Review the growth of manufacturing industry of Gujarat State and provide hand holding to SMEs for the enhancement of business activities in other States and Overseas.

1. Report on
3rd Annual Flagship Activity
Gujarat SME Manufacturing Summit
Theme
Supporting SMEs for Sustainable Growth
Technology | Finance | Promotion
Date: 7th February, 2014 Venue: Ahmedabad
Organizers Supported by Co-Organizer

2. 2
Table of Contents
Concept Note of the Summit ........................................................................................................................ 3
Inauguration of the Summit .......................................................................................................................... 4
Key Note Address .......................................................................................................................................... 5
Dr. Anup Pujari – Director General of Foreign Trade, Department of Commerce, Government of India .................................................................................................................................................................. 5
Introductory Address .................................................................................................................................... 7
Shri Chandrakant Salunkhe–Founder & President, Small & Medium Business Development Chamber of India ...................................................................................................................................................... 7
Address by Dignitaries .................................................................................................................................. 8
Shri Kamal Singal – Chief Executive Officer, Arvind Infrastructure Ltd ...............................................8
H. E.Dr. LiuYoufa – Consul General of the People's Republic of China ..............................................9
Shri Ashish Kumar Chauhan–MD & CEO, BSE Ltd.................................................................................. 10
Shri Sudarshan Sen–Regional Director, Reserve Bank of India, Ahmedabad ...................................... 10
Shri A. N. Appaiah – CGM, State Bank of India, Ahmedabad Circle ...................................................... 12
Shri Umakant Bijapur – GM, Bank of Baroda, Ahmedabad Region ........................................................ 12
Shri Sanjay Rai – Managing Director, Kandla Energy and Chemicals Limited ....................................... 13
Plenary Session on: Strategy and Support to Transform SMEs into Emerging Corporate ......................... 14
Plenary Session on: Strengthening SMEs for Better Growth ...................................................................... 14
India Business Excellence Award presented to H. E. Dr. Liu Youfa Consul General of the People's Republic of China ....................................................................................................................................................... 15
Address by Panelists ................................................................................................................................... 15
About 3rd Annual Gujarat SME Excellence Awards – 2014 ......................................................................... 16

3. 3
Concept Note of the Summit
The Industrial Sector of Gujarat, especially SME Sector continuously contributes commendable share of Gross State Domestic Product (GSDP) as well as puts efforts for generating employment opportunities. SMEs especially from Manufacturing Sector form a valuable link in the supply chain to Government, MNC and other Corporate. Gujarat SME sector has changed the entire industrial landscape of the State right from attracting substantial investments in the State to developing culture of innovation. There are over 3.9 lakh registered and almost 26 lakh unregistered Micro, Small and Medium Enterprises in Gujarat. They contribute to over 30% of Gujarat's manufacturing and exports with a total annual production of Rs350billion.Thegrowthrate of SME sector in Gujarat is85%.Thestate has83product clusters spread across 88 locations in the State.
This Summit will review the growth of manufacturing industry of Gujarat State and will provide hand holding to SMEs for the enhancement of business activities in other States and Overseas. The deliberations will be on - Sustainable Growth of SMEs, Role of bankers for the growth of SMEs, SME Stock Exchange - Access to capital market, Integration of Manufacturing and Service Sector SMEs, Fulfilling the Financial Needs, various Opportunities in Delhi - Mumbai Industrial Corridor, New Technology and Automation for improving Competitiveness, Strategies for enhancement and promotion of Exports. The issues and problems of SMEs will be discussed and presented to the appropriate authorities.
SME Chamber of India have decided to integrate and support the SMEs from manufacturing and service sector from Gujarat region for enhancing business growth, export promotion, identifying new technologies, joint ventures, contract manufacturing tie-ups, technology transfer, strategic business partnership with overseas companies, identifying the investors, private equity and venture capital, listing in SME Stock Exchange as well as Institutional Trading Platform without IPO, channelising bank finance for business growth, expansion, diversification and promotion.
The Chamber has started providing support for revival of sick units and encouragement amongst youth to start new business ventures. The Chamber has also initiated financial support for participation in various international exhibitions and trade fairs from various Nationalised Banks.

