businessFROM THE CHAIRMAN’S DESK

Ramesh DatlaChairman, CII National MSME Council

MSME

Journal of Small BuSineSS and enterpriSe Volume 2, iSSue 1, January 2012

Please write to me at: Chairman.CIIMSMEcouncil@cii.in

Plus

INTERVIEW PG5

FDI IN RETAIL PG8

DEFENCE PG9

TRIUMPH PG13

MARKETING PG14

SMALL WoRLD PG3

ECoNoMIC RoUNDUP PG4

INTERNATIoNAL PG19

REGIoNS PG21

UPCoMING EVENTS PG23

Inside This Issue

`MSME SECToR PLAyS A SIGNIFICANT RoLE IN bALANCED AND INCLUSIVE GRoWTH'...PG5

Mr Radha Krishna MathurSecretary, Ministry of MSME, Government of India

Global fears of a double dip in the devel-

oped markets that could potentially

undermine cross-border trade and investment flows, and the relatively

bleak current domestic economic scenario marked by dipping GDP growth and falling fac-tory output, have posed new challenges to In-dian MSMEs, many of which have been assidu-ously building up their capabilities to move up the global manufacturing value chain. Viewed against this background, the Union Cabinet's nod for the Public Procurement Policy for Micro and Small Enterprises (MSEs) assumes great significance. The policy move to ensure that at least 20% of total annual purchases of Central ministries, departments and PSUs are procured from MSEs will provide the necessary impetus for small businesses in the country to raise their quality and productivity levels.

The procurement policy will deepen the small business foray into key and strategic sectors. Although the government is likely to exempt the defence sector from the MSE pro-curement policy, the SME attention is rightly transfixed on the emerging opportunities in the defence sector, stemming from the offset provisions. SMEs engaged in high-tech manu-facturing will particularly benefit from the de-fence procurement, more so in light of the de-fence establishment's accent on indigenization of equipment and component manufacturing. SMEs operating in this space would do well to align themselves with the large defence sup-pliers and thereby overcome the entry barri-ers in the defence industry.

Market access is key to the growth of MSME sector. Over the years, global outsourcing has opened up new markets for Indian MSME manufacturing firms. Indian MSMEs have been supplying a whole range of intermediate goods to global majors. Now, with insourcing gather-ing pace, domestic MSMEs are seeing fresh

growth opportunities. Insourcing is governed by factors like tax policies, access to natural and human resources, logistics and infrastruc-ture support, among others. Both outsourcing and insourcing trends will create new market opportunities for Indian MSMEs.

In the midst of these developments, Gov-ernment announced its plan to open up multi-brand retail to FDI. The decision has been tem-porarily put on hold but the writing is clearly on the wall. FDI will greatly benefit Indian MSMEs in terms of market access, knowledge sharing, and quality improvements.

The macro-economic outlook may not seem very promising at this stage but the growth opportunities for MSMEs are emerging from different quarters. To get the best of the situa-tion, Indian MSMEs will need to accelerate the adoption of new technologies. The govern-ment has ushered in a new scheme to promote the usage of Information and Communication Technology (ICT) among MSMEs. This scheme will enable MSMEs to adopt cost saving tech-nologies like cloud computing. ICT is central to these enterprises establishing partnerships with global buyers and suppliers.

Global partnerships will eventually drive the globalisation of Indian MSMEs. In this edition of MSME Business, we have focused attention on the potential areas of partnership between Indian and Brazilian small businesses. We have also touched upon other key developments linked with the MSME sector such as the new public procurement policy, defence procure-ment, outsourcing and insourcing trends, and FDI in retail.

We have also introduced two new sections in this journal which will serve as ready reckoners for our readers Ð a round-up of key economic developments that impinge MSME activities, a sum-up of the initiatives and activities spearheaded by our MSME re-gional teams.

We welcome your thoughts on the issues cited in this edition, and we invite you to pro-actively participate in the development of this journal and in the MSME Council's activities.

Industry innovation clusters for MSEs

The Ministry of MSME has de-cided to develop 25 clusters

as industry innovation clusters. The innovation wil l necessarily include successful commercial exploitation of new technologies, ideas or meth-ods through the introduction of new products and processes or through the improvement of existing ones. According to a statement issued by the ministry, it has adopted the cluster approach for holistic devel-opment of MSEs in a cost-effective manner. The institutional l inkages of clusters with technical and aca-demic institutions, incubation cen-tres, patent offices, research and development centres, etc., are em-phasized to make use of new ideas and knowledge for the benefit of the

cluster. Efforts have also been made to identify proactive associations and special purpose vehicles (SPVs) for this purpose. Soft interven-tions (technical assistance, capac-ity building, exposure visits, market development and trust building) and hard interventions (creation of tan-gible assets and infrastructure de-velopment) are undertaken in the existing clusters.

Electronic tracking system for PMEGP

The Ministry of Micro, Small and Medium Enter-

prises (MSME) wil l introduce an electronic tracking system for online tracking of all cases un-der Prime Minister's Employment Generation Programme (PMEGP) scheme. The system will track fi l ing of application, selection, sanction, disbur-sal, setting up of units and physical verif ication. The applicants wil l be able to view the status of their cases on-line. PMEGP was introduced in August 2008 by merging Prime Minis-ter's Rozgar Yojana (PMRY) and Rural Employment Generation Program (REGP) schemes of the ministry with a total plan outlay

of Rs 4,485 crore towards mar-gin money subsidy. It was aimed to generate an estimated 37.38 lakh additional employment op-portunities during the four termi-nal years of XI plan (2008-09 to 2011-12). Under this programme, financial assistance is provided to set up micro enterprises, each

costing up to Rs 10 lakh in service sector and Rs 25 lakh in manufac-turing sector. The assistance is pro-vided in the form of subsidy of up

to 25% (35% for special category including weaker sections) of the project cost in rural areas while it is 15% (25% for special catego-ry including weaker sections) for urban areas.

CII holds training programme for MSMEs

MFIs will be allowed ECB limit of up to $10 m

Select Indian MSMEs have formed 11 joint ventures with

their German counterparts in sectors such as auto components, machines and engineering goods, at the re-cently concluded third annual Indo-German Management Training Pro-gramme, organised by -CII-Avantha Centre for Competitiveness for SMEs in Chandigarh. According to media reports, 48 more JVs are likely to be formed in the next six months. Be-sides, the programme helped partici-pants from the Indian small sector to gain experience from their German counterparts. The programme was organised in collaboration with Ger-many to enhance the administrative, social, intercultural and professional competencies of Indian managers in the small sector.

Microf inance inst i tut ions (MFIs) wi l l be al lowed to

draw external commercial bor-rowings of up to $10 mil l ion. RBI would come out with a noti f ica-t ion on this . But MFIs would need to come out with a proper hedging strategy. The move is expected to address the issue of l iquidity that the microf inance sector has been witnessing in recent t imes. The regulator also sought to `correct ' an anomaly in the extant rules that al lowed only NGO MFIs to le-verage the ECB window. The maxi-mum l imit was f ixed at $5 mil l ion, too. MFIs have long been request-ing the Reserve Bank for a review of the s ituat ion.

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Economic Roundup

Ministry asks departments to implement P&PP policy

The unabated r ise of the Indian rupee continues to adversely

affect Indian exporters, especial-ly MSMEs. According to a survey, the exporters have complained that the 10% rise in rupee valua-t ion has rendered the export pro-ceeds uncompetit ive. The export-ers were recently given a rel ief package of Rs 14 bi l l ion by the government to offset their losses. The level of appreciat ion of the Indian rupee, which strengthened by 8.35% during the f irst half of this year, is second only to that of the Brazi l ian currency, which appreciated by 9.28% during the same period. Ris ing transact ions cost and lack of avai labi l i ty of proper infrastructure, coupled with l i t t le government support to exporters, have in the recent past threatened their better prospects for higher export proceeds. Ex-

porters are also j i t tery of the fact that the rupee would appreciate more and i ts effect v is-�-vis oth-er Asian currencies would erode away i ts competit ive edge.

Some MSMEs are cheering the crash of the rupee to the US dol-lar, as the cheap imports from China would become 15-20% costl ier . Manufacturing cost in India is higher due to infrastruc-ture and other bott lenecks. The weakening rupee has provided the cushion that Indian MSMEs needed to make them competi-t ive. Entrepreneurs are optimis-t ic that instead of buying Chinese or imported inputs, even big cor-porates would prefer to buy from domestic manufacturers. Often Indian f irms buy Chinese i tems to manufacture their products, due to i ts cheaper rates, but now they wi l l go for domestic inputs.

India Inc. raised their con-cern as the industrial output

shrank 5.1% year-on-year in October 2011. The October fig-ure released by the government marked a sharp slump from the 1.9% expansion posted in Sep-tember 2011, and was the first contraction in output for more than two years. Manufacturing production, which accounts for around 75% of the industrial in-dex, declined 6% year-on-year, while mining output was down 7.2% and capital goods output plunged 25.5%. Mr Chandra-j it Banerjee, Director-General, Confederation of Indian Indus-try (CII) , said the latest data was a serious disappointment that showed a severe industrial slowdown. "The sharp decline in the capital goods sector is of particular concern, as it in-dicates lack of investments, which wil l continue to be a drag on growth," Mr Banerjee said.

The s luggish output f igures are l ike ly to further undercut hopes that emerging markets such as India can power g lobal growth as Europe and the US struggle . "Urgent measures are required to induce invest-ments , inc luding creat ing a shel f of bankable pro jects , part icu lar ly in the infrastruc-ture sector , gradual ro l lback of interest rate increases , improve the f i sca l s i tuat ion, which in turn would help ease the ef fect ive rate of interest , " Mr Baner jee added.

I n d u s t r y c a p t a i n s b e l i e v e t h a t a s g r o w t h o f e i g h t c o r e i n d u s t r i e s r e b o u n d e d t o a r o b u s t 6 . 8 % i n N o v e m b e r 2 0 1 1 , i n d u s t r i a l g r o w t h i s l i k e l y t o b e p o s i t i v e f o r t h e m o n t h a f t e r a c o n t r a c t i o n i n O c t o b e r 2 0 1 1 .

