender marketing, and buyer-seller meets. Credit support includes tie-ups with banks for financing and procuring raw materials. Technology support offers services like product design, testing, and skills training. Training centers incubate entrepreneurs and provide hands-on experience in business operations. The e-commerce portal aims to help SMEs sell products online through a low
The District Industries Centre (DIC) program was started in 1978 to promote small, tiny, cottage and village industries at the district level by providing services and facilities. DICs are responsible for economic investigations, credit facilities, marketing assistance, and more to help small businesses. By 1991, 422 DICs had been established across India assisting over 1.5 lakh business units and generating employment for more than 10.3 lakh people.
The District Industries Centre was established to promote small, village, and cottage industries at the district level. The key objectives are to accelerate industrialization, support rural industries, provide equal economic opportunities across regions, and help entrepreneurs access government schemes by streamlining procedures. DICs act as the main agency for industrial promotion, collecting industry data and statistics, providing entrepreneur guidance and training, and assisting entrepreneurs in obtaining necessary approvals and financing. They aim to promote industries under a single roof. Over 400 DICs have been established, supporting millions of jobs and businesses through credit provision and new unit establishment.
Small Industries Services Institutes (SISIs) were set up in each Indian state to provide consultancy and training to small and prospective entrepreneurs. There are 28 SISIs and 30 branch SISIs located in state capitals and other areas. SISIs assist in utilizing assets, promoting employment-oriented industries, and expanding marketing channels as small industries contribute 40% to total output and 35% to exports. SISIs provide assistance to existing and prospective entrepreneurs, conduct entrepreneurship and management training programs, perform industrial surveys, and assist with issues like pollution control and export promotion.
National small industries corporation (NSIC)DesignedEra
The National Small Industries Corporation Ltd. (NSIC) was established in 1955 to aid and foster the growth of small and medium enterprises in India. It provides various support services to small businesses, including marketing support through exhibitions, buyer-seller meets, and export assistance. It also offers credit support through equipment financing, tie-ups with banks, and financing for procurement of raw materials and marketing activities. Additionally, NSIC provides technology support such as product design, testing facilities, and training as well as operating business incubators to help entrepreneurs start small businesses.
• The 'District Industries Centre' (DICs) programme was started by the central government in 1978 with the objective of providing a focal point for promoting small, tiny, cottage and village industries in a particular area and to make available to them all necessary services and facilities at one place.
• The District Industries Centre is the institution at the District level, which provides all the services and support facilities to the entrepreneur for setting up Micro, Small and Medium Enterprises. This included identification of suitable schemes, preparation of feasibility reports, arrangements for credit facilities, machinery and equipments, provision of raw materials and development of industrial clusters etc.
• Established in 1940
• Vision is to be primary driving force of commercially sustainable industrial development .
• Industrial development Corporations are companies or agencies in India which were established at various times under the policy of Government of India for the promotion of small - scale industries.
• A Central Industrial Finance corporation was set up under the industrial Finance corporations Act, 1948 in order to provide medium and long term credit to industrial undertakings which fall outside normal activities of commercial banks.
• The State governments expressed their desire that similar corporations be set up in states to supplement the work of the Industrial financial corporation. State governments also expressed that the State corporations be established under a special statue in order to make it possible to incorporate in the constitutions necessary provisions in regard to majority control by the government, guaranteed by the State government in regard to the payment principal. In order to implement the views Expressed by the State governments the State Financial Corporation bill was introduced in the Parliament.
• Small Industries Development Bank of India (SIDBI), set up on April 2, 1990 under an Act of Indian Parliament, is the Principal Financial Institution for the Promotion, Financing and Development of the Micro, Small and Medium Enterprise (MSME) sector and for Co-ordination of the functions of the institutions engaged in similar activities.
• It was incorporated initially as a wholly owned subsidiary of Industrial Development Bank of India.
• The purpose is to provide refinance facilities and short term lending to industries. Its headquarters is in Lucknow.
• Former Deputy Managing Director is Shri N.K. Maini. Dr. Kshatrapati Shivaji is the new Chairman and Managing Director of the organisation.
incentives to SSI( small sector industry) and MSMESunny Gandhi
The document summarizes the various support services provided by NSIC to help strengthen the MSME sector in India. NSIC provides integrated support in marketing, technology, finance, and other areas. Key services include marketing assistance through participation in exhibitions and buyer-seller meets; technology support through testing facilities and skill training; credit support through bank tie-ups and financing schemes; and business incubation centers. NSIC also facilitates government procurement opportunities and international cooperation activities to help MSMEs expand globally.
The document provides information on various schemes and institutions that provide support services to small and medium enterprises in Karnataka, India. It describes schemes run by the state government like TECSOK, KIADB, KSSIDC, KSIMC, and DIC which offer consultancy, finance, land acquisition, marketing support, and other services. It also outlines the roles of institutions like SISI, NSIC, SIDBI, and KSFC in providing technical, financial, and business support to small businesses.
This document discusses National Bank for Agriculture and Rural Development (NABARD), its vision, mission, objectives, roles and functions. NABARD is the apex organization for agriculture and rural development in India. It provides refinancing support to banks for loans to self-help groups. It also promotes various innovative projects for rural development. The document also discusses Small Industries Development Bank of India (SIDBI), its vision, mission, objectives, products and services in promoting micro, small and medium enterprises in India. Finally, it discusses the role and functions of Technical Consultancy Organizations which provide technical support to entrepreneurs and industrial projects.
SIDO is the nodal development agency for small and medium enterprises in India, established in 1954 under the Ministry of Small Scale Industries. It operates through 30 Small Industries Service Institutes across the country. SIDO provides services like training, technology development, product testing, and consultancy to help small businesses grow. It has developed expertise in several industrial technologies like tool manufacturing, robotics, and electronics. SIDO also offers international consultancy and has helped set up tool rooms in other countries.
institutional support in EntrepreneurshipSahil Kamdar
This document outlines the various support organizations that provide assistance to entrepreneurs in India at different stages of business development. It discusses central and state government institutions as well as non-government organizations that support entrepreneurs. Central government groups outlined include the Small Scale Industries Board, NABARD, SIDO, NSIC, and SIDBI. Key state government supporters mentioned are State Financial Corporations, SSIDCs, and TCOs. Non-governmental assistance comes from ICSI and LUB. The framework for starting a business in India involves general information gathering, project reports, financial assistance, and marketing support from these various organizations.
This document summarizes information about small scale industries in India. It defines small scale industries as those with fixed asset investments not exceeding Rs. 1 crore. While not compulsory, registration makes industries eligible for government assistance through loans, hire-purchase schemes, and special promotion programs. It then lists various organizations that promote small scale industries and discusses their role in employment, resource mobilization, exports, and supporting large industries. The document outlines challenges small industries face like skilled labor shortages and marketing issues. It concludes by summarizing the role of State Finance Corporations in providing long-term finance and working capital to small businesses.
This document discusses opportunities for rural entrepreneurship in India through MSMEs and startups. It outlines how the MSME sector provides employment and plays a crucial role in industrialization. It describes government schemes like Startup India that promote entrepreneurship through simplifying processes, providing finance support and networking opportunities. Institutions like KVIC assist in establishing khadi, village industries and handicrafts to generate self-employment and develop rural areas. Business incubators also help new companies by offering office space and training.
Small Industries Development Bank of India SIDBI Milan Dhaduk
SIDBI was established in 1989 to promote and finance small scale industries. It provides direct financing, refinancing, bill financing, and international financing. It also offers promotional services like entrepreneurship training. SIDBI operates schemes to support technology upgrades, provide venture capital and equity funding, and offers seed money for new entrepreneurs through DICs. It aims to empower small and medium enterprises through financial and developmental assistance.
This document discusses small scale industries (SSIs) in India. It begins by defining SSIs and listing their key characteristics, which include small capital investment, family ownership, poor management, and high risk of closure. It then outlines the need for SSIs in terms of employment creation, income generation, and catering to individual tastes. The objectives, scope and industries reserved for the small scale sector are provided. The role of SSIs in economic development through job creation and dispersal of industries is examined. Steps to start a SSI and the various government policies to promote SSIs from 1948 to 2005 are summarized.
Institutional support is provided to small and medium enterprises at the central, state, and non-government levels. At the central level, key support institutes include the Small Industries Development Board, National Bank for Agriculture and Rural Development, Small Industries Development Organisation, National Small Industries Corporation, and Small Industries Development Bank of India. At the state level, important support bodies are State Financial Corporations, State Small Industries Development Corporations, and Small Industries Services Institutes. These various institutes provide financial assistance, training, technology and infrastructure support, marketing assistance, and other services to promote the growth of small businesses.
The Directorate of Industries (DOI) is responsible for implementing industrial development policies and programs in the state of Uttarakhand. The DOI aims to create a business-friendly environment to promote rapid, sustainable industrial growth. It oversees district-level industrial centers and their implementation of schemes. The DOI registers small-scale units, provides financial assistance, and develops industrial infrastructure. The Small Industries Development Organization (SIDO) was created to develop various small industries. It provides technical support, training, and helps small businesses link with larger companies. SIDO advises the government and works on coordination, industrial development, and extension functions.
• The 'District Industries Centre' (DICs) programme was started by the central government in 1978 with the objective of providing a focal point for promoting small, tiny, cottage and village industries in a particular area and to make available to them all necessary services and facilities at one place.
• The District Industries Centre is the institution at the District level, which provides all the services and support facilities to the entrepreneur for setting up Micro, Small and Medium Enterprises. This included identification of suitable schemes, preparation of feasibility reports, arrangements for credit facilities, machinery and equipments, provision of raw materials and development of industrial clusters etc.
• Established in 1940
• Vision is to be primary driving force of commercially sustainable industrial development .
• Industrial development Corporations are companies or agencies in India which were established at various times under the policy of Government of India for the promotion of small - scale industries.
• A Central Industrial Finance corporation was set up under the industrial Finance corporations Act, 1948 in order to provide medium and long term credit to industrial undertakings which fall outside normal activities of commercial banks.
• The State governments expressed their desire that similar corporations be set up in states to supplement the work of the Industrial financial corporation. State governments also expressed that the State corporations be established under a special statue in order to make it possible to incorporate in the constitutions necessary provisions in regard to majority control by the government, guaranteed by the State government in regard to the payment principal. In order to implement the views Expressed by the State governments the State Financial Corporation bill was introduced in the Parliament.
• Small Industries Development Bank of India (SIDBI), set up on April 2, 1990 under an Act of Indian Parliament, is the Principal Financial Institution for the Promotion, Financing and Development of the Micro, Small and Medium Enterprise (MSME) sector and for Co-ordination of the functions of the institutions engaged in similar activities.