4. 4
Inauguration of the Summit

5. 5
Key Note Address
Dr. Anup Pujari – Director General of Foreign Trade, Department of Commerce, Government of India
Dr. Pujari, in his keynote address at the inaugural of the Summit emphasised that it is essential that irrespective of whether it is small or big company, SMEs should produce high quality products for international market. Then only they will be able to get export business regularly and will survive in the competitive markets. SMEs should go in for innovation and advanced technology so that they can produce quality products and withstand the competition.
Foreign Trade Department does not give importance for industry of sector, but only for quality products for exports to various countries. SMEs always face problem for marketing and promotion in export business, but they can synergise group marketing through leading organisations like SME Chamber of India or SME Export Promotion Council. I am sure that joining hands together the SMEs will definitely achieve success in export business activities, said Dr. Pujari. SMEs are not getting funding for business growth and export business and Nationalised and Private Banks should focus for channelizing banking finance for SME Sector without any hurdles and delay at reduced rate of interest, observed Dr. Pujari.
There is a belief that in value terms the SME Sector contributes the lion’s share, but it is not correct. In value terms it is not very high, whether it is production or export. In India itself, in value terms it is not the highest share. But in terms of employment that is generated, in terms of the population that caters to, in terms of the market that caters to the MSME Sector has a significant contribution. In the Government, the people who are very well off and highly placed do not require Government assistance. Government

6. 6
assistance and Government support is required for those who are learning to walk for starting their business. Tremendous amount of hard work is required to achieve success. MSMEs, therefore, should be innovative without which quality products are not possible.
According to Dr. Pujari, innovation is not a noble price winning thing that we need to do. An innovation for us is either to find the new product for an existing market This means that one is not in the market to sell the products what he produce but the market should to produce what can be sold. Hence it is necessary to identify the market to understand what can be sold. So we have to produce a new thing which can be sold in the market, observed Shri Pujari. Usually all over the world new startups group of 5- 6 persons will being news products and new technology to the market. One has to take risk to be innovative to produce new products which can be sold in new markets. One should not think about the time taken but should think about utilising the time in a productive manner. This is the innovative way of solving a problem. It is necessary to bring in improvement in every walk of life and some improvement will lead to greater quality and some improvement will lead to greater perception of quality. When you are in the business you need to find outwhat suits you best and how do you do that.
In his closing remarks, Dr. Pujari advised the SMEs about the importance of time management and utilizing new ideas and concepts to reduce problems. He has conveyed his best wishes to the entrepreneurs on their selection for the “Gujarat SME Excellence Awards” for the exemplary contributions.

7. 7
Introductory Address
Shri Chandrakant Salunkhe–Founder & President, Small & Medium Business Development Chamber of India
Shri Chandrakant Salunkhe in his introductory speech mentioned that SME Chamber of India is supporting SMEs from manufacturing and service sectors for integration and interaction, business advisory services for better growth, identifying new markets both domestic and international, new technologies, contract manufacturing opportunities in India and overseas countries and international collaborations for the manufacturing sector.
He also mentioned that the Chamber is putting efforts to channelize more banking finance to SMEs for their business growth, expansion, diversification and export performance by organising various activities to create awareness about the financial products of various banks. Shri Salunkhe emphasised on the special activities for the manufacturing sector in Gujarat region.
The Chamber has planned more than 20 programs for the next one year and the Chamber will provide the required assistance to the Manufacturers for entering into National and International Markets.

8. 8
Address by Dignitaries
Shri Kamal Singal – Chief Executive Officer, Arvind Infrastructure Ltd
The association of Arvind Infrastructure Ltd. in this event was to understand the significance of SME Sector in the growth of their company by partnering with SMEs. The two main challenges of SME. Sector are access to finance and market. To overcome these, it would be beneficial for them to associate with the large manufacturers. Both during hard and good times SMEs has played a very significant role in the Growth of Arvind Infrastructure Ltd. in its growth, said Mr. Singal. Taking advantage of contract manufacturing and relationship with large manufacturing companies like Arvind can be very fruitful to SMEs.
Arvind Group has developed many small entrepreneurs by providing all infrastructure facilities, approvals etc. to set up units to produce looms and assured markets to the entrepreneurs by taking in their products. He suggested that since SMEs face many difficulties for finance etc. association with large companies will be ideal in their growth process and the problems of capital and market can be significantly solved. They have also tied up with SMEs for manufacturing of apparel in their various factories by giving switching operations to them. He also explained various Real Estate Projects of Arvind Infrastructure of affordable housing in various cities of India. They have also taken lot of initiatives for SMEs in Industrial Infrastructure in Ahmedabad where they are developing large number of fully developed industrial sheds, industrial plots and other options to the small and medium size industries. He has also expressed the gratitude to the President of the Chamber for inviting Arvind Group as the Principal Sponsor.