In view of a High Court order, the Ministry of MSME, via a recent letter,

has asked all government departments to strictly implement the Government Purchase and Price Preference Policy for Micro & Small Enterprises (MSEs). It has been brought to the notice of the MSME Ministry that some of the Central and state government depart-ments are imposing a mandatory eli-gibility clause for a minimum turnover and amount of purchase orders ex-ecuted earlier to the tune of crores in the tenders floated, thereby restrict-ing the participation of the MSEs.

To provide assistance and support to MSEs for marketing their products, under the present Government Pur-chase and Price Preference Policy for MSEs, Government of India has been extending various facilities to the MSEs registered with National Small Industries Corporation (NSIC) under its Single Point Registration Scheme.

In addition, 358 items are reserved for exclusive purchase from the MSEs.

Assistance under Government Stores Purchase Programme in the form of res-ervation of products for exclusive pur-chase from small scale sector and price preference are among the major instru-ments for providing marketing support to the small scale industries. The num-ber of facilities to small scale industries under the programme included reser-vation of certain products for exclusive purchase from the small scale sector and price preference up to 15% in case of selected items which are produced in both large and small scale units. Under the Single Point Registration Scheme of NSIC, MSMEs enjoy availability of ten-der sets free of cost; exemption from payment of Earnest Money Deposit; exemption from payment of Security Deposit and price preference upto 15% over the lowest quotation of the large scale units (on merits).

Falling rupee: boon & bane for MSMEs Dip in IIP data raises alarm bells

The Cabinet has given its approv-al for the National Manufactur-ing Policy. How important is this policy for the MSME sector? The new policy initiatives recently announced by the government en-visage creation of 100 million addi-tional jobs in the next 10 years. This also covers liberalization of labour and environment regulations, single window clearance for all issues re-lated to industrial units, mega indus-trial townships equipped with world class infrastructures, incentives for adoption of green technology and financial/tax incentives to SMEs, etc. DIPP has prepared the National Manufacturing Policy, approved on 25.10.2011, for enhancing the share of manufacturing in GDP to 25% by 2022, increase the rate of job creation in manufacturing so as to create 100 million additional jobs, creation of appropriate skills, increase domestic value addition, enhance global com-petitiveness and ensure sustainable growth particularly with regard to environment. The policy instruments include incentives for SMEs.

Government has approved a pro-curement policy which makes it

mandatory for all state- run com-panies, ministries and depart-ments to procure 20% of their products and service needs from MSMEs. What is the likely impact of this move on the MSME sector?

The Public Procurement Policy is meant to promote MSEs (micro and small enterprises) by improving their market access and competitiveness through increased participation by them in government purchases. This initiative will enhance the market share of MSEs and growth of MSEs.

Will the recently unveiled defence production policy propel MSME growth and increasing their share of total industrial output. be-sides, how do you see the defence production policy supporting in-novation and R&D activities in the sector?The increase in spending on defence procurements as well as the require-ments of offsets will open up sig-nificant business opportunities for Indian SMEs and they can integrate themselves with the supply chains of national and international defence majors. The offset requirements will

Ministry of MSME, Government of India

Mr Radha Krishna Mathur

‘MSME Sector Nurtures Entrepreneurship, Meets Social Objectives’ Mr Radha Krishna Mathur, Secretary, Ministry of Micro, Small & Medium Enterprises, Government of India, provides an overview of the challenges, development of the sector and initiatives of the government in an exclusive interview. Excerpts:

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propel global OEMs (Original Equip-ment Manufacturers) to work in close coordination with SMEs. The defence sector is thus emerging as a lucra-tive market for SMEs and will assist in technology developments by way of transfer of knowledge through OEMs.

Rising interest rates, weaken-ing of the rupee against USD and the overall bleak global scenario could seriously impede MSME output and growth. What steps are likely to be taken by the MSME Ministry to shore up the sector's business confidence?High cost of credit is one of the key constraints faced by MSEs which af-fect their competitiveness adversely in the domestic and global markets. With a view to enhancing trans-parency in lending rates of banks and enabling better assessment of transmission of monetary policy, all scheduled commercial banks have been advised by the RBI to introduce the Base Rate System w.e.f. from July 1, 2010. Accordingly, the Base Rate System has replaced the BPLR sys-tem with effect from July 1, 2010. All categories of loans would henceforth be priced only with reference to the Base Rate. Banks are not permitted to lend below the Base Rate. It is expected that the above deregula-tion of lending rate will increase the credit flow to small borrowers at rea-sonable rates.The Ministry is implementing the "Performance and Credit Rating Scheme" for MSEs. The scheme is be-ing implemented through NSIC with the involvement of accredited rating agencies. The fee to be paid by the MSEs for the rating is subsidized by the government to the extent of 75% of the rating fee, up to a maximum of Rs 40,000. The rating serves as a trusted third party opinion on the unit's capabili-ties and credit-worthiness. A good rating enhances the acceptability of the rated unit in the market and also facilitates access to cheaper credit quickly and thus helps in econo-mising the cost of credit. Further, M/o MSME is implementing various

schemes relating to credit, namely Credit Guarantee Scheme, Credit Linked Capital Subsidy Scheme, Mi-cro Finance Programme, etc., for the promotion and development of MSEs. These schemes are aimed at facilitat-ing credit flow to the sector.

Are you seeing greater coopera-tion and meaningful collabora-tions between Indian MSMEs and their counterparts overseas? More recently, several MSME del-egations from across the globe attended the India Global Summit on MSMEs, 2011. What are your expectations from these develop-ments?The government has taken initia-tives to engage with their overseas counterparts in a fruitful manner through various MOUs/agreements/joint action plans for cooperation in the MSME sector with Ministries/Or-ganizations from some 14 countries including Mozambique, Romania, Mexico, Korea, Sri Lanka, among oth-ers. Such cooperation endeavours offer a window of opportunity to In-dian MSMEs by way of opening up of new markets. In addition NSIC is also engaged in promoting such inter-national collaborations that benefit MSMEs. The International Cooperation Scheme of the Ministry of MSME envisages modernization of Indian MSMEs and promotion of exports. It also covers deputing MSME business delegations to other countries, participation by Indian MSMEs in international exhibi-tions/trade fairs and holding interna-tional conferences and seminars on topics of relevance to MSMEs.

In what ways can the MSME sec-tor contribute to the overall goal of inclusive growth? Is the sector also contributing toward balanced regional growth in the country?The MSME sector is a dynamic and vibrant sector and nurtures entre-preneurial talent besides meeting the social objectives including that of providing employment to millions of people across the country. The MSME sector plays a very significant role in terms of balanced and inclusive

growth and contributes to the pro-cess of economic development, equi-table distribution of national income and regional dispersal of enterprises by way of mobilisation of capital and entrepreneurial skills.The sector employs about 60 mil-lion persons in over 6 million units across the country and contributes about 45% of industrial output and continues to show dynamism in terms of growth and employment genera-tion. It is a highly labour-intensive sector. The enterprises are scattered throughout the country. MSMEs are the real engines of growth which can promote inclusive and broad-based growth with inter-regional equity.

A significant number of MSMEs continue to operate in the unor-ganized sector. What steps would you advocate to bring the major-ity of these units into the orga-nized fold?The National Commission for the Enterprises in the Unorganised Sec-tor (NCEUS) has examined problems confronting enterprises in the unor-ganised sector and submitted its re-port with various recommendations to provide technological, marketing and credit support to the enterprises. Also, the Prime Minister's Task Force on MSMEs made several recommen-dations to create an overall enabling environment using appropriate legal and fiscal instruments to incentivise the transition of MSMEs from the un-organised sector to the organised sector. In pursuance of the above, action has already been initiated by different ministries/departments. In order to cater to the credit needs of the micro/unorganised sector, SIDBI has already set up a special cell for refinancing micro enterprises. An advisory group has been constituted to monitor the operation of the special cell. Further, a sub-group has been formed under the Working Group on MSMEs Growth for 12th Five Year Plan and its recom-mendations are being incorporated in the report of the Working Group. Enterprises in the unorganised sec-tor may make use of all such efforts initiated by the government.

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ture. However, issues like online se-curity threats need to be addressed adequately while adopting the cloud computing model of information and service sharing.

What steps may be taken to en-hance the market access for MSMEs, both within the country and overseas?The ministry has taken several initia-tives to facilitate MSMEs to enhance their market accesses both within and outside the country. Ministry of MSME organises exhibitions/fairs and buyer-seller meets across the country providing the MSMEs with an opportunity for displaying their products and capabilities. Under the MSE Marketing Development Assis-tance (MDA) Scheme, assistance is extended to individuals for partici-pation in overseas fairs/exhibitions, overseas study tours or tours of in-dividuals as member of a trade del-egation going abroad. The Ministry of MSME has also for-mulated two schemes under the National Manufacturing Competi-tiveness Programme (NMCP) to smoothen marketing of MSME prod-ucts. The activities supported un-der these components include assis-tance for upgradation/development for modern marketing techniques. Such participation provides an op-portunity to MSEs to generate busi-ness enquiries and access market trend in product design, marketing, pricing, packaging, etc.The Public Procurement Policy for MSEs is also there to enhance their market access in the country. For instance, financial assistance is pro-vided for use of bar code to enhance marketing competitiveness of MSEs. Participation of MSEs in exhibitions/ trade fairs are financially assisted by the government to enhance the mar-ket access overseas. Also, NSIC has launched a B2B web portal and established a Marketing Intelligence Cell for providing do-mestic and global market informa-tion to the MSMEs. The Public Pro-curement Policy for MSEs will also provide support to MSEs in market-ing their products.