• It was incorporated initially as a wholly owned subsidiary of Industrial Development Bank of India.
• The purpose is to provide refinance facilities and short term lending to industries. Its headquarters is in Lucknow.
• Former Deputy Managing Director is Shri N.K. Maini. Dr. Kshatrapati Shivaji is the new Chairman and Managing Director of the organisation.
The document discusses various schemes and organizations that provide support to small and medium enterprises in India. It describes 12 schemes offered by the Tamil Nadu Industrial Investment Corporation (TIIC) that provide financial assistance for new and existing industrial projects. It also summarizes the functions of organizations like the Small Industries Development Corporation (SIDCO), District Industries Centre (DIC), Small Industries Service Institute (SISI), National Small Industries Corporation (NSIC), Small Industries Promotion and Investment Corporation of Tamil Nadu (SIPCOT), and Industrial Investment Centre of India (IIC) in promoting small and medium enterprises. Finally, it briefly outlines entrepreneurship development programs conducted by major commercial banks in India.
Institutional support to small and medium enterprisesPranav Kumar Ojha
Institutional support is necessary at three stages of small and medium enterprise development: inception, day-to-day management, and expansion. This support comes from central and state government institutions as well as non-government organizations. Central government institutions that provide support include the Small Scale Industries Board, National Bank for Agriculture and Rural Development, Small Industries Development Organisation, and National Small Industries Corporation. At the state level, support is provided by organizations like State Financial Corporations, State Small Industries Development Corporations, and Technical Consultancy Organisations. Non-government support includes the Indian Council of Small Industries and Laghu Udyog Bharti.
The document outlines various government schemes in India to promote entrepreneurship including Startup India, Make in India, Atal Innovation Mission, STEP, JAM, BIRAC, Stand-Up India, TREAD, PMKVY, and the National Skill Development Mission. The schemes provide funding, loans, training, incubator support, and skill development initiatives to foster innovation, entrepreneurship, and job growth, especially for women, scheduled castes, tribes, and other underprivileged groups.
Institutional support to start up and incentives for ssiDr. Parul Chotalia
The document discusses the role and importance of small scale industries (SSI) in India's economic development. It outlines how SSIs have been classified in different ways over time, including by investment size, traditional vs modern industries, and for policy vs accounting purposes. The key organizations that support SSIs are also summarized, such as the Small Industries Development Bank of India (SIDBI), Technical Consultancy Organizations (TCOs), and State Industrial Development Corporations (SIDCs). Industrial estates, export promotion councils, and export consortia are also mentioned as important mechanisms for aiding small businesses.
Role of specilized institution in development of ssiShaham Khan
The document discusses the role of specialized institutions in the development of small scale industries (SSI) in India. It outlines various types of specialized institutions at the all India, state, and fund-based levels that provide support to SSIs. These include institutions like the Small Industries Development Bank of India (SIDBI), State Financial Corporations (SFCs), District Industries Centers (DICs), and the Khadi and Village Industries Commission (KVIC) which work to promote and develop small businesses through various initiatives like loans, training programs, and marketing assistance.
Profile of SIDO, SISI, NISC; Entrepreneurship and msmeIndraja Modem
entrepreneurship and msme, International financial management; Profile of SISI, Profile SIDO, profile of NISC; SIDO- Objectives, mission, vision; SISI- Objectives and functions; NISC- Objectives and functions
Institutions supporting small and medium enterprises, sanjeevSanjeev Patel
This document outlines the various institutions that support small and medium enterprises in India at the central and state level. At the central level, key institutions include the Small Scale Industries Board, Khadi and Village Industries Commission, Small Industries Development Organization, National Small Industries Corporation, and National Science and Technology Entrepreneurship Development Board. At the state level, supporting institutions include Directorates of Industries, District Industries Centers, State Financial Corporations, State Industrial Development Corporations, and State Small Industrial Development Corporations.
The Prospects and Problems of MSMEs sector in India an Analytical studyinventionjournals
International Journal of Business and Management Invention (IJBMI) is an international journal intended for professionals and researchers in all fields of Business and Management. IJBMI publishes research articles and reviews within the whole field Business and Management, new teaching methods, assessment, validation and the impact of new technologies and it will continue to provide information on the latest trends and developments in this ever-expanding subject. The publications of papers are selected through double peer reviewed to ensure originality, relevance, and readability. The articles published in our journal can be accessed online.
1. The document discusses the Micro, Small and Medium Enterprises (MSME) sector in India, including its definition, role, performance, government policies, and problems.
2. It notes that MSMEs contribute significantly to India's GDP, exports, manufacturing output, and employment. However, they also face problems like access to finance, technology, and markets.
3. The government has implemented various policies and programs to promote the MSME sector through improved access to credit, infrastructure, and skills training. However, challenges remain around access to new technologies and markets for MSMEs.
The document provides information on various schemes and institutions that provide support services to small and medium enterprises in Karnataka, India. It describes schemes run by the state government like TECSOK, KIADB, KSSIDC, KSIMC, and DIC which offer consultancy, finance, land acquisition, marketing support, and other services. It also outlines the roles of institutions like SISI, NSIC, SIDBI, and KSFC in providing technical, financial, and business support to small businesses.
This document discusses National Bank for Agriculture and Rural Development (NABARD), its vision, mission, objectives, roles and functions. NABARD is the apex organization for agriculture and rural development in India. It provides refinancing support to banks for loans to self-help groups. It also promotes various innovative projects for rural development. The document also discusses Small Industries Development Bank of India (SIDBI), its vision, mission, objectives, products and services in promoting micro, small and medium enterprises in India. Finally, it discusses the role and functions of Technical Consultancy Organizations which provide technical support to entrepreneurs and industrial projects.
SIDO is the nodal development agency for small and medium enterprises in India, established in 1954 under the Ministry of Small Scale Industries. It operates through 30 Small Industries Service Institutes across the country. SIDO provides services like training, technology development, product testing, and consultancy to help small businesses grow. It has developed expertise in several industrial technologies like tool manufacturing, robotics, and electronics. SIDO also offers international consultancy and has helped set up tool rooms in other countries.
institutional support in EntrepreneurshipSahil Kamdar
This document outlines the various support organizations that provide assistance to entrepreneurs in India at different stages of business development. It discusses central and state government institutions as well as non-government organizations that support entrepreneurs. Central government groups outlined include the Small Scale Industries Board, NABARD, SIDO, NSIC, and SIDBI. Key state government supporters mentioned are State Financial Corporations, SSIDCs, and TCOs. Non-governmental assistance comes from ICSI and LUB. The framework for starting a business in India involves general information gathering, project reports, financial assistance, and marketing support from these various organizations.
This document summarizes information about small scale industries in India. It defines small scale industries as those with fixed asset investments not exceeding Rs. 1 crore. While not compulsory, registration makes industries eligible for government assistance through loans, hire-purchase schemes, and special promotion programs. It then lists various organizations that promote small scale industries and discusses their role in employment, resource mobilization, exports, and supporting large industries. The document outlines challenges small industries face like skilled labor shortages and marketing issues. It concludes by summarizing the role of State Finance Corporations in providing long-term finance and working capital to small businesses.
This document discusses opportunities for rural entrepreneurship in India through MSMEs and startups. It outlines how the MSME sector provides employment and plays a crucial role in industrialization. It describes government schemes like Startup India that promote entrepreneurship through simplifying processes, providing finance support and networking opportunities. Institutions like KVIC assist in establishing khadi, village industries and handicrafts to generate self-employment and develop rural areas. Business incubators also help new companies by offering office space and training.
Small Industries Development Bank of India SIDBI Milan Dhaduk
SIDBI was established in 1989 to promote and finance small scale industries. It provides direct financing, refinancing, bill financing, and international financing. It also offers promotional services like entrepreneurship training. SIDBI operates schemes to support technology upgrades, provide venture capital and equity funding, and offers seed money for new entrepreneurs through DICs. It aims to empower small and medium enterprises through financial and developmental assistance.
This document discusses small scale industries (SSIs) in India. It begins by defining SSIs and listing their key characteristics, which include small capital investment, family ownership, poor management, and high risk of closure. It then outlines the need for SSIs in terms of employment creation, income generation, and catering to individual tastes. The objectives, scope and industries reserved for the small scale sector are provided. The role of SSIs in economic development through job creation and dispersal of industries is examined. Steps to start a SSI and the various government policies to promote SSIs from 1948 to 2005 are summarized.
Institutional support is provided to small and medium enterprises at the central, state, and non-government levels. At the central level, key support institutes include the Small Industries Development Board, National Bank for Agriculture and Rural Development, Small Industries Development Organisation, National Small Industries Corporation, and Small Industries Development Bank of India. At the state level, important support bodies are State Financial Corporations, State Small Industries Development Corporations, and Small Industries Services Institutes. These various institutes provide financial assistance, training, technology and infrastructure support, marketing assistance, and other services to promote the growth of small businesses.
The Directorate of Industries (DOI) is responsible for implementing industrial development policies and programs in the state of Uttarakhand. The DOI aims to create a business-friendly environment to promote rapid, sustainable industrial growth. It oversees district-level industrial centers and their implementation of schemes. The DOI registers small-scale units, provides financial assistance, and develops industrial infrastructure. The Small Industries Development Organization (SIDO) was created to develop various small industries. It provides technical support, training, and helps small businesses link with larger companies. SIDO advises the government and works on coordination, industrial development, and extension functions.
• The 'District Industries Centre' (DICs) programme was started by the central government in 1978 with the objective of providing a focal point for promoting small, tiny, cottage and village industries in a particular area and to make available to them all necessary services and facilities at one place.
• The District Industries Centre is the institution at the District level, which provides all the services and support facilities to the entrepreneur for setting up Micro, Small and Medium Enterprises. This included identification of suitable schemes, preparation of feasibility reports, arrangements for credit facilities, machinery and equipments, provision of raw materials and development of industrial clusters etc.
• Established in 1940
• Vision is to be primary driving force of commercially sustainable industrial development .
• Industrial development Corporations are companies or agencies in India which were established at various times under the policy of Government of India for the promotion of small - scale industries.
• A Central Industrial Finance corporation was set up under the industrial Finance corporations Act, 1948 in order to provide medium and long term credit to industrial undertakings which fall outside normal activities of commercial banks.
• The State governments expressed their desire that similar corporations be set up in states to supplement the work of the Industrial financial corporation. State governments also expressed that the State corporations be established under a special statue in order to make it possible to incorporate in the constitutions necessary provisions in regard to majority control by the government, guaranteed by the State government in regard to the payment principal. In order to implement the views Expressed by the State governments the State Financial Corporation bill was introduced in the Parliament.
