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CO NNECTwww.smeconnect.in Volume 2 | Issue 7 | December 2012 | Mumbai | 64 Pages | 50`

From (L to R) – President & CEO, Gyeonggi Small & Medium Business Center,

Chairman & CEO, The Lebanese Korea Friendship Association, – Hon’ble Prime

Minister of South Korea, – President, Small & Medium Business Development Chamber of

India and Hon'ble Governor of Gyeonggi Province during the inauguration ceremony

Mr. Ki-Hwa Hong Mr. Raymond G.

Chammas Mr. Kim Hwang-sik

Mr. Chandrakant Salunkhe

H. E. Mr. Moonsoo Kim

– –

–

KOREA BUSINESS CONFERENCE & G-FAIR 2012 | SEOUL

Dear Patrons,

After showing a dismal performance for past few months, IIP for the month of

October, 2012 registered a growth of 4.5% showing hopes for revival of India’s

manufacturing sector and especially SME Sector. We can expect that 2013

would be the year of economic recovery and India would be able to keep the

momentum of growth in manufacturing output so that India can achieve 5.2%

GDP growth. Several prominent agencies are predicting India’s growth to touch

5.4% or 5.6%, however SMEs are the real growth factors that would enable

India to achieve the targeted growth of 8% in the near future.

The SME sector, however, is currently facing several challenges, mainly due to

the impact of the slowdown in the West, lack of access to adequate and

affordable finance, decrease in exports, volatility of Dollar, inability to compete

in the local and international markets due to technological obsolesce and

increased input costs. Hence, Indian government has to focus on the

empowerment of SMEs by providing adequate support and assistance, meet

their requirements for power, skilled man-power and other necessary

infrastructure to remove the bottlenecks in progress of this sector.

FDI in multi-brand retail will create opportunities and challenges for SMEs and

other Sectors. For SMEs to emerge competitive in this scenario would require a

perfect combination of technology with their operational requirements to bring

required efficiency in their businesses. At the same time if the SMEs are able to

improve their quality, they would be able to link themselves in the supply chain

of large retailers, thereby improving their sales. How SMEs will cope to these

challenges totally depends on how they adopt to new circumstances. Let us

hope that the economic growth of the Nation and empowerment of SMEs should

be the main agenda for all stake holders.

I am happy to present to you December, 2012 Issue of SME Connect Magazine,

which includes the activities of the Chamber for the growth of SME sector.

Editor

Panel of Advisors

Publicity and Marketing

Team

Layout & Graphics

Mahesh Balasaheb Salunkhe

Chandrakant Salunkhe

A. Rameshkumar

Girish Bhagat

Hemant Salunkhe (Director)

Saakshi Kulkarni

Neera Inamdar

Madhuri Khanwalkar

Gandhi Gajelli

V. K. Venkatachalam

Omesh Kandalkar

Bricks Marketing & Promotion Pvt. Ltd.

CO NNECTVolume 2 | Issue 7 | December 2012 | 64 Pages

Chandrakant SalunkheFounder & President

Small & Medium Business

Development Chamber of India

Email: [email protected]

© SMALL & MEDIUM BUSINESS DEVELOPMENT CHAMBER OF INDIA

(SME CHAMBER OF INDIA). The concepts, activities and events have

been designed by us and are exclusively the property of SMALL &

MEDIUM BUSINESS DEVELOPMENT CHAMBER OF INDIA (SME

CHAMBER OF INDIA). No part of the titles and contents or images

should be used, reproduced, stored in a retrieval system or

transmitted, in any form or by any means or discussed with any third

party without prior written consent of SME CHAMBER OF INDIA.

Views and opinions expressed in this magazine are not necessarily

those of SME CONNECT, its publisher, printer, owner and / or editors.

We (SME CONNECT) do our best to verify the information published

but do not take any responsibility for the absolute accuracy of the

information. SME Connect does not accept responsibility for any

investment or other decision taken by readers on the basis of

information provided herein.

www.smeconnect.in � �03 Volume 2 | Issue 7 | December 2012

Foreword

SMALL & MEDIUM BUSINESS

DEVELOPMENT CHAMBER OF INDIA

SME CONNECT – bi monthly Owner Printer Publisher Mr. Mahesh Balasaheb Salunkhe, Printed at Hindustan Packaging, Unit No1, Kembros Industrial

Estate, Sonapur Lane, Off L.B.S Marg, Bhandup (W), Mumbai - 400 078, Published at 101, Murlidhar Baldev Estate, Near Vikas Estate, Off Aarey Road,

Goregaon (E), Mumbai - 400 063. Maharashtra, Editor - Mahesh Balasaheb Salunkhe. TC.NO. MAHENG-12792

PANEL DISCUSSIONS

29 |

31 |

Redefining Economic Growth of SMEs

through technology

Improving Competitiveness in SMEs

33 | Building Capacities of SMEs for Better Growth

CO NNECTContent

www.smeconnect.in� �04Volume 2 | Issue 7 | December 2012

25 | Mr. Jignesh ShahAddress by – Chairman &

Group CEO, Financial Technologies (India) Ltd.

26 | Dr. H.P. KumarKeynote Address by – CMD,

National Small Scale Industries Corporation Ltd.

52 | Shri Sushil MuhnotAddress by CMD, SIDBI–

PLENARY SESSIONS

56 |

59 |

56 | Shri Kamal Kumar Dayani

Improving Capabilities of SMEs for Better Growth

Keynote Address

Initiatives for Development of SMEs

– –

Commissioner, Industries Department, Govt. of Gujarat

22

07 | Shri T.C.A. RanganathanAddress by

CMD, Export-Import Bank of India

09 |

Shri D. R. Dogra

Keynote Speech “Export Promotion Strategies -

A New Agenda For SMEs” –

14 |

Shri P. Udayakumar

"Strategies and Initiatives of NSIC for export

promotion of SME Sector" –

15 |

Shri

Rejuvenating SMEs in Financial Difficulties –

P. H. Ravi Kumar

PLENARY SESSIONS

16 |

17 |

20 |

Shri Prabhakar Dalal

Export Promotion : Strategies and Initiatives

Keynote Speech “Export promotion - New

Policies & Schemes for SMEs”

International Trade : Opportunities, Risks

and Strategies

–

SME Growth : Tackling Roadblocks

Towards Growth

18 |

35II-Edition Annual Flagship Activity

INDIA SME EXCELLENCE AWARDS

40 KOREA VISIT

47 UK VISIT

State Level Flagship Event

GUJARAT SME BANKING SUMMIT51

24II-Edition Annual Flagship Activity

INDIA SME LEADERSHIP SUMMIT

Conference on

STREAMLINING BANK & TRADE

FINANCE FOR SMEs06

ARTICLES

42 |

43 |

Technology equipped SMEs will play a lead role

in the new economy

The Age of Information is moving towards

The Age of Collaboration

Exciting Opportunities in Europe’s growth engine

BUSINESS OPPORTUNITIES

44 |

Empowering SMEs for Global Competitiveness

SMALL & MEDIUM BUSINESS DEVELOPMENT CHAMBER OF INDIA

OBJECTIVES

ACTIVITIES

OUR INITIATIVES BI-LATERAL TRADE PROMOTION DIVISIONS

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SME Export Promotion Council

SME Business Management Institute

Europe - India SME Business Council (EISBC)

SME Finance and Investment Promotion Council

Federation of Indian Young Entrepreneurs

Indian SME Knowledge Forum

SME Technology Development Council

SME Business Club

Industrial and SME Research Centre of India (ISRCI)

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India – UK SME Council

India – USA SME Council

India – China SME Council

India – GCC SME Council

India – Korea SME Council

India – ASEAN SME Council

India – Zambia SME Council

India – Turkey SME Council

India – Canada SME Council

Registered & Head Office

3, Upper Ground Floor, Samruddhi Venture Park, Marol MIDC, Andheri (E), Mumbai:- 400 093., Maharashtra, INDIA.

FOUNDER & PRESIDENT

CHANDRAKANT SALUNKHE

Regional Offices:

Representative Office:

Delhi, Bangalore, Ahmedabad, Pune, Chandigarh, Hyderabad, Chennai and Indore

USA, UK, France, Turkey, China, Malaysia, South Korea, South Africa, Dubai, Singapore, Hong Kong and Mauritius

The Chamber is a Private Organisation and Registered Under Section 25 of The Indian Companies Act, 1956.

Tel: +91 - 22 - 6150 9800 / 6667 4444 | Fax: +91 - 22 - 2825 0414 / 2927 1750

[email protected] | [email protected] | [email protected] | www.smechamberofindia.com

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Trade Promotion Events

Finance and Investment

Business Collaborations

Technology Upgradation

Marketing and Promotion

Knowledge Transmission

Interaction with Governments

Delegations and Study Tours

Research and Survey

Exhibition Services

Restructuring of businesses

Redressal of issues & problems

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Integration of SMEs

Capacity Building

Networking and Connectivity

Strategic Partnership

International Alliances

Training and Education

Entrepreneurship Development

Empowerment of Youth

Awards and Recognition

� SME Connect - Magazine and Portal

Conference on

INAUGURATION OF THE CONFERENCE

CO NNECTActivity of the Chamber

Wednesday, 12 December 2012 | Hotel Sofitel, BKC, Mumbaith

STREAMLININGEXPORT AND TRADE FINANCE FOR SMEs

Shri T. C. A. Ranganathan

Shri Chandrakant Salunkhe

Shri P. Udayakumar

Shri Arun Tiwari Shri P. H. Ravi Kumar

Shri D. R. Dogra Shri Prabhakar Dala

– Chairman & Managing Director, Export-Import Bank of India inaugurating the conference by lighting the

lamp. Other dignitaries from (L to R) – Founder President, SME Chamber of India and

, – Director (Planning and

Marketing), NSIC Ltd., – Executive Director, Allahabad Bank, – MD & CEO, Invent Assets

Securitisation & Reconstruction Pvt. Ltd., – MD & CEO, CARE Ratings and l – Executive Director,

Export-Import Bank of India

SME Export

Promotion Council – Executive Director, Central Bank of India,Shri Malay Mukherjee


CO NNECT Activity of the Chamber

Shri T.C.A. Ranganathan – Chairman & Managing Director, Export-Import Bank of India delivering the

Chief Guest Address

The share of India in world exports

has more than doubled since 1991.

During the past one and half years

India faced a fair amount of turmoil due to

world economic crisis, commented Shri T.C.

A. Ranganathan, CMD, EXIM Bank. The crisis

led to the stagnation in the world export

markets and the excess capacity coupled

with lesser demands augmented the

problem further. Even during this crisis

certain sectors like Pharma, Agro and Hi-

tech witnessed higher growth. India heavily

depends upon the performance of MSME,

commented Shri Ranganathan.

He commented that while there are several

advantages of being listed under SME

segment, the cap on minimum investment in

plant and machinery should be enhanced,

which would enable these companies to

enhance their capacity and perform better.

Keeping in mind India’s imports, it is very

important to increase the exports too which

is possible only by enhancing the SME

performance. With a separate export

marketing division, the EXIM Bank can assist

the MSMEs in their export operations. He

emphasized the importance of cluster

approach, similar to China, for India to

achieved targeted export growth by

b e n c h m a r k i n g w i t h i n t e r n a t i o n a l

competitors.

Talking about the foreign currency loans

offered by EXIM Bank, he mentioned that

with a view to assist SMEs in getting finance

in foreign currency, EXIM Bank is offering

rediscounting facility to commercial banks

enabling them to rediscount export bills of

their SME Customer. EXIM Bank also offers

refinance of supplier’s credit enabling

commercial banks to offer credit to Indian

SME Exporters. For SMEs to grow, he

suggested that they should attach

themselves as ancillary unit to the large

Corporate like Maruti Udyog, which had

developed and nurtured a number of SMEs

in their supply chain as component

manufacturers. These SMEs have become

very techno savvy and competitive that they

are preferred even by the other auto

manufacturers.

Highlighting the importance of FDI, he

mentioned that Government should

encourage FDI in manufacturing sector

especially in aero and other hi-tech

industries and emphasize on development of

clusters. The Government should also

concentrate on education and health sectors

and improve the quality of life of the people.

Speaking on the export growth in SME

segment, he said that SME exports have

grown much stronger than its production -

from Rs. 71,244 crores in 2001-02 to Rs.

202017 crores during 2007-08 (latest

period for which official data available), a

CAGR of 19%, which is on par with India’s

national exports. Credit to MSME sector has

also grown at a CAGR of 25%, from Rs.

57,199 crores in 2001-02 to Rs. 528617

crores in 2011-12, which is similar to the

growth witnessed in Gross Bank Credit.

Growth in credit to this sector has been much

higher than the CAGR of production and

exports of Indian MSMEs. In order to further

the growth of in the sector, it is necessary to

make SMEs internationally competitive by

providing them with more assistance and

schemes to these enterprises.

He observed that in contrast to the Indian

SMEs, SMEs in other countries are medium-

tech or hi-tech enterprises, which limits the

competitiveness amongst the Indian SMEs

compared to the international SMEs. One of

the reasons for low level of technology

adoption in Indian SMEs is mainly due to

ceiling on capital investment to be classified

as MSMEs in India. The ceiling of Rs. 10

crores (less than USD 2 million) is much

lower in comparison to the ceiling limits in

China, Thailand, Singapore, EU etc.

Indian SMEs mainly to enjoy the benefits of

being in the SME sector, SMEs in India

confine to this limit or grow laterally, instead

of vertical integration of operations, and set

up several entities to enjoy the larger

advantages. This has been the experience in

several MSME driven sectors such as

readymade garments, food processing,

sports goods, leather etc.

CHIEF GUEST ADDRESS


He recommended that MSME industry

associations/chambers need to propagate

the idea of increasing the ceiling limits for

capital investment, so that they can emerge

technologically strong, achieve scale

advantage, while enjoying the benefits of

being an MSME. He commented that

technology orientation and Hi-tech exports

would enable SMEs realize higher unit value

price, enhance market space, and enable

them to capture the position of preferred

supplier to large Corporate.

Internationally, MSME clusters have

emerged either hub-spoke model (Town and

Village enterprises in China), mother-

industry driven model (Auto and electronics

clusters in Thailand), or one-town-one

cluster model (Philippines), depending on

the competitive strengths of the MSMEs

operating in the region. Units in clusters

leverage their collective strengths in

production development, technology

development, competitive procurement and

marketing. In India also few clusters have

come up based on these operative models,

but largely SMEs are set up as independent

units. In the absence of such cluster models,

MSMEs in India need to collaborate and

cooperate with each other, as collective

approach is recognized as an important

instrument for promoting industrial

development, innovation, competitiveness

and growth, commented Shri Ranganathan.

He observed that banks / financial

institutions find financing Cluster based

models more beneficial because it deals with

well-defined and recognized groups and

appropriate information is available for risk

assessment and monitor the performance of

such clusters. Cluster financing helps the

member SMEs as the credit provided to

clusters are off their individual balance

sheets and the lending will be based on their

collective strengths.

Talking on the assistance of EXIM bank, he

said that the bank with assistance from Asian

Development Bank (ADB) has extended the

line of USD 100 million to cater to the

m e d i u m a n d l o n g t e r m f i n a n c i n g

requirements of Indian SMEs in lagging

states of Assam, Madhya Pradesh, Orissa,

Uttar Pradesh, Chhattisgarh, Jharkhand,

Rajasthan and Uttarakand. The Bank has also

launched Technology & Innovation

E n h a n c e m e n t a n d I n f r a s t r u c t u r e

Development (TIEID) Fund - with focus on

supporting MSMEs to augment their export

competitiveness and internationalization

efforts. The foreign currency funding

requirements of MSMEs will be catered in

collaboration with other Indian Banks / Fis.

Also, a new lending programme for financing

the Indian creative goods and services

industry, has been introduced which is

predominated by MSMEs. EXIM Bank is

working with ILFS Clusters, Cluster Pulse

and such agencies to support the financing

requirements of MSMEs collectively. The

Bank has also initiated the approach of

cluster development support with products

that would cater to both soft and hard

interventions, observed Shri Ranganathan.