The MSME sector already con-tributes over 40% of domestic industrial output, exports and employment. Is there scope for increasing this share further? What steps would you advocate for this?As per 4th All India Census of MSMEs (registered sector) 2006-07, the domestic industrial output (2006-07), exports and employment was Rs 7,07,510 crore, Rs 67,914 crore and 93.09 lakh, respectively.The MSME sector has shown consis-tent growth in terms of output, export and employment generation over the last few years. Still, huge potential exists in the sector. The government has provided an enabling institution-al mechanism by way of enacting the Micro, Small and Medium Enterprises Development Act, 2006 for promo-tion and development of MSMEs and to enhance their competitiveness. Further, the National Manufacturing Competitiveness Programme (NMCP) with ten innovative components has been launched to improve the produc-tivity and competitiveness of MSMEs. Also, initiatives such as MSE-Cluster Development Programme, Market Development Assistance, etc., would give rich dividends to the sector.

The MSME sector is often faced with challenges such as limited fi-nancing options, lack of adequate market and technology access, shortage of skilled workforce, etc. What kind of an eco-system would you recommend wherein all these issues are addressed, be-sides giving the MSMEs the global competitive edge?The ministry has been implementing various schemes for the promotion and development of MSMEs cover-ing credit access, infrastructure support, technology upgradation, marketing, etc. This inter-alia en-ables them to operate successfully in the present era of liberalisation and globalisation.Is vocationalising of education ad-equately geared to meet the work-force needs of MSMEs across the country? Would you suggest any al-ternative methods to strengthen the

training and development of human resources for this sector?Towards integrating entrepreneur-ship/skill development with the sec-ondary and university level educa-tion, the Prime Minister's Task Force on MSMEs has recommended the de-velopment of appropriate course cur-ricula for inclusion in the education systems across the country. Ministry of HRD, as the nodal ministry, has already held a meeting of group of state education ministers to discuss the draft National Vocational Educa-tion Qualification Framework. As the thrust of the M/o MSME is entrepre-neurship development, efforts are being to link this with the National Innovation Council.

Adoption of new web and IT tools will help MSMEs enhance their operational efficiency. Cloud computing is one aspect that has received a lot of attention lately. Is the government taking any spe-cific step to promote the adoption of these tools by MSMEs?The ministry has already launched the "Scheme for Promotion of Informa-tion and Communication Technology (ICT) in MSME Sector" as a compo-nent under NMCP with the objective of formulating a planned model of adoption of information technology in potential MSME clusters based on need analysis of stakeholders. It covers the entire chain of business from procurement of raw materials to after-sales service. This scheme would improve the competitiveness and operational efficiency of MSMEs so that MSMEs can sustain in the global competitive environment. The scheme envisages, inter alia, the es-tablishment of a national portal for MSMEs to provide e-commerce and e-catalogue related facilities to them. This portal will have adequate linkag-es with all the cluster specific portals established under the scheme. The cloud-computing model offers visible benefits to SMEs which are looking for easy-to-use, reliable and scalable applications to enable good business growth and also to dynamically scale their computing capability without having to invest in costly infrastruc-

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‘FDI in Retail Can Be a Game Changer’

In the last few months, the country has seen significant discussions on permitting FDI in multi-brand retailing. India being a signatory to the WTO General Agreement

on Trade in Services, which includes wholesale and retailing services, has had to open up its retail trade sector to foreign investment. There were ini-tial reservations on opening up of the retail sector, arising from fear of job losses, procurement from international market, competition and loss of entre-preneurial opportunities. However, the government has steadily opened up the retail sector to FDI. In 1997, FDI in cash and carry (wholesale) with 100% own-ership was allowed under the govern-ment approval route. It was brought un-der the `automatic route' in 2006, and 51% investment in a single brand retail outlet was also permitted in 2006.

Now, FDI in multi-brand retailing is put on hold until all stakeholders reach a consensus on the matter. Union Com-merce and Industry Minister, Mr Anand Sharma, has been quoted saying in the media that the government is committed to the reform agenda. Mr Sharma said, "There is only a suspension, there is no rollback of the decision. We will be talk-ing once again with all stakeholders."

CII Perspective CII has wholeheartedly welcomed the

decision to invite FDI in the retail sector. Mr B Muthuraman, President, CII, has said that FDI in retail would greatly improve the investment sentiment in the country. "At a time when declining investments have led to slower GDP growth, the entry

of foreign funds in retail as envisaged by the government would go a long way in boosting confidence," he said.

CII has also expressed its disappoint-ment when the move was put on hold. Mr Chandrajit Banerjee, Director General, CII, said in the media that "one of the most important ones, the game changer so to say, is FDI in multi-brand retail that was very much at there on cards. It is very dis-appointing that it didn't go through."

According to the CII Discussion Paper, earlier invited by the Department of In-dustrial Policy and Promotion (DIPP) on FDI in Multi-Brand Retail Trading, the move would benefit consumers, pro-ducers, especially small and medium enterprises (SMEs) and generate sig-nificant employment.

A CII press statement said that "FDI can help SMEs supply in large volumes, increase quality standards, and become vendors to international players." Tradi-tional trade will continue to have its own

place and should not decline. Even in the last three years when modern retail grew 24%, unorganised retail in the country continued to grow, albeit at a slower rate of 10% to 12%, the release said.

The government clarified that 30% mandatory procurement from small and medium enterprises (SMEs) clause will be applied only to Indian enterprises, not globally. "Sourcing of a minimum of 30% from Indian MSEs having capital investment of not more than $1 million has been made mandatory," the Minis-try of Commerce and Industry, Govern-ment of India, said in a statement.

The current size of the Indian retail market is $450 billion which is expect-ed to increase to $850 billion in the next 10 years. At present, 35% of prod-ucts are sourced from SMEs. The pro-jections are that by 2020, more than $298-billion worth products would be sourced from SMEs.

According to a CII press release, opening up of FDI in retail can in-crease organized retail market size to $260 billion by 2020. This would result in an aggregate increase in income of $35-45 billion per year for all produc-ers combined; 3-4 million new direct jobs and around 4-6 million new indi-rect jobs in the logistics sector, con-tract labour in the distribution and re-packaging centers, housekeeping and security staff in the stores.

CII has pointed out that the government also stands to gain by bring FDI in multi-brand retail trading and can be expected to receive an additional income of $25-30 billion by way of increased tax collection and reduction of tax slippages.

CII states FDI in multi brand retail will give a boost to the small sector and the economy as a whole. Besides, it would greatly improve investment sentiment in the country as declining investments have led to lower industry output and slower GDP growth

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Defence

Defence Sector, A Big Ground For Small Players

Government of India, said that the de-fence sector wants to go for indigeni-zation for the spare parts and therein lies the opportunity for the MSMEs.

The DPrP document says that the government will endeavour to build a robust indigenous defence industrial base by proactively encouraging larger involvement of the Indian private sec-tor in design, development and manu-facture of defence equipment. Towards this end, efforts would be made to pro-gressively identify and address any is-sue which impacts or which has poten-tial of impacting the competitiveness of the Indian defence industry in compari-son to foreign companies. To synergise and enhance the national competence in producing state-of-the-art defence product within the price lines and time-lines that are globally competitive, all viable approaches such as formation of consortia, joint venture and public private partnerships, etc., within the government approved framework will be undertaken. Mr Nalin Kohli, Chair-man Ð CII Defence SME Committee, remarked that India has very strong IT capabilities and modern defence prod-ucts have a huge software component. He said this while discussing the role, opportunities and challenges of Indian MSMEs in the production of defence equipment, at the India Global Summit on MSMEs 2011.

MSMEs need to make right assessment of defence procurement opportunities

The global defence industry, which is primarily dominat-ed by a few Original Equip-ment Manufacturers (OEMs), works in close co-ordination

with micro, small and medium enter-prises (MSMEs). The reason why OEMs prefer to work with MSMEs is because of their innovative capabilities in niche manufacturing, greater flexibility, low-er overhead costs and their ability to learn and absorb new technologies.

In India, a large number of MSMEs serve as suppliers to defence PSUs and have a role to play in the Indian defence market, but their potential is somehow underutilized. The recently unveiled first-ever Defence Production Policy (DPrP) is the testimony of the Govern-ment of India's efforts to enhance the potential of MSMEs for indigenisation and broadening the defence research and development base of the country.

According to the new Defence Pro-duction Policy, preference will be given to indigenous design, develop-ment and manufacture of defence equipment. Therefore, wherever the required arms, ammunition and equip-ment are possible to be made by the Indian industry within the timelines set by the services, the procurement will be made from the indigenous sources. Whenever the Indian industry is not in a position to make and deliver the

equipment in the requisite time-frame, procurement from foreign sources would be resorted to, as per Defence Procurement Procedure.

At the India Global Summit on MSMEs 2011, jointly organised by CII and the Ministry of Micro, Small & Medium En-terprises, Government of India, in New Delhi on October 19-20, 2011, experts observed that MSMEs can play an ac-tive role in the army's drive to inde-genise production of equipment and spare parts. Brigadier Raja Puri, DDG Indigenization, Ministry of Defence,

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The defence industry is of strategic importance to any nation. The Govern-ment of India acknowledges the fact that India needs to increase its self re-liance. On the other hand, the interna-tional defence industry today is global in nature with a complex network of global supply chains. Therefore, it is imperative for Indian companies, espe-cially MSMEs, to integrate themselves with the supply chains of national and international defence majors in order to reduce the country's dependence on foreign supplies and to gain a foothold in the international defence market. Mr Harvansh Batra, Director (Sourcing) of EADS, observed that Indian MSMEs have good capabilities in the defence sector; however, they need to focus on quality, cost and delivery.

The government has announced that policies will also be put in place to en-courage the private sector to strength-en their research and development wings so that constant upgradation and improvement in systems under manufacture is possible. The govern-ment will set up a separate fund to pro-vide necessary resources to public and private sector including MSMEs as well as academic and scientific institutions to support research and development of defence products.