9. 9
H. E.Dr. LiuYoufa – Consul General of the People's Republic of China
Dr. H.E. Liu Youfa spoke about the three important aspects of bilateral relations between China and India as well as about the opportunities available for SMEs of both the countries and advised on how to cut open the China market. Both Prime Ministers of China and India met in 2014 and exchanged views and agreed to mark this year of 2014 as the ‘Friendly Exchanges.”, which will help to increase the bilateral relation which has been going on for the last 10 years. He mentioned that our two Governments have agreed to join hands with Myanmar and Bangladesh to jointly build up the four country
economic corridor. India, China and other members of the BRICS and other members of the Shanghai Corporations organisations will cooperate for exchanging business views for further cooperation. China started its 12th five year economic guidelines two years ago and India started it last year. Three of the main priorities in this plan are sustainable growth, industrial upgrading and the promotion of domestic consumption. These priorities explain why certain sectors, including energy, automotive, IT infrastructure and biotechnology also receive a high degree of focus. As the new Government of China that came into power last year and India is going to have new Government this year there is lot of opportunities between the two countries especially for the Small and Medium Entrepreneurs observed Dr. Youfa.
His Excellency concluded by reiterating that China is going to have peaceful and sustainable economic and bilateral relations with its neighbouring countries and with India in particular in the coming years and the SME Sector will definitely be benefitted. He suggested that SMEs should take advantage of the opportunities from the changing China in various sectors to increase connectivity and enhancement business relations.

10. 10
Shri Ashish Kumar Chauhan–MD & CEO, BSE Ltd
Shri Chauhan expressed his views on the difficulties of the SME Sector for entering into capital market. He mentioned that it is very essential for SMEs to enter into capital market taking into consideration the problems of raising funding from Banking and other Financial Institutions to meet their various business needs. He also described in detail about the launching of Institutional Trading Platform on BSE SME and the formalities of listing. By entering into Capital Market, SMEs will definitely be benefitted since they have to adopt certain business ethics like good governance, proper marketing strategies, financial management systems etc. This will go a long way in having a proper and systematic business outlook and business management. He has also quoted success stories big corporate and entrepreneurs like Dhirubhai Ambanai, which gives motivation to the present SMEs. He has assured all support and assistance of BSE to provide proper guidelines or listing in the Capital Market. He suggested that SMEs, who are desirous of entering into Capital market, should approach SME Chamber of India for obtaining assistance for entering into Capital Markets.
Shri Sudarshan Sen–Regional Director, Reserve Bank of India, Ahmedabad
SME Sector, which is the major contributor in all spheres of Nation development, if encouraged and allowed to grow it has the potential to bring the GDP target from the present 5% to 9%, said Shri Sen. Regarding access to finance, Bank finance is more important than any other means of finance. Therefore, Bankers must realise that they are the lifeline to provide finance to

11. 11
SMEs. Unfortunately though there has been an increase, there is a huge gap between what the finance the SME Sector wants and what is available to it is extremely large, which 56% of the demand is and which is not met. This is something we have to be very worried about, said Shri Sen. The problems of banks to finance SMEs are adequate assets to offer, low capitalization, vulnerability to market fluctuations, high mortality rates, unavailability of proper information, financial statements, transparency, well set out business plans etc. which poses problems to Banks to assess their creditworthiness.
RBI has done lot in this regard to encourage credit flow to SME Sector and has made a number of measures like 30% year on year credit to SMEs especially to SMEs and also mandated Banks to provide collateral free loans upto Rs. 1 crore to MSEs with a credit guarantee scheme, but bankers are still to wake up to this opportunities. RBI is also insisting upon that every loan application has to be acknowledged by the bank by giving a number and the SMEs should be able to monitor online the status of their application to know the reason for rejection of loan. Shri Sen reminded the banks to put these in place as well as provide the SMEs with consultancy support from dedicated credit appraisal and administration facilities to facilitate SMEs to avail of the credit facilities with one specialised branch in every district. In the present juncture of global slowdown of economy and the stresses being faced by all sectors of the economy is the concept of sickness. RBI is very concerned that the Banks are not identifying the stresses but only waking up when there is a default in the payment installments. Reserve Bank has mandated that Banks should monitor the financial health of the borrowers looking at delays and commercial production and cash income by carefully looking through the accounts of the borrowers to see if there are any stress well before the stress reflects in the accounts, which is called handholding stage, said Shri Sen. Shri Sen also stressed the need for producing quality products with competitive prices for finding out new markets and sustainability.
In conclusion, Sen urged the Bankers to implement the Reserve Bank guidelines in both letter and spirit to increase the credit flow to SME Sector to provide handholding on the rehabilitation to those units of the sector which are in difficulty and the SMEs to innovate and produce quality products acceptable to various markets and Government Departments to become globally competitive and come out with stronger.