He concluded by saying the Bank would be in

a position to cater to the financing

requirement for establishing common R&D

labs / technology development centers in

MSME clusters to help the units in achieving

cost efficiency. EXIM Bank has redesigned

the Grassroots Initiatives and Development

(GRID) to create export capabilities in rural

and grass-root enterprises, and thereby

enhancing purchasing power of the ‘bottom

of the pyramid’. EXIM Bank has redesigned

Export Marketing Services (EMS), which is a

u n i q u e s e r v i c e o f f e re d t o I n d i a n

firms/companies, helping them in their

internationalization efforts.

RELEASE OF INFORMATION BOOKLET

ASSISTANCE TO MICRO, SMALL AND MEDIUM ENTERPRISES

Shri T.C.A. Ranganathan Information Booklet - ASSISTANCE

TO MICRO, SMALL AND MEDIUM ENTERPRISES Shri P. Udayakumar Shri Arun

Tiwari Shri D.R. Dogra Shri Chandrakant Salunkhe

Shri Malay Mukherjee Shri P. H. Ravikumar

– Chairman & Managing Director, Export-Import Bank of India releasing the

at the conference. Others (L to R) Director, NSIC Ltd.,

Executive Director, Allahabad Bank, MD & CEO, CARE Ratings, Founder President,

SME Chamber of India, , Central Bank of India and , MD & CEO, Invent Assets

Securitisation & Reconstruction Pvt. Ltd.

–

– – –

–Executive Director

CO NNECT


Activity of the Chamber

Importance of Indian SME sector can be seen from its contribution to the Indian economy – the sector accounts for about 45% of the

country’s manufacturing output, contributes around 40% of the total exports of the country and employs around 59.7 million persons

across 26.1 million enterprises (second largest employer after agriculture in the country). Undoubtedly then, they are the powerhouses

for overall economic growth – be it in terms of industrial production, employment and income generation and/or in the capacity of earners of

foreign exchange through exports; also lending resilience to the macroeconomic fundamentals of the Indian economy.

While SMEs might be small production units using labour-intensive techniques of output generation, provide for immense forward and

backward linkages in close association with such large corporates. The inclusive nature of this sector is immense, as evidenced by the fact that

50% of ownership and participation in the SME sector comes from the relatively weaker section of society, thus allowing for more equitable

income distribution whilst involving a greater section of society in mainstream economy and wealth-creation process.

Shri D. R. Dogra – Managing Director & CEO, CARE Ratings delivering the Keynote Speech

KEYNOTE SPEECH

“EXPORT PROMOTION STRATEGIES - A NEW AGENDA FOR SMEs”

Output & Exports: Trends in SME Performance

As this conference is all about enhancing the contribution of the SME/MSME sector in the external sector of the Indian economy through

exports, it is important to look at some trends here. The share of gross output from MSME sector in aggregate GDP for the country has

encouragingly been in double digits in the past decade, around 14%-15% in the last 4 years, coupled with a sustained contribution to total

exports.

Year

To tal – India Level MSM E Shar e of M SME in Total

G DP E xpo rts Gro ss Output E xpo rts GDP Exports

` crore ` crore ` crore ` crore % %

FY02 2 3,48 ,330 2,82 ,270 2,09,01 8 71 ,244 12.02 34.09

FY03 2 5,30 ,663 3,14 ,850 2,55,13 7 86 ,013 12.44 33.71

FY04 2 8,37 ,900 3,64 ,547 2,93,36 7 97 ,644 12.85 33.28

FY05 3 2,42 ,209 4,29 ,796 3,75,34 0 1,24 ,417 13.26 33.15

FY06 3 6,93 ,369 4,97 ,842 4,56,41 8 1,50 ,242 13.48 32.92

FY07 4 2,94 ,706 7,09 ,398 5,71,77 9 1,82 ,538 16.52 31.92

FY08 4 9,87 ,090 7,90 ,759 6,55,86 4 2,02 ,017 15.86 30.80

FY09 5 6,30 ,063 8,80 ,805 8,40,75 5 NA 15.64 N A

FY10 6 4,57 ,352 9,82 ,919 8,45,53 4 NA 15.22 N A

FY11 7 6,74 ,148 10,9 5,758 11,42,9 22 NA 14.28 N A

GDP (market price at current prices, 2004-05 series) Source: Ministry of MSME, Annual Report 2011-2012 and CSO

Table 1: Trends in Production and Export



Issues and ConcernsDespite significant relevance of the SME sector to the economic canvas of the country, the sector faces a number of structural challenges that

need to be addressed on an urgent basis with a motive of propelling growth in this space. Identified here, are four major roadblocks in the

growth and export promotion trajectory of Indian SMEs -

A segmentation of the MSME sector based on activities suggests that 67.1% of MSME units are engaged in manufacturing activities, 16.8% in

services and 16.1% in repair and maintenance. In order of importance, the contribution of food and beverages in the MSME sector is the

highest (accounting for 14.3% share), followed by wearing apparel (13.7%), fabricated metal products (9.0%), repair & maintenance of

personal & household goods & retail trade (8.5%), textiles (6.8%), furniture (6.4%) and machinery and equipment (4.7%) to name just a few.

Exports from this sector have traditionally been dominated by products such as sports goods, readymade garments, woollen garments and

knitwear, plastic products, processed food and leather products and also gems and jewellery to a certain extent. These lucrative export

products of the SME sector have largely been responsible for fuelling growth here.

For emerging economies like India, MSMEs form the foundation of export potential and competitiveness. It is pertinent to state here that,

while the contribution of MSME units in total exports is quite significant at around 40%, just about half of all MSME units are engaged in export

of products. Making a greater number of MSME units competitive to participate in the external market is hence, the need of the hour

1. Access to finance

2. Openness to external sector

3. Availability of infrastructure, technology and

skilled manpower

4. Management issues and SME sickness

While credit to this sector qualifies as priority sector credit and

banks have been advised to achieve 20% y-o-y growth in credit to

MSMEs, 93% of units in this sector remain excluded from access to

finance or depend on self-finance. Particularly, demand for trade

finance across countries, India being no exception, declined during

the crisis period. As the current scenario has been constrained by

limited liquidity, global financial instability, weak economic recovery

and lower trade flows, trade finance has come to entail higher costs,

thereby limiting scope for export promotion. High cost of finance

automatically puts pressure on financial viability. While large

companies have alternative avenues of raising finance through the

ECB markets, where interest rates are lower, the SMEs are largely

dependent on the domestic channels, both formal and informal.

Undeniably, it is difficult for the SME sector to stand stiff competition

against global players. There is however, need for a change in

government stance - instead of promoting protection of these units,

there is a need to enhance collaboration of SME units with large

domestic corporates, MNCs and TNCs. The point that “SMEs allow for

localisation of global business with the use of appropriate

technology” has to be driven forth here. This would be ideal in the

creation of niche products that can easily penetrate global markets. A

prime key to export promotion and creation of international market

space for indigenous SME products would be pricing of these

products in the coming years.

The state of infrastructure, including power, water, roads, etc. is

inadequate and unreliable. Technological upgradation, and

commensurate technological literacy is the need of the hour to

enhance capacity and increase supplies. Furthermore, lack of

professionalism, training and labour laws renders limited skill base

to this sector. In many ways, the SME sector today functions in a

rather informal set-up. However, labour laws would gain more

importance in the years to come, as efforts and rewards need to be

matched through productivity-linked wage structures in a

competitive environment with a growing labour pool in this sector.

This would be crucial as the sector would then a gain an institutional

framework that would enhance efficiency.

In the face of an industrial slowdown, issues of financial management

particularly that of receivables have become very pertinent for SMEs.

Considerable delay in settlement of dues by the large-scale buyers to

the MSMEs units adversely affects the recycling of funds and business

operation of MSME units. In the context of exports and receivables

thereof, exchange rate volatility could further significantly impact

earnings of SMEs (indeed vulnerability to exchange rate fluctuations

causes considerable losses to SMEs, be it in transactions for

procurement of raw material or the export of finished goods).

Limited financial resources, lack of organizational, financial and

management skills and inadequate infrastructure lead to an increase

in sickness in SME sector. An opening up to the external sector

demands domestic SMEs to tie-up these loose-ends in a competitive

set-up.

CO NNECT



Having listed the main issues, it is important to look at how we may address them in order to expand the scope of SMEs with an aim to enhance

their role in the external sector.

Firstly, in relation to finance – a lot needs to and can be done in this area. Being one of the most important, the list of reforms to augment

SME access to finance is long and requires emphasis and elaboration -

1. Sources of Funding

2. Availability of Export Credit

3. Availability of Credit Enhancements

4. Technology Development Funds

5. Scope for Foreign Funding

6. SME Finance Programmes with Multilateral Financial

Institutions

7. Dissemination of Information and Creation of Credit Histories

It is necessary to develop new models and

probably revive the Business Correspondent (BC) model, expand

regional reach of banking and relax KYC norms for SMEs in order to

increase their access to bank credit. The sector additionally, requires

venture capital for financing start-ups and high-growth-potential for

existing units, along with alternative sources of capital like angel

funds/risk capital. Removal of regulatory impediments is vital in this

regard. The India Opportunities Venture Fund with SIDBI (Rs 5000

cr) is a good step in this direction. The need for equity capital has also

been partly addressed with the newly set up BSE and NSE platforms,

although SMEs have to be attracted towards it.

Access, not only short-term export

credit but also to long-term loans for the expansion of SME export

capacity is vital. A variety of credit collateral, export insurance and

loan options need to be explored in this domain. The ECGC has been

proactive in providing a variety of export insurance policies (for

multi-lateral buyer exposures, political risks and commercial risks)

to the SME sector.

SMEs within a cluster can

form a mutual guarantee scheme such that the units mutually

guarantee each other’s bank borrowing against a fund created by

regular joint contributions. Also, foreign buyers, TNCs and other

business linkage makers should be invited as facilitators or

guarantors. The importance of guarantee provision has been duly

recognised by Indian policy makers. Accordingly, proposals in the

12th Five Year Plan have revolved around an Umbrella Scheme for

SMEs, including recommendations on making Rs 180,000 crore of

credit guarantees available to MSEs by the end of the 12th FYP

period.

A common pool of funding

technological upgradation is essential. This may be initiated by the

government and supported by participating SMEs through yearly

contributions to the corpus. Disbursements from the corpus may in

some way be linked to SME performance in terms of production

efficiency and improvement in output quality. Again here, the New

NMP has recommended the establishment of a Technology

Acquisition and Development Fund (TADF); an incentive for SMEs to

improve the application and use of appropriate technology and

engage in research and development (R&D) activities.

The SME segment by far attracts little

foreign investments. It is essential to reverse this trend and boost

foreign investments directed towards SMEs, preferably in the form of

long-term funds through the FDI route. It may be nascent to

introduce FII investments in SMEs, given the volatile nature of such

funds and recent introduction of SME exchanges that are yet to take

off.

The government may play a proactive role in

facilitating interest of multi-lateral lenders to SMEs be it at the global,

interregional, regional and sub-regional levels through trade

agreements. Regional co-operation can hold special relevance in

such endeavours. Export-related documentation must become more

stringent, not in terms of making procedures complex but in terms of

improving accuracy. Accessing finance from such multi-lateral

finance institutions must ensure adherence to international norms

prescribed by WTO, BIS (Basel norms) and other international

bodies such as IMF and World Bank as the case may be.

This can help deal with the problem of unwillingness of banks to lend

to SMEs. The success of SME ratings is noteworthy in this context.

Indeed, this is top priority for us at CARE and with the help of NSIC we

do hope to expand this canvas to a broader community year after

year.

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Solutions



Secondly, in a bid to increase openness, SMEs can link up with MNCs, TNCs or large domestic exporting firms and thereby integrate into

global chains of production and supply through -

1. Foreign Affiliations

2. Contractual Agreements and Licence Concessions

3. Business Development Services

4. Marketing and Branding Initiatives

Domestic SMEs are bound to gain from such

linkages, be it direct in the form of increased output and employment

opportunities or indirectly through B2B strategies of exchange of

information, technology and expertise through international portals.

Given the moves that have been made in FDI in retail and the likely

implementation of the same, the SMEs can be directly linked to these

efforts so that they gain in the prices. Already there are norms of

domestic procurement that have been set. These tie ups will

automatically improve their own standards which will make them

more competitive in the global arena.

Inter-firm

collaboration, which includes a more efficient division of labour, can

lead to greater specialization among small firms, opening

opportunities for economies of scope and scale, at the same time

designed to mitigate financial risks, particularly, currency-related

exposures. In this context, an additional step that would be essential

is to have a strong legal framework.

An external specialised unit

may help provide business development services to SMEs after

appropriate and in-depth market research to tap existing markets

better and identify potential target markets. It must be recognised

that market access is highly intelligence driven. Currently there is no

mechanism to process and identify targeted, short-term

interventions to address contemporary issues and knowledge gaps.

The existence of an external intelligence unit would enable these

enterprises identify rights markets for them. This would enable each

specific SME entity to focus on the quality of its production and on its

own internal organization and management when simultaneously

post-production activities are easily outsourced to more a

specialised service agency. This would also help improve the

bargaining position of SMEs vis-à-vis large conglomerates in the

supply chain.

These may include export

advisory programmes, upgradation of trade support services,

creation of trade platforms for online export operations and

organizing trade exhibitions and conclaves for showcasing SME

products, allowing for exchange of ideas for product innovations and

technological developments and discussion of new business avenue

and tie-ups. Promotion of this sector through journals and

newsletters aids greater outreach and information sharing.

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Third, the operational set-up for SMEs needs to be strengthened – be it infrastructure, technology or manpower. Trends in this labour-

intensive sector suggest that production has grown commensurately with fixed investments. An ideal situation would require the

sector’s output to expand at a faster pace as capital infusions increase. A major deterrent in this regard is the weak operational set-up

of SMEs that limits efficiency. This would assume special importance in case of increased foreign funding and international tie-ups that

would greatly open up domestic SMEs to the external sector.

1. Clustering and Networking

2. Promotion of Public-Private Partnership

3. SME Associations and Forums

4. Awards and Recognitions

Clusters supported by IT and ITES

systems have the potential to strengthen productive activities (in

quantity and quality) whilst being one of the most cost-effective

modes of increasing SME access to external markets and reinforcing

their external competitiveness. Networking on the other hand, must

be both vertical and horizontal across the spectrum of stakeholders

(suppliers to customers) and across geographies. Synergies can help

develop the right product mix to cater to varied consumer and/or

industrial demands.

Governments may

approach domestic and foreign large corporations to design

specialized institutions engaged in the provision of training centres,

technology upgrading hubs, research labs and quality check centres.

The private sector needs to be attracted to the SME sector, the

development of which may not necessarily be profitable for private

players. Viability-gap funding in this context would also be

important. The government has planned for an aggregate allocation

of more than Rs 49,000 crore towards overall SME sector

development in the 12th FYP. Along with the much required financial

backing, the government needs to efficiently develop and implement

strategies in a time-bound fashion to ensure optimal results.

There are few representative

SME associations particularly in the area of SME import-export

business. SMEs should become more active participants in business

associations, chambers of commerce and employers’ and labour

unions in a bid to attract greater investments and better business

opportunities whilst having a platform to discuss relevant challenges

from time to time This will align the talks with their own

requirements which finally will help to improve their access to these

markets.

ncentivising SMEs to perform better

is crucial, not just to serve as a self-check mechanism, but also to

initiate a competitive spirit and promote recognition of SMEs in

mainstream manufacturing. The National Awards for Quality

Products, awarded to outstanding small scale units that have made

significant contribution for improving quality of their products is

indeed the right step in this direction. Quality certifications are

undoubtedly important for SMEs.

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And lastly, management issues may be eliminated though

appropriate training to enhance organisational and productive

capacities, awareness of intellectual property rights and

recourse to corporate governance strategies.

CONCLUSION : There is need to develop a complete package for capacity building of SMEs – a package encompassing credit,

marketing facilities, labour laws, infrastructure, technology, skill development, tax laws, exit policy, and above all SMEs working

as a group through clusters and associations to build a symbiotic relationship with one another to leverage opportunity in the

external sector.