At present, 70% of the armament requirements of the Indian armed forces are met through imports. But this scenario is likely to change once the DPrP is implemented in full, and subsequently Indian MSME would ben-efit hugely from this. Earlier, Indian defence production was an exclusive domain of the public sector undertak-ings and the Ordnance Factories. Since 2000, the government has increased private participation in the sector.

Challenges for MSMEsCommodore S Samaddar, Vice Presi-

dent Nova Integrated Systems, said at the Summit that defence business is public funded and the offset policy is a challenge for the MSME sector. Offsets, introduced in 2008, made it mandato-ry for foreign arms vendors to plough back 30% of a defence deal worth over Rs 300 crore (USD 66 million) to the domestic defence industry, thereby vi-talising the sector in India. However,

the defence ministry had released the revised procurement procedure to be followed for acquiring arms, weapons and other systems for the armed forces under which it had diluted the offsets clause.

The procuredure for 2011 has now included sectors such as civil aviation and internal security for foreign ven-dors to discharge their liabilities under the offsets clause. Mr Aslam S Khan, President & Divisional Head, Bharat Realtime Ltd, observed that MSMEs can be banked upon in the defence procurement business. However, they need to understand the commercial ar-rangement of offset to succeed in this business. He cautioned that foreign OEMs are large and they have very little to share with MSMEs.

In the current environment, increas-ing competition, cost pressures, rising energy costs and high raw material prices are key challenges for defence manufacturers. The industry is wit-nessing outsourcing of elements of technology, design and component/subassembly manufacture. This trans-formation provides an opportunity for those MSME vendors which can innovate, adopt high-level technolo-gies, implement best practices and invest in change. Mr Deepak Sharma, Head Ð Procurement, BAE Systems Ltd, stressed that the MSMEs need to have a long-term policy if they want to operate in the defence sector. He also observed that MSMEs need to under-stand the supplier landscape and the tax structure prevalent in the country to work in the sector.

To be able to integrate with the sup-ply chain, MSMEs need to know their clients well, understand their require-ments, gain their confidence and dem-onstrate a strong commitment to de-

velop a long term business relationship. Such initiatives by MSMEs coupled with government's policy to enhance the role of MSMEs in the Indian defence industry. It has been observed that in order to succeed the MSMEs need to understand the technology matrix of the defence sector.

CII Role CII has been playing an active role

in the areas of steering defence policy formulation, market devel-opment, trade promotion and for-mulation of international joint ven-tures and technology transfers. "CII believes that, in order to create a self reliant defence industrial base in the country, the small and medium scale industries should be benefited in terms of getting access to newer technologies, strengthening the infra-structure, manufacturing and manage-rial capabilities as well as by becoming part of the global supply chain for de-fence and aerospace products," main-tained Mr Gurpal Singh, Deputy Direc-tor General, CII.

The Defence Production Policy has been prepared after extensive con-sultations with various stakeholders including CII. The industry body has always highlighted the issues relevant to MSMEs in the defence sector and the key actions that are needed to fa-cilitate an enhanced role for them. The industry chamber has always urged the government and industry to proactive-ly address issues concerning MSMEs in India and contribute in formulating a strategy for their significant participa-tion in opportunities in the defence in-dustries.

"CII has always emphasised on the growth and participation of SMEs in the defence production. Indigenisation is very critical for our defence forces to become self-reliant and cut down the exports," said Mr Singh. "With constant perseverance of CII, Government of India announced a major policy initia-tive in 2002 permitting private sector participation in the defence produc-tion. The guidelines issued in 2002 al-lows up to 100 per cent private sector participation in this sector with foreign direct investment up to 26 per cent," Mr Singh added.

Financing MSMEs In Current Economic Scenario

Worldwide, the wind has been changing in the fi-nance sector in general and banking-investment sector in particular.

Such a panorama teaches us that now is the time for cooperation rather than competition, it's a time for convergence rather than cutting each other's neck over customers and markets, and it's a time for consolidation rather than an-tagonism.

A ray of hope is seen in the small and medium enterprises (SMEs) which are an emerging, inevitable and profitable target market for the financers, i.e., fi-nancial institutions and banks. Howev-er, that does not mean that banks and financial institutions will back-up the social banking; rather than being seen as directed and philanthropic-like fi-nancing, such lending should be viewed as being business driven.

SMEs play a catalytic role in the de-velopment of any country. They are the engines of growth in developing and transition economies. In India, they account for a significant proportion of manufacturing, exports and em-ployment, and are major con-tributors to the GDP.

Curing any fatal dis-ease requires doses of small pills; impressive thoughts come out from the small brain. Similarly, India requires to accord due prominence to SMEs for curing its problem of low economic growth vis-�-vis developed nations. To cure the overall disease of lack of appropriate growth of Indian SMEs, India needs to put in place several small pills such as adequate credit delivery to SMEs, better risk management, techno-logical upgradation of banks, espe-cially public sector Banks, attitudinal

change in bankers, and so on. However, given the level of SME ap-

petite for credit facilities, private and public sector banks in India need to work out a unique and innovative mod-el for financing enterprises in this vital sector.

The need of the hour is to enhance SME risk management skills. Risk man-agement is key to success in which adoption of the state-of-the-art technol-ogy and latest rating and management skills turn out to be the significant aid for better risk management. The ability to gauge the risks and take appropri-ate position will be key to successful fi-nancing in the emerging Indian banking scenario. Risk-takers will survive, effec-tive risk managers will prosper and the risk-averse are likely to perish.

In this context, Indian financiers have to ensure that: l Risk management trickles down from the corporate office to branches. They should be made more accountable and respon- sible towards their duties.

l As audit and supervision shifts to a risk-based approach rather than trans-action oriented, the risk awareness lev-els of line functionaries will also have to increase. l A clear assessment of the growing need for banks to deal with issues re-lating to `reputational risk' to maintain a high degree of public confidence for raising capital and other resources.

With the successful adaptation of these imperatives, the technological advancement of Indian financiers would create a soothing climate to manage their risk in a better way. In the years to come, technological developments would render flow of information and data faster, leading to prompt appraisal and decision-making. This would enable banks to make credit management more effective, besides leading to an appre-ciable reduction in transaction cost.

Banks and financial institutions should also come together to share facilities in the areas of payment and settlement, back-office processing, data warehousing, and so on, mainly for cost effectiveness and with a sec-ondary motto to provide everything under one umbrella.

The advent of new technologies could see the emergence of new play-ers doing financial intermediation. For example, we could see utility service providers offering, bill payment ser-vices or supermarkets or retailers do-ing basic lending operations. Hence, for better profit margin, with the help of technological innovation, consoli-dation and innovation in lending, the conventional definition of financing might undergo changes.

Financial institutions need to adopt innovative models for financing MSMEs

Credits: Management Team of Religare

Finvest Limited -- Lending Arm ofReligare Enterprises Limited

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Growth Driver

No Strings Attached

Delayed payments have con-tinually affected the busi-ness prospects of domestic MSMEs, most of which are constrained by lack of ad-

equate working capital. Hence, the Lok Sabha passing the Regulation of Factors (Assignment of Receivables) Bill 2011 on December 21 assumes critical impor-tance for the sector. The CII National MSME Council had been proactively ad-vocating the need to promote `factoring' services for the benefit of MSMEs.

The Council in its recommendations made to the Working Group on MSMEs Growth for Twelfth Five Year Plan (2012-17) called for promoting `factor-ing' as mandated under MSMED Act 2006. The provision stipulated man-datory factoring of a receivable of an MSME in case the payment is delayed beyond 45 days. That is, in the `delay period' the receivables would auto-matically become eligible for factoring on a non-recourse basis.

The Council also called for a new fac-toring vehicle to be set up or for PSU Receivables under Factoring Law Guide-lines to be framed. Alternatively, existing factoring companies were to formulate the necessary regulatory framework.

The Regulation of Factor (Assignment of Receivables) Bill, 2011, introduced in the Lok Sabha on March 24, 2011, sought to regulate the business of factoring by providing a mechanism for assignment of receivables of an industry to a factor and payment of consideration by the factor to the industrial unit.

The Bill provided that no factor may commence or carry on the factoring business without a certificate of reg-istration from the RBI. It also provided for empowering the RBI to issue direc-tions, call for information from the factor, and prohibit financial institu-tions from undertaking the factoring business if they fail to comply with its directions. If any factor failed to com-

ply with an RBI direction, the factor and every officer in default would have to pay a fine of up to Rs 5 lakh and an additional fine of Rs 10,000 for each day the default continues.

The Bill referred to the factor as the "assignee", the industry selling the re-ceivable to the factor as the "assignor", and the person liable to the industry as the "debtor". Under the Bill, assign-ees would be given the right to secure due payment of the receivable from the debtor and may exercise all rights of the assignor for this purpose.

Debtors shall have the right of no-tification of assignment. The assignee will not be entitled to demand payment from the debtor until the notice is giv-en. Where no notice is given by the as-signor or assignee, any payment made by the debtor to the assignor shall be held in trust by the assignor for the benefit of the assignee.

If the assignor is an MSE, the liabil-ity of the debtor will be subject to cer-tain provisions of the Micro, Small, and Medium Enterprises Development Act, 2006, which regulate payment and re-covery of debt.

Every factor will be required to file the particulars of every transaction of assignment of receivables within 30 days from the date of assignment with the Central Registry, to be set up under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002.

With the passing of the Bill, MSMEs have emerged as a key target for fac-toring companies. Key benefits that fac-toring affords to MSMEs are:l Improved cash flow: Factoring provides instant availability of cash on receivables thereby addressing the funding problems of MSMEs.l Elimination of default risk: The factoring company undertakes the credit risk, thereby eliminating the same for the MSMEs.

l Freeing up of fixed assets for collateralisation elsewhere: Given that factoring services generally do not require fixed assets as collateral against advances, these assets can then be used as collateral for other kinds of loans. l Resources freed up from sales ledger management: As factoring companies undertake collections and sales ledger management of their cli-ents, MSMEs are able to save their re-sources and utilise them for other busi-ness needs.