12. 12
Shri A. N. Appaiah – CGM, State Bank of India, Ahmedabad Circle
Speaking on the problems faced by the SME Sector Shri Appaiah mentioned about the importance of manufacturing and service sectors. Though service sector is doing well compare to the manufacturing sector which is not doing well due to many reasons. Since manufacturing sector, which is providing lot of employment opportunities, importance of this Sector cannot be underestimated and complimented the SME Chamber of India for timely organizing this important Conference. Hence, manufacturing sector should be given all encouragement by the concerned agencies especially banking sector to increase their capacity utilisation to produce more quality products.
In a crisis affected economic scenario and increasing level of nonperforming assets and units going sick everywhere, Gujarat State is doing considerably very well, said Shri Appaiah, for which he appreciated the entrepreneurial spirits of Gujarat State. Hence, Gujarat entrepreneurs deserve appreciation and encouragement and they should be financed for better growth. Gujarat Manufacturing Sector is well spread and there are a number of clusters which deserves encouragement from Banks, said Shri Appaiah. On behalf of State Bank of India Shri Appaiah assured continued support to the SMEs in all possible ways.
Shri Umakant Bijapur – GM, Bank of Baroda, Ahmedabad Region
Bank of Baroda has taken a lead for funding SMEs through a specialised code called SME Loan factory. This factory works on factory assembly model till the disbursement of loan to the SMEs. The bank has such 11 factories in Gujarat having specialised people for manning these factories, who understand SMEs better to get the job easy, said Shri Bijapur. BoB has so far sanctioned more than 3200 cores to SME Sector during the first 9 months of this Financial

13. 13
Year. Rs. 2500 crores proposals are in the pipeline with the Bank. There is great collaboration between the SMEs and the loan factories which gives confidence to the Bank for fulfilling the requirements of SMEs.
He appreciated that there is very little default from the SMEs in the region, which gives the bank confidence to sanction loans, even though there is mismatch of fund flows to run the unit due to the present economic situation, but the Bank is ready to help them and open to ideas of the SMEs and suggested to contact the Bank as early as possible with the fund problems, provided there is no diversion of funds mismanagement and the request is genuine, said Shri Bijapur.
He also explained about various schemes available for medical industry, educational institutions and collateral free loans upto one crore and SMEs short term loan, which are simple to understand. Bank of Baroda understands the importance of SMEs and will get a special preference to meet their funding requirements whenever they approach the Bank, concluded Shri Bijapur.
Shri Sanjay Rai – Managing Director, Kandla Energy and Chemicals Limited
Speaking on his success story, Shri Rai said that he has started his business with a dream and vision and learnt from failures to be success. To be successful, one should be experimental in all endeavours. From a humble beginning without having much financial resources he started his entrepreneurship with firm decision and determination and came to Gujarat from Assam . With a loan of Rs. 1 lakh from Dena Bank received from Prime Minister’s Rozgar Yojana he started his endeavour in1977and tried in variety of ventures and finally realised that petrochemical is the final field to accept. With bare minimum capital, manpower and equipment he started SME Industry Unit in Kandla, which is now known as Kandla Energy and Chemicals Ltd. Today the turnover of the Group of 420 million dollar and the Group is into Petrochemicals, Salt, Mining, Liquid Storage, Shipping and many more with 4 manufacturing set ups in India and 4 continent presences. Success did not come to him over night. He had to face many challenges, including physical and mental