CO NNECT



ADDRESS BY DIGNITARIES

Shri Malay Mukherjee – Executive Director, Central Bank of India addressing the delegates

Shri Malay Mukherjee, observed that the policy of the bank is to treat their SME Customers as partners and not as borrowers. The Bank

interacts with its customers, understand their problem and mitigate them with suitable solutions. The Bank has taken up on itself the

responsibility of nurturing the budding entrepreneurs who find it extremely difficult to arrange funds for their new ventures. There are

separate verticals for SME Sector lending headed by senior level managers. The Bank reaches SMEs through their vast network of 4200

branches.

Shri Arun Tiwari – Executive Director, Allahabad Bank addressing the delegates

Shri Arun Tiwari, commented that the Banks consider SMEs as their

important customers and extend a handholding approach. The policy

is to retain SME customer once acquired. However, at the same time,

SMEs also need to be proactive in being transparent about their

operations while approaching the banks, which will give banks

enough credibility about their SME clients.

Further, he observed that SME Sector is doing well and they should

get adequate funds at affordable rates. They should also know that if

they do not have a good credit rating, they have to pay more interest.

They should not limit their growth with the fabricated profit and loss

accounts and balance sheets. SMEs should also form their own

clusters and the Government should provide them with necessary

infrastructural facilities. Availability of money from the banking

sector is not at all a problem. Therefore, the SMEs should focus on all

other factors such as technology upgradation, innovation, marketing

etc, than only harping on finance.



Shri P. Udayakumar

"Strategies and Initiatives of NSIC for export promotion of SME Sector"

– Director (Planning and Marketing), NSIC Ltd. addressing the delegates on

“As a nodal agency of the Ministry of

MSME, NSIC provides several assistance

to MSME Sector through various

s c h e m e s f o r i n f r a s t r u c t u r e

development, technology upgradation,

quality improvement, credit rating,

l o g i s t i c s , m a rke t d e v el o p m e n t ,

inspection etc.”, observed Shri P.

Udayakumar

w w w. m s m e i n t e l l i g e n c e . c o m

NSIC specially assists the entrepreneurs

from MSME Sector to participate in

international exhibitions in India with

Government subsidies. “During the year

2012-13, till date NSIC has organized 2

International level exhibitions in India,

participated in 8 International Exhibitions

abroad & 55 Domestic Exhibitions.

Exhibitions in Delhi and Kolkata were well

attended and many MSMEs took

advantage of it. There were spot orders

booked and enquiries generated. Four

more exhibitions are in the pipeline”,

commented Shri P. Udayakumar, Director

(Planning and Marketing), NSIC Ltd.

NSIC has signed MoU with 30 countries

and the MSMEs can take advantage of

marketing their products by utilising their

support services. There is free

information about various centres

available in their portal.

NSIC adopts single window assistance

approach towards, Exhibitions / Trade

Fairs & Buyer Seller Meets, Absorption of

M a r k e t i n g O v e r h e a d s & E x p o r t

Promotion, Raw Material Assistance

Programme, Assistance under Leasing for

Technology Up gradation, Assistance for

Shipping, Export Incentives, Export

Documentation and Assistance for Project

Export.

NSIC has already assisted MSMEs to

export quality goods to USA, UK, Europe,

Australia, Middle East, Latin America and

African Countries.

NSIC is setting up Vocational Training

Centres (VTCs) / Incubation Centres (ICs)

in 10 African countries. VTCs will be a

demo centres which will induce demand

for Indian technologies and equipment in

the African countries which have similar

economy.

Under Marketing Assistance Scheme, NSIC

supports the entrepreneurs to take part in

Exhibitions in India and abroad.

“Techmart India” is a unique platform to

provide opportunities to MSMEs for

d i s p l a y i n g t h e i r c a p a b i l i t i e s ,

competencies and enhancing their

marketing efforts. Techmart India is a

Virtual Display wherein MSMEs get an

opportunity to display their product

profiles with images and text through e-

C a t a l o g u e s o n w e b p o r t a l

www.nsicindia.com.

N S I C i s r u n n i n g a w e b p o r t a l

f o r

disseminating marketing intelligence to

the MSME sector in the country. This web

portal is facilitating connectivity to Indian

MSMEs with global enterprises for

accessing information about the products

and technologies available from MSME

sector in India. It stands out as a one-stop-

shop for MSMEs in the context of accessing

Marketing Information.

NSIC has enhanced its existing B2B Web

Portal into an Integrated Web Portal

www.msmemart.com with its endeavour

to facilitate Marketing Services effectively

to MSMEs across the country. The new

portal provides an online platform for B2B

(Business to Business) and B2C (Business

to Customer) marketing activities. MSMEs

can join this portal to market their

products and services globally.

It is mandatory now for the PSU and Govt.

Departments to procure 20% of their

requirements from MSMEs. This will

ensure better economy of scale for MSMEs

to compete in the global market. There are

also huge opportunities for SMEs to

supply to Defence organisations, Space

Applications as ancillaries.

CO NNECT



“Debt is like a sugar in the body. Beyond a certain limit, both

are dangerous. It is to be noted that 85% of the SME

operations are financed by the bank and hence bankers have a

greater stake. That is the reason why bankers attach more

importance to the better performance of the SME clients. The

cause for failure of SME can be attributed – 75% to finance,

15% to technology and 10% to marketing”, observed Shri P. H.

Ravi Kumar

SMEs need to concentrate more on Cash flow as it reveals the

exact picture of the health of an enterprise than the balance sheet

because balance sheet can be manipulated to suit the interest of

the owner. Investors look primarily in the cash flow of the

company while making investment decisions. Stressing on the

importance of foreign currency loans he mentioned that

borrowing in foreign currency is cheaper and is available at 5 to

6% interest rate. He also stressed that Working Capital loan

should not be at any stage diverted to acquire fixed assets, else

the business will find it difficult to sustain.

Highlighting the importance of NPA avoidance, Shri P. H. Ravi

Kumar mentioned that SMEs need to efficiently manage account

receivable as it is a key to management of working capital else the

company will find it difficult to sustain their business operations,

thereby at any cost, the SME should ensure that they should not

become NPA. They should concentrate on efficient management

of Accounts Receivables so that cash flow is maintained to ensure

smoother operation.

The other reasons for sickness includes diversion of funds to

other ventures, shipments are stuck up and delayed payments

from debtors, observed Shri P. H. Ravi Kumar. Due to changes in

market demand, some stocks become non movable. Earlier,

banks/FIs would convert the value in to Term Loan and phase of

out payment. Now Banks don’t fund additionally in accounts

under stress. If the entrepreneur feels a financial stress, he

should inform the bank quickly so that they can assist.

Priority of payments from cash flows should be in the order of –

creditors, employees, statutory payments and banks.

Restructuring and revival of SMEs would need substantial

quantum of funds. Banks / private sector entities could take lead

to set up private equity arms to fund the growth needs and

restructuring needs of SMEs.

Shri P. H. Ravi Kumar

"Rejuvenating SMEs in Financial Difficulties”

– MD & CEO, Invent Assets Securitisation & Reconstruction Pvt. Ltd. addressing the

delegates on

Shri Chandrakant Salunkhe – Founder President, SME Chamber of India and SME Export Promotion

Council addressing the delegates

“It is heartening to note that the RBI has announced to give a

push to the export lending by the Banks. SMEs play a vital role

in employment generation and it is necessary for the State

Governments to support the SMEs”, observed Shri Chandrakant

Salunkhe in welcome address at the Conference. The Chinese

SMEs fair well because of the continues support of the local

Government. As per the RBI reports the lending to SME sector is

on the decline, which is a cause of great concern. It is important for

banks to make continuous efforts to lend to the SME Sector and at

the same time it is important for SMEs to approach bank with the

adequately filed financial statements, observed Shri Salunkhe.

SMEs are struggling to meet their targeted growth and the

bankers are struggling to meet their targets to lending to SMEs. He

reiterated that, “Without the support of the Bank the SMEs cannot

grow and without the SMEs, India cannot grow”.

He commented that, “It is highly commendable that EXIM Bank

has come out with many innovative financial products in support

of the MSMEs”. The present criterion of NPA is outstanding

payment for more than 90 days. He stressed that in case of SMEs it

has to be enhanced to 120-180 days. The exports are on the

decline and all efforts should be made to boost exports from India

and the SMEs should play a crucial role.

SMEs provide employment opportunities to various class of

people, but is important for them to retain those skilled people,

which has been the major reason why SMEs faced shortage of

skilled labour. SMEs should understand the requirements of the

Bankers who are their partners in progress and develop

transparency and trust for mutual growth.



Shri Girish Bhagat – Board Member, The EuroIndia Centre and

Benedetti & Co, Italy. addressing the delegates

PLENARY SESSION ON

EXPORT PROMOTION : STRATEGIES AND INITIATIVES

Panelists (L to R) Shri Sudeb Sarbadhikary Shri Kirtikar Ojha

Shri Chandrakant Salunkhe Shri Girish Bhagat

Shri Prabhakar Dalal Shri Prakash NS

– CEO, India Factoring and Finance Solutions Pvt. Ltd., – COO, Sify

Technologies Ltd., – President, SME Chamber of India, – Board Member, The EuroIndia

Centre and Benedetti & Co, Italy., – ED, Exim Bank and – National Head - Product Development &

Training, Bharti AXA General Insurance Co. Ltd.

Shri Kirtikar Ojha

"Enterprise Grade IT Services for

SME Business - Sify-Leaders in Converged ICT Services".

– Chief Operating Officer, Sify Technologies Ltd.

addressing the delegates on

Shri Sudeb Sarbadhikary

"Factoring &

Forfaiting: Alternative source of finance for Exporters"

– CEO, India Factoring and Finance

Solutions Pvt. Ltd. addressing the delegates on

Shri Prakash NS

"Advantages and Benefits of Marine Insurance"

– National Head - Product Development & Training,

Bharti AXA General Insurance Company Ltd. addressing the

delegates on

Delegates at the Conference

CO NNECT



Shri Prabhakar Dalal

"Export promotion - New Policies and Schemes for SMEs”

– Executive Director, Export-Import Bank of India delivering the Keynote address on

on

Shri Prabhakar Dalal in his keynote address

commented on the rapid changes in the

world economy - the global economic

slowdown, the change of leadership in China,

crisis in the USA, economic instability in the

Euro region. With the world GDP growth is

around 3.3%, volume of trade has gone

down. The effects of these changes are being

felt on the Indian economy with its economic

growth on the verge of decline. Though, the

SME sector provides huge employment,

poverty alleviation, rural development,

creating innovative products and services,

the sector has been vulnerable mainly due

incompetence as compared to the Corporate,

commented Shri Dalal.

He further observed that with only 26% of

the SMEs engaged in manufacturing

activities & millions of youth graduating

schools and colleges, it will be difficult to

provide them with jobs. He encouraged

more number of Public-Private partnership

projects and infrastructure development to

address this issue. He also encouraged the

FDI in the SME Sector to promote the growth

of SME Sector.

Most of the SMEs are partnership concerns

leading to small-scale activities and access to

credit is a major problem. Over 87% of SMEs

are self-financed, observed Shri Dalal. He

commented that there has to be a clear exit

policy for SMEs that face the possibility of

shut-down. New policies have to be

developed in order to help the SMEs that face

the possible bankruptcy or shutdowns to

enable them revive their businesses or

successfully sell-off their businesses. In

Malaysia, the Government financially

supports the SMEs in branding to develop

and export Malaysian products and services.

In Vietnam, special training is provided at

school and college level to foster

entrepreneurship spirit. Mexico also

supports export promotional activities of

SME Sector. Similarly, India must also accord

highest priority to the SME sector and

develop various policies to provide complete

s u p p o r t t o wa rd s t h e g ro w t h a n d

development of SME sector.

At the same time, Indian SMEs should accord

priority to standardization and safety. It is

important for SMEs to understand that

quality of products and services has to match

international standards in order to be

successful in both domestic as well as

international, commented Shri Dalal. He

also recommended the definition of the

medium enterprises with investment in

plant and machinery up to 10 Crore needs to

be enhanced to enable them to scale up their

activities, technologically upgrade and enter

into joint venture partnership. Cluster

d e ve l o p m e n t a p p ro a c h s h o u l d b e

encouraged to reap the benefit of common

sourcing, storage, testing and marketing.

This will bring down the cost of the products

and make the units competitive. There

should also be separate R & D centers

dedicated to SMEs sector. Nurturing

entrepreneurship and enhancing the skills of

entrepreneurs and the employees is very

important for the growth of SME Sector. Big

companies and MNCs should develop SMEs

as ancillaries and provide support services

for design, packaging and safety.

He further commented that EXIM Bank has

arranged a credit line from the Asian

Development Bank (ADB) for providing

foreign currency term loans to the MSME

borrowers in lagging States like Assam,

Madhya Pradesh, Orissa, UP, Chhattisgarh,

Jharkhand, Rajasthan and Uttarakand. EXIM

Bank also provides Technology and

Innovation enhancement and infrastructure

development fund (TIEID), which is a special

fund to augment the export competitiveness

of MSMEs to explore overseas markets.

Under the fund, term loans in foreign

currency is extended to the Commercial

Banks and Financial Institutions as

refinancing to MSMEs. EXIM Bank also

supports entrepreneurs engaged in creative

industry such as advertising, architecture,

crafts, fashion designing, film making, art

works, publishing, software and consultancy

services etc. Besides the above, EXIM Bank

also provides financial assistance to

individual MSME Clusters and Export

Oriented Units.

He concluded saying the the Private Sector

and especially the SMEs will remain the

engine of growth in the future. With a

favorable demography of 50% of the

population below 25 years, Indian will be a

better place against the developed countries

with gradually aging population. Hence, it is

important to support and assist the SME

sector so that they continue to create

employment and innovative products for

India.



CO NNECT



Shri N. Seshadri –

"International

Banking Linkage: Advantages for SMEs”

Executive Director, Bank of India

delivering Keynote Address on

Shri N. Seshadri, while commenting on Indian economy said that

Manufacturing Sector contributes significantly to India’s GDP and

enterprises in this sector tend to perform well as majority of them

are into exports. Traditionally Indian products and services used to

have an advantage on costing because it employs economically

skilled and unskilled manpower. With competition from other

countries especially China and Malaysia, India is no longer the

cheapest manufacturing nation. However in order to compete in the

international markets.

He observed that Indian SMEs constitute mainly of first generation

entrepreneurs started by individuals or groups and professionals

and family owned businesses. Their inability to consolidate, manage

finance and marketing prevents them from exploring new

geographies. Despite these limitations there are few sectors like

gems and jewelries, chemicals, readymade garments, IT etc. that are

performing well. In order to further strengthen the SME sector, it is

important to strengthen the linkage between the Government

agencies, the Export Councils and the SMEs.

Talking about his Bank, he said that Bank of India, with a network of

50-branch network in 20 countries helps the Indian entrepreneurs

through various initiatives. The capital expenditure development

program of the Bank is very cost effective for setting up projects.

This is the ideal way to meet capital expenditures as there are risks

involved in long-term funds in foreign currency. The Bank also

provides line of credit and guarantees like EXIM Bank. There are

again specialized for financing the working capital. Through its

informative services, the bank provides on 24x7 basis information

required by the entrepreneurs about funds, processing of data and

other details. It adds phenomenal advantage to the clients. Through

it subsidiaries branches in other countries, the Bank can assist the

entrepreneurs regarding information related to market and finance.

He concluded by giving a brief on the advisory services of the Bank

which includes advising the exporters and importers about foreign

exchange transaction and there are special branches to provide this

services. The Bank also provides consultancy services through their

international desks in various offices about industry specific

information, linkage between importers and exporters etc.

Shri Samuel Joseph –

"Accessing Trade

Finance – Pre and Post shipment finance”

CGM, Export-Import Bank of

India addressing the delegates on

.

Shri Samuel Joseph,commented that while dealing in

international markets the only thing that is certain is uncertainty.