• Small Industries Development Bank of India (SIDBI), set up on April 2, 1990 under an Act of Indian Parliament, is the Principal Financial Institution for the Promotion, Financing and Development of the Micro, Small and Medium Enterprise (MSME) sector and for Co-ordination of the functions of the institutions engaged in similar activities.
• It was incorporated initially as a wholly owned subsidiary of Industrial Development Bank of India.
• The purpose is to provide refinance facilities and short term lending to industries. Its headquarters is in Lucknow.
• Former Deputy Managing Director is Shri N.K. Maini. Dr. Kshatrapati Shivaji is the new Chairman and Managing Director of the organisation.
The document discusses various schemes and organizations that provide support to small and medium enterprises in India. It describes 12 schemes offered by the Tamil Nadu Industrial Investment Corporation (TIIC) that provide financial assistance for new and existing industrial projects. It also summarizes the functions of organizations like the Small Industries Development Corporation (SIDCO), District Industries Centre (DIC), Small Industries Service Institute (SISI), National Small Industries Corporation (NSIC), Small Industries Promotion and Investment Corporation of Tamil Nadu (SIPCOT), and Industrial Investment Centre of India (IIC) in promoting small and medium enterprises. Finally, it briefly outlines entrepreneurship development programs conducted by major commercial banks in India.
Institutional support to small and medium enterprisesPranav Kumar Ojha
Institutional support is necessary at three stages of small and medium enterprise development: inception, day-to-day management, and expansion. This support comes from central and state government institutions as well as non-government organizations. Central government institutions that provide support include the Small Scale Industries Board, National Bank for Agriculture and Rural Development, Small Industries Development Organisation, and National Small Industries Corporation. At the state level, support is provided by organizations like State Financial Corporations, State Small Industries Development Corporations, and Technical Consultancy Organisations. Non-government support includes the Indian Council of Small Industries and Laghu Udyog Bharti.
The document outlines various government schemes in India to promote entrepreneurship including Startup India, Make in India, Atal Innovation Mission, STEP, JAM, BIRAC, Stand-Up India, TREAD, PMKVY, and the National Skill Development Mission. The schemes provide funding, loans, training, incubator support, and skill development initiatives to foster innovation, entrepreneurship, and job growth, especially for women, scheduled castes, tribes, and other underprivileged groups.
Institutional support to start up and incentives for ssiDr. Parul Chotalia
The document discusses the role and importance of small scale industries (SSI) in India's economic development. It outlines how SSIs have been classified in different ways over time, including by investment size, traditional vs modern industries, and for policy vs accounting purposes. The key organizations that support SSIs are also summarized, such as the Small Industries Development Bank of India (SIDBI), Technical Consultancy Organizations (TCOs), and State Industrial Development Corporations (SIDCs). Industrial estates, export promotion councils, and export consortia are also mentioned as important mechanisms for aiding small businesses.
Role of specilized institution in development of ssiShaham Khan
The document discusses the role of specialized institutions in the development of small scale industries (SSI) in India. It outlines various types of specialized institutions at the all India, state, and fund-based levels that provide support to SSIs. These include institutions like the Small Industries Development Bank of India (SIDBI), State Financial Corporations (SFCs), District Industries Centers (DICs), and the Khadi and Village Industries Commission (KVIC) which work to promote and develop small businesses through various initiatives like loans, training programs, and marketing assistance.
Profile of SIDO, SISI, NISC; Entrepreneurship and msmeIndraja Modem
entrepreneurship and msme, International financial management; Profile of SISI, Profile SIDO, profile of NISC; SIDO- Objectives, mission, vision; SISI- Objectives and functions; NISC- Objectives and functions
Institutions supporting small and medium enterprises, sanjeevSanjeev Patel
This document outlines the various institutions that support small and medium enterprises in India at the central and state level. At the central level, key institutions include the Small Scale Industries Board, Khadi and Village Industries Commission, Small Industries Development Organization, National Small Industries Corporation, and National Science and Technology Entrepreneurship Development Board. At the state level, supporting institutions include Directorates of Industries, District Industries Centers, State Financial Corporations, State Industrial Development Corporations, and State Small Industrial Development Corporations.
The Prospects and Problems of MSMEs sector in India an Analytical studyinventionjournals
International Journal of Business and Management Invention (IJBMI) is an international journal intended for professionals and researchers in all fields of Business and Management. IJBMI publishes research articles and reviews within the whole field Business and Management, new teaching methods, assessment, validation and the impact of new technologies and it will continue to provide information on the latest trends and developments in this ever-expanding subject. The publications of papers are selected through double peer reviewed to ensure originality, relevance, and readability. The articles published in our journal can be accessed online.
1. The document discusses the Micro, Small and Medium Enterprises (MSME) sector in India, including its definition, role, performance, government policies, and problems.
2. It notes that MSMEs contribute significantly to India's GDP, exports, manufacturing output, and employment. However, they also face problems like access to finance, technology, and markets.
3. The government has implemented various policies and programs to promote the MSME sector through improved access to credit, infrastructure, and skills training. However, challenges remain around access to new technologies and markets for MSMEs.
National Rubber Engineers is a small scale rubber products manufacturer established in 1976 in Maharashtra, India. It began with a sole proprietor taking out a loan to purchase land and machinery from the Maharashtra Industrial Development Corporation. Currently, it employs 20 people and manufactures 27 different rubber products using traditional and modern machinery. It adheres to ISO 9001:2000 standards for quality control and assurance.
September 2015 Edition of BEACON, A Monthly Newsletter by SIMCON.
Inside this issue:
About Us
Our Team
INDUSTRY ANALYSIS : Textile Industry
COMPANY ANALYSIS : Arvind Mills
BRAND ANALYSIS : MTV
Concept of the month: Market Share Paradox
Event Report : Consulting Induction Program
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1. The Indian textile industry contributes significantly to India's GDP, exports, and employment. Garment exports are a major segment.
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3. Hedging involves identifying currency risks, evaluating hedging tools like forwards contracts, and implementing hedges to stabilize cash flows and reduce earnings variability for exporters.
This document provides an overview of the Indian textile industry and discusses currency fluctuations and associated risks for garment exporters. It covers the following key points:
1. The Indian textile industry is one of the largest in the world and contributes significantly to India's GDP, exports, employment. It faces risks from currency fluctuations between the Indian rupee and currencies like the US dollar and Euro.
2. Currency fluctuations can impact the costs, revenues and profits of companies involved in international business. As the US and Europe are major export markets, Indian textile exporters are affected by changes in the rupee's value.
3. Risk management strategies are important for textile exporters to mitigate uncertainties from
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The document discusses the turnaround strategy for Alok Industries, a vulnerable textile organization in India. It provides an overview of Alok's history and products. In recent years, Alok faced performance decline due to external factors like changing economic conditions and internal issues like management failure. To recover, Alok implemented various generic turnaround strategies like cost reduction, asset redeployment, and selective changes to product and market strategy. It also analyzed Alok's lifecycle and the strategies used during different stages, from growth to maturity and transformation, to achieve turnaround. These included developing new products, improving production efficiency, and adapting to increased demand during the COVID-19 pandemic.
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This document discusses Micro, Small and Medium Enterprises (MSMEs) in India. It covers the role and importance of MSMEs, defining their size based on investment and turnover, and some of the key problems they face. MSMEs are the largest employers in India after agriculture, and contribute significantly to GDP, exports, and balanced regional development. However, they struggle with issues like lack of access to adequate financing, raw materials, managerial skills, effective marketing, and global competition. Entrepreneurship and innovation are important for the growth and success of MSMEs.
ABSTRACT Marketing Strategies of Readymade Garments Industry of India.pdfAnn Wera
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MSMEs in India, which has to its credit of providing the highest number of employment opportunities, face a severe problem in securing finance from the banks.
The document provides an overview of micro, small and medium enterprises (MSMEs) in India. It discusses the emergence and growth of MSMEs pre- and post-independence. It outlines the scope and importance of MSMEs, their contribution to the Indian economy, key government policies and institutions that promote MSMEs, factors affecting MSMEs, and challenges faced by MSMEs in India such as access to adequate and timely financing. The document also briefly touches on commercial bank services that promote MSMEs and the advantages of establishing MSMEs.
Micro, small and medium enterprises (MSMEs) are an important part of the Indian economy, contributing significantly to manufacturing output, exports, and employment. The MSMED Act of 2006 defines MSMEs based on investment levels in plant/machinery for manufacturing or services equipment. MSMEs play a key role in the Indian economy by generating large-scale employment, especially in rural areas, sustaining economic growth and increasing exports, and promoting inclusive growth by providing livelihoods. However, MSMEs face challenges related to access to finance, technology, skills, and markets. The government has introduced various initiatives to improve the competitiveness, access to credit, and overall business environment for MSMEs in India.
It could well be considered the beginning of the Golden Era for the Indian textile industry. The current year and beyond promises to be an excellent period of growth for the industry. In our recent interaction with industry leaders, a sense of optimism and confidence was quite evident. The Government is expected to announce its new textile policy with an ambitious target of achieving 20 per cent share of the global textile trade and helping the domestic industry attain a size of $650 billion by 2024-25 by focussing on investments, skill development and labour law reforms. The policy blueprint, termed the ‘Vision, Strategy and Action Plan for the textiles and apparel industry, lays thrust upon diversification of exports through new products and markets along with increasing value addition and promoting innovation and RandD activities. Dr. Rohit Agarwal "Golden Era of Indian Textile Industry" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-3 | Issue-2 , February 2019, URL: https://www.ijtsrd.com/papers/ijtsrd21374.pdf
Paper URL: https://www.ijtsrd.com/other-scientific-research-area/other/21374/golden-era-of-indian-textile-industry/dr-rohit-agarwal
This document is a term paper submitted by Rajnish Singh to his professor Chandrashekhar Dogra on the topic of economic problems faced by Fast Moving Consumer Goods (FMCG) companies in India. It provides an acknowledgment and table of contents. It then discusses the history and current situation of the FMCG sector in India. It identifies several problems faced by FMCG companies, such as a low inflation environment requiring a focus on volume growth over price increases, rising consumer promotions threatening brand value, and declining rural demand impacting overall sales.
The document provides an overview of the retail industry in India. Some key points:
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- Several major retail companies like Tata, RPG Group, and Pantaloon Retail are expanding rapidly across India.