14. 14
stress. Success comes with right attitude, hardworking, integrity, setting a goal and good reputation in the industry which results into several awards, recognition and membership from prestigious organisations.
To be successful in business, entrepreneurs are to be experimental and should not be afraid of mistakes. One should learn to recover from set back and understand the success and failure are opposite side of the same coin, said Shri Sanjay Rai. SMEs and Young Entrepreneurs who are desirous of achieving success should endeavour to make connectivity and face the challenges without fear, said Shri Rai.
Plenary Session on: Strategy and Support to Transform SMEs into Emerging Corporate
Plenary Session on: Strengthening SMEs for Better Growth

15. 15
India Business Excellence Award presented to H. E. Dr. Liu Youfa Consul General of the People's Republic of China
Address by Panelists

16. 16
About 3rd Annual Gujarat SME Excellence Awards – 2014
GUJARAT SME EXCELLENCE AWARDS has been initiated by SME Chamber of India in the Year 2012 to recognize Small and Medium Enterprises for their exceptional contribution in manufacturing, service, exports and for other innovative concepts. It also recognizes those who support SMEs for enhancing their competitiveness. This will also inspire other existing and emerging entrepreneurs to succeed in their chosen fields and the winners will act as role models for encouraging more entrepreneurship. The Selection Committee has considered the applications on different criteria relevant to the business like Development of Enterprise, Products / Processes, Financial and Sustained Growth, Quality Consciousness & Commitment to improvement, Responsibilities towards manpower & environment, Management Concepts / Leadership skills, Vision and Mission, Customer Relations, Future Expansion Plans, Social Commitment, Technological Innovations, Export Performance, Quality of Services and Performance evaluation of the services.
Dr. Anup Pujari – Director General of Foreign Trade, Department of Commerce, Government of India presented the Awards

17. 17
Gujarat Business Excellence Award to Kandla Energy & Chemicals Limited, Ahmedabad under category of
Manufacturing & Export. Award received by Mr. Sanjay Rai - Chairman, Kandla Energy & Chemicals Ltd.
Gujarat Business Excellence Award to Sudar Industries Limited, Baroda under category of Manufacturing Sector. Award received by Mr. M.G. Subramanium-Executive Director, Sudar Industries Ltd.
Gujarat SME Excellence Award - Young Entrepreneur to DML Exim Pvt. Ltd., Rajkot under the category of Merchant Exporter. Award received by Mr. Darshan Lakhani – Managing Director, DML Exim Pvt. Ltd

18. 18
Gujarat SME Excellence Award to Sterling Addlife India Ltd., Ahmedabad under the category of Service Sector. Award received by Mr. Girish Patel, Chairman and Mr. Rajiv Sharma- Chief Executive Officer, Sterling Addlife India Ltd.
Gujarat SME Excellence Award to Industrial Boiler Ltd., Vapi in Manufacturing Sector. Award received by Mrs. Homai Engineer- Chairperson & MD, Industrial Boiler Ltd. On behalf of Mr. Rohinton Engineer- Director, Industrial Boiler Ltd.

19. 19
Gujarat SME Excellence Award to Ankur Scientific Energy Technologies Pvt. Ltd., Baroda in Technology and Innovation. Award received by Mr. Vinip Surana - CFO, Ankur Scientific Energy Technologies., on behalf of Mr. Ankur Jain –MD
Gujarat SME Excellence Award to Purbanchal Laminates Pvt. Ltd., Gandhidham in Manufacturing Sector. Award received by Mr. Rakesh Agarwal – Managing Director, Purbanchal Laminates Pvt. Ltd.
Gujarat SME Excellence Award to Vaishnavi Biotech Ltd., Bhavnagar in Manufacturing Sector - Agriculture. Award received by Dr. K.V. S. S. Sairam-President & CEO, Vaishnavi Biotech Ltd.

20. 20
Gujarat SME Excellence Award to Ultracab Pvt. Ltd., Rajkot in Manufacturing Sector. Award received by Mr. Nitesh Vaghasiya- Managing Director, Ultracab Pvt. Ltd.
Gujarat SME Excellence Award –Women Entrepreneur to Bankers Cardiology Pvt. Ltd., Baroda in service sector. Award received by Dr. Parul Banker - Medical Director, Bankers Cardiology Pvt. Ltd.

21. 21
Gujarat SME Excellence Award to Saga Laboratories, Ahmedabad in Manufacturer & Exporter - Pharmaceutical. Award received by Mr. Vinit Shah – Managing Director, Saga Laboratories.