Whatever the circumstances, in order to succeed, the

entrepreneurs should adopt and adapt to the different situations.

Normally, commercial banks have readymade products that may

not suit the individual requirements of the entrepreneurs.

Therefore, the Banks, especially for SMEs should design and

come up with financial products as per the changing times.

He added that currently there are no funds available to finance

Research and Development, quality and market related

expenditures. While large companies can take care of their R&D

and market promotion expenses, SMEs find it difficult mainly due

to their small size and limited access to financial resources. If they

want to grow, they need funds for product adaptation,

certifications, brochures and other market related expenditures.

Hence, there needs to be special fund that is dedicated to enable

SMEs meet these expenses. EXIM Bank provides funds for these

expenditures provided they are a part of the strategic marketing

plan and not sporadic expenditure. He also stressed that SMEs

need to manage their funds, both working capital as well as their

debts carefully. Normally when there are no funds available, the

SME tend to divert the working capital by which the current ratio

falls. Talking about EXIM Bank he mentioned that the bank has

many lines of credit in place and are extended to the foreign

government, overseas financial institutions etc. to enable the

buyers in those countries to import goods and services from India

on deferred credit terms. The Exporters get the payment

immediately against negotiation of shipping documents. This is a

good market entry mechanism to the Indian exporters, which

provides non-recourse finance.

Speaking about their important initiative he said that EXIM Bank

provides overseas marketing initiative to the exporters in order

to tap the overseas markets. Unlike the private agency who

charges hefty amount on registration, this service is on success

fee basis. This includes introducing Indian MSME products and

services to target countries, assistance in negotiations,

generation and follow-up on export orders, providing feedback,

building sustainable seller-buyer relationships etc.

PLENARY SESSION ON

SME GROWTH : TACKLING ROADBLOCKS TOWARDS GROWTH

Shri Shailendra Jindal

"International Trade Finance for

SMEs”

– CEO, Continental Capital Advisors


Shri R. N. Pradeep

"Credit Report and

Importance of Credit Rating for Exporters”

– Chairman, Credit Rating & Risk Advisory

Services Pvt. Ltd. addressing the delegates on

Shri K. K. Soni – General Manager Mumbai Region, Indian Overseas

Bank addressing the delegates

Shri Ramesh Dharmaji

"SME Growth:

Tackling Roadblocks towards growth”

– Country Manager, Loan Facilitation &

Syndication, SIDBI addressing the delegates on

Shri Ramesh Singh

"Foreign Currency Loans:

Managing Exchange Risk of Export Contract”

– DGM – International Division, Central Bank of

India addressing the delegates on

ADDRESS BY PANELISTS

Interaction With Panelists




PLENARY SESSION ON

INTERNATIONAL TRADE : OPPORTUNITIES, RISKS AND STRATEGIES

Ms. Mitali Bandekar

"IQ - Funding growth and innovation in Quebec”

– Director, Business Development, Invest

Quebec, Consulate General of Canada addressing the delegates on

Shri B. M. Athalye

"Interest Rate Subvention Schemes:

Benefits for exporters"

– DGM, Trade Finance Dept., IDBI Bank


Shri Stanley Santmayor

"EDC –

Supporting Indo-Canadian Trade & Investment"

– Regional Manager (WR), EDC (Canada’s

Export Credit Agency) addressing the delegates on

Shri Ajit Shah

"Letter of Credit – Improving Cash flow while

minimizing Risks”

– Director, Universal Connections addressing the

delegates on

INTERACTION BETWEEN DIGNITARIES


CO NNECT



Dignitaries from (L to R) during the Inaugural Session Director, NSIC Ltd., Executive Director,

Allahabad Bank, MD & CEO, CARE Ratings, Founder President, SME Chamber of India,

, Central Bank

of India and , MD & CEO, Invent Assets Securitisation & Reconstruction Pvt. Ltd.

Shri P. Udayakumar Shri Arun Tiwari

Shri D.R. Dogra Shri Chandrakant Salunkhe

Shri Malay Mukherjee

Shri P. H. Ravikumar

– –

– –

– Chairman & Managing Director, Export-Import Bank of India, –Executive Director

Shri

T.C.A. Ranganathan

Panelists (L to R) Shri Sudeb Sarbadhikary Shri Kirtikar Ojha

Shri Girish Bhagat Shri Prabhakar Dalal

Shri Prakash NS

– CEO, India Factoring and Finance Solutions Pvt. Ltd., – COO, Sify Technologies

Ltd., – Board Member, The EuroIndia Centre and Benedetti & Co, Italy., – Executive Director, Export-

Import Bank of India and – National Head - Product Development & Training, Bharti AXA General Insurance Co. Ltd.

Panelists (L to R) – Director, Universal Connections, – CEO, Continental Capital Advisors, –

General Manager Mumbai Region, Indian Overseas Bank,

– Chairman, Credit Rating & Risk Advisory Services Pvt. Ltd, – DGM, Trade Finance Department, IDBI Bank Ltd.,

– CGM, Export-Import Bank of India and – DGM – International Division, Central Bank of India

Shri Ajit Shah Shri Shailendra Jindal Shri K. K. Soni

Shri R. N.

Pradeep Shri B. M. Athalye Shri

Samuel Joseph Shri Ramesh Singh

Shri Chandrakant Salunkhe – Founder President, SME Chamber of India,

GLIMPSES OF PLENARY SESSIONS



INAUGURATION

24 - 25 November 2012 | Marriott Hotel, Punethth

GLIMPSES OF

Shri. P. Chidambaram Bancon 2012. Shri

Narendra Singh Shri K. R. Kamath,

Shri C. VR. Rajendran,

, Hon'ble Finance Minister, Government of India inaugurating the the Other Dignitaries (L to R)

, Chairman & Managing Director, Bank of Maharashtra, Chairman, IBA and Chairman and Managing

Director, Punjab National Bank and Executive Director, Bank of Maharashtra

Shri Chandrakant Salunkhe,

Granularity of growth. Shri M. Narendra,

Ms. Anu Madgavkar,

Shri R. K. Dubey,

Founder and President, SME Chamber

of India addressing the delegates during the plenary session on

Others (L to R) Chairman

and Managing Director, Indian Overseas Bank,

Senior Fellow, McKinsey & Company and Executive

Director, Central Bank of India

Panleitis (L to R) CEO, Bajaj Finance,

Consumer Banking, Kotak Mahindra Bank,

CMD, Indian Overseas Bank,

Senior Fellow, McKinsey & Company, ED, Central

Bank of India and , President, SME

Chamber of India during plenary session on

Shri Rajeev Jain, Shri K.V.S.

Manian, Group Head,

Shri M. Narendra, Ms. Anu Madgavkar,

Shri R. K. Dubey,

Shri Chandrakant Salunkhe

Granularity of growth

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II Edition Annual Flagship Activity

INDIA SME LEADERSHIP SUMMITTransforming SMEs into Emerging Corporate

Friday, 05 October 2012 | Hotel Sofitel, BKC, Mumbaith

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Mr. Jignesh Shah Mr.

Rameshkumar Dr. J.N. Misra Mr. Chandrakant

Salunkhe Mr. Ajai Kumar H. E. Mr. Peter Haas

Dr. H. P. Kumar Mr. Ramnath Pradeep

– Chairman & Group CEO, Financial Technologies (India) Ltd. (in centre). Other dignitaries from (L to R)

– MD & CEO, Asia Pragati Capfin Pvt. Ltd., – CGM (Maharashtra & Goa Circle), SBI,

– President, SME Chamber of India, – CMD, Corporation Bank, – Consul General,

Consulate General of The United States of America, Mumbai, – CMD, NSIC and – Former CMD,

Corporation Bank

INAUGURATION OF THE SUMMIT

Mr. Jignesh Shah – Chairman & Group CEO, Financial Technologies (India) Ltd. delivering the inaugural

address at the summit

Mr. Jignesh Shah advised SMEs that they

should transform themselves into a big

company. However, several factors govern

the growth of the SMEs.

Talking on the finance for SMEs, he observed

that while banks provide debt capital to the

SMEs, the stock exchanges contribute to

raise the much required equity and risk

capital. SMEs need to have a good ratio of

debt-equity capital which would enable the

SMEs to grow and meet their financial

requirements.

Talking about MCX, he mentioned that MCX

is a venture of FTIL (Financial Technologies

of India Limited), and started its operations

in 2003 in the commodities futures trading,

has become the top exchange in the

commodities trading in India with 85%

market share. Globally MCX ranks among

the world’s top 10 commodity futures

exchanges.

He commented that presently the SMEs pay

between 1.5% to 2% per month to acquire

capital from informal financial lenders. Even

with this heavy burden, Indian SMEs are

doing well. He encouraged the SMEs to take

advantage of the exchanges to meet their

financial requirements. The exchanges

provide a large equity capital which would

enable SMEs to grow at a faster pace and also

improve their business operations. The

SMEs should get themselves rated by a

reputed credit rating agency in order to

build credibility amongst the investors.

Talking on the SME exchanges in other parts

of the world, he said that China has a

dedicated SME Exchange to suit the

requirements of SMEs and has mobilized

equity capital to the tune of 12 billion USD

equivalents to Rs. 60,000 Crore. Stock

Exchanges in USA, Hong Kong and Tokyo are

also doing a wonderful job in supporting

SMEs. He concluded that by conveying a

strong message to the SMEs that his

company has also started as SME and every

SME has got the potential to transform into a

Corporate.

APPRECIATION AWARD

Mr. Jignesh Shah – Chairman & Group CEO, Financial Technologies (India) Ltd is presenting appreciation award to –Mr. M. K. Nag

Supporting SMEs for Better Growth

Former

CGM, State Bank of India for



Dr. H.P. Kumar - Chairman & MD, National Small Scale Industries Corporation Ltd. delivering the keynote

address at the Summit

Dr. H.P. Kumar commented that the Finance Minister has instructed

the bankers to clear the loan proposals of the SMEs within a month’s

time. This will enable SMEs get faster credit disbursements. NSIC has

its operations in 27 countries and has an SME focused framework.

Due to the pragmatic policies of the Indian Government, the SMEs are

achieving 12% average growth. However most of the micro

enterprises are not registered and fall under informal sector as a

result find it difficult to avail the schemes and incentives available for

SME sector. He encouraged the SMEs to get registered with NSIC to

take advantage of the services of the NSIC and attain global

competitiveness and reach out to world market.

He observed that India is witnessing huge flow of consumer goods

and consumer durables at a cheaper price from various countries.

For SMEs to sustain this competition it is necessary for them to

produce the same goods matching the quality and price to effectively

compete with the foreign suppliers and cater to the domestic market.

Dr. Kumar further commented that once SMEs scale up their

activities with improved quality of products and services, they can

explore exporting to other countries as well. For long term

sustainability the SMEs should invest in technology upgradation

from time to time. This would enable the SMEs to focus on quality

while building their credibility. NSIC is offering rating services in

cooperation with CRISIL, D&B, SMERA, CARE etc. He observed that

till date only 55,000 units had availed this facility and SMEs should

increasingly take advantage in order to improve the efficiency of their

business operations. There is a directive to procure 20% of the items

by the Government Departments and PSUs from SMEs which the

SMEs should take advantage.

He concluded by giving an overview of marketing assistance scheme

of NSIC which enables SMEs participate in the Government tenders.

Raw material procurement and warehousing facilities are also

available.

SMEs can take advantage of Credit facilitation centres of the NSIC

which has partnered with 18 banks to avail credit from the banks.

NSIC is also planning to enter into the SME Exchange space as well

where NSIC can take equity in the SMEs.

Mr. Ajai Kumar - Chairman & MD, Corporation Bank addressing the delegates

Mr. Ajai Kumar observed that even during global recession, the

Indian SMEs achieved 6% growth mainly due to their innovation

ability. It is estimated that by 2025, India would be able to double the

GDP growth and SMEs achieve higher growth than the big

companies. He also commented that SMEs should take advantage of

equity financing and factoring services. In order to obtain faster

access to the credit and to reduce the gap between the SME and the

bank, the entrepreneurs should approach dedicated SME Financial

consultants who would advise as to how to present the enterprise

proposals readily acceptable to the bank. The Bank has 14 SME Loan

Centres with relationship managers. Integration of all the operations

of the enterprise through IT platform is very essential for the growth

of SMEs.

He suggested that local associations and organisations like SME

Chamber of India should come forward to extend support and

assistance to SMEs to prepare proper documentation for submission

to Banks to avail timely and adequate bank credit.

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H.E. Mr. Peter Haas - Consul General, United States of America, Mumbai addressing the delegates

H.E. Mr. Peter Haas, observed that the economic cooperation

between India and USA is increasing and there has been lot of

interaction between SMEs of both the countries. The bi-lateral trade

stands at around 100 billion USD. More than the big corporate, SMEs

are the critical drivers of the economy. Indian-American population

is about 7% who focus on the development of SMEs.

Further, he said that there are 29 billion small companies in USA

contributing to 50% of the GDP. 97.5% of the enterprises employ less

than 20 people. 1/3rd of the exports are contributed by the small

companies. They create 20% more jobs and have 20% more

productivity than the big companies. There are instances of some

Indian companies buying small US companies.

He concluded that supporting organizations like SME Chamber of

India and other associations can help SMEs in both countries to

identify new business opportunities and alliances.

Dr. J. N. Misra CGM (Maharashtra & Goa Circle), State Bank of India addressing the delegates-

Dr. J.N.Misra commented that State Bank of India is commented that

the bank is committed to the development of Indian SMEs and with a

view to provide superior and friendly services to SME clients, SBI has

implemented relationship banking.

He further observed that there are 550 Special relationship banking

managers are inducted to provide advice and support to take

advantage of the products of the bank and special SME branches are

in operation. There is a separate in house technical consultancy cell

to evaluate the technical details of the proposals. Cluster

development is accorded priority by the bank. “SME SMILE” is a new

product to provide interest free loan in the form of equity assistance

upto Rs 10 lakh per enterprise. He commented that bank is also

offering reduced interest rates to deserving SMEs and collateral free

loans are given under CGTMSE Scheme. 116 Centralised Processing

Cells (CPCs) are in place to reduce the processing time of proposals.

Multipurpose sales teams are created to understand the specific

requirements of the customers.

He concluded by highlighting few strategies the Bank has devised to

support SMEs in their upswing and downswing by adequately

training the employees of their banks.

Largest CBS Branch Network (Over 14000)

Pioneer in MSME lending

One stop solution for all the Financial needs

Championed the idea of de-linking security requirement from

financing the SSI sector

A Separate Business Unit was set up in 2004 based on

comprehensive strategy and revamped business processes

Portfolio of more than Rs 1.63 lakh crores in MSME advances out

of which Rs 31,000 crores in Maharashtra and Goa

Timely financial assistance

Efforts to hone skills through Entrepreneurship development

programmes in association with top EDIs

Project Uptech with the intention of encouraging technology

upgradation

Project Quality Up gradation was launched to assist and motivate

SME units in obtaining ISO certification

Rehabilitation centre for sick and viable units

Rationalisation of service charges

Absorption of CGTMSE fees and ECGC premium by Bank

Recently introduced POS (Point of Sale) / SME Debit card for SME

Important information and Services of the Bank:

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Mr. Chandrakant Salunkhe - President, Small & Medium Business Development Chamber of India

During his welcome address Mr. Chandrakant Salunkhe mentioned

that for the last 18 years, the Chamber has been relentlessly working

for transforming the SMEs into emerging corporate through various

support services like Integration of SMEs, Export Promotion, Finance

and Investment, Marketing and Branding, Joint Venture, Contract

Manufacturing, Technology Transfer, Collaborations, Trade

Pomotional Events, Research and Analysis and Knowledge

Transmission.

The Asian Development Bank projects India’s growth to touch 5.6%

whereas there are many different figures available as per the Indian

experts. This growth cannot be achieved without the active

participation of the SMEs.