Forfaiting is another powerful tool in the hands of MSMEs for managing their financing needs. The term forfait-ing means to surrender one's right on something to someone else. In interna-tional trade, forfaiting may be defined as the purchasing of an exporter's re-ceivables at a discount price by paying cash.

For the exporter, the key benefits of forfaiting are:l 100% financing: Once the export-er obtains the financed fund, he will be exempted from the responsibility to re-pay the debt.l Improved cash flow: Receivables become current cash inflow.l Risk reduction: Forfaiting busi-ness enables the exporter to transfer various risk resulted from deferred payments, such as interest rate risk, currency risk, credit risk, and political risk to the forfaiting bank.l Advance tax refund: Through for-faiting the exporter can make the veri-fication of export and get tax refund in advance just after financing.

Forfaiting, like factoring, has not been adopted widely in India as it is still a relatively new concept among MSMEs. Besides, there are only a limited num-ber of institutions offering this service. Awareness building regarding these services will encourage more MSMEs to avail of these benefits.

MSMEs facing working capital constraints would be better off accessing factoring and forfaiting services

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Payments

12

cessity drove the company to develop an alternative technology relying on salt frac-tionation, patented as HIMAX technology, which was as effective as ultracentrifuge in separation of VLPs. The relatively lower capital investment and cost effective man-ufacturing process gave Bharat Biotech the edge to market the vaccine at very low prices that revolutionized the vaccine industry in India.

On June 6, 2011 when Bharat Biotech an-

nounced ROTAVAC, India's first indigenously developed Rotavirus vaccine for $1 a dose for global populations; the company moved one step closer to turn another big dream to reality. ROTAVAC expects India licensure and global supplies during 2014. Bharat Biotech is thankful to its funding agencies in making the rotavirus vaccine dream into reality.

Bharat Biotech hopes that the new vaccine will help prevent atleast part of the 500,000 child deaths each year due to rotavirus diar-rhea, and improve access to better, afford-able rotavirus vaccines in the developing world. The vaccine is currently undergoing Phase III clinical safety and efficacy trials in 8,000 subjects, and it is one of the largest such clinical trials ever conducted in India.

Social responsibility is a key aspect Bharat Biotech's business and that's why Bharat Biotech lays importance on region specific diseases like chikungunya, typhoid, malaria, and JE and Chandipura virus en-cephalitis, public health care issue never addressed by the vaccine development sec-tor. Initiatives in regional diseases also gave us leadership and the confidence that we

Dr Krishna M Ella, CMD, bharat biotech

Innovation, Key to Success

Bharat Biotech (www.bharatbio-tech.com) enjoys a unique space in the biotech industry in India since its establishment in Ge-nome Valley in the year 1996.

The company's business strategy relied on strong manufacturing platforms comple-mented by capabilities in R&D and continu-ously strives to explore new market areas through strategic alliances and partnerships. Today, Bharat Biotech is a globally acknowl-edged leader in the development and manu-facture of vaccines and biologics.

Founded by Dr Krishna M Ella and Ms Suchitra K Ella, Bharat Biotech's focus is to discover novel medicines to solve neglected diseases a problem that affects the 5.8 Billion, emerging market populace. Its discovery principle lays strong emphasis on innovative product oriented research, and strengthening manufacturing capabilities to rigorous cGMP standards, and create a strong platform to take up challenging projects on known and emerging infectious diseases.

Today, Bharat Biotech's indigenously developed vaccines and biopharmaceu-ticals are providing affordable healthcare for the underprivileged sections of society. The company's product range includes vi-ral and bacterial polysaccharide, subunit vaccines, biotherapeutics and nutraceuti-cals. In the last one decade, Bharat Bio-tech has delivered more than 1.6 billion doses of vaccines in over 65 countries.

When Bharat Biotech set out in 1996, the founders decided that innovation has to be in every aspect of its business, be in R&D, process development, manufacturing or even in marketing. Its business model relied on establishing strong manufactur-ing platforms with diverse technology ca-pabilities to tap newer opportunities.

Bharat Biotech's strong manufacturing platforms not only helped drive revenues but also meet its core mission±Innovate. When Bharat Biotech started manufac-ture of hepatitis B vaccine the biggest hurdle was preparative ultracentrifuge that has prohibitively expensive. The ne-

have the capabilities to develop novel vac-cines like any MNCs. The company's ongo-ing programmes include typhoid conjugate vaccines and combined Phase I/III trials of JE vaccines with licensed technology.

Bharat Biotech sees IP (intellectual prop-erty) as a major step forward in the biotech sector. The organization wants India to be acknowledged as a country that can take care of its own unmet needs in the health-care sector and, not just as a destination of

low-cost vaccines and biological.The company has successfully commer-

cialized many products and increased its market presence in India and several other developing countries through strategic mar-keting alliances and partnerships. It has near-ly 40% market share in hepatitis B vaccine with REVAC-B, which its flagship product.

In February 2009, Bharat Biotech launched COMVAC-5, a single-shot pentavalent com-bination vaccine which contains the first indigenously developed and manufactured haemophilus influenza type-b (Hib) in combi-nation with hepatitis B vaccine and DPT.

Bharat Biotech is the first and largest manufacturer typhoid and rabies vac-cines in India. It is the first company in the developing world to launch a cell de-rived H1N1 pandemic flu vaccine the HN-VAC, where others have developed the less efficient egg-based platforms.

The company has secured patent rights for lysostaphin, a potent anti-Staphylococcal molecule for foray into the regulated mar-kets including USA, Europe and Australia. RE-GEN-D which is recombinant epidermal.

Bharat Biotech is a leader in manufacturing of vaccines and biologics

Ms Suchitra K Ella, JMD, bharat biotech

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Triumph

bharat biotech

Search For Top Slot

It is an accepted fact that the In-ternet is going to play an increas-ingly important role for all enter-prises, big or small, in the way they market their products or

services, given the rapid rate at which consumers are transitioning away from traditional media. In fact, it has been found that media consumption is moving to the Internet from more tra-ditional channels at an unprecedented pace. It is good news for micro, small and medium enterprises (MSMEs) as they are not as disadvantaged when it comes to marketing online, as they have been with more traditional medi-ums, like television or print.

Once there is an appreciation that MSMEs need to be fully engaged in In-ternet marketing, the question shifts to how they should approach this op-portunity. MSMEs tend to lean towards spending their limited resources in making more attractive, more func-tional websites under the notion that "if my website is better than my com-petitors then it will attract more po-tential customers." This approach bears little fruit and often increases the mystic of Internet marketing when few gains are achieved.

SEO for MSMSE The online search has triggered fun-

damental changes in the way people seek and find information. Given the importance of the search engine as a method for finding information, it offers opportunities galore as a mar-keting medium to firms, especially for MSMEs. With the recent economic downturn, and subsequent budget cuts, when it comes to web marketing, it is the search engine marketing (SEM) method that advertisers turn to. There are numerous measures which may be opted for. However, SEO is found to

be the favourite among various SEM strategies of organizations, with over 70% money being allocated to it in the planning, according to a survey.

SEO is the process of identifying and fine-tuning elements of a website in order to achieve the highest pos-sible visibility when a search engine responds to a relevant query. SEO le-verages the search engine algorithm to channel users to specific websites, the results of which are referred to as organic results. In the case of paid search engines, any search triggers a display of advertisements based on the topic or keyword entered. It has been found in a survey that searchers tend to trust organic links or editorial list-ings (SEO) over sponsored links (Paid Search), and customers referred from organic links generally tend to stick around longer.

The reason why the marketing pun-dits advise SEO for MSMEs, is because it takes little initial investment to execute, while other advertising measures in-

volve overhead campaign management charges, in addition to the basic charg-es. The fact that a major part of SEO in-volves overhauling the website design in terms of copy and code offers a distinct advantage to MSMEs. To execute SEO on a Flash-heavy website is more cumber-some than to do it on a simple website. This advantage will always be available to MSMEs over bigger enterprises.

SEO works towards generating or-ganic traffic towards the website which can be monitored and acted upon. SEO allows organisations to access custom-ers that are already looking for what is being offered, thus enabling to pull in-quiries rather than pushing the prod-ucts or services to an audience that are not interested in them.

Once SEO is executed, generally the website is ranked substantially high with a certain keyword. High ranking websites generally enjoy more visibil-ity and better brand perception online. Thus, the value delivered by SEO in terms of branding is invaluable.

In the Internet marketing strategy mix, search engine optimisation (SEO) is a preferable and highly lucrative investment for MSMEs

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Prevent a Data Tsunami

Today, average consumers routinely tote hundreds of gigabytes of data with them everywhere they go, and businesses are expected to

store absolutely everything they doÐ-from emails all the way to corporate videosÐand make it all easily acces-sible to users. In fact, we are living in the age of `information overload'. Companies are relying heavily on en-terprise planning systems like ERP, SCM and CRM to automate and manage their resources. The structured and unstructured information is required to be stored and retained within these systems for various strategic, busi-ness and regulatory requirements. The exponential growth in data and the most effective ways of manag-ing that data are being seen as big-gest challenges by companies today. Given issues such as data archiving, data security, disaster recovery and storing and managing the information continuously streaming in, companies recognise that this is no longer just a backroom IT issue but really among the key CXO concerns.

Information by itself is considered a resource and enterprises need to plan effectively and put the right combination of strategy, software and hardware tools in place to avoid a data tsunami. Apart from the new data that is generated every day, the strict data retention policies and le-gal regulations to retain transactional data over long periods is fuelling data growth. This is where the increas-ingly popular concept of intelligent data management (IDM) comes into picture. IDM helps companies strate-gies on how to manage data through its lifecycleÐfrom the time the data is generated/captured to the time it is deleted from the systems.

While there are some technolo-gies like Data de-duplication and iSCSI consolidation that businesses increasingly find exciting, some of these technologies are still in their early stages of evolution as custom-ers seek to understand the associ-ated ROI. Not just large enterprises but small and medium business (SMB) have also stopped dumping data and have started using storage solutions for business continuity purposes. In fact the SMB segment in India has consistently defied industry growth and is delivering marvelous results as of today. They are steadily realising the power of technology in boosting their enterprise. It thus becomes a must for every business to capitalise on the shining segment and channel is going to play a big role in reaching out to them.