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1. INDIAN INSTITUTE OF TECHNOLOGY
ROORKEE
Team Name: AAA SOLUTIONS
Team Members: AKHIL PRABHAKAR
akhilues@iitr.ernet.in
akhilp2011@gmail.com
Contact Number: 0-9760098216
2. CONTENTS
EXECUTIVE SUMMARY
PART I: Kanpur Leather Cluster
Cluster Profile
Problems Associated with cluster
Rapid Market Assessment
Operating plan for NSIC
Financial Aspects
ANNEXURES & DIAGRAMS
PART II: Ahmedabad Dyes and Chemical Cluster
Cluster Profile
Current Pressure Points/Problems with the Market
Rapid Market Assessment
Operating Plan for NSIC
Financial Planning
ANNEXURES & DIAGRAMS
3. PART III: Rural Agriculture: Contract Farming
PART IV: Support Businesses for Extraction and Exploration of Shale Gas
Introduction
Role of NSIC
CONCLUDING REMARKS
4. EXECUTIVE SUMMARY
National Small Industries Corporation Limited (NSIC) is engaged in providing support
for the growth and development of Micro, Small and Medium Enterprises (MSMEs) in the
country. As it plans to expand its reach and coverage of its schemes and programs, AAA
Solutions comes up with a balanced strategy for NSIC that shall be best-suited under
current market scenario as well as in the years to come.
As NSIC aims at profit making and focuses on self sustained growth, it is important for
NSIC to identify certain sectors which will be a huge market for its Business Development
Services. NSIC, thus, needs to develop the best distribution systems in these particular
sectors apart from its current priority sectors.
In this report, we highlight such sectors and suggest proper distribution systems in these
respective sectors. This approach requires proper identification of various clusters of
MSME’s in India. We suggest following two such untapped clusters in India which have
huge potential:
1. Kanpur: A prominent cluster of leather artisans and MSME’s.
2. Ahmedabad: A vital cluster of SME’s of Dye’s, Chemicals sector.
The global trade of leather & leather products (including non – leather footwear) was 97
billion US dollar in 2004 up from meagre 4 billion US dollar in 1971. About 60-65 per
cent of total Indian production of leather and leather products and substantial portion of
exports (Rs 9004 crore in 2001) is accounted for by artisans, microenterprises and small-
scale industries. There are about 1600 units engaged in production of leather & leather
products in Kanpur clustre and total volume of business of this cluster is about Rs 2900
crore (17 percent of total exports from the country). As rising costs, tough competition,
inadequate capacity, supply of raw material, meagre flow of investment, poor
infrastructure & supply logistics, compliance to environmental norms and dearth of
manpower are the major problems of this clustre, this provides NSIC a huge untapped
market which needs to be looked upon. Also, NSIC is already aware of various aspects
5. of leather industry because of its operations in Chennai leather cluster and hence is
the best bet.
The condition for Dyes and Chemicals industry is also similar to leather industry apart
from some small structural differences. This industry, which mainly comprises of MSMEs,
is believed to grow at unprecedented rates in coming years. But, the dyestuff industry has
been facing difficulties in recent times. Low profitability and demand growth combined
with increasing importance for environmental protection have resulted in the exit of many
small producers. Currently, there is an over capacity situation in the domestic market that
has forced the industry to look at exports for growth.
The distribution of smaller units of this industry is skewed towards the western region with
nearly 80% of the total capacity is in the state of Gujarat. As of now, more than 1200
Chemical and 1000 dyestuff units exist in Ahemdabad clustre itself, of which, most
produce same products. This reduces the scope of product differentiation and increases the
vitality of presence of organization like NSIC. Also absence of good business
development services provides a huge potential for NSIC which can be tapped profitably
if utilized on a larger scale.
Till now, we basically suggested the sectors/ industry which will generate huge economic
impact on a certain section of people and huge revenues for NSIC too. Apart from the
economic aspect, we believe, that an organization like NSIC has a huge social
responsibility too. Thus, we would like to give a human touch to the profitable business
strategy of NSIC for coming years.
As the rural market is being considered as a major economic powerhouse for India in
coming years, we consider rural business operation for NSIC as a sustainable as well as
profitable business proposition. Though, rural market comprises of huge potential for
various sectors like Banking, FMCG products, Insurance, Agro-products and Education,
etc. but we would like NSIC to focus only on Rural Agriculture.
The agriculture sector over the past few years has seen effective usage of Contract
Farming as tool to cushion the decline in agricultural output, declining productivity of
soil, etc to ensure food security of about 1.2 Billion people of India. As more and more
social entrepreneurs, SME’s are looking to venture in Agro-markets with Contract Farming
6. as tool, we firmly believe that mentoring such enterprises will not only have highly
positive social impact but will also be pretty sustainable. Huge knowledge, infrastructure
and credit deficit for these enterprises calls for an organization like NSIC to help them
increase profitability and also sustain itself. Thus, we would strategize functionaries of
NSIC to effectively use the combination of existing governmental ground works with
various aggressive initiatives of pool of entrepreneurs to sustain itself.
The two sectors we discussed above namely, Leather, Dyes and Chemicals will require 5-8
years for profitable operation of NSIC whereas Contract Farming is the sector which has
been in business for only a marginal period and hence will keep the company in profitable
condition for a very long span.
Also, there is another pretty unexplored sector which is in infancy and will be very crucial
to the country in future; namely:
Drilling and other support businesses for exploration and extraction of conventional
oil & gas and the shale gas.
To fulfill the energy demands of energy starved fast growing nation like India, the
government has been focusing on unconventional gas (shale gas) which is believed to be
present in vast amounts in India. The Oil and Gas ministry has also decided to complete
policy framework and launch the bidding process for various block by this year’s end.
Considering these developments, it is important to recognize the importance of
indigenous SME’s which will be associated with the big players in shale gas exploration
and extraction.
Though, Indian Industry is very much untouched with this sector. This is the because of the
complication of these jobs and the high end technological research associated with this
field. Thus, if proper strategy is formulated and bold decisions are made by NSIC then
India could witness another duplication of Telecom/IT miracle in this sector in coming 20-
25 years.
Thus, the strategy suggested by AAA SOLUTIONS will be best suited for NSIC and
will also contribute in a balanced growth of the country.
7. BUSINESS STRATEGY
PART I: KANPUR LEATHER CLUSTER
A. Cluster Profile (Why this Cluster?)
CLUSTER SPECIFICATIONS
Kanpur leather cluster in this report includes units situated in Kanpur Urban and Unnao
districts. The erstwhile Kanpur district has now been bifurcated into Kanpur urban and
Kanpur rural districts and leather & leather product units are mostly situated in Kanpur
(urban) district. The major concentrations of units are at Jajmau (dist: Kanpur urban),
Unnao, Banthar (dist: Unnao) and Kanpur city. The cluster has diversified range of
products but mainly famous for processing of buffalo hides, making safety shoes, sandals
& chappals and Saddlery & Harness.
Among the major leather clusters in India, Kanpur occupies a prominent place as it has a
diversified product range and uniqueness also. It is famous of processing of buffalo
leather and only centre in India manufacturing saddlery items which are by and large
exported only. The product range includes semi finished & finished leather, safety &
fashion footwear, saddlery & harness items, open footwear i.e. sandals & chappals and
leather goods. Recently a few units have come up making leather garments and gloves.
In all there are about 1600 units in the cluster having annual turnover of Rs 2900cr and
exports of Rs 2038 cr. The exports from this cluster constitute 17 percent of total exports
from the country and during last 6 years it has been doubled. The export of saddlery items
is Rs 366 cr constituting 95 % of total exports of saddlery items from India. In all more
than 300 units are doing exports from the cluster.
The sub sectors comprising units making various products operate on different value
chains. Even in same sub sector, units on account of scale and stages of processing are
having different value chains. The major sub sectors are:
8. i Tanning,
ii Footwear & components (including non- leather footwear)
iii Saddlery.
The sub sectors comprising units making leather goods, garments and gloves have
marginal presence. In spite of varying nature of problems and opportunities being
faced by these sub sectors there are a few issues which cut across all sub sectors as a
few operations like clicking & stitching etc. are common to making of various
products.
In tanning sub sector there are about 300 units of varying sizes and operating on different
value chains with an annual turnover of about Rs 1500 cr out of which products valuing Rs
750 cr are being exported.
There are five categories of tanning units depending upon processing capacity and stages
involved in process of value addition. There are 100 small integrated units having
processing capacity between 30-150 hides per day. 50 units are only processing raw hides
to wet blue stage which forms an intermediate stage for leather making.50 units are only
processing wet blue to finishes leather. There are also 70 small units doing job work
mainly in area of finishing operations.
In footwear & components sub sector there are about 1100 units with an annual business
of Rs 930 cr and exports earnings to the tune of Rs 805cr. There are 50 organised units
making safety and fashion footwear and their average capacity is about 1000 pairs per day.
About 90 percent of production of these units is exported and 10 percent goes for domestic
market. There are also 50 such units making shoe components but its major share of
production is shoe-uppers an intermediate product for shoe making and largely being
exported. There are about 1000 household units situated in Kanpur city making chappal &
sandals. On account of steep rise in price of leather majority of them are making
products using synthetic material. These units on an average are making 50 pairs per
day and work for 5 months in a year and cater to low end markets fetching a price of
Rs 50 per pair. The annual turnover of these household units is about Rs 38 cr.
There are 25 organized and 175 household units in Kanpur city making saddlery items
and annual production is Rs 366 cr and entire product is being exported.
9. Also, in recent times about 30 units have come up making leather good like wallets,
handbags and annual production is Rs120 cr out of which Rs 107 cr are being exported.
Most of the units have been set up by existing manufacturers of finished leather and other
products.
A summarized picture of value distribution for major cluster products:
After a brief knowledge about the cluster itself let us discuss the reasons for this
cluster being a huge potential.
PROBLEMS ASSOCIATED WITH THIS CLUSTER
Business Development Services (BDS) market is very weak, unorganized and fragmented
in this cluster. Services availed by units are mostly subsidized, embedded and bundled.
The category of fee based services is in areas of testing, tax & audit, ISO certification
& social audit.
Supply side is extremely weak and barring CAs there are hardly a few private BDS
providers. Associations are mainly engaged in advocacy work.
10. In spite of presence of large number of government institutions, linkages with
industry are very weak. Dependence of such institutes on subsidy for provision of
services has also led to limited outreach.
There is also lack of awareness about efficacy of using such services and culture of
dependency and availing subsidized and free services prevail.
In the absence of detailed market assessment, precise demand of BDS has not been
quantified but assessment of services being used and its usage level and services in
demand (not adequately met by existing BDS providers) have been carried out in respect of
different category of units in each sub sector.