He observed that SMEs face many problems. The major ones are

availability of finance and marketing. The Chamber strives hard to

bring the SMEs around the world to interact with Indian SMEs to

understand each other’s business requirements. This will enable the

growth of export activities of the Indian SMEs. In order to make

available the equity capital BSE has initiated SME Exchange where

SMEs can avail public finance.

He urged the NSIC to involve the SME Chamber of India as a partner to

take business delegation to various countries as the Chamber has a

huge data base of SMEs in several sectors, which will ultimately

benefit the SME Sector at large.

Elaborating on the activities of the “Banking and Investment Council”,

an initiative of the SME Chamber of India, he mentioned that the

Council aims to interact with the SMEs and the banks to sort out

issues and to ensure smooth credit flow to SMEs. The Council will

also educate the SMEs about the various schemes, incentives and the

products of the banks and also assist them in preparing project

reports.

He appreciated the support of various banks in encouraging the

activities of the Chamber for knowledge transmission and

empowering them to be competitive.

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INTERACTION BETWEEN DIGNITARIES

Delegates at the Summit

H. E. Dr. Samuel Kaveto Mbambo

"Business and Investment Opportunities for SMEs"

– High Commissioner of

Republic of Namibia to India addressing the delegates on

“A successful herder is one who

determines the pace of the herd of

cows to match the weakest of the

lot” commented H.E. Dr. Samuel

Kaveto Mbambo. This golden rule is

equally applicable to industry. The

pace of economic progress of a

country should be interlinked with

that of the SME.

Namibia is labeled as “Upper middle income” country and faces

many challenges. Main driver of structural change in the country is

the private sector that too the SME sector, observed Mr. Mambo.

Namibia has built a system where the rule of law has been applied

against the background of peaceful political environment and

conducive business climate. In a stable politic and economic

environment, such as Namibia, a vibrant and productive small and

medium-sized enterprise (SME) sector is playing a vital role for

growth and sustainability. This has given rise to a number of

opportunities for entrepreneurs in Namibia and also Indian

entrepreneurs looking for taking advantage of this rich environment

in various sectors, commented Mr. Mambo.

Talking on the country investment climate, he said that Namibia has

a stable political, legal and institutional environment and sound

macroeconomic policies. The strategic goal of the government is to

become a fully industrialized nation by the year 2030. There are

plenty of business opportunities for Indian SMEs to partner with

Namibian SMEs for mutual growth. Agriculture, Manufacturing,

Logistics and Tourism are the focus sectors of the policy makers. But

the country requires all types of goods and services being a

developing country. This presents Indian investors a vast area for

potential investment opportunities to achieve lucrative growth with

the support of the government that welcomes and encourages

investors.

Highlighting the importance of SMEs,

Mr. A. Rameshkumar observed that

the late Samsung founder, Lee Byung-

Chull started his career as a Grocer.

Sony and Siemens were also started

as SMEs. In India, Nirma was started

as a one product – one man company

to cater to the basic needs of the

I n d i a n p o p u l a t i o n , w h i c h i s

transformed into a 4000 crore company employing 15000 people.

While Samsung took the diversification route, Sony went for

innovation. Siemens focused on superior engineering products and

Nirma concentrated on the bottom of the pyramid. Each SME has its

own style in creating a new path for themselves. German and

Japanese SMEs have been successful because they concentrate on

niche products, commented that Mr. Kumar.

Vision, innovation, transition from routine, global footprint,

operational efficiency, and empowerment of employees,

collaborations, business ethics, risk management and cash flow

management are the major traits of successful SMEs.

Mr. A. Rameshkumar - Managing Director & CEO, Asia Pragati

Capfin Pvt. Ltd.

PANEL DISCUSSION ON

REDEFINING ECONOMIC GROWTH OF SMEs THROUGH TECHNOLOGY

Panelists (L to R) – High Commissioner of Republic of Namibia to India, – Director, SME Business

(APAC), Avaya India Pvt. Ltd., – MD & CEO, Asia Pragati Capfin Pvt. Ltd., - MD & CTO, Rosoft Limited,

– AVP – India, Infosys

H.E. Dr. Samuel K Mbambo Mr. Adil Doctor

Mr. A. Ramesh Kumar Mr. Rohan Tejura Mr.

Malay Shah



Mr. Adil Doctor

"Communication &

Collaboration Solutions – Helping Small & Medium

Business"

Mr. Rohan Tejura

"ERP in SMEs – Streamlining the Business

Operations – Helping Small & Medium Business Growth”

Mr. Malay Shah

"Cloud Computing : Impact on

Business and Profitability”

– Director, SME Business (APAC), Avaya India

Pvt. Ltd. addressing the delegates on

– MD & CTO, Rosoft Limited addressing the

delegates on

– Associate Vice President – India, Infosys


Mr. Adil Doctor commented that

SMEs in the current economic

situation are faced with a large

number of challenges. Some of the

top challenges of SMEs are -

Achieving customer satisfaction

and retaining them, improving

revenues while controlling the

business costs, Better integration

with partners and customers and to reduce delivery time to bring

products and services to the market.

Taking about Avaya, he said that the company’s IT solutions make

the collaborations simple, relevant and spontaneous through data,

video and other services. It will result in faster collaborations and

smarter decisions making. This will help bring the right people

together with the right information in the right context, to deliver

better business results, in real time.

Speaking on the advantages of incorporating IT in the company, he

mentioned that it is estimated that Flexible work schedules for

employees reduce the compensation to almost 50%. He

encouraged the SMEs to take advantage of this idea and adopt

Work-from-Home solutions which enables in reducing the travel

time and hassles of the employees thereby recovering the

productivity lost in traveling. SME should also find out the right

tools to help business to enhance its “Customer Focus”.

He concluded by briefing the advantages of the system and

technology. The solutions would facilitate browser-based access

and integration of phones, desktops, laptops, tablets and mobile. It

enables Seamless remote networking using any phone, anywhere

in the network. Seamless transitions between devices during calls

are one more interesting feature of the system. It supports

integration of employees and contractors whether they are in

office or home locations, which is an added advantage.

Mr. Rohan Tejura commented that

SMEs find it easy to have effective

control on their operations as long

as they remain small, but while

growing big they are bound to get

into management complexities.

After reaching a specific growth

stage, it is necessary for operations

to be system driven.

Various functions like Finance, materials, production, logistics,

marketing, sales, E-commerce, CRM, Human capital and

infrastructure need to be managed effectively to remain

competitive. ERP solutions are the best tool for SMEs to achieve

this objective.

Talking on the challenges of IT implantation, he mentioned that

long implementation time, failure of complete or partial

implementation, switching the mindset of the employees from

conventional methods to IT enabled solutions, implementation

difficulties and inadequate service support are some of the

problems SMEs face while adopting ERP solutions.

He concluded by saying that Rosoft assists SMEs to break through

the Ceiling of Complexity, Ensure Business Scalability, Maintain

Growth Momentum, Effective utilization of Management

Bandwidth and leveraging technology for effective control and

growth.

Speaking on cloud-computing, Mr.

Malay Shah mentioned that Cloud

Computing is a style of computing

where massively scalable IT-

enabled capabilities are delivered as

a service to external customers

using internet technologies. The

essential Characteristics of Cloud

Computing are - On-Demand Self

Service, Rapid Elasticity, Wider Access, Resource Pooling, Tiers of

Service and Measured Service. There are 3 main Service Models in

Cloud service - Software as a Service (SaaS), Platform as a Service

(PaaS) and Infrastructure as a Service (IaaS).

Outlining the benefits of Cloud Computing he mentioned that

Lower upfront capital cost by reducing overall CapEx, Resource

pooling provides a lower TCO (total cost of ownership), Cost scale

with business allowing companies to pay only for what they

consume. It also provides Agility & Flexibility and Rapid provision

provides shorter time to market, highly elastic supply allows for

additional capacity to be added in real time. Cloud computing

allows companies to focus on their core competencies instead of

undifferentiated IT services, Lower switching costs reduce risks of

vendor lock-in, Scalability, High availability service on demand,

Quickly scale up to meet unanticipated or seasonal demand.

He concluded by giving a brief on several varieties of Clouds such

as - Private Clouds, Community Clouds, Public Clouds and Hybrid

Clouds. Clouds are ideal for SMEs to manage Marketing, Sales, E-

commerce, Finance, Human capital and infrastructure activities to

improve efficiency and achieve growth.

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Panelists (L to R) – MD & CEO, ARCIL, – MD, Intec Capital Ltd., - President,

SME Chamber of India, – CEO, Fermenta Biotech Ltd., – MD, Sequoia Capital India and

– Country Manager, Equity & Risk Capital Vertical, SIDBI

Mr. P. Rudran Mr. Sanjeev Goel Mr. Chandrakant Salunkhe

Mr. Prashant Nagre Mr. V. T. Bharadwaj Mr. K. G.

Alai

Mr. Sanjay Sachdev

"Good

Governance and Business Ethics”

Mr. Prashant Nagre

– President and CEO, Tata Asset

Management Ltd. addressing the delegates on

– Chief Executive Officer, Fermenta

Biotech Limited addressing the Delegates

Mr. Sanjay Sachdev commented that

Business Ethics and Corporate

Governance stems from a Business

leader's understanding that the

business exists not only for making

profit but has a role to solve larger

problems of society and people from

whom the profit is generated.

Companies should therefore focus on

addressing some of the problems

such as - Managing scarce resources, Wireless solutions where

infrastructure is poor, Eradicating water borne diseases, Improving

access to education, Creating jobs and prosperity for the rural

people.

Effective governance stems from integrity and ethics in each and

every employee and not only from the owners and top level

executives. It is the job of the leader to set the culture and momentum

for his enterprise. Good Governance sets the character of the

organization and plays a key role in driving the competitiveness of

the organization. Making decisions based on good judgment are

important for building any successful organization.

Further he commented that for organization to have a strong

governance system, the management team first needs to build a

system of Governance, Ethics and Integrity. 'Leadership with trust'

should be the philosophy of SME. It should cover much more than

financial dealings. It should encompass customers, suppliers,

contractors, quality in products and services, and satisfying

shareholders. He concluded by giving example of Sears Automotive

Center, the mechanic commissions were based on targets for various

kinds of repairs. So whether the customer needed it or not he was

advised to get a “brake” job done because the commission was high.

At the end the day, the image of the company was spoiled. Therefore,

the ethics and code of conduct should be penetrated at all levels of

the enterprise.

Mr. Prashant Nagre commented that

Time management has become a very

crucial element for success in this

competitive world. World has

become competitive to an extent that

customers expect service and

information on a 365 X24x7 basis. As

a result there is heavy pressure on

profitability and more expectations

of value for money. This change in

consumer behavior has forced the companies to optimize the cost of

business by adopting various innovative business processes and

systems.

He encouraged the SMEs to focus on cost control wherever possible.

It is only through these initiatives can the SMEs become competitive

and would be able to develop a strong bottom-line. He also stressed

on the importance of delegation of authority in order to achieve

efficiency in the decision making process and drive efficiency in the

business process.

PANEL DISCUSSION ON

IMPROVING COMPETITIVENESS IN SMEs

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Mr. P. Rudran

"Role of ARCIL towards development of SMEs”

Mr. Sanjeev Goel

"SME Challenges – Need of Finance and

Financial Disciplines”

Mr. V.T. Bharadwaj

"Private Equity and Venture Capital for SMEs"

Mr. K. G. Alai

"Role of SIDBI towards development of SMEs”

– MD & CEO, ARCIL addressing the delegates on

– MD, Intec Capital Limited addressing the

delegates on

– MD, Sequoia Capital India addressing the

delegates on

– Country Manager, SIDBI addressing the

delegates on

Mr. P. Rudran commented that Many

SME become sick due to various

reasons beyond their control.

E c o n o m i c s c e n a r i o , t o u g h

competi t ion , unduly delayed

payment or bad debts from

c u s t o m e r s , t e c h n o l o g i c a l

obsolescence, labour problems etc.

He observed that while the economy

is growing there are various

obstacles that come and one of them is the growth in NPAs in the

financial sector. Hence he stressed the need for faster reconstruction

of NPAs with a view to recycle the precious resources that are lying

unused in the economy. While big companies are somehow

reconstructed, the institutional support for SMEs is limited. He

mentioned that ARCIL identifies the bad assets and NPAs from

banks, evaluate them, and offer to reconstruct them. The capability

of the owners and managers, the health of the industry they are into,

future viability, earning potential, ability to wipe out losses are some

of the parameters for consideration. He encouraged the SMEs to

approach banks and other institutions once they smell trouble and

should not allow themselves to become an NPAs. They should

appoint specialists to work out strategies to turn around.

Moving with the time, the Government of India, the Reserve Bank of

India and other agencies involved in managing the economy have

taken very proactive steps for facilitating the reconstruction of NPAs

in various ways. Setting up of ARCs was one of the unique measures

that the authorities took in this direction. Asset Reconstruction

Company (India) Ltd. (ARCIL) promoted by ICICI, IDBI and SBI and

PNB was the first institution set up in 2002.

With particular emphasis to young NPAs, he said that there are

limitations to the lending institutions to take additional exposure in

respect of NPA accounts. That is why such NPAs that come under the

fold of an ARC will be fit cases for reconstruction provided they are

potentially viable businesses. For this purposes, the reconstruction

would enables SMEs rearrange the liabilities, financial restructuring

and infusion of capital funds by promoters or investors as also

reallocating its priorities.

Mr. Sanjeev Goel observed that non-

availability of Finance to First

Generation Entrepreneurs is one of

the major challenges to the growth of

the sector. Balance Sheet do not

reflect credit worthiness of an SME

and therefore focus should be only on

cash flows as result of which banks

find it difficult to lend to the SME

sector. Talking about the role of the company towards the

development of the SME sector, the mentioned that the company

provides finance to SME with only Machinery as Collateral. But the

machinery should have long life, low obsolescence, strong brand

name, High Resale Value and multiple utility. The main credit

assessment criteria for lending are – Education and Experience of

the borrower, Residential Stability, CIBIL Score, Repayment Track

record and Available Cash Flows. The company after the credit

appraisal process SMEs with the requirement of Rs 5 lakh can be

funded within 15 days.

SME should adopt strong financial discipline such as avoiding

Diversion of Funds from Short to Long Term requirements, diversion

to real estate activities, delay in filing returns and documents, and

providing proper declarations wherever needed. They should

develop good relationship with FI & Banks, obtain Credit Rating and

create Liquid Investments.

Mr. V.T. Bhardwaj while commenting

on his company said that it is a VC/PE

dedicated to SMEs. They invest across

multiple sectors and so far 70

companies have been benefited. In

the case of an SMEs in Bangalore, they

had invested in a coffee chain with a

new concept to ensure customer

experience consistently with proper

ambience. Even though the price of

the coffee was high, it became a good

brand and achieved success. He commented that SMEs should

emerge as the most effective and most trusted brand by building

effective financial management system. They should try to manage

their operations with debt and use equity to tap the required growth.

Second, they should identify and retain the key high quality

employees by paying them well. Third, they should adopt ethics and

transparency in their operations.

It is only through this can SMEs make themselves more competitive

and also build credibility amongst the investors. PE/VC find these

characteristics to be more important while investing in SMEs.

Mr. K. G. Alai commented that SIDBI

provides equity and risk capital to

first generation entrepreneurs,

equity capital for matured businesses

and mezzanine finance which is

between equity and debt. They have

80 offices with 50 VC partners.

SIDBI has SME dedicated VC funds

catering to the need of entrepreneurs

in association with the credit rating

agencies, factors and asset reconstruction companies. Project loans

are made available at sub - Prime Lending Rate.

He also suggested that VC Funds after investing do not interfere in

the day-to-day activities of the companies, however they bring with

them vast experience in different fields thereby making their

investments more valuable. However, they involve themselves in

taking the most important strategic decisions of the organization

which form the make or break for the company profitability.



Mr. Ananta P. Sarma

"India

Opportunity Fund – Benefits for SMEs”

– Chief Executive Officer, SIDBI Venture

Capital Limited addressing the delegates on

Mr. Ananta P. Sarma commented

that PE/VC is all about investing in an

idea, where the promoter may not

have the financial muscle to fund an

attractive business proposition but

an excellent idea that has huge

potential for success. PE/VC funds

are the best alternatives to obtain

equity capital for those SMEs with a

high growth potential.