Just like vendors, channel part-ners need to understand that most of these businesses do not have an IT person, let alone an IT department and, therefore, look at complete end-to-end solutions as opposed to indi-

vidual hardware products. According to Gartner, AsiaÐPacific mid-sized business are slower in adopting serv-er virtualisation technologies com-pared to their European and North American counterparts, and it cites training and skills as the reason. The role of the vendor has got a lot big-ger as they need to fill in the role of a trusted IT partner and Dell is aiming to be just that.

On the channel front, vendors need to align themselves seamlessly with channel partners to offer simple, easy to set up, easy to run solutions that would have shorter delivery cycles and a robust support and services. This vendor-channel partner integra-tion can take place with the help of tools that can felicitate better learn-ing about the products/solutions, constant feedback and so on. Once this task is accomplished we could see storage technologies like data de-duplication and iSCSI consolida-tion being adopted at an increasing rate as more businesses will start to understand the associated ROI.

Intelligent Data Management (IDM) helps companies manage data through its lifecycle—from the time the data is generated to the stage when it is deleted from the systems

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Technology

New Procurement Policy: Timely Growth Impetus For MSMEs

The recently announced Pub-lic Procurement Policy for Micro and Small Enterprises (MSEs) provides for a mini-mum of 20% of total annual

purchases of Central ministries, de-partments and public sector undertak-ings (PSUs) to be procured from MSEs. Of the 20% share of annual procure-ment from MSEs, 4% (or 20% of 20%) shall be reserved for procurement from MSEs owned by Dalit and ST entrepre-neurs. Besides, all Central ministries, departments and PSUs will have to organise special vendor development programmes and buyer-seller meets to further this goal. They will have also to report their targets and achievements with respect to procurement from MSEs in their annual reports.

Ministries, departments and PSUs that fail to meet the mandatory goals laid down in the public procurement policy will be required to provide rea-sons to a review committee headed by the Secretary of the Ministry of Micro, Small and Medium Enterprises (MSMEs). Mr Virbhadra Singh, Minister of Micro, Small & Medium Enterprises, Government of India, has been quoted saying that the policy would become mandatory within a span of three years. A committee has been set up un-der the Secretary of Ministry of MSME to review the list of 358 items reserved for exclusive purchase from MSEs.

Reflecting on this policy move, Mr Chandrajit Banerjee, Director General, CII, said the Public Procurement Policy is aimed at improving transparency and providing the MSEs access to many high value contracts, in sectors such as

defence, where the offset policy would complement the Public Procurement Policy. In line with the CII's Affirmative Action Agenda, the policy shall help and facilitate the backward and social-ly weak entrepreneurs gain a foothold in the procurement process of the gov-ernment and PSUs.

The CII study on worldwide procure-ment policies states that several coun-tries around the world have formulated such policies enabling their SMEs to compete strongly even in adverse eco-nomic conditions. The European Com-mission has prepared the 'European Code of Best Practices Facilitating Ac-cess by SMEs to Public Procurement Contracts'. United Kingdom govern-ment has proposed to award 25% of public contracts to SMEs; all govern-ment spending up to a specified limit is published online.

In Australia, the government has committed to FMA agencies sourc-ing at least 10% of their purchases by value from SMEs. In Brazil, the gov-ernment buys from SMEs, while at the same time providing technical assis-tance to all phases of the businesses involved in procurement. In China, to help alleviate the tight credit environ-ment and less robust operating cli-mates confronting the country's SMEs, the Shanghai Municipal Government Purchasing and Procurement Center and Pudong Development Bank have joined forces with the local govern-ment to create a more enabling lend-ing and procurement environment for SMEs. With this SMEs will get more op-portunities to participate in the local government procurement process.

Various media reports suggest that the new procurement policy in In-dia will open business opportunities worth Rs 7,000 crore for Dalit and ST entrepreneurs. These entrepreneurs are now gearing up to tap this oppor-tunity by launching their own venture capital fund and increasing their pro-duction capacities.

India Inc has also been asked to help Dalit entrepreneurs grow. Mr Ratan Tata, Chairman, Tata Group has recent-ly urged India Inc to assist the small entrepreneurs, especially those from the Dalit community, to become global entrepreneurs. "We should all assist in letting small enterprises, especially those from the Dalit community, to become big and global enterprises. Ev-eryone in the country should help the young entrepreneurs and help them share the prosperity of the country," Tata said at a two-day national trade fair focusing on Dalit entrepreneurs. The event is supported by Tata Group, Godrej Group and CII.

The Tata group chairman also said the corporate India should use prod-ucts manufactured by the small enter-prises, and also help them increase their exports. "I am happy to endorse and support the cause of the Dalit en-trepreneurs," he added. At the same event, Mr Adi Godrej, Chairman, Go-drej Group & President Designate, CII, has appealed to the corporate India to help Dalit entrepreneurs as a part of the corporate social responsibility.

The policy is being perceived as a big step in the government and industry's efforts to promote inclusivity in the growth process.

The policy will induce MSMEs to raise their quality and productivity levels

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Policy

Budget 2012-13 Needs To Revive Growth: CII

The current domestic economic concerns notwithstanding, CII maintains that policy inter-ventions aimed at catalyzing investments will provide the

necessary growth impetus for the econ-omy as a whole. Here, the MSME sector has a key role to play. In the pre-Budget memorandum submitted with the Gov-ernment, CII has voiced the need for unraveling the true growth potentials of the MSME sector. This may be achieved through innovative fiscal initiatives.

The CII pre-Budget memorandum has called for:l Review of Income Tax Act: Tax benefits under section 10A & 10 B of the Income Tax Act, popularly known as STPI scheme, are getting over because of the `Sunset Clause'. This will adversely affect over 5,000 small software and IT services companies in the country. The Department of IT has already taken up the issue with the Ministry of Finance. As this principally affects SME companies, it would be appro-priate for the Ministry of Micro, Small & Me-dium Enterprises to take up the matter.l Revision of threshold for Ser-vice Tax exemption: The threshold for Service Tax exemption is very low and needs to be revised from the pres-ent level of Rs 10 lakh to at least Rs 25 lakh. This will provide relief to a large number of small companies in the ser-vices sector.l Review of Direct Tax Code: The new Direct Tax Code states that tax in-centives should be investment linked. This works against the MSME sector as this sector by definition is not capital intensive. In fact, the incentives should be linked to aspects like employment creation, as is the case in the UK and many other countries.

l Encourage IT penetration: To encourage wider use of ICT by MSMEs there is the need for enhanced de-preciation on IT products. This would greatly enhance MSME competitive-ness. It is recommended that the gov-ernment should consider according 100% depreciation, once in a block of three financial years, for an an-nual investment in IT equipment and software up to a limit of Rs 25 lakh, to the MSMEs. The ICT hardware/soft-ware equipment for which this depre-ciation is accorded should be excise duty paid/cleared and the software is original (genuine)/duly licensed. l Direct & Indirect Tax proce-dures: Simplify direct and indirect tax procedures/regulations and address `executive discretion'. l Encourage adoption of envi-ronment-friendly technologies: The promotion of environment-friend-ly energy technologies is important to enhance the self-reliance on energy. There is a need to create a Central Cli-mate Friendly Technology Fund to help MSMEs adopt such technologies.

l Establishment of a Venture Capital Fund with a corpus of Rs 10,000 crore: A PPP mode of op-erations for the fund with budgetary support (as seed fund) and ownership with SIDBI may be considered. The fund could be set up with an seed fund corpus of Rs 3,000 crore and enlarged to Rs 10,000 crore during the 12th Plan period with contributions from the banking sector. From this fund, `Anchor Investment' of 15% should be provided to any SME focused VC Fund launched in the country. l Uniform credit rating: RBI could constitute a group along with the In-dian Banks Association and the credit rating agencies to work out a uniform credit rating format and processes to bring about transparency.l FDI in MSMEs: There is a need for policy guidelines to encourage FDI participation by NRIs in the SME sec-tor Ð this would include automatic ap-proval for 100% FDI from NRIs, and other promotional measures, includ-ing a single window clearance, across all subsectors within the MSMEs.

CII has maintained in its pre-Budget memorandum that Budget 2012-13 should direct attention on stimulating investments and unshackling the true growth potential of MSMEs

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Roadmap For Growth

The terms of reference of the present Working Group on Micro, Small & Medium En-terprises (MSMEs) Growth for the 12th Five Year Plan

(2012-17), constituted by the Planning Commission, were to carry forward rec-ommendations of Prime Minister's Task Force and suggest a specific action plan to facilitate the overall growth of the MSME sector within the plan period. The Working Group's recommendations are classified under six important ver-ticals: (i) Credit & Finance; (ii) Technol-ogy; (iii) Infrastructure; (iv) Marketing; (v) Skill Development; and (vi) Institu-tional Structure. l Credit & Finance: Access to finance needs to be enlarged through alterna-tive sources of capital such as private equity, venture capital and angel funds. This is crucial for facilitating the growth of knowledge-based enterprises which have high potential in India. Further, prospective enterprises in emerging areas such as nano-technology, bio-technology, aero-space, defence-appli-cations and homeland security would also require such alternative sources of finance since traditional channels are unable to meet their needs.l Technology Upgradation & Sup-port for Emerging Sectors: The Group recommends setting up of a Technol-ogy Acquisition and Support Fund with adequate allocation to assist both de-velopment of indigenous technology and acquisition of global technology by Indian MSMEs. Separate schemes for installation of plants and equip-ment with advanced technologies, viz., CLCSS & NMCP components, should be merged into one scheme. Technology-oriented initiatives under NMCP should be clubbed as the modified NMCP Scheme and offered to MSME Clusters/

