PRESENTATION TO IIFT STRATEGIC MANAGEMENT

Dream > Believe > Pursue
AICH
INDRANIL
1
ROLE OF STRATEGY IN MSME’S AND
START UP ORGANISATIONS GROWTH
Wednesday, November 1

DREAM>BELIEVE>PURSUE
MODULES OF THE PRESENTATION
• MSME’S IN INDIA OVERVIEW
• MSME’S STRATEGIES FOR GROWTH ,TYPES OF GROWTH
• MSME’S BARRIERS FOR GROWTH
• CONCLUDING REMARKS AND PROFILE OF AICH GROUP .

The definition of MSMEs/SMEs differ from country to country. Most countries have
adopted the benchmarks of employment . Some define them in terms of assets, a
few in terms of sales and yet others, in terms of shareholders fund.
MSMEs comprise widely divergent spectrum of establishment engaged in
economic activities ranging from micro and rural enterprise to modern industrial
units using sophisticated technologies. They comprise of half – to – two third of the
business globally.
Definition differ across countries, but they have one thing in common; the vast
majority of MSMEs are relatively small (in terms of employee strength).
MSMEs

MSME’S IN INDIA
Creates
more than
1 Million
jobs
annually.
Contribution
to GDP set to
expand to
25% by 2022
from current
22%.
40% - Total Exports
Employs –
More than 60
Million
45% - Total
Industrial Output

MSME’S ADVANTAGES
-
-
Generates more jobs per unit of capital investment.
Requires relatively less start-up capital.
Facilitates entrepreneurship.
Promotes / accelerates growth of the region.

Traditionally Indian SMEs have had the following characteristics:
• Born out of individual initiatives &skills
• Greater operational flexibility
• Low cost of production
• High propensity to adapt technology
• High capacity to export
• High employment orientation
• Utilization of locally available human & material resources
• Critical for poverty reduction *
MSMEs: Characteristics

DREAM>BELIEVE>PURSUE 7
Indian MSMEs can be divided into three classes:
• Predominantly rural , traditional household industries,
• Small and medium industries functioning with obsolete
technologies,
• Modern, small and medium enterprises which are owned
and operated by mostly young techno-entrepreneurs
operating in relatively newer fields like Bio-technology.
MSME CHARACTERISTICS

MSMEs growth is often closely associated with firm’s overall success and
survival.
Strong growth may reduce the firm’s profitability temporarily, but increases it
in the long run.
The path to growth for a MSME may differ depending upon various factors like
the age of firm, its size, location, industry affiliation, stage of its life cycle, etc.
MSMEs: GROWTH STRATEGIES

Entrepreneur's growth
orientation
Factors shaping growth
orientation:
Ownership structure
Motivation
Education
Adequate Firm
resources
Necessity for sustained Growth:
Resources:
Financial
Policy Framework
Human
Market Opportunity
Market:
Ability to identify customer
needs and need-gaps.
Market accessibility

Organic Strategies
1. New Customers
2. New product / technology
3. New Markets

In-organic Growth
a Mergers & Acquisition
Strategic Partnership
Joint Venture

MSME’S GROWTH STRATEGIES
Indian industry and MSMEs in particular needs to better understand about IPRs. Majority of
countries specially developed are resorting to stringent IPRs for protecting their industries.
• IPRs help SMEs in value creation by enabling them to capitalize on their intangible
assets.
• Govt./Industry should make concerted efforts to spread awareness about IPRs.
• One industry that definitely needs to understands and use IPR is “Handicrafts”. Machine
made fakes are eating into the potential market for genuine “Indian Handmade handicrafts”.
• Another way in which IPRs can be of immense help is “Geographical Indications”. For
e.g. “Pashmina Shawl” or “Banarsi Silk”.

MSME’S BARRIER’S TO GROWTH

MSMEs across the globe face almost similar
problems affecting their growth:
• Source of funding / credit
• Access to technology
• Skilled Manpower
• Infrastructure support

The key financial constraints afRfecting growth of MSMEs
are:
• Availability of timely and adequate credit
• High cost of credit
• Collateral requirement
MSMEs have to accept technologically advanced process
and systems to take on the global competition:
• More than half the MSMEs are in rural areas where they
is no or low access to modern technology.
• In today’s globalised world technology is important to
fight competition as customer demands best products at
lowest prices.