Stressing on the importance of PE/VC funds he commented that

there are increasing number of professionals and technocrats are

taking risks to become entrepreneurs and the quality of

entrepreneurs is on the rise due to the innovativeness of the ideas.

Globalization has opened several new opportunities for SMEs who

are looking at scalability, global markets and tie ups in order to grow

and tap larger markets. In the current globalized business scenario,

Indian SMEs have a large untapped growth potential and need access

to risk capital for investing in new technologies and business

methods to realize it.

Talking about SME financing he mentioned that there is a huge Gap in

SME Financing. Conventional funding has limitations in reaching out

to new SMEs with high intellectual property and low asset base.

Therefore, increasing availability of risk capital by way of Venture

Capital is critical for the developing the SMEs.

Talking on the VC funding, VC invests in unlisted companies, conduct

detailed Due Diligence, provide flexible financing and also share

profits and risks of the businesses. They extend high Level of Hand

holding to the entrepreneur to hone his skills. They are into High

Risk – High Return projects and very Selective in Investments. They

share the ownership and control of the investee company.

He added that VC is very useful for SMEs because they add value to

the organizations in lot many ways and do not believe in collateral

recovery. They bring lots of expertise on with financial, marketing,

technical & personnel linkages in order to enhance the performance

of the organization. The investment criteria includes - scalability of

business model, promoters’ capabilities to manage high growth,

management issues like commitment, breadth, experience and

future requirements, time, costs and risks involved in product

development, financial management issues like cash flow and future

funding and margins.

Talking of the exit routes Mr. Sarma shared that initially exit was a

major challenge to VC as access to primary market is difficult for

SMEs. With the SME exchange in place the situation will change with

increasing number of SMEs looking forward to apply for SME

Exchange.

Funds managed by SVCL

SME Growth Fund (2004-2014)

India Opportunities Fund (2011-202) for growing micro, small &

medium enterprises (MSME) companies

Samridhi Fund (2012-2019) - investing in low income states of

India

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PANEL DISCUSSION ON

BUILDING CAPACITIES OF SMEs FOR BETTER GROWTH

Panelists (L to R) – CEO, Value Plus - The Family Office,

– Former CMD, Corporation Bank, – Managing Director & CEO, Invent Assets Securitisation &

Reconstruction Pvt. Ltd, – CEO, SIDBI Venture Capital Ltd, – Trade Advisor-Ontario,

Consulate General of Canada

Mr. H.P. Shah Mr.

Ramnath Pradeep Mr. P. H. Ravikumar

Mr. Ananta P. Sarma Mr. Ajay Ramasubramaniam

Mr. Chandrakant Salunkhe – President, SME Chamber of India,

CO NNECT



Mr. P. H. Ravikumar

"Finance

and Investment Opportunity for SMEs”

Mr. Ajay Ramasubramaniam

“Business Opportunities in Ontario, Canada”

Mr. H. P. Shah

"Strategy for Building

Sustainable Family Managed Businesses”

– MD & CEO, Invent Assets Securitisation &

Reconstruction Pvt. Ltd. addressing the delegates on

– Trade Advisor-Ontario,

Consulate General of Canada addressing the delegates on

– CEO, Value Plus - The Family Office, Vadodara


Mr. P. H. Ravikumar commented that

SME balance sheets do not reveal the

true picture of the strength of the

company as they lack transparency.

Banks mainly consider SMEs

unreliable mainly due to the lack of

transparency of business operations.

Banks consider cash flow to be the

only reliable measure to understand

the actual working of SMEs.

He encouraged the SMEs to focus excessively on receivables

management in order to ensure timely payback of the receivables

and should not include those payments receivables which are very

doubtful in nature. The total outside Liabilities should not be more

than 4 times the net cash flow. This is considered as a Sustainable

debt, means it should be 4 times the operating profit/EBIDTA. The

Interest payout should not exceed 35 to 40% of EBIDTA

He observed that many SMEs are afraid to resort to approach Private

Equity as they think it will dilute their control over their enterprise.

However, when the Debt goes beyond sustainable levels, it is

advisable to consider VC to sustain and grow. Private equity aids

SMEs to migrate into next plane of growth. With the association of a

VC/PE, SMEs can undertake Preparatory activities to listing in an

exchange. VC/PE brings discipline and act as a positive pressure on

the company.

He further commented that the Minimum capital contribution of 20

to 25% is unsustainable in today’s economic conditions. Expansion

activities should not be undertaken without tying up the means of

finance. Many SMEs are Suppliers to public sector and big corporate

units. They do not get their payment for several months. Eventually

big companies get interest free credit for their operations. But SMEs

continue to supply and do not complain for fear of losing the big

customer.

He concluded by encouraging the SMEs to resort to Factoring

services to manage longer cycles of receivables and ensure smoother

cashflows.

M r. A j ay R a m a s u b r a m a n i a m

commented that the Consulate

strives to promote bi-lateral trade

and investment between Canada and

other countries, and especially in

Ontario. Ontario has 13 million

population which is roughly 1/3 of

the population of Canada and

contributes 1/3 of the GDP.

He observed that there are six lakh Indians with a Gujarati

population of one lakh. ICICI, Bank of India, Punjab National Banks

has their branches in Ontario. There are many professionals of

Indian origin engaged in ICT and life science industry. The economy

is knowledge driven and there are special funds and incentives

available for research personnel.

He concluded saying that Ontario's favorable environment provides

the Indian SMEs with a host of opportunities to supply products and

services as well as for investment in Ontario.

Mr. H. P. Shah commented that SMEs

should strike a balance between his

business and family activities which

many do not care. He encouraged the

entrepreneurs to have proper

planning of his day-to-day activities

and encouraged to use the services of

specialists the job of managing the

sensitive issues, as they have time,

resources and expertise to handle

them.

Talking about his company he said that the Company offers business

advisory services such as - Business Opportunity Analysis, Business

Expansion Strategy, Wealth Blue Print, Paying Tax Profitably, Tax

free income strategies, Credit Profile Improvement, Cost

restructuring strategies Strategic Fund Selection, Protection against

business crises, Hurdle funds, Auditing, Risk Management,

Retirement by Choice, Right Cash Flow, Family Value into Business

and Whole Person Concept.

Their family advisory service include - Asset Allocation, Tax Free

Income, Crises Management, Hurdle Funds, Will and Living Will,

Family Bond -Open Family Meetings, Succession plan-to legacy of

capital, Funding for Family needs, Children Education and King Size

Retirement Life.



II Edition Annual Flagship Activity

INDIA SME EXCELLENCE AWARDSFriday, 05 October 2012 | Hotel Sofitel, BKC, Mumbai

th

During the Summit INDIA SME EXCELLENCE AWARDS function was organised to bring to the lime light a few successful

SMEs for their achievements and excellence.

11 successful entrepreneurs from SME Sector were bestowed with “India SME Excellence Awards” as a tribute to their

exemplary achievements and leadership qualities under various categories - Manufacturing, Service, IT, R & D and

Exports, Woman Entrepreneur, successfully managed family business and organisations supporting SMEs.

Group Photo of Awardess

LIST OF

INDIA SME EXCELLENCE AWARDEES

Awards was presented by Mr. Jignesh Shah

Mr. A. Rameshkumar Dr. J.N. Misra Mr.

Chandrakant Salunkhe Mr. Ajai Kumar H. E. Mr. Peter Haas

Dr. H. P. Kumar Mr. Ramnath Pradeep

– Chairman & Group CEO, Financial Technologies (India) Ltd. Other dignitaries were

present – MD & CEO, Asia Pragati Capfin Pvt. Ltd., – CGM (Maharashtra & Goa Circle), SBI,

– President, SME Chamber of India, – CMD, Corporation Bank, – Consul

General, Consulate General of The United States of America, Mumbai, – CMD, NSIC and –

Former CMD, Corporation Bank

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Business Activity:

Turnover:

Special Achievements:

Future Plans:

Food Processing and Exports

Rs 615 Crore

Processing of various spices, oil seeds

and excellence in the same. It exports to more than 40 countries

The Company plans to expand its exports to more

countries

JABS INTERNATIONAL PRIVATE LIMITED

Navi Mumbai, Maharashtra

Awarded For

“EXPORT SECTOR”

Mr. Shailesh Shah Mr. Bhaskar

Shah

receiving Award on behalf of

– Managing Director, Jabs International Pvt. Ltd.

CO NNECT



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Business Activity:

Turnover:


Financial Services for Manufacturing,

Trading and Services Industry along with SMEs

Rs 78.3 Crore

In order to facilitate higher sales and

maximize profits, the company reduced its turnaround time for

loan processing, and also reduced the cost of funds by using

short-term instruments

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Business Activity:

Turnover:


Future Plans:

Infrastructure and Renewable Energy

Rs 150 Crore

Installed the solar-roof top on the

Factory -1st time in India

The company plans to expand its reach on pre-

engineered building, renewable energy across India

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Business Activity:

Turnover:


Future Plans:

Multi-Inspection agency for exports, energy

audit and Consultancy

Rs100 Crore

High security hologram, stickers for

certificates to avoid manipulations, prevention of exports of

explosive, consultant for the very 1st wind-mill project in India at

Lamba

Company plans to foray in to other territories

across India & other countries

INTEC CAPITAL LIMITED

New Delhi

Awarded for

“SME FINANCE (NBFC)”

MPIL STEEL STRUCTURES LIMITED

Mumbai, Maharashtra

Awarded for

“SUCCESSFULLY MANAGED FAMILY BUSINESS”

Mr. Sanjeev Goel – Managing Director, Intec Capital Limited.

receiving the Award

Ms. Priyanka Gupta – Executive Director, MPIL Steel

Structures Ltd. receiving the Award

Mr. Ravindra Patel – Chairman, Ravi Energie Private Limited.

receiving the Award

RAVI ENERGIE PRIVATE LIMITED

Vadodara, Gujarat

Awarded for

"SERVICE SECTOR”



KAMATHS OURTIMES ICE CREAM PVT. LTD.

Mumbai, Maharashtra

Awarded for

“MANUFACTURING SECTOR”

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Business Activity:

Turnover:


Future Plans:

Manufacturing of Ice Creams

Rs 52.7 Crore

In-house Development of De-seeding

machine for Sitaphal and extracting ‘Malai from Tender Coconut;

Use of PHE, Introduction of process of Exchange, Change in

heating process, enabling them to save 15% savings

Increase the number of outlets by 250 in the next 5

years; and expand in the overseas market in the next 2 years, to

introduce new flavours and a range of low-calorie Kulfi,

milkshakes and ice cream

SUPRAVENI CHEMICALS PRIVATE LIMITED

Bangalore, Karnataka

Awarded for “WOMEN ENTREPRENEUR”

in “MANUFACTURING SECTOR”

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Business Activity:

Turnover:


Future Plans:

Manufacturers of specialty chemicals used in

battery industries, electronic and aerospace, industries

Rs. 16.54 Crore

The most prestigious space project by

Vikram Sarabhai Space centre uses their specialty Chemicals;

Developed 100% indigenous eco-friendly degreasing solvent;

retained all customers

The Company plans to foray in to new Eco-friendly

product

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Business Activity:

Turnover:


Future Plans:

Providing Software and Security solutions of

various IT Companies, BFSI, Manufacturing, Pharma and Media

and Entertainment Companies

Rs 12 Crore

The company is one of the major

provider of IT Services to overseas companies, as a result major

earner of foreign exchange; provider of equal employment

opportunity for women employees

The Company plans to increase its turnover to 45

Crore by 2015 and also make IT Infrastructure services more cost

effective.

CRYSTAL SOLUTIONS PRIVATE LIMITED

Mumbai, Maharashtra

Awarded for

“INFORMATION TECHNOLOGY SECTOR”

Mr. Shrinivas Kamath – Director, Kamaths Ourtimes Ice

Cream Pvt. Ltd. receiving the Award

Ms. Sugadha Somasundaram – Managing Director, Supraveni

Chemicals Pvt. Ltd. receiving the Award

Mr. Vasant Bhanushali – Director, Crystal Solutions Pvt. Ltd.

receiving the Award

CO NNECT




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Business Activity:

Turnover:


Future Plans:

Manufacturing of Automobile Components, IC

Engines and other Engineering Components

Rs. 16.65 Crore

Successful launching of Bauer Gear

Motor - Germany

Expand overseas in Power Transmission Sector

and increase the exports to more than 60% of the business.

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Business Activity:

Turnover:


Manufacture of Cancer Therapy Machines

Rs 15.25 Crore

Quality cancer therapy product at

affordable cost ; Technology developed with BARC; Developed 1st

indigenous 6 Mv LINAC; His Machines are available at 50% of the

imported costs, Only SME in the world in the radiotherapy

SHIMPUKADE ENGINEERING PVT. LTD.

Kolhapur, Maharashtra

Awarded for


PANACEA MEDICAL TECHNOLOGIES PVT. LTD

Bangalore, Karnataka

Awarded for


Mr. Balkrishna Shimpukade – Managing Director,

Shimpukade Engineering Pvt. Ltd. receiving the Award

Mr. G. V. Subrahmaniam – MD, Panacea Medical Technologies

Pvt. Ltd. receiving the Award

Mr. Paressh Mehta – President & Chief Executive Officer, Jasma

Engineering receiving the Award

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Business Activity:

Turnover:


Future Plans:

Manufacturing and 100% Export of

specialized engineering products

Rs 10 Crore

22 Awards and recognition in various

nationals and international levels, The company is managed and

operated by just 6 people, the company has high engineering

manufacturing capability to produce capability

Expanding the markets further in Middle East and

other European countries

JASMA ENGINEERING

Mumbai, Maharashtra

Awarded for "EXPORT SECTOR”

Dr. Sashinath Jha – Chief Executive Officer, Nutan Ayurvedic

Pvt. Ltd. receiving the Award

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Business Activity:

Turnover:


Future Plans:

Manufacturing of Ayurvedic Products

Rs. 5.01 Crore

Manufactures 104 varieties of Ayurvedic

Products, Trade mark Aloevera Herbal Concept

Expanding the Research and Development

NUTAN AYURVEDIC PVT. LTD.

Nadiad, Gujarat

Awarded for

“RESEARCH & DEVELOPMENT”



KOREA VISITof

President, SME Chamber of India & Founder, India – Korea SME Council

MR. CHANDRAKANT SALUNKHE

16th

-19 October 2012 | Seoul, South Koreath

From (L to R) – President & CEO, Gyeonggi Small & Medium Business Center, Chairman &

CEO, The Lebanese Korea Friendship Association, – Hon’ble Prime Minister of South Korea,

– President, Small & Medium Business Development Chamber of India and Hon'ble Governor of

Gyeonggi Province during the inauguration ceremony of the G-FAIR 2012 on 17th October 2012 at Seoul, South Korea

Mr. Ki-Hwa Hong Mr. Raymond G. Chammas

Mr. Kim Hwang-sik Mr. Chandrakant

Salunkhe H. E. Mr. Moonsoo Kim

–

–

–

From (L to R)

, – Hon’ble Prime Minister

of South Korea and – President, SME

Chamber of India

H. E. Mr. Moonsoo Kim – Hon'ble Governor of

Gyeonggi Province Mr. Kim Hwang-sik


From (L to R) – President & CEO, Gyeonggi Small

& Medium Business Center, -

Chairman & CEO, The Lebanese - Korea Friendship Association,

– President, SME Chamber of India

Mr. Ki-Hwa Hong

Mr. Raymond G. Chammas


H.