Mini-Clusters as a package in the caf-eteria mode and they can develop their own projects as per requirement. The Group recommends that during the 12th Plan period, at least 20 modular industrial estates with plug-and-play facilities in the respective areas may be launched in collaboration with IITs, IISc and other premier institutions.l Infrastructure Development: To strengthen and expand existing Inte-grated Infrastructural Development (IID) Scheme, the Group recommends that the eligible project cost for in-frastructure development (excluding cost of land) for Government of India assistance should be enhanced from the present limit of Rs 10 crore to Rs 15 crore. To complement the efforts of state and Central governments, private sector (companies and SPVs) should also be allowed to participate in the development of infrastructure, with Government of India assistance under the Micro & Small EnterprisesÐCluster Development Programme (MSE-CDP). l Marketing: The Group recommends new schemes especially in areas like use of ICT for creating cluster-level, state-level and national level B2B por-tals with connectivity to international markets and marketing infrastructure such as setting up of testing facilities and establishment of information dis-semination centres and display-cum exhibition centres. Recommendations are made for setting up of marketing organisations in clusters in PPP mode through formation of SPVs, which would form the focal point at the cluster level for all

marketing related activities such as e-marketing, branding, advertising, bar-coding, participation in domestic and international trade fairs, etc.l Skill Development: The Group recommends upscaling of the training capacity of the MSME ministry through the public-private partnership mode. Group also recommends that training programmes for skill upgradation of chief executives/owners of the MSMEs should be conducted. It is recommend-ed that a web-based management in-formation system be launched. To coor-dinate the entire process of conducting skill development programmes, setting up of a virtual SME university has also been recommended.l Institutional Structure: Prime Minister's Task Force, in its report, has made significant recommendations on liberalising the policy regime for the MSME sector, viz., introduction of In-solvency Act, liberalisation of labour laws, liberalisation of Apprenticeship Act, strengthening of District Industries Centres, etc. The Group has identified important areas like environmental is-sues, labour issues, exit policy amend-ment of MSMED Act and restructuring of the DICs and MSME-DIs, to be immediately addressed to unshackle the growth of the MSME sector.

The Working Group on Micro, Small & Medium Enterprises (MSMEs) Growth for the 12th Five Year Plan (2012-17) has recommended key initiatives in areas covering finance, technology, infrastructure, marketing, training and institutional structure

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International

A Samba With Small Biz

India's links with Brazil go back five centuries. In recent years, relations between Brazil and India have grown considerably and business cooperation be-

tween the two countries has been extended to diverse areas. Brazil is India's largest trading partner in Lat-in America and Carribean, with bilat-eral trade between India and Brazil reaching an unprecedented figure of $8.1 billion in the first ten months of 2011 (India's imports were a little over $3 billion; India's exports: $5.0 billion). In 2010, total trade was to the tune of $7.7 billion, showing a phenomenal rise from $828 million in 2000. India's exports registered a growth of 94% in 2010 over 2009.

On the investment front, Brazilian companies have invested in India in automobiles, IT, mining, energy, bio-fuels, footwear sectors, whereas In-dian companies have invested in IT, pharmaceutical, energy, agri-busi-

ness, mining, engineering/auto sec-tors in Brazil.

India and Brazil maintain close contacts in the multilateral fora, in particular in the UN, WTO and G-20. Cooperation through IBSA, BRICS and BASIC is another dimension of the bi-lateral relations.

Union Minister of Commerce & In-dustry, Mr Anand Sharma, said re-cently, "There is vast potential for cooperation between Indian and Bra-zil in a number of areas including the MSME sector".

Small Business in Brazil The small business sector is signifi-

cantly larger in Brazil, accounting for 99.23% of Brazil's enterprises; with 16 million small and micro enterpris-es contributing about 20% of Brazil's GDP and employing 60 million peo-ple or 56% of the urban workforce in the formal sector. According to the Brazilian Micro-Enterprise and Small

Business Support Service (Sebrae), there are 5.89 million registered SMEs and 10.34 million informal SMEs in Brazil.

The industry body maintains that the rapid rise of new companies in Brazil is related to the indomitable Brazilian entrepreneurial spirit that is coming into own. A greater entre-preneurial spirit is crucial for a coun-try where young people between the age of 18 and 24 comprise 36% of the unemployed workforce. Brazil has recognized this and has been taking determined steps to encourage en-trepreneurship. Brazil seems quite aware of the impact of new, growing businesses not only on employment but also on innovation, and this is reflected in the efforts to support start-ups.

Brazil has traditionally relied on its domestic economy, but that's all changing fast. Currently the eighth-largest economy in the world is ex-

Brazil is more than just the popular future host of the 2014 World Cup and 2016 Olympics. It offers entrepreneurs across the globe opportunities galore as the country has a significantly large small business sector contributing about 20% of GDP and employing 60 million people

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pected to grow to be the fifth-largest in a few decades. Even during the worst phase of the global meltdown, Brazil's domestic performance and output were solid thanks to small businesses in the country. Even the experts have been quoted saying in the media that many SMEs in Brazil have the potential to be listed on the stock exchange. "The country has 15,000 companies with annual revenue between $62.5 million and $250 million. Of that, 1% can go to the stocks market," said Mr Edemir Pinto, CEO of BM&F Bovespa, one of the largest exchanges in the world in terms of market value.

The Christian Science Monitor re-cently reported that "Brazil symbol-ises the way continents of the South are ramping up efforts to nurture new businesses." For instance, the government's Financing Agency for Projects & Studies (FINEP) has launched a significant project to sup-port start-ups titled PRIME which will disburse around $65,000 to start-ups focused on innovation. FINEP expects to help 10,000 innovative companies over four years.

This interest in an entrepreneur-ial strategy for growth will translate into pro-entrepreneurship policies in the future. The country has taken ac-tive steps to promote entrepreneur-ship, and innovative start-ups. For example, the country has tapped into

the Brazilian Diaspora. In 2005, the Inter-American Development Bank and Sebrae engaged in a $1.5 million technical cooperation programme to help Brazilians returning home from Japan with the goal of starting new businesses. Brazilians consti-tute Japan's third largest immigrant community, and most Brazilians re-port having moved to Japan to save money and open their own business-es upon returning to Brazil after 1-5 years. Under this programme, Sebrae selected and trained potential entre-preneurs. There are also several eco-nomic policies in Brazil focusing on technological innovation. In 2004, for instance, the government passed a law that allows federal university professors temporary leave to create a start-up.

Universities in Brazil are assum-ing an important and necessary role in the country's entrepreneurial and innovation ecosphere. University-based incubator programmes are flourishing. Take into account the fact that Brazil's incubator network has developed from 136 in 2000 to 400 today, and it reflects the power of Brazil's entrepreneurship boom. A Networks Financial Institute working paper argues that Brazil leads one of the most successful incubation movements in Latin America, with incubator models that are bottom up or suited to indigenous needs.

Indian Initiatives Likewise in India, the micro, small

and medium enterprises (MSMEs) have been accepted as the engine of economic growth for promoting equitable development. In recent years, the MSME sector has consis-tently registered higher growth rate compared to the overall industrial sector. With its agility and dynamism, the sector has shown admirable in-novativeness and adaptability to sur-vive the recent economic downturn and recession.

However, MSMEs have been facing great challenge in the era of globali-sation, privatisation and liberalisa-tion. With its consistent growth per-formance and abundant high skilled manpower, India provides enormous opportunities for investment, both domestic and foreign. To exploit this potential, Ministry of Micro, Small & Medium Enterprises, Government of India, and its organisations, through its various schemes and programmes, are providing support to the Indian MSME sector, by giving them exposure of the international market; foreign technology; sharing of experiences and best management practices in the international arena. Taking advantages of these schemes Indian small enter-prises can look for best practices and analysis of how new ventures are be-coming powerful engine moving Brazil up the global economic ladder.

World Cup to strengthen Brazil’s small businesses

Sebrae has mapped 930 business opportunities that will be cre-

ated as a result of the 2014 World Cup. This study was conducted un-der a partnership with the Getulio Vargas Foundation (FGV). It has identified business opportunities in civil construction; information technology; timber and furniture; textiles and apparel; tourism; tour-ism related activities; retail trade; agribusiness; and services. Sebrae President, Mr Luiz Bar-retto, has been quoted saying in the media that the World Cup is

an opportunity to build a mana-gerial legacy for Brazilian entre-preneurs. "We expect the World Cup to be a development hallmark

for micro and small businesses. In addition to the hundreds of business opportunities during the games, the improvements in terms of management, innovation and sustainability will make the difference for the future of those businesses. That's why we have developed the Sebrae 2014 Pro-gramme, as its objective is to help small entrepreneurs gear up to make the most out of the momen-tum generated by the World Cup. This is the legacy Sebrae expects to continue," he said.

Mr Rajiv Bajaj, Managing Director, Bajaj Auto Ltd at 7th MSME Development Meet, held in Pune on 8 December 2011

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A roundup of major MSME linked initiatives taken by CII regional offices

‘Evolving With Changes Is Important To Be Competitive’

Awareness Programme on SME Exchange

Evolving with the changes is highly im-portant to be competitive. This was

stated by Mr Rajiv Bajaj, Managing Direc-tor Bajaj Auto Ltd during his inaugural address at the 7th MSME Development Meet held at Pune on 8 December 2011. Mr Bajaj advised MSMEs to concentrate on their core strengths and avoid multi-tasking so that they are able to make the optimum use of their resources. Mr San-jay Sethi, Secretary, Small and Medium Enterprises and Development Commis-sioner, Industry, Government of Maha-rashtra, also addressed the session.

Mr Sethi talked about the new industrial policy of Government of Maharashtra and said that the state government has proposed a mini-cluster project for the development of MSMEs. He added that the gov ernment will also provide financial assistance to the

tune of Rs 5-7 crore for select projects.The conference covered four sessions

that included innovation, energy audit and conservation, finance and IT-cloud computing. The session on innovation was presided by Dr Naushad Forbes, Director,

Forbes Marshall Pvt Ltd. Mr H N Daruwalla, Executive Vice President, Godrej & Boyce Ltd, presided over the session on energy audit and conservation. Representatives of Zensar Ltd and Microsoft were present during the session on IT.