In order to aggregate the demand and observing the nature of services, those have been
grouped under following broad categories:
In all 30 services have been included under above categories out of which are 8 are
strategic services having direct bearing on improving the performance and competitiveness
of the units. Those are being listed below:
• Technical Assistance (advisory services like inventory management, human resource
management, Enterprise Resource Planning and MIS systems)
• Marketing linkages for Household units
• Input supply to Household (HH) units
• Access to finance for Household units
• Technology transfer & up gradation
11. • Product development
• Augmenting critical infrastructure like CETPs and warehousing
• Skill up gradation & vocational training
An Overview of Problems Associated with Subsector:
a) Tanning:
One of the major problems besetting the units, especially smaller ones, under this sub
sector is obsolete technology and old machines. In view of importance of this sector
DIPP carried out a “Tannery Modernization Scheme” during 9th and 10th plan period. But
till date only 10 tanneries from Kanpur have availed assistance under this scheme.
Another major problem being faced by the units is erratic supply of raw hides/skins.
Though import of wet blue is allowed, but on account of small requirement and absence of
any bulk purchasing mechanism, small units are not able to avail this facility. The problem
is compounded by limited access of these units to formal finance, especially working
capital.
The raw hide market has become a supplier market in view of demand for hides growing
faster than supply. The larger tanneries are able to offer advance payments to suppliers
making it more difficult for the smaller tanners to get regular supply.
The availability of raw hides will continue to be a major constraint as demand from
product industries grows. It is estimated that the total tanned leather requirement will
double over the next 4-5 years making intervention to improve supply position a
necessity.
Non availability of skilled operators is also an area of concern of the tanners in the
cluster.
b) Footwear and components AND Saddlery:
The constraints to growth of this sub sector are as follows:
i) Production of household units is constrained due to lack of access to normal
financial channels, design input and absence of dynamic marketing
linkages.
12. ii) Exporters are unable to enter USA market in a major way, as their capacity is
limited for large order sizes from US market.
iii) Productivity of labour is low vis–s–vis main competitor China
iv) High import content, which is almost 60% in case of safety shoes.
v) Non-availability of skilled operators.
vi) Exporting units are not able to capture high-end markets and unit value
realization is hovering around 10 US$.
vii) Except “RED TAPE” made by Mirza, no manufacturer has been able to
create a strong brand image neither in domestic or export market
viii) The safety shoe exporters are unable to meet the product safety standards
of EU as there is no local lab accredited for such citifying such compliance.
As we are now fully aware of the problems of this cluster, it can be easily inferred that this
cluster is completely relevant to NSIC’s aims, objectives and can be termed as very much
vital keeping in mind the delicacy of the cluster and expertise of NSIC. Spreading
services in this cluster will not be difficult.
Now, as we are done with the ground work, we must get in touch with various
organizations already existing in this cluster and understand the effectiveness of their
activities.
This will help us focus on specific areas which need to be worked upon using the existing
organizational framework.
This will also cut our financial costs and project time and will help us increase the
efficiency of our services.
The findings and insights of detailed market assessment conducted will be factored in
operational plans for subsequent years.
13. RAPID MARKET ASSESSMENT
Rapid Market Assessment covers i) assessment of present demand & supply of both low
end and strategic services; ii) identification of needed strategic services and profiling of
existing BDS providers and nature of services being provided by them and iii) finding
critical gaps in respect of certain services and range of possible interventions. In course of
rapid assessment both low end as well as strategic services has been covered.
Overview of BDS Market of this cluster
Demand assessment
14. The assessment of demand of services has been made in respect of each sub sector in the
cluster.
For this assessment only such services have identified which are in high demand,
widely used and have potential to create substantial impact on performance. For
having a tangible result in short time, a narrow focus has been kept in view.
As there are multiple value chains even in one sub sector, assessment has been made
according to respective value chains in each selected sub sectors.
Table below gives demand assessment and also level of usages of different services.
15. Supply Side Assessment
BDS services in the cluster are being provided by three categories of providers i.e. i)
government support institutions, ii) industries associations and iii) private
agencies/individuals. There are very few fee based services and mostly are subsidized or
embedded/bundled services.
16. (I) Government support institutions
There is plethora of government support institutions providing free/subsidized services:
; Where the name of Institutions is as follows:
17. (A) Council of Leather Exports (CLE): CLE is an outfit of Ministry of Commerce &
Industry, GoI having regional office at Kanpur. The membership fee is being
charged on the basis of export turnover.
(B) Central Leather Research Institute (CLRI)
CLRI has set up one testing laboratory at Jajmau. It has provision of testing of
major chemical properties of leather & leather products only.
(C) UP Industrial Consultancy Organisation (UPICO)
This is a consultancy organization set up by all India financial institutions, banks
and support institutions of Govt. of U.P. It is mandated to provide fee based
services for conducting feasibility studies, preparing project reports and also giving
micro consultancy to SMEs.
(D) IIT, Kanpur
It has a separate consultancy department catering to needs of SMEs created for
providing services in following areas:
� Energy conservation methods
� Marketing & finance
� Innovative product design
� Packaging
� IT applications
� Application of multimedia
Level of usage among SMEs due to lack of awareness is marginal.
18. (E) International Institute of Saddlery Technology & Export Management (IISTEM)
IISTEM conducts short term courses for operators catering to needs of footwear
and saddlery sub sectors. All courses are fee based and IISTEM is getting no grants
from the government.
At present in a year about 71 HH and small units are availing services of CFC and
the earning of the institute is about Rs 4 lakh.
(E) National Productivity Council (NPC)
NPC provides consultancy in major areas like productivity improvement, energy
savings and human resources development. Due to reluctance of SMEs to pay fees,
they are not targeting SMEs and also their presence in leather sector is marginal.
(F) Government Leather Institute
It is an oldest institute of Government of UP and presently running 3 yrs diploma
courses in leather technology and footwear manufacturing and annual intake is 30
students for each course. They also run a few short term courses of 6 months
duration. Their linkages with industries are very weak.
(G) Harcourt Butler Technological Institute (HBTI)
This is one of oldest technical institutions in the country and has got a separate
department of leather technology and runs a B.Tech course in leather technology. It
has got physical and chemical laboratories for testing of leather & leather products.
Presently its linkage with industries is very weak.
(H) District Industries Centre (DIC)
It is a nodal agency of the state government in the district for promotion of
industries. It plays an important role as facilitator for Govt. sponsored schemes like
19. Jawahar Rojgar Yojna etc. It is designated agency for issuance of provisional and
final registration certificates in respect of SSI units.
(I) Small Industries Service Institute (SISI)
It is an outfit of the ministry of small industries, GoI created to provide micro
consultancy to SSI units. Its services are free but usage by units is marginal.
Recently they are also implementing cluster development programme of the
ministry of SSI, GoI but to date no cluster in respect of leather sector has been
adopted by them.
(J) Footwear Design & Development Institute, Noida
It is an institution under Ministry of Commerce & Industry, GoI and conducts
courses in Footwear technology & Management and also provides testing facilities.
(II) Industries Associations
The most active association at Kanpur is U.P. Leather Industries Association and its role is
confined to advocacy and redressal of grievances of its members. It has about 50 members
which are mostly exporting units. It also keeps its members informed about policy &
procedures changes. No other services are being provided by the association.
There is one Jajmau Tanners Association having 250 members mainly engaged in
advocacy work. There is another Small Tanners Association at Jajmau having 100
members but active only in grievance settlement of its members with Govt. departments.
There is also one association of Chappal/sandal makers in unorganized sector but by and
large dysfunctional.
20. (III)Private BDS providers
� In Kanpur there are about 70 CAs providing limited range of services to SMEs in
area of audit, tax and loan syndication. Out of CAs, 12-15 are having association
with SMEs in leather & leather products sector and their services are being utilized
by 100 units. These units are availing their services for audit and taxation and their
annual earning is about Rs 60 lakh..
� There is a management consulting company by the name - WIZMIN. They provide
consultancy in areas of general management, marketing and social sector. At
present they are mostly involved in monitoring of schemes of the ministry of rural
development, GoI.
� Leading suppliers of chemicals, mostly situated at Jajmau, about 10 in number
supply free but embedded services to about 100 tanneries and cost of embedded
services is about Rs 8 -9 Cr. Suppliers of sophisticated and imported machines
provide free training to operators though its cost might be added upfront while
finalizing deals for sell of machines.
� There are a few persons who are providing services related to maintenance and
repairs of machines on commercial basis.
� There are 8-10 buyers who provide bundled services to about 100 units in areas of
compliance, product improvement and design.
� Indian Footwear Component Manufacturers Association (IFCOMA) normally every
second year organizes a buyers and sellers meet at Kanpur. The last edition of the
met was attended by about 600 footwear and other leather product manufacturers
where information about products and latest development are disseminated to
leather product manufacturers was displayed by component manufacturers.
23. OPERATING PLAN FOR NSIC
In order to sustain the growth of units in the leather cluster of Kanpur and enhance their
competitiveness the operation will mainly pursue intervention in developing market by
NSIC in the areas identified for growth of the cluster in CLUSTER PROFILE.
Keeping in view the project time frame and resources, the activities to be undertaken have
been identified in respect of sub sectors which are drivers of growth in the cluster, their
potential for value addition, coverage and likely impact on attaining desired results.
Only those sub sectors have been selected for interventions, which contribute
significantly to volume of business in the cluster and have maximum numbers of units
for appreciable impact. Even for these sub sectors, such areas have been identified which
are critical for competitiveness and for which the stakeholders have articulated demand
during diagnostic study. For such services, broadly, commercial and institutional
Services need to be identified and their capacity assessment must be undertaken.
However, barring about 100 enterprises, majority of cluster enterprises are micro and
home based units. Such units have limited resources to pay for commercial BDS and
their poor positioning in the value chain prevents them from using embedded services. The
fragmented nature of such units also makes it financially less attractive for BDS
providers to cater to them. Majority of tanneries, saddlery items and footwear units fall in
this category.
To ensure sustainability of these micro units NSIC will need to pursue interventions
for capacity building, especially organizing these micro units as networks and
strengthening their backward and forward linkages for better delivery of embedded
services.
The networks can be providers of services like input supply, market access, etc. and
at the same time such consolidation makes them attractive clients for NSIC.
The main objective of NSIC must be to strengthen supply and outreach of services that
enhance competitiveness of SMEs.
24. NSIC should try to facilitate enabling conditions for a natural business relationship
between users and itself leading to sustainability and attainment of overarching goal of
increased competitiveness of SMEs and employment generation in cluster.