E. Mr. Moonsoo Kim – Hon'ble Governor of Gyeonggi Province and

INAUGURATION OF G -FAIR 2012


Mr. Jacob Lee


President, Korea Packaging Machinery Association

(KPMA) & LEEPACK Co. Ltd. and –

President, SME Chamber of India during the interaction meeting

–Mr. Chandrakant Salunkhe

Mr. Jae-Hee Song

– President, SME Chamber of India and

- Executive Vice Chairman, Korea Federation of

Small and Medium Business (Kbiz) during the interaction meeting

INTERACTION MEETINGS

Interaction Meeting With Executives of LEEPACK, Korea

Mr. Mark S. Kim Mr. Sungsoo Kim

Mr. Sang-Kun Lee Mr. Jacob Lee


From (L

to R) Manager, Technical Sales,

Manager, Manager, S&P,

and – President, SME Chamber

of India

–

– –

– –

President, Korea Packaging Machinery Association (KPMA) &

LEEPACK

Interaction Meeting With Executives of Korea Federation of Small

and Medium Business (Kbiz) Mr. Chandrakant

Salunkhe Mr. Jae-Hee Song

Mr. Cap Soo Yang

Mr. Kyoung-Hoon Park

–

–

–

–

From (L to R)

– President, SME Chamber of India,

Executive Vice Chairman, International Trade

Team, Chief of Team, International Trade

Team, Staff

Interaction Meeting With Executives of Hwasung Lighting Co. Ltd.

From (L to R) Vice President, Hwasung

Lighting Co. Ltd., President, Hwasung Lighting Co.

Ltd., – President, Small & Medium

Business Development Chamber of India, - General

Manager and Director,

Mr. Kyung Chang Lee

Mr. Ji Hoon Park


Mr. Steve Kim

Ms. Junghee Jung

–

–

– Integra Corp

Interaction Meeting With Executives of KOAS CO. LTD.

Ms. Jennifer Yoon

Mr. Jae Gyun Roh


- From (L to

R) –Manager, Overseas Sales Team, Mr. Richard Oh

– Managing Director, – Chairman & CEO, KOAS CO.

LTD and – President, Small & Medium

Business Development Chamber of India

CO NNECT



CO NNECT

SMEs are steadily impacting policy

makers, showcasing their badge of

being the growth engines of the

Indian economy. Although individually

small, collectively this sector has come

together very well to play a key role in India’s

growth story. Indian SMEs are already

trotting the globalization path and

contribute to nearly 40% of our exports.

While they are able to effectively benchmark

vis-à-vis global players on value and timely

delivery, they often lose out on quality to

their global peers due to comparatively

lower technology adoption in their

businesses.

Technology adoption – IT in particular, by

SMEs in India is relatively slow when

compared to the larger businesses, primarily

due to the high initial cost-of-migration and

also due to low awareness about benefits.

India is home to around 5 crore SMBs of

which currently only 1 crore are technology-

ready. The exact reasons for the same are

different for SOHOs (<9 employees), SBs(10-

9 9 e m p l o ye e s ) a n d M B s ( 1 0 0 - 4 9 9

employees). While SOHOs are relatively

faster to automate, MBs behave more like

large enterprises making their decisions

from a long term (>5 years) perspective. SBs

on the other hand are highly cost-conscious

with a low man-to-machine ratio (>5:1)

But the scenario is changing slowly. SMEs are

now beginning to realize the long term

benefits of technology and are opening up to

investing in IT infrastructure. As per the

latest study conducted by Zinnov

Rural development has played a very

important role in the SME growth story –

with Increasing virtual accessibility and

steady growth in education. SMEs based out

of rural markets are now contributing more

than 52% of the GDP and making available

more than 75% of all labor force in India

1. India currently contributes about $25

Billion worth of investments into IT. One

third of this investment comes from SMEs

2. More than five lakh SMEs in India have

their own website; Two lakh SMEs access

the internet regularly.

3. The ICT (Information Communication

Technology) adoption rate with SMEs is

expected to grow at a rate of 30% from

2011-15.

TECHNOLOGY EQUIPPED SMEs

WILL PLAY A LEAD ROLE IN THE NEW ECONOMY

At Lenovo, we understand the need for SME customers to see

and experience our products outside their offices and are

leveraging our exclusive Business stores to deliver this

experience. We also have one of the largest channel partner

networks in India that cater to >90% of Indian SMEs across the

country.

Lenovo offers products at affordable price -points that still meet an

SME’s performance requirements and help them break-even quickly

on their investments. All-In-Ones are a rising trend with SMEs and

are steadily replacing traditional desktops, owing to space and

energy saving features. Close to 50% of SMEs chose Lenovo when

they wanted to purchase an All-in-one (IDC Q2 2012). The New

ThinkPad Edge laptop series combines the solid performance and

reliability of the iconic ThinkPad with a proven lower total cost of

operation (TCO) and failure rates. Lenovo ThinkPad Edge and

ThinkCentre Edge are equipped with Lenovo Solutions for Small

Businesses (LSSB). An advanced PC solution, LSSB maximizes

security and productivity by automating routine security and

maintenance tasks. The software manager feature in the LSSB

portfolio helps actively guard against cyber attacks by monitoring at

the hardware level. It monitors the program for changes in settings

and will provide an alert if a change has occurred like the firewall

being turned off.

LSSB frees small business owners to focus on their businesses

because it ensures PCs run at a higher performance, automatically

backs up data and checks for the latest software updates and

provides multi-layer virus protection, even at the firmware level. By

incorporating LSSB into our portfolio, Lenovo is ensuring that SME

owners are free to focus on their businesses and not left worrying

about their Pcs.

The solution’s after-hours maintenance feature wakes the PC from

sleep to perform maintenance outside of normal working hours. For

example, assuming that work hours are from 8 to 5, the device will

wake up at night, and run maintenance and backup while you sleep.

The USB Blocker assigns a passcode to each device which allows

businesses to manage which storage devices can access and save

information, and the Enhanced Backup and Restore function

protects against losing data through PC errors, viral attacks or theft

by automatically backing up critical data.

As per the IDC research 38% of enterprise IT spending in 2011 was

by the SME segment and the proportion is expected to grow to 43%

by 2015. In the foreseeable future, SMEs will continue to grow and

compete globally to win with the right ICT investments, and we will

help them realize their potential with the right product features and

with a good purchase and post-purchase experience.

Source: Small Enterprise India.com

Rajiv Rao, Director SMB, Lenovo India

Article


CO NNECT

The major bottleneck for businesses today is

no longer access to information but the

ability to connect people to the right

information at the right time. As market

conditions and communications trends

continue evolving,

There are two major technology trends which

companies are struggling with. One is the so-

called consumerisation of IT, manifested

mainly by the Bring Your Own device (BYOD)

phenomenon.

More company employees are demanding to

use their own devices, including

smartphones, & personal computers in the

work environment and this is creating a

number of challenges.

As the communication channels increase,

businesses need to be conscious about

deploying solutions that can integrate

channels for higher productivity and

effectiveness.

The other major trend is cloud computing.

Research houses like Forrester have

predicted that by the end of 2012, cloud

customers will already be using more than 10

different cloud apps on average, resulting in a

big demand for cloud orchestration to avoid

chaos in the cloud.

Avaya's cloud strategy is built on an

innovative framework that enables

businesses to use, build, deliver and enhance

their communication and collaboration

solutions in the cloud - private, public and

hybrid - to transform the way people work

together.

Avaya has been delivering cloud-enabling

technology for quite some time through

Avaya Aura, VENA, Communications

Outsourcing Solutions for large enterprises

and AvayaLive Engage (formerly web.alive)

for immersive collaboration applications.

With Unified Communications (UC) and Self

Service, companies can prepare the way for

the implementation of flexible working

policies, offer improved customer service via

email, landline, mobile phone, fax, mail, SMS,

IM, video, and more.

The small and medium-sized businesses

(SMBs) sector is confronted with a wide-

range of structural, financial and other

challenges, among which are limited access

to finance, technologies and markets.

As the communication environment expands

to support more multi-vendor devices and

applications, interoperability concerns

become more commonplace. Insufficient

standardization across the many platforms

has created inefficiencies which could

obstruct SMBs and their operations.

This is why Avaya has adopted a "wrap-and-

embrace" approach with open solutions

which are integrated with commonly used

applications to provide the technology

alignment and interoperability required to

deliver mobile enterprise collaboration tools.

On top of that, Avaya solutions also help

enterprises evaluate their business-critical

applications to assure performance is as

designed.

"the Age of Information is

moving towards the Age of Collaboration".

tablets,

Article

PROVIDING TOOLSOur solutions are focused on providing

seamless collaboration for companies

of all sizes, and mobility - the ability to

take all that functionality with you as

you leave the physical office space.

Many of our customers are in verticals

s u c h a s f i n a n c i a l s e r v i c e s ,

manufacturing, healthcare, and

hospitality - where smaller players

must vie with internat ional ly

renowned brands, and have an even

greater need for the right tools and the

right collaborative environment to help

them make their mark.

Asia Pacific as a whole is a region that is

characterized by a plethora of SMBs.

The dynamism and drive to succeed

that characterizes many Asian

businesses, requires an equally

d y n a m i c a n d d e t e r m i n e d

communications infrastructure. We

believe that having a solution that fits

the specific needs of a company is

everything.

The company works with a network of

local channel partners, distributors,

service providers and systems

integrators to ensure that the right

solution is available for companies of

any size.

We back that up with the peace of mind

that a global services organization

brings, with professional services skills

provided both by ourselves and our

channel partners, maintenance

contracts and an array of hosted and

managed services to meet every need.

We are working closely with customers

to ensure they have the right solution

for their business needs.

The Age of Informationis moving towardsThe Age of CollaborationAdil Doctor, Asia Pacific Director - SME Business, Avaya


CO NNECTBusiness Opportunities

Exciting opportunities in Europe’s growth engine

The Baltic Sea RegionMost of the Europe while still reeling under financial crisis, the

countries in Northern Europe have successfully emerged from the

economic downturn, are leading the growth in Europe and are

perceived to be the most reliable economies in Europe. In addition to

the positive economic outlook that these countries hold, they also

offer great investment opportunities for both large multinational

and small and medium sized companies - due to their unique

location, investing in Northern European countries gives access to

both advanced Western Europe countries and emerging Eastern

Europe and Russia.

The Baltic Sea countries have successfully emerged from the global

recession. The economies are continuing to show positive growth

figures, while the EU27 average GDP rate in the second quarter of

2012 compared to the previous year fell 0.3%. The fastest growth is

being presented by the Baltic States and Norway.

Amongst the Baltic Countries, Norway, Finland and Sweden are

highly developed economies with advanced business cultures. In

Estonia, there is a 0% corporate income tax rate on retained

earnings. Latvia, Lithuania and Poland have established special

economic zones that offer favourable business incentives. In

addition, support from EU funds is available in EU countries. One of

the biggest strengths of the Northern European region is its pool of

educated, multi-lingual employees, making it a good international

business environment.

Q2 2012 GDP % change compared with Q2 2011, Eurostat

Ease of Doing Business Index 2012 by World Bank,

rank out of 183 countries

Why the Baltic Sea region?

Countries in the Baltic Sea region besides being economically strong,

are on the top of the World Bank's Ease of Doing Business list and

also the low cost for setting up the business.

The regulatory and institutional environments in these countries are

favourable for both local and foreign companies. This has enabled

them to attract a heavy foreign investment. In addition, the Baltic

countries and Poland have a unique location in Europe as a crossroad

between the developed EU countries and emerging markets in

Eastern Europe and Russia.

Since joining the EU in 2004, Estonia, Latvia, Lithuania and Poland

have all witnessed great economic growth.


CO NNECT Business Opportunities

Business Opportunities in Baltic CountriesEstonia:

Latvia:

Lithuania:

Poland

Nordic countries of Finland, Sweden and Norway

The Country has recently joined the Eurozone and adopted

Euro as its national currency. Estonia's economy has shown great

endurance to the global economic crisis. Despite being a small

nation, the country's government debt is one of the lowest in Europe

and it has proved itself as a country of political and economic

stability. The main business opportunities in Estonia lie in the ICT,

business services, machinery, wood processing, logistics and

renewable energy sectors. The country is especially proud of being

the birthplace of Skype.

The country is on track to join the Eurozone in 2014. Similar

to Estonia, Latvia has successfully emerged from the global

economic crisis by reducing government spending and focusing on

attracting foreign investments. Latvia is now one of the fastest

growing economies in the EU. In Latvia, the main business

opportunities for foreign investors are in the IT, green technology,

healthcare, life sciences and logistics sectors.

Like other Baltic countries, Lithuania is recovering well

from the global financial crisis. Lithuania's economy is currently

among the fastest growing economies in the EU and the country is

expected to join the Eurozone in 2014. The main sectors in Lithuania

that attract foreign investments are business process outsourcing,

ICT, healthcare, logistics, clean tech and biotechnology.

is the biggest consumer market in Central Eastern Europe

with a population of 38 million. It was the only country in EU that

managed to avoid recession after the global financial crisis mainly

due to its less export-dependent economy and control over the

public spending. Companies investing in Poland get access to its

large domestic market as well as other EU markets thanks to its

perfect export-oriented location right in the middle of Europe. The

main sectors that attract FDI in Poland are automotive, R&D,

electronics and chemical sectors.

are among the

most advanced economies in the world. These are high-income

economies with long business traditions and economic and political

stability. Investing in Finland, Sweden and Norway enables the

investors to take advantage of the highly advanced local industries.

Unlike Western Europe, the local markets in Northern Europe are

not dominated by large international brands which offer Indian

SMEs an opportunity to successfully enter the market even on a

smaller scale.

With the top AAA credit rating, the main business opportunities in

Finland are in the business services, clean tech, healthcare, ICT,

mining, retail and tourism sectors. Finland is well known for its high

technological innovations. Sweden known for its top innovation and

best technology, has been a safe-haven for investors thanks to its

strong public finances, strong export sector and healthy labour

market. Swedish industry clusters and research institutions offer

great opportunities for foreign companies. Clean tech, ICT, life

sciences, automotive and materials science industries are the main

areas where Swedish companies have world-class reputation.

Similar, to its neighbours, Norway was mildly affected by the global

recession and emerged from it quickly. Today Norway's economy is

growing at the fastest rate in Europe mainly thanks to its massive

petroleum wealth and prudent fiscal management. Norway's main

industries are oil and gas, maritime, fishing, renewable energy and

Information & Communication Technology.

Today, the Asian economies are highly investing in Northern and

Eastern Europe. The Indian government already sees the potential of

Eastern Europe as an investment target by identifying it as one of the

zones where Indian companies should invest and is supporting

smaller players in doing so. The Indian tyre manufacturer Apollo

Tyres has announced its plan to invest approximately 150-200

MEUR to set up a new production unit in Eastern Europe.

Recently Estonia has witnessed a growth in FDI from Asia: in

September 2012 it was announced that Chinese companies will

invest 130 MEUR in the renewable energy sector in Estonia. We

believe that this is a trend that will continue to grow. As of 2011, 5.5%

of total FDI to Estonia originated from China and 1.5% from India.

Many Asian companies have set up subsidiaries in Finland. Chinese

companies Haosion and Fingu and Indian Webscape (part of

arBionics) are some examples of Asian companies who have chosen

Finland to gain a strategic position in Europe.

Sweden has been a destination for Asian investments for a long time.

Indian companies like ARAI, Bharat Forge, Kemwell, Suzlon Energy

and Kenersys are among the biggest and well-known foreign

i n v e s t o r s i n t h e Swedish market. In addition, China

Development Bank and Huawei from China and Denso,

Eisai and El-Seed from Japan have set up subsidiaries in

Sweden.

Increase of investments from Asia


CO NNECTPartner in Europe

At Excedea, we consider the Nordics and the Baltics our home markets. Having helped companies from these

regions enter the emerging markets of Russia, Eastern Europe and Asia and vice versa, we have a very good

understanding of the business cultures and an overview of the opportunities and obstacles that these markets

present to companies and investors interested in entering these markets. We encourage Asian companies to invest

in the Baltic Sea economies – a region of economic growth, advanced international business culture, investment

opportunities in a wide variety of sectors and a perfect location between the East and the West.

Excedea – Your International Growth is our Passion

Dr. Martin Seppälä is a Natively Swedish-speaking Finnish national. Martin has a Ph.D.(Econ.) in strategic

management from Hanken School of Economics in Helsinki. Martin has been working as a management

consultant since 1999 in Andersen Consulting's and Accenture's strategy group before joining Excedea.