Other reasons which hamper the growth of MSMEs are:
• Local Orientation –
The business strategy aims for a geographically delimited market. This caps
the size and growth of the business.
• Arrested Development –
Once a specific scale has been reached the owner sees the rate of return on
further scaling-up as unviable.

Skilled Manpower:
• Framework for vocational education and training needs to be reworked.
• Matching demand and supply of skills and bringing in contemporary and
advanced courses will facilitate skill development and ultimately lead to
employability.
Infrastructure:
• Potential of a MSME to grow and nurture innovation is greatly supported
by the kind of infrastructure, both physical and economic.
• Common infrastructural problems faced by MSMEs in our country are:
Dependable supply of power
Transportation facilities
Provision of water

WE VALUE EVERYTHING UNDER THE SUN 10/14/2013 44
18

AICH APPRAISERSAUCTIONERS AND VALUERS
We value every thing under the sun
EMPANELMENTS
19

AICH APPRAISERSAUCTIONERS AND VALUERS
We value every thing under the sun
•EMPANELMENTS
WE VALUE EVERYTHING UNDER THE SUN 47
20

•200% Year on year Growthboth
bottomline and topline
•Strong credit rating
•Qualtrics Rated top 3 in India in Valuation
Services
•Finalist forAIMA -Dr J.S Juneja Award for
Innovation and creativity for MSME
enterprises for 2012 -2013 and ICICI -
CNBC India Emerging India Awards 2013
LUE EVERYTHING UNDER THE SUN 10/14/2013 48
21

22

• KATAICH INFRACORE ENGINEERING PVT. LTD.
•Started with Changling construction machinery distribution and Nawa
crushers
•Year on year growth 200%
•Revenue of ½ million USD in 2011-2012
•Shantui heavy machinery dealership
•Spare parts supplier company
•Started as the flagship company and diversified
23

•
AICH MINING RESOURCES PVT. LTD.
Opencast & Underground Mining of ferrous & non ferrous metal & non
metal mines concept to commisioning projects
•Opencast & Underground Equipment Selection, installation
•Concept to commissioning Technical Consulting & Mining Consulting
•Coal Washers Consulting
•CHF Concept to Concept to commissioning projects
24

•
AICH MINING RESOURCES PVT. LTD.
Opencast & Underground Mining of ferrous & non ferrous metal & non
metal mines concept to commisioning projects
•Opencast & Underground Equipment Selection, installation
•Concept to commissioning Technical Consulting & Mining Consulting
•Coal Washers Consulting
•CHF Concept to Concept to commissioning projects
25

A BREIF PROFILE OF INDRANIL
AICH F ABOUT INDRANILAICH
Chequered career of 19+ years in the industry out of which 14 years
in multinationals of repute
Worked in Titagarh Wagons Ltd GoIndustry - Dovebid (Formerly
Henry Butcher) ,UT Limited (JV between Usha Group and
Telehoist of U.K.) Ingersoll Rand India Ltd,TIL (Tractors India
Limited) -Jayashree Textiles, Indian Rayon Group -Rishra.
Award winning Production engineer with MBA
Publications and teaching assignments in several institutions of
repute .
26

A BRIEF ABOUT INDRANIL AICH
PROFESSIONAL MEMBERSHIPS
International Memberships
Honorary Life member of Royal Institute of Chartered Surveyors (RICS),
London.
Life member American Society of Mechnical Engineers USA
Life member of the Mining ,geological and metallurgical Society of India .
Life Member of Operational Society of India, Quality Circle Forum of India,
Systems Dynamics Society of India
Life Member of Institution of Engineers (Membership No.M-132302-9) and
Chartered Engineer from Institution of Engineers (AM 092132-5).
Approved valuer (Registration No.18328) Category - Production & Industrial
Engineering and Fellow and Life Member of Institution of Valuers.
Member of Indian Council of Arbitration, New Delhi an organization of FICCI
and Ministry of Commerce.Member of Practicing Valuers Association of India
27

INDUSTRY CHAMBER MEMBERSHIPS
Member of Confederation of India Industry Eastern Region
Member of MSME National council CII
Member of West bengal state council
Member of the economic affairs ,taxation and finance subcommittee
Member of the Safety subcommittee
Member of the MSME subcommittee
28

You can reach me @
indranilaich@gmail.com
indranilaich@outlook.com
Mobile +919831088204/+919038088204

QUESTIONS AND ANSWERS SESSION
10/14/2013DREAM>BELIEVE>PURSUE 2

PRESENTATION TO IIFT STRATEGIC MANAGEMENT

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