The sub sectors and their respective operations are detailed below;
Footwear Sub sector:
The trend and potential for growth in footwear sector is evident as is its potential to create
thousands of jobs. During last 5 years, India’s overall footwear export has been growing at
12 percent per annum. In view of burgeoning middle class and continued increase in their
purchasing power, the demand of footwear is likely to increase propelled by increased
consumption of per capita footwear consumption from 2 pairs per annum (including hawai
chapels). Over and above that Kanpur is famous production centre for open footwear i.e
sandal and chappals. There is a critical mass of about 1000 HH units having repository of
skills but not able to increase their market share and presently operating at very low
capacity.
Operations for Footwear Sub sector:
The most articulated need of this sub sector expressed by the constituents is non-
availability of skilled manpower. In order to sustain even present level of growth, the
industry has estimated that requirement of operators would be about 10000 in near future.
The capacity of existing service providers is inadequate to meet this demand making it
necessary to build their capacity. The other area of concern is low labour productivity
which is about 2.5 times below of Chinese manufacturers.
In both these areas of skill development and productivity related technical assistance
services, public Services providers are present in the cluster. NSIC here needs to identify
the critical gaps between services provided by institutes like IISTEM, GLI and ITIs for
skill development and NPC for productivity related services which do not include operator
level training (most critical for the industry). Interaction with industry which is marginal,
fresh inputs for trainees and low motivation to change must be changed by NSIC.
25. While the organized firms face capacity concerns, the unorganized household units don’t
even work at 50% capacity mainly due to fragmented structure and limited access to
formal finance.
NSIC will need to look at its current association with financial institutions in this
cluster to address this problem.
Tannery Sub Sector:
The tannery sub sector is the most critical link in the value chain of Kanpur leather
cluster. To meet the growing demand of raw material for footwear and saddlery sub
sectors, the tannery segment needs to add capacity of hide processing and meet
environmental standards for sustainability.
Operations for Tannery Sub sector:
The capacity utilization of small tanners is low mainly on account of lack of access to
finance (working capital) and need of modernization. Input supply services in the form
of bulk purchase of raw hides by industry associations are a necessity.
Equally critical is compliance to environmental standards for effluent treatment.
Recent cases where units who do not even have a CETP or whose CETP needs
augmentation have been asked to close down due to non –compliance is an issue that needs
to be addressed by NSIC.
The NSIC must help these units in effluent treatment infrastructure up gradation to meet
zero discharge norms as none of the CETPs have initiated work in this regard.
Infrastructure development services in PPP mode is a critical service identified to be
pursued by NSIC
In view of complexity the process may go beyond project time but headway needs to
be made on account of its criticality and profitably.
26. Operations for Saddlery Sub sector:
Saddlery sub sector has shown consistent double digit growth and has created a niche for
the product in the international market. Though, about 200 tiny units are making saddlery
and harness items but on account of their size are unable to increase share in the
international market.
In spite of the fact that there is abundance of skill and availability of proper leather locally,
the share of saddlery items is only 25 percent in EU markets as compared to China’s share
in EU is 29% already.
BDS for Saddlery Subsector
NSIC needs to provide those services to these units which may help them in formation of
export consortia with formal access to finance. The resultant would be increased
production, employment generation and exports.
The activities leading to availability of business services in the areas of skill
development, access to finance, productivity and forging of transactional relationship
between organized and unorganized segments would substantially improve the
performance as well as competitiveness of the sector.
29. � Regulatory compliances related to environmental compliances would not undergo major
changes thereby investments in compliances make the industry non-competitive.
� Appreciation of Indian currency against US$ does not adversely impact the
competitiveness of industry, since, significant number of units within the cluster are
export oriented.
�The religious sentiments do not inhibit enterprises in accessing credit from the bank.
�The policy support and thrust on leather sector by GoI during 11th plan continues.
�The market maintains its present growth rate.
Risk Assessment:
�The risk in Saddlery and footwear segments is limited to foreign exchange fluctuations
thus, can be considered as low risk segments
� Tannery can also be considered a medium risk segment taking into account the need of
tanneries in Jajmau area (which contribute about 30% of leather processing) for
immediate up gradation of effluent management systems.
Up gradation of environment management infrastructure and awareness on tools like
hedging will be facilitated for risk mitigation.
In short, the strategy would be to facilitate market development and not to provide services
directly. As the Service provider market is very weak in the cluster and there is culture of
getting subsidized services from government support institutions, there would be need of
developmental efforts and also subsidizing the cost of certain services for limited period
for ensuring functioning of the market in the long run.
FINANCIAL ASPECTS:
NSIC is already aware of various aspects of leather industry because of its operations in
Chennai leather cluster and hence the price mechanism can be duplicated from Chennai.
As Kanpur cluster is very sensitive for UP government there are various credible public
organizations with the help of which various services could be channelized at very low
costs. Also, various organizations’ reports and RAPID MARKET ASSESSMENT section
of our strategy could be used for formulation of suitable fees for suitable group.
30.
31.
32. PART II: AHMEDABAD DYE’S AND CHEMICAL CLUSTER
A. Cluster Profile (Why this Cluster?)
Cluster Specifications:
Ahmedabad is the commercial capital of the State of Gujarat and a hub of major
business/manufacturing activities in the western part of India. It has the required
infrastructure facilities.
The Ahmedabad Dyes/Chemicals (Including packaging) cluster is located within the
Municipal Corporation limits of the City of Ahmedabad in the central region of Gujarat.
There are more than 1000 different dyestuffs (colouring matters) derived from a vast
variety of chemicals. The chemicals have a wide range from organic to inorganic
substances. The plastic manufacturing in this cluster is incorporated to the packaging of the
dyestuff and chemicals. The size of cluster is from amongst the units producing
dyestuffs and chemicals to the tune of more than 1200 units in the geographical
boundaries of the location.
Product categories of the cluster:
(a) Dyes sector:
The cluster comprises of Dyes/Chemicals (including packaging material). Dyestuff is a
broad term which includes dyes and pigments. A dye is a coloured substance or an organic
compound, which when applied in a solution to a fabric, imparts a colour resistant to
washing. They are largely used by the textiles, paper and leather industry, with textiles
accounting for over 80% in India.
This links the dyestuff industry's fortunes to that of the textile industry.
33. Dyestuff classification
(b) Chemical sector:
The important chemicals manufactured in the Ahmedabad city are predominantly as
follow:
1. Organic compounds such as H Acid, Vinyl Sulfone, J Acid etc
2. Metal Salts such as ferrous sulphate, cuprous chloride
3. Textile Auxiliaries such as softening agents etc.
34. (c ) Packaging sector:
Plastics packaging products are largely in three categories, based on the mode of
operations used in the manufacture of the product. Viz., Extrusion, Blow molding, &
injection mouldings. , items, such as Drums, Carboys, Liner Bags etc .We have mentioned
these since these constitute major production of packaging material; there are other plastic
packaging materials with a wide range of applications as listed below.
35. Plastic has other innumerable uses, which makes it a very large cluster with an unmatched
size and scale of operations. Even though MOST of the units in Plastic manufacturing
cluster fall under the SMEs, still the range of produce plastic industry offers is unmatched
to any other manufacturing activity. Spare parts in many industries, bottles, construction
work, proposed road building is few to name amongst them. We have therefore restricted
our scope only to the plastic packaging material used extensively in dyestuff and
chemicals, which is sold in bulk.
The table depicts concentration of various sub sectors
38. The dyes and chemical industry in recent times is facing a lot of challenges in the changing
scenario of global economy. The extremely competitive market, reduced margin, lack
of innovation, pressure from multinationals, global slowdown and last but
not the least, increasing pressure from regulatory and voluntary agencies for
maintaining environment free from pollutants, all are indicative of tough days for the
cluster.
A modern management study and skills, co-existence, utilizing skills from competent
Organization like NSIC, will help the cluster to overcome, the challenges it is facing today.
Let us now see the distribution of units in this cluster on the basis of Investment,
Turnover and Employment.
39. CURRENT PRESSURE POINTS/ PROBLEMS IN MARKET:
The major Pressure points in dyes, chemicals and packaging market are given as follows:
Environmental issue:
The primary treatment has to be carried out by the units in order to meet inlet norms
describe by the CETPs and CETPs have to meet the norms set up by GPCB. Majority of
the units are not matching these CETPs Inlet norms or units’ outlet norms. Their primary
treatment is not up to the mark to attain these CETPs norms and also their production
process is faulty. As a result, GPCB has pressurized CETPs to attain these norms or close
40. down the units which are more polluting the environment. By providing knowledge about
better production processes and good primary treatment process, this environmental issue
can be reduced and solved in near future.
Cleaner Production:
Most of the units are not getting proper yield out of their processes and there is high
wastage of raw material. This is because lack of technical specialty, experts and knowledge
for the production process. It has been proven that organizations can actually protect the
environment and save money. One of the main drivers for improving environmental
performance has been that organizations can no longer afford to simply treat and disposes
off their waste; the focus has shifted to reducing waste at source. Cleaner production often
focuses on raw material, waste and energy but it is not just an environmental imitative – it
is a combined environmental and business strategy.
Energy Utilisation:
It has been studied by the Bureau of Energy Efficiency (BEE), most of the units are
consuming extra energy and there is lot of scope to reduce energy utilization. About 60 %
of the organisations in this cluster are consuming 40000 units per annum. There is wastage
of energy both at works and at offices. As per value chain analysis, energy consumption is
around 8 % of the cost of Material.
Raw Material Procurement:
There is stiff competition in the domestic as well as International market. In dyes and
chemicals, 75-80% cost is of Raw material and plays a significant role for the final costing.
Quality raw material at cheaper price will help to compete in the market and reduce
effluent load. For solution of this issue, one consortia or society has to be formed under
which bulk buying facility is provide.
41. Quality Registration:
European Regulation introduces REACH to ensure a high level of protection from the risks
that chemical may pose to human health and the environment, through the generation and
dissemination of information on chemicals, in particular safety information. Ideals with the
Registration, Evaluation, Authorization and Restriction of Chemical substances.
As majority of the export is to the European Market most of the firms are not aware about
the procedure and norms for the REACH, to compete in the European market they have to
be REACH compliance.
Training to workers and supervisors
Productivity and Quality improvement can reduce the cost effectively. By providing proper
training to the workers and supervisors can improve the process. Also there should be
adoption of best practices to improve efficiency and effectiveness.
Marketing
All micro and small companies are facing difficulty in direct marketing; they are doing
indirect export through traders. They also have problem of Bulk order. This can be solved
by forming and all cluster members can sell together in bulk and get proper price for their
material.