During the last 13 years Martin has worked on growth and strategy issues with such companies as Nokia, HP,

Teliasonera, NokianTyres, Stockmann and Technopolis. Martin has a wealth of experience in cross-border

M&A and creating successful international growth strategies in a wide range of industries (including

consumer goods and services, ICT, real estate investments, healthcare and manufacturing industry).

Martin Seppälä

PhD. (Econ.), Partner, CEO


UNITED KINGDOM VISITof

Founder President, SME Chamber of India and India – UK SME Council

MR. CHANDRAKANT SALUNKHE

25th

-28 September 2012 | United Kingdomth

(L to R) Director, South Wales Chamber of

Commerce, – President, SME Chamber

of India and Business Development Officer -

International Trade, South Wales Chamber of Commerce

Mr. Graham Morgan


Ms. Natalie Taylor

–

–


UK - India SME Summit

– President, SME Chamber of India

addressing the delegates at at Wales

Mr. A. Rameshkumar – Chairman - Northern Region (New Delhi),

SME Chamber of India UK - India SME Summit at Wales

Mr. Graham Morgan Director, South Wales Chamber of Commerce

addressing the delegates at the Summit

–

Mr. H. P. Kumar Chairman & Managing Director, National Small

Industries Corporation Limited. addressing the delegates at the

Summit

– Delegates at the Summit

GLIMPSES OF

UK - INDIA SME SUMMIT

CO NNECT




GLIMPSES OF INTERACTION MEETING AT WALES, UK

(L to R) – Regional Director, SME Chamber of India, Wales Region,

– President, SME Chamber of India, – First Minister of Wales, , –

Indian High Commissioner to the United Kingdom, – Chairman - Northern Region (New Delhi), SME Chamber of India,

– Regional Director(Northern Region), SME Chamber of India and –

Vice-Chancellor, JK Lakshmipati University, Jaipur during the interaction meeting

Mr. Robert G Davies , Dr. Akshay Pheer, Mr. Chandrakant

Salunkhe H. E. Rt. Hon Carwyn Jones H.E. Dr. J. Bhagwati

Mr. A. Rameshkumar

Mr. Ajay Agrawal, Mr. Vipul Patel, Mr. Shashi Dash Dr. Upinder Dhar

United Kingdom

United Kingdom

(L to R) CEO, SIDBI Venture Capital Ltd.

– President, SME Chamber of India,

– Regional Director(Northern Region), SME Chamber of India

Dr. Akshay Pheer, Mr. Ananta Sarma


Mr. Shashi Dash

– – Director, South Wales Chamber of

Commerce, – Chairman - Northern Region (New Delhi), SME Chamber of India, - Vice-

Chancellor – University of Wales, United Kingdom, – Vice-

Chancellor, JK Lakshmipati University, Jaipur and

Mr. Graham Morgan

Mr. A. Rameshkumar Professor Medwin Hughes

Dr. Upinder Dhar

(L to R)

– Regional Director(Northern Region), SME Chamber of India during the Interaction Meeting

Dr. Akshay Pheer,

Mr.

Shashi Dash

Mr. Graham Morgan Mr. Chandrakant Salunkhe

Mr. A. Rameshkumar Mr. Vipul Patel and

– Director, South Wales Chamber of Commerce, – President,

SME Chamber of India, – Chairman - Northern Region (New Delhi), SME Chamber of India,


I

Entrepreneurial

Locational expansions

Growth Spurts

In Transit

Contract Duration

On the Move

ndia has become a prime investment destination for global

businesses. The spurting economy has also fuelled a spate of

new businesses and expansions domestically. This in turn has

fired a huge demand for more office space, causing rents and real

estate prices at commercial hubs to skyrocket even further.

The basic types of these new businesses which have fuelled the

spurting space demand are:

– New set ups, with dynamic needs, do not need to

make long term commitments as they are still assessing their needs

– typically headquartered elsewhere,

exploring a new territory to establish a business presence, mostly

sales and business development outfits

companies that have outgrown their current

spaces and need more while they plan their long term

accommodation strategy

moving out of one space to occupy newer/ bigger offices

which have some time to go before they are ready for occupancy

executing a project or an off-site

Traveling executives, who need a place that answers

their phones and collects their mails and acts as a communication

hub

In all these cases, the business teams have little time to spare for

setting up elaborate office space, but need state of the art premises

with fully loaded support functions. As such, cost effective, fully

furnished, ready to occupy serviced offices and virtual offices are

seen as ideal solutions.

Internationally, the market for serviced offices is quite developed

although in India, it's still in nascent stage. However, mushrooming

economic growth will open up the opportunities for the market for

the serviced offices and virtual offices industry in a very short time.

Global leaders in the 'Serviced Offices' space, like Servcorp have

developed total business solutions which offer maximum flexibility

to the occupant. Clients can literally walk in with their laptops, select

from a bouquet of services – secretarial, administrative,

communication infrastructure, meeting and conferencing facilities,

even pantry services - according to their needs and get on with the

business of business. The best part is, these international quality

services are 'pay per use', so no standing costs. In India K Raheja Corp

has an exclusive franchise agreement with Servcorp to offer these

business solutions.

To support those businesses that do not have a requirement for

physical office space, there are Virtual Office packages. Virtual Office

clients can take advantage of the prestigious addresses utilizing it on

business cards and letterheads, be assisted by a dedicated

receptionist who'll answer calls in their company name or gain

international access to boardrooms and meeting rooms when they

need. Servcorp's state-of-the-art virtual product 'Servcorp Online'

allows the delivery of services and products online and in real time.

Clients can store data online, check emails, make boardroom

bookings, request translations, utilize a remote data storage system,

print, book a courier and much more. Anywhere the internet is

available clients can access their data online.

I believe market demand for these services will soon outstrip supply,

but we at Imperial Servcorp are gearing up to extend our facilities

wherever need arises.

–

–

–

–

CO NNECT Advertorial

Right Office Solution for SMEs

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Mumbai

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Authored by

– AVP, Servcorp IndiaMs. Meenal Sinha


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State Level Flagship Event

GUJARAT SME BANKING SUMMITTuesday, 28 August 2012 | Hotel Courtyard by Marriott, Ahmedabad

th

INAUGURATION

Shri Sushil Muhnot Gujarat SME Banking Summit.

Shri Chandrakant Salunkhe Shri Ajoy Jha Shri Sudarshan Sen

Shri M. K. Nag Shri Prabhakar

Dalal

- CMD, Small Industries Development Bank of India (SIDBI) inaugurating the In picture

from (L to R) - President, SME Chamber of India, - CGM, IDBI Bank, Ahmedabad,

- Regional Director, Reserve Bank of India, Gujarat Region, - CGM (SME Business Unit), State Bank of India and

- Executive Director, EXIM Bank of India

LAUNCHING OF

SME BUSINESS CLUB FOR GUJARAT STATE

Shri Sushil Muhnot

Shri Prabhakar Dalal Shri M. K. Nag

- SIDBI

initiated by SME Chamber of India and India International Trade Centre (IITC-INDIA),

- Executive Director, EXIM Bank of India - CGM (SME Business Unit) State Bank of

India,

Chairman & Managing Director, launching the

- during Summit. In

picture from (L to R) ,

- President, SME Chamber of India, - Regional Director, Reserve Bank of India, Gujarat

Region and - CGM, IDBI Bank, Ahmedabad.

SME BUSINESS CLUB - A platform for networking and enhancing

business partnership amongst SMEs

Shri Chandrakant Salunkhe Shri Sudarshan Sen

Shri Ajoy Jha

CO NNECT



Shri Sushil Muhnot - Chairman & Managing Director, Small Industries Development Bank of India (SIDBI)

delivering the keynote address during the inaugural session of the Summit

The SMEs have remained resilient

i n t h e c u r r e n t e c o n o m i c

conditions. However over 90% of

the SMEs do not have access to finance. It

is important to address those gaps where

the conventional banking model has not

reached, observed Shri Sushil Muhnot, He

highlighted various modes of financing

options like equity and debt financing,

factoring and receivables management that

SMEs can use in order to fund their

operations.

He commented that a large number of banks

are entering in financing of the SME sector

including the commercial banks, regional

and rural banks, Non-Banking Financial

Companies (NBFCs), MFIs, and also the

players like SIDBI, EXIM Bank to assist the

SME sector. SIDBI, he said, has tried to

redefine its role in assisting the SMEs by the

way of trying to fill the gaps in assistance to

the SMEs. He added that these gaps exist in

availability of financial assistance as well in

developmental services towards the sector.

Talking on the availability of equity for the

successful SMEs, Shri Sushil Muhnot said

that SIDBI has initiated India Opportunity

Venture Fund with the corpus of Rs 5000

Crore as a direct assistance to MSMEs. The

equity requirement of the MSMEs sector is

projected around Rs 2,50,000 Crore and the

available formal funding is merely Rs 3000

Crore. The aim of India Opportunity fund is

to fulfill the equity requirements of the SMEs

and help them achieve the required debt-

equity ratio. India Opportunity Venture Fund

is aimed at assisting those SMEs who have

the funding requirement in the range of Rs

10 Crore to Rs 25 Crore.

He further observed that those SMEs that

smaller funding requirement, SIDB has

Mezzanine funding route in the form of

subordinate debt or Convertible debentures.

However, the interest rates in such cases

would be a little higher than the current

lending rates of the banks. However, he

encouraged the SMEs to treat this funding

not as debt, but as quasi equity. It is only then

that the real financial assistance can be

provided to SMEs.

He also spoke on the gaps in the availability

of short-term capital and mainly in the

working capital area. Banks are trying to

meet the financing guidelines set by RBI. He

highlighted the importance of factoring in

order to meet the working capital

requirements of the SMEs. Factoring enables

SMEs to unfreeze the receivables due to be

received from the clients and the availability

of this immediate finance can enables the

SMEs to fulfill their working capital

requirement to a larger extent enabling them

to concentrate more on their operations and

not worrying about their finances.

He also spoke on the financing of the services

sectors where bankers along with SIDBI can

take initiative in making adequate finance

available for SMEs operating in services

sector. Service sector companies like

hospitals, restaurants, logistic companies

where security is available financing has

been very easy. However, a large chunk of

services companies fall under the category

where provision of security is not possible.

This is where the financing gap exist in the

services companies.

Efforts are being made to identify various

areas where the gap exists between the

actual demand and supply and also to fill

those gaps, commented Shri Sushil Muhnot.

Efforts are also being made to incorporate IT

in banking system in order to make lending

more efficient. He also spoke on CGTMSE

scheme where SMEs can avail collateral free

loans up to Rs. 1 Crore. This would enable

SMEs to fulfill their small loans covered

under CGTMSE scheme.

The SIDBI has also initiated efforts to

provide hand-holding entrepreneurs right

from the stage they have an entrepreneurial

idea, observed Shri Sushil Muhnot. Hence

SIDBI has planned to launch a new website

on various business ideas from where

entrepreneurs can fine tune their business

ideas, prepare a business plan and then

prepare a detailed project report. The site is

designed to be interactive website where the

entrepreneurs can test their business plan

and check the working of the entire project

report; which would enables the SMEs to do

the basic assessment. The site is also aimed

at providing information to SMEs on various

registrations required, government schemes

and incentives and also the financial

schemes available.

SIDBI also aims at providing free

consultancy support to MSMEs by launching

credit facilitation centre. Also the SMEs can

approach the DICs along with these

consultants and discuss their project reports

to get the required approvals. He also spoke

on the loan syndication service of SIDBI,

where entrepreneurs can avail loans though

commercial banks. The SIDBI accredited

consultants will prepare project reports for

entrepreneurs and the rating agencies can

evaluate and assess these project reports

and give investment or non-investment

grades, which would then be submitted to

banks in order enable SMEs to avail the loan

from the banks.

He concluded saying that by filling these gap

areas it is possible to make the Indian MSME

sector very competitive and put them on the

growth path.

CO NNECT



Shri. Chandrakant Salunkhe, President, SME

Chamber of India, during his welcome

address observed that for SMEs to operate

efficiently, they need 2 things, Money as fuel

which is provided by the banks and the

Infrastructure, which is provided by the

government agencies. They also need to

focus on technology upgradation to be

competitive. 94% enterprises do not avail

formal channels like Banks and Financial

Institutions to meet their funding

requirements. He further commented that

the motto of the Chamber is to bring the

SMEs and the bankers and the Financial

Institutions together to meet the funding

needs. For those SMEs who are into exports,

Exim Bank and ECGC are providing various

products and support. NSIC assists SME in

various ways with the schemes of the

Ministry of MSMEs.

Europe - India SME Business Council, an

initiative of the Chamber connects Indian

SMEs with the businessmen in Europe for

p r o m o t i n g t r a d e a n d i n v e s t m e n t

opportunities.

He concluded saying that without Banks

the SMEs will not grow and without SMEs

India will not grow.

Shri Chandrakant Salunkhe - President, Small & Medium Business Development Chamber of India

delivering the Welcome address

The policy makers and the Government

agencies are focusing their attention on

SMEs as they are the growth engine of the

economy. In order to survive in the

economically turbulent situations, the SMEs

have to think out of the box, look for

opportunities, break the conventional rules

and be innovative. They should think of the

stake holder in totality like family, banks,

creditors, business colleagues, employees

etc. They should give the best products to the

customers without any compromise on

service quality. They should also care for

environment, be transparent in their

dealings while creating wealth. Ethics is an

important factor for creating wealth down

the generations.

He observed that as per the available data,

the credit flow from the banks to the SMEs do

not commensurate with the demand. This

must be increased and the internal controls

are to be in order. The banks should

understand the constraints of the SMEs and

provide adequate finance without delay. It is

interesting to note that the growth of funding

to SMEs in Gujarat is appreciable. There

should be information sharing between the

banks and the clients on regular basis. Once

the trust is created the banks will go extra

mile to extend helping hand and withhold

the same if they are in doubt.

He concluded by stressing that the banks

should also extend the restructuring facility

to the SMEs in the similar way as the big

companies. If a big company goes bad, it will

affect the operations of the bank on the

economy as a whole.

Shri Sudarshan Sen – Regional Director, Reserve Bank of India, Ahmedabad addressing the delegates

CO NNECT



“Indian economy is currently facing the worst crisis. However the

economies across the world at several times have faced crisis

situations”, observed Shri Ajoy Jha. Most of the economies have

come out of the crisis mainly because of the entrepreneurs' ability to

think and come out of these crisis situation. These entrepreneurs

have come with new ideas and have successfully transformed their

businesses as well as the economies.

He stressed that for SMEs should achieve success in order to create a

quality of life for themselves and also for their stakeholders. The

necessary condition for starting a business is having a good idea. In

order to start the business it is important to have funds and the fund

providers need business plan. Hence it is important for SMEs to have

a business plan and it needs to be structured in order to convince the

well-informed investors that business idea is viable.

Talking on the components for writing a viable business plan Shri

Ajoy Jha said that once the product has been decided, it is important

for the entrepreneurs to identify its production process, alternate

technologies available, cost advantages of different technologies,

impact on product qualities of different technologies, return on

investment on the technologies, business's cost advantage as

compared to other businesses.

He emphasized that the entrepreneurs have to focus on the

uniqueness of the product or service and its competitive advantage

over similar other products. He emphasized that the investors

expect the entrepreneurs to know the products, the technologies,

target customer segment and price sensitivity of the market. Hence,

it is important for the entrepreneurs to know their target customer

segment very well. It is also important for SMEs to be aware of the

market situation, presence of big players in the market, and other

factors.

The 3rd factor he mentioned is the economies of scale of production

of the product and the payback period. Shorter the payback period

better for the business, however from the investors' perspective

return on investment is important. Higher the return on investment,

better for investors. He also encouraged the entrepreneurs to take

calculated risks as it is the only means by which entrepreneur can

grow. Hence it is important for the entrepreneurs to be well aware of

the risks associated with their businesses and must have a proper

risk assessment.

The 4th factor that he mentioned was the amount of capital to invest

in the business, both the equity capital as well as