A full-day Buyer Seller Meet was also organized by the Western Region MSME subcommittee on 9 December. The meet saw the participation of leading com-panies in auto and engineering sectors. Representatives from government un-dertakings and PSUs were also present at the meet. General Motors India Ltd, Tata Auto Comp Systems Ltd, Piaggio Ve-hicles P Ltd, Anand Automotives Ltd, Na-val Dockyard, Indian Air Force, Mazagon Docks Ltd, Cummins India Ltd and Eaton Fluid Power Ltd made their respective presentations at the meet.

With the aim of creating awareness about the upcoming SME Exchange of Bom-

bay Stock Exchange, CII Rajasthan organised an interactive session with Mr Lakshman Gugulothu, Chief Executive Officer, SME Ex-change, Bombay Stock Exchange, at Jaipur on December 2, 2011. Dr Lalit Mehra, Principal Secretary, Labour & Employment, Govern-ment of Rajasthan, also participated in the deliberations. He spoke about the industrial labour reforms scenario in Rajasthan.

CII Western UP Zonal Council organised an interaction with Mr Sanjay Sinha, Di-rector, Employees State Insurance Cor-poration (ESIC), Noida. The objective of the interaction was to discuss and share the issues faced by industries in western Uttar Pradesh. At the session CII's initia-tives to bringing all stakeholders on a

common platform was widely applauded. To propel industrial growth, CII Haryana

State Council organised a conference on proactive strategies and a Buyer Seller Meet on December 14, 2011. The meet of-

fered an opportunity for the MSME play-ers to have one-to-one meetings with the larger companies and PSUs to explore pos-sibilities for future collaboration and busi-ness development. Bharat Petroleum Cor-poration Ltd, Power Grid Corporation Ltd, etc., were among the large companies that attended the meet.

With the objective of creating aware-ness on the latest policies and procedures related to customs, central excise and ser-vice taxes, CII Uttarakhand State Council organised an interactive session with Dr D K Bisen, Assistant Commissioner Customs, Central Excise & Service Tax on Decem-ber 12, 2011. At the session issues related to excise exemptions vis-�-vis central in-dustrial package given to Uttarakhand in 2003 were also discussed.

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Mr Lakshman Gugulothu, Chief Executive Officer, SME Exchange, Bombay Stock Exchange, Dr Lalit Mehra, Principal Secretary, Labour & Employment, Government of Rajasthan at Jaipur

CII Andhra Pradesh organised a seminar on Finance Availability for MSMEs in

Hyderabad on November 22, 2011. Mr R Kar-ikal Valaven, Commissioner of Industries, Government of Andhra Pradesh, Mr Ramesh Datla, Chairman CII National MSME Council & Managing Director Elico Limited, Mr S Du-rairajan, Deputy General Manager, Reserve Bank of India, and Mr M Babu Rao, Conve-ner, CII AP MSME Panel & Managing Director, GSB Forge Pvt Ltd attended the seminar.

CII Erode Zone jointly with EEDISSIA and MSME Development Institute, Government of India, organized the Erode MSME Con-clave 2011 on November 25, 2011. Mr V K Shanmugam, District Collector, Erode Dis-trict, Tamil Nadu, delivered the inaugural address and Mr S Sivagnanam, Director, MSME Development Institute. delivered the keynote address. Industry leaders and senior government officials participated in the various technical sessions.

Meanwhile, with an objective to provide business linkages between PSUs and MSME members, CII Southern Region organised a

Buyer Seller Meet at Mysore on November 11, 2011. The aim of the meet was to pro-vide marketing opportunities for MSMEs on their strength and competitiveness; provide an insight into modern technological devel-opment; showcase capabilities of industrial equipment and machinery suppliers, man-

ufacturing and technology and service pro-viders. Companies that made presentations about their requirements and procurement processes included Hindustan Aeronautics Ltd, ISRO, among others. CII Karnataka or-ganised an MSME meet on December 19, 2011 at Bangalore.

CII North Bengal Zonal Council or-ganised a mission to United King-

dom during September 12Ð18, 2011. The objective of the mission was to interact with UK companies to explore business opportunities for MSMEs based in North Bengal and to interact with government officials keeping in view the social, cultural and economic dimensions for mutual benefit. In this regard the delegation met with Lord Mayor, Councilor Frank Prendergast, Mr Niel Peterson, Head, International & Commercial Relations, Ms Barbara King, Manager, International Relation, at the Liverpool Town Hall.

Meanwhile, CII Odisha organised an MSME Linkage session at Bhubane-swar on November 29, 2011. The event was organised in connection with the CII `Business for Livelihood'. Consider-

ing the need for overall development of the state, the objective of the MSME Linkage session was to shift the focus of the large scale industry and govern-ment towards the development and growth of small scale industries.

CII Chhattisgarh and Chhattisgarh

Laghu & Sahayak Udyog Sangh jointly organised an awareness session on Design Clinic Scheme, an initiative of the Ministry of Micro, Small & Medi-um Enterprises (MSME), Government of India, in association with National Institute of Design (NID), in Bilaspur. This awareness programme was or-ganised to provide information about the Design Clinic Scheme launched by Ministry of MSME and spread infor-mation about importance of design, benefits of the scheme and focus on the MSME sectors.

To spread awareness on the recent technological changes in logistics and packaging industry, CII Jamshedpur Zonal Office organised a session on `Competiveness through efficient lo-gistics and packaging' at Jamshedpur on September 20, 2011.

Seminar on Finance Availability for MSMEs

CII delegation meets UK officials

(LÐR) Mr R Karikal Valaven, Commissioner of Industries, Government of AP, addressing the seminar on Finance Availability for MSMEs on November 22, 2011. Mr Y V Krishna Mohan, Co-Convener, CII AP MSME Panel, Mr S Durairajan, Deputy General Manager, RBI, Hyderabad, Mr Ramesh Datla, Chairman, CII National MSME Council, Mr M Babu Rao, Convenor, CII AP MSME Panel, Mr S Kannan, Director & Head, CII AP, are also seen in the picture

Members of CII North Bengal Zonal Council's Mission to United Kingdom during September 12Ð18, 2011

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upcoming Events

For further details please contact Mr Gurpal Singh, Confederation of Indian Industry (CII), 249-F, Sector 18, Udyog Vihar, Phase IV, Gurgaon 122015 (Haryana, India); Tel: +91(124) 4014060-67; Fax: +91(124)4014080; Email: gurpal.singh@cii.in

DISCLAIMER: No part of this publication may be reproduced, stored in, or introduced into a retrieval system, or transmitted in any form or by any means (electronic, mechanical, photocopying, recording or otherwise), without the prior written permission of the copyright owner. CII has made every effort to ensure the accuracy of information presented in this document. However, neither CII nor any of its office bearers or analysts or employees can be held responsible for any financial consequences arising out of the use of information provided herein. Published by Confederation of Indian Industry (CII), The Mantosh Sondhi Centre; 23, Institutional Area, Lodi Road, New Delhi-110003 (INDIA); Tel: +91-11-24629994-7; Fax: +91-11-24626149; Email: info@cii.in; Web: www.cii.inCopyright © 2011 by Confederation of Indian Industry (CII), All rights reserved.

Title/Theme Date VenueWorkshop on Effective Communication & Presentation Skills 11 January 2012 ChandigarhWorkshop on Autonomous Maintenance 20 January 2012 baddiManufacturing Mission to Ropar 27 Ð 28 January 2012 Ropar

Manufacturing Excellence Mission to Pune 30 Ð 31 January 2012 Pune

Workshop on Good Manufacturing Practices 3 February 2012 Kala Amb

CII-DIT Seminar on ICTE Manufacturing in Chandigarh 22 February 2012 ChandigarhContact: Vinod Dhiman, Phone: 0172 - 2605868, Email ID: vinod.dhiman@cii.in

Contact: C M Tungare, Phone: +91 9867 510 622, Email ID: c.tungare@cii.in

CII Northern Region

Title/Theme Date VenueMSME EastContact: Suparna Nanda: suparna.nanda@cii.in: Mob: 09937154773

10 February 2012 Kolkata

Arogya Fair : Trade Fair for MSME alternative medicine manufacturersContact: Mainak Mandal: mainak.mandal@cii.in: Mob: 08895211926

22-25 February 2012

Exhibition Ground, bhubaneswar

CII Western Region

CII Southern Region

CII Eastern Region

MSME focused Events/Programmes (Jan-Feb 2012)

Title/Theme Date Venueone day Training Programme on Supervisory Skills 20 January 2012 IndoreInteractive Session with PanIIT 20 January 2012 Suratone Day Training Programme on Export Policy, Procedure & Documentation 25 January 2012 IndoreWorkshop on Tender Management 3 February 2012 VadodaraQCC Regional Final 9 February 2012 AurangabadManufacturing Excellence Study Mission to Tata Motors, Forbes Marshall, Sandvik Asia Ð Pune

9 February 2012 Surat

Session on Mergers & Acquisitions 10 February 2012 PuneAgri Advantage & Conference on Food Processing 10 February 2012 NashikMission on Lean Manufacturing to North India 16-17 February 2012 PuneMission on Manufacturing Excellence 20-21 February 2012 NashikSeminar on Entrepreneurship Development 23 February 2012 SuratConference on Logistics & Material Handling 24 February 2012 PuneSession on Post budget Analysis 29 February 2012 Pune

Title/Theme Date VenueIT Usage for MSME January 2012 ChennaiSession on Innovative Financing for SMEs January 2012 MaduraiSession on 5 S January 2012 PuducherryWorkshop on Foundation for Profitability for MSMEs January 2012 HyderabadMSME Summit February 2012 ChennaiCEos Experience Sharing February 2012 MaduraiToyota Production System February 2012 PuducherrySession on Good Manufacturing Practices February 2012 Puducherry