RAPID MARKET ASSESSMENT
Our aim is to increase NSIC’s involvement in this cluster, to provide need based services
to SMEs engaged in the manufacture of products as already mentioned.
We have identified considerable scope for various services required, utilized and ignored
by the SMEs.
42. The services ignored by them are of great importance for the healthy conditioning;
however they are not sought after due to certain compulsions on the part of member units
of the cluster.
Hence, it is necessary to understand the services, areas of operation and financial
aspects of the current BDS providers in order to come with an outstanding Operating
Plan.
Services can be mainly classified in following areas
PRODUCT BASED DISTRIBUTION:
Service providers for Dyes and Chemicals
47. PRICING CRITERIA USED BY SERVICE PROVIDERS
Service providing units in general discuss about the pricing by the time devoted in
fulfilling the task on hand. More a challenging job, more the time and vice versa.
No one in particular associated with the volume of business of client, which is a
positive note in such transactions.
48. SERVICE PROVIDERS MARKET STUCTURE
The Services market predominantly consists of three segments, Public BDS, Private BDS
and Business management organizations. Apart from these there also exist an “informal
BDS” which is offered by the peer group of the entrepreneurs without any fee
1. Public BDS:
These are Government organizations or organizations supported by the Government that
provide free or subsidized services.
Ahmedabad Textile Industry's Research Association (ATIRA)
ATIRA is an autonomous non-profit association for textile research. It is the largest of its
kind in India for textile and allied industries. It has a membership base of 101 units spread
all over India and abroad. Amongst this, 64 units are involved in Ginning, Spinning,
Weaving and Processing, 37 units are engaged in manufacturing fibres, dyes, chemicals,
instruments, equipments and machinery.
Central Institute of Plastics Engineering & Technology (CIPET)
Technology Support Services (TSS) is an integral part of the activities of CIPET.
Project consultancy, technology consulting and assessment in the field of Plastics are the
important service portfolio of TSS. CIPET has created complete infrastructure under one
roof from testing stage to validation through testing.
Indo German Tool Room (IGTR)
IGTR-Ahmedabad is equipped with state of the art machinery & imported equipments
from Europe. The Machines are made by trained manpower developed by German experts.
The Tool room is ISO 9001:2000 certified organization & working with sound system and
is managed professionally.
49. Gujarat Industrial & Technical Consultancy Organization Limited (GITCO)
GITCO – a premier Technical Consultancy Organization (TCO) – provides consulting
services to accelerate the growth of industrial and services economy of Gujarat.
Industrial Training Institute (ITI)
The Institute imparts training in 31 National level courses under the aegis of National
Council Of Vocational Training (NCVT). Institute has 10 State Level Courses with
seating capacity of 352 under Gujarat Council of Vocational Training (GCVT). Mainly to
meet local demand, apart from regular courses the Institute conducts the short term courses
for weaker section of society, School drop outs, for informal sector and tailor made courses
as per requirement of industry.
Commercial Banks:
All types of banking services present in the cluster area.
2. Private BDS – Organised:
A major player as a support unit for the clusters, the Business Management
Organisations (BMO) has a greater role to play in the betterment of member units in the
cluster. A critical analysis of the performance of the body of associations however is
indicative of many more functions that the member units expect from them.
These are associations formed within a sub-sector for joint development and advocacy.
Such associations are mostly membership based.
There are insignificant differences in the nature of services provided by BMOs.
However considering the requirements of MSMEs & their growth potential, it is important
that these local BMOs become more proactive and cater to the changing requirements of
the MSME sector.
50. Gujarat Dyestuff Manufacturers' Association (GDMA)
It is an Apex organization of Dyestuff Industry of Gujarat consisting of about 80% of the
total units and contributing to 60% of the total export of dyestuff from the country.
Gujarat Chemical Association (GCA)
Gujarat Chemical Association has six decades of experience in playing a proactive role in
leading the Chemical Industry in Gujarat. Over the years GCA has been voicing the
concerns of the Chemical and Allied Products manufacturers and Traders.
Gujarat State Plastic Manufacturers' Association (GSPMA)
Established in 1970, the Gujarat State Plastic Manufacturers' Association (GSPMA) is one
of the leading plastic manufacturers associations in the country, representing Plastic
Industry at State as well as Central level.
Vatva Industrial Association - VIA
Vatva Industrial Estate, Ahmedabad, was set-up when GIDC initialized the industrial
Revolution of young Gujarat State. It is one of the oldest and largest estates in the state
3. Private BDS – Un-organized:
These are private service providers specializing in different fields by virtue of their
knowledge and experience. They are catering to the requirements of the MSME sector in
different areas.
51. In the following section an attempt was made to assess the (business development) service
market from the demand and supply perspective and they have been evaluated as ‘high’,
‘medium’, and ‘low’.
52. The nature of problems faced by micro, small and medium enterprises in the cluster
is more or less same. However, the approach to address the problems would ob will
obviously vary due to the cost, capability and other factors. The interventionary
approach of addressing these problems (Pressure Points) has been discussed below;
53.
54. * Non Utilized – Indicative of availability of this service amongst the BDS providers,
however the units not utilizing this service.
* Utilized – Indicates that the units make full use of these services
* Limited Utilization – Indicates that the service is utilised only by units who are aware of
the benefits
* Non-existent – Indicates that there is an absence of service providers for this skill,
despite of demand from units. This may be due to a lack of awareness on part of BDS
providers, or the potentiality is not being considered.
* In House – Medium Enterprises by their scale of operations are able to make use of
employed personnel for the utilization of these services which otherwise are required to be
hired on as and when require basis.
55. OPERATING PLAN FOR NSIC
All business enterprise need assistance to improve functioning and grow such services
known as Business Development Services (BDS).The vision of developing markets for
BDS has grown out of an emerging new paradigm in the field of MSME promotion. There
is growing emphasis on sustainable market development and to attain this BDS market
development is the right way. BDS market development leads to employment generation,
poverty alleviation and ultimately leads to Local Economy Development (LED). MSMEs
can be benefited by BDS in the form of cost reduction, improved efficiency, Market,
development, increased sales and better productivity. There are three types of BDS
namely:
Generic – These services are available easily and also availed in large numbers.
Services like that of CAs and tax consultants that are transactional in nature fall under this
category.
Strategic – Services that are strategic in nature like marketing, testing, financial linkage,
project preparation fall in this category.
Embedded – Such services come bundled with some products or services. Services like
maintenance of machines, technical support etc. for which the user does not have to pay
anything extra come in this category.
Characteristics that NSIC needs to keep in mind for this cluster
· Focus on markets
· View clients as customers
· Market transaction relationship
· Greater potential for sustain ability – more limited use of subsidies
· Goal of sustainable markets
· Work with many – preferably private providers
· Roles: distinction between market facilitator and NSIC
56. · Clear exit strategy
· Interventions focus on addressing market constraint
The development process must have a clear focus on the BDS market. The
interventions should be such that a fee based transaction mechanism develops
between the stakeholders. This helps in reduction of use of subsidies and thus
develops a framework that has more capability to sustain on its own.
The difference between market facilitation and Services provisioning is that NSIC need not
directly provide services to the market but rather facilitate the provisioning of services
through NSIC itself.
While we look at the segment of dyes & chemicals over the international scenario, it
reveals that the operating and utilization size of the units in this segment is very small in
comparison with their Chinese counterpart. With the help of NSIC there is a wide scope
to reduce the cost of value addition.
Another point that highlights is that in order to counter the difference in the scale of
operations, the cluster needs to put up combined marketing platform to strengthen unit
cost by removing duplication of operational cost in the value chain and quote suitably
to win large international orders. A formation of consortia without disturbing the
individual identity of the units, will lead to a combined effort in the marketing and
overcome hurdles of smaller size for units.
Guidance from NSIC in this segment will help decide the cluster member’s further
outlay of such consortia.
NSICs role in Procurement:
An active role must be undertaken by NSIC in helping formation of such canalizing
agency, with a broad outlook for capacity building of MSME units. Public institutes like
GITCO, financial supporters like SIDBI, banks and BMOs will play a very important and
active role here.
57. NSICs role in Production:
Technology Related: When we refer to the technology, we always look in the product
research for taking up the manufacturing activity. For a product where technology is
already available and easily made into the practice, there is nothing to search about.
However, for a new product research, MSME units have no easy resource available. There
another aspect of modification of technology for effectively reduction in the cost. A third
angle related to effective process control, which helps optimum utilization of raw materials
and skills. In order to have advantage of technological development and enhanced margin,
industries need this service. Our findings are indicative of an absence of such exchange of
technology between the BDS and MSME units. So, here is the role of NSIC. There are
various reasons associated for this vacuum, the most important being absence to fair fare
knowledge sharing between the technical support service providers and MSME units.
58. NSICs role in Quality Analysis:
Industry needs a lot of support role while establishing the standards of the product
manufactured. It needs establishing quality approvals. A quality certification for the raw
material used and finished product offered for marketing, is very important and so is
monitoring of process controls. There is a vacuum from supply side, in majority of the
issues except for quality testing. So NSIC needs to check the supply side of the services by
becoming a canalizing channel between existing organizations.
59. NSICs role in Marketing:
NSIC needs to identify here a very effective role of MSME and Ministry of commerce,
with an active participation of the BMO’s. The public participation in terms of funding
such marketing events will boost up desire by participating units.
Again NSIC needs to be canalizing agency to bring the units and buyers together. A
regular domestic buyer-seller meet, trade fairs inviting foreign buyers and a direct
interaction of the units with the consuming units is essential to be provided in form of
a service.
60. NSICs role in Certification and Registration:
There is a wider recognition required for the product by way of registration of features,
constitution, and patenting process. NSIC needs to address issues like obtaining
consents from different regulators, international quality approvers, seeking availing
fuels at cheaper rates by way of obtaining registration under government quota as
also energy audits for effectively reducing cost by engaging in technical matters. A
mixed presence in these segments needs a lot of attention. It also needs to generate
awareness programs.
61.
62. NSIC s role in HR and Training:
Under this, NSIC needs to assist the SMEs and needs to organize exposure visit by the
cluster members to other identified clusters located in distant places which will impart a lot
of knowledge sharing. NSIC needs to relate with Ministry of labour welfare and BMO’s
for monitoring large scale funding activity
63. Other operations that NSIC needs to take care of are:
1. Create awareness amongst the enterprises.
2. Environment related issues for the ETPs and correlation with regulators.
3. Obtain quality registrations such as REACH to compete in the international Markets
4. Need education for cleaner production amongst SME’s.
5. Ensuring cost reduction in achieving model value chain by energy savings.
64. 6. Automation to be in Industry to avoid human errors
7. Affordability of services needs lot of education/persuasion
8. A detailed study on man-power management,
9. Creation of a raw material bank,
10. Creation of a co-operative society for marketing,
11. Incorporation of a separate company for marketing the products,
12. Creation of Bi-product chain and marketing there of
13. A Single Window service should be availed
FINANCIAL PLANNING
Financial nuances can be calculated or derived by taking idea from costs and margins of
already existing Services Providers. Financial benefits will also be greater for NSIC
because:
1. It is a public sector enterprise which can operate on a very large scale. Hence even
if margins from single MSME is less but on the larger scale benefits will be more.
2. Another aspect is that expenditure on research and development as well as initial
capital providing would be very less.
3. Expenditure will only incur due to development of cost cutting techniques and
organization of awareness generating programs.
4. It won’t be difficult for NSIC to arrange formal finance from Banks under a
proposed model due to feasibility of the project. Also to aid this very cause there is
an already existence of SIDBI, etc. NSIC just needs to formulate a policy to bridge
the critical gaps and thus increase effectiveness of similar organization.
To formulate the fees NSIC must use weight age model in which weightage is given to
different aspects of services and is accordingly charged:
65. On the Expenditure a proper method may be developed after looking at the cost
management of other BDSs
For this purpose let us have a look at Who does, Who pays Matrix which will give us an
idea of expenditure management.
66.
67. This data gives us an idea of profitability of operating in this cluster. However,
detailed analysis is not possible at this stage.
70. PART III: RURAL AGRICULTURE-CONTRACT FARMING
What does Contract Farming Do?
A plain vanilla contract farming arrangement is a commitment by a farmer or a group of
farmers to grow and deliver to the buyer agreed quantities of a commodity at a
predetermined price. The buyer (trader or a corporate), as always, has the additional
options of either buying the commodity from the market or growing it himself on own or
leased land.
The following is a schematic representation:
Therefore, at its simplest, contract farming is the creation of an additional linking
mechanism through another channel of disposal of the crop. It is thus a part of the
overall supply chain, which acts parallel to the standard market mechanism.
71. When does Contract Farming Work?
Contract farming is an effective device for introductng unknown crops or farm
technologies
Large-scale cultivation of tomatoes was unknown in Punjab at the beginning of the 1990s.
The accepted wisdom had it that the growing season was too short to be attractive to the
farmer. Hardly any markets existed for the farm purchase (since there was no production
worth the while of traders) of this otherwise popular constituent of the home kitchen
vegetable basket.
Thus, with the help of CONTRACT FARMING tomatoes in Punjab were new crop
enterprises for the farmer, with attendant uncertainties of production and meant that the
farmer would be subject to risk. Large corporate entities backing the new crop venture
through contracts and supplies helped improve the risk perception and persuaded the
farmer to accept the new crop.
Contract farming helps when markets do not exist or are underdeveloped; conversely,
contracts diminish in importance with development of competitive markets.
Both these efforts also entailed considerable market risk (maximum in the case of poplars),
since there were no other known buyers. Purchase contracts helped overcome the market
risk as well. Conversely, when good, competitive markets developed for both these
commodities within a decade of introduction of contracts, farmers and buyers no longer
needed the support of contracts. Markets became the effective and key constituents of
the supply chain.
Contract farming works when specie quality requirements need to be observed.
Contracts are effective when there is no zero-sum game (one party's gain at the expense
of the other). They are ideal for a win-win situation, since they represent a natural
mutual dependency.
72. Contracts succeed when they contain demonstrably fair risk transfer or coverage
measures and trust relationships built over long periods.
Contracts succeed when they are critical to the continued operations of the buyer
organization. They are deficient when their contribution to the buyer is minor.
Contracting organizations should pay far greater attention to the structure of contracts and
put in far greater effort to ensure that they work only when their own main activity was
dependent on the successful performance of the contract.
Strong, self-regulatory social systems and pressures help improve contract performance.
The farmers working in a group helps in reducing the cost of transactions, as the buyer
needs to deliver his contributions - supplies, extension, etc - within a relatively compact
area and could reasonably expect group members to learn from each other.
Creation of education and health facilities, infrastructure and other such activities have
helped build up the community spirit and add to the social pressure to adhere to contract
provisions.
The most important factor in determining whether contracts would work or not is the
selection of the crops in the first place. They can be classified on the basis of the risks
involved, both in production (secondary, in economic parlance) and in marketing
(primary). Completely unknown crops are high in both these risks, whereas newer varieties
of existing crops or crops with stringent quality specifications have high production risks,
even when buyers guarantee prices. Crops with relatively price-sensitive demands, such as
vegetables have high market risks, even as the farmer is well familiar with the production
technology. Finally, subsistence crops are the least risky on both parameters. The
73. Following diagram illustrates this:
What Role for NSIC and it’s advantages?
The highly publicized large scale scheme (a variant of contract farming covering food
crops) mostly aims to shield the farmer from the market. It has some major disquieting
features.
It provides inputs, mostly purchased from others, offers extension at a price (which farmers
increasingly question) and sells the crop to the eventual buyer after adding on its own
commission. The unintended consequence is that there is now an additional link with
its own cost in the supply chain, which lengthens it instead of shortening and leads to
additional intermediate retentions instead of reducing the difference between
consumer expenditure and farmer receipts.
74. Hence if NSIC is mentoring an SME in this field it will help both the farmers and the
corporate by shortening supply chains and ensuring that Contract Farming works
(by keeping a check on issues discussed in previous section).
These Business Development Services will help in implementing of high end Technologies
in agriculture by reducing the risk capital and encouraging more small scale groups to enter
in contract farming based Social Entrepreneurship.
Not only this, presence of an organization like NSIC may facilitate checking of groups
harassing farmers for self motive and thus will help in protection of rights of weak farmers.
NSIC’s involvement will help in pinning up of defaults which are difficult under current
scenario.
Also involvement of NSIC as a Business Developer will further help in following ways:
• Reform-linked central assistance to MSMEs for development of marketing
infrastructure, common facilities for aggregation & value addition of produce
and grading/ packaging/ quality certification facilities
• Schemes to set up modern terminal markets under NHM for perishable
agricultural produce with suitable backward & forward linkages.
• Help MSME’s with Development of post-harvest/ cold chain infrastructure,
CA storage facilities, refrigerated transportation by road/ rail, perishable
cargo centres at air & sea ports under NHM
• Develop an Action Plan for selection of Food Processing Industries including
setting up of Mega Food Parks
Under NSIC’s guidance inexperienced MSME’s will use contract farming as well-planned,
precisely targeted tool of limited impact and not as a powerful weapon of mass
achievement.
Its presence will help contract farming be used for the evolution of competitive marketing
and not as a permanent substitute. Last but not the least; it will help in making contract
farming even more attractive for increasing credit flow to agriculture.
76. PART IV: SUPPORT BUSINESSES FOR EXTRACTION AND
EXPLORATION OF OIL & SHALE GAS
INTRODUCTION:
Oil and Gas Industry in India is a 110 billion USD industry (as in March '2007). The India
oil & gas demand ranks it sixth in the world. Nearly 70% of the petroleum oil requirements
of India are met by the imports. This is a matter of concern for the Indian Government as it
might lead to oil crisis in India. To tackle this, large-scale oil and gas exploration and
drilling is being undertaken.
In India, the oil and gas industry jobs attract huge labor force. With the inset of bigger
players into the oil & gas sector in India engaging in mass oil & gas production there is a
rapid increase in the demand of oil & gas exploration and drilling equipment and
services.
Despite of new finds in oil & gas wells, increase in the drilling operations,
advancement in oil extraction methods, pumps and machine and other equipments
and technology, the costs have not come down.
An analysis report of the oil & gas industry in India shows the stagnation in the current oil
production and extraction processes diverting towards deepwater offshore drilling for
finding newer oil & gas reserves where the drawback is lack of technical expertise in
India. Also there's an acute shortage of skilled labor force, latest drilling equipments and
machines.
Unfortunately, the solutions to these problems have come in the form of foreign
collaborations for better technology especially in deepwater drilling. The story of
extraction processes of shale gas will also be the same. Special training institutes need to
be set-up for providing skilled labor for technical exploration services of conventional oil
and gas as well as shale gas. Foreign collaborations and introduction of Business
Development Service providers like NSIC will bring the necessary finance to such
projects.
77.
78. ROLE OF NSIC:
As there is no participation of Indian industries in the Oil & Gas support sector, NSIC will
first need to do a lot of ground work along with Government of India, Ministry of
Petroleum, Indian PSU’s and Oil majors like Reliance. This will include:
1. Recognition of specific areas for initiating the process of Research and
Development
2. International Co-Operation Activities:
NSIC must collaborate with foreign institutes and companies and set up various
incubators in top most colleges/universities in this particular field. Also, it needs to
promote innovative ways and assist it in preliminary stages.
3. Exhibition and Technology Fair:
Organize Exhibitions and encourage participation.
4. Technology Support:
Technology is the pre-requisite for sustaining in this sector for any MSMEs. Hence,
NSIC needs to implement a technology strategy in addition to financial, marketing
and operational strategies and adopt the one that helps in building a strong
foundation for this sector
As these foundations are strengthened proper Business Development strategy must be
outlined by NSIC for support of entrepreneurship that inculcate as a result of these efforts.
This sector will strengthen and ensure continuous catering business development services
for NSIC over the next 2-3 decades.
79. CONCLUDING REMARKS:
The objective of the strategies provided by AAA solutions is to ensure continuous growth
of Business activity of NSIC over the span of next 2-3 decades.
Keeping in mind the operational span of a sector, selection of 4 target sectors were made.
Engaging in operations discussed in this Business Strategy will also benefit society and the
country by ensuring balanced growth.
All operations suggested have been included in this plan keeping in mind that it would be
much easier for NSIC (due to its expertise) to operate with other government institutions
than any other organization.
80. REFERENCES:
UNDP Report on Business Development Services
US Department of Energy
Ministry of Small Scale Industries Report 2007-08
Ministry of Small Scale Industries Report 2008-09
Report of Entrepreneurship Development Institute Ahmedabad
Report of IL&FS Cluster Development Initiative Ltd on Kanpur Cluster-2006
Wikipedia
Report by Ministry of Petroleum India, 2009-10
Bloomberg and Financial Times, 2010
Occasional Paper- Department of Economic Analysis and Research, NABARD, Mumbai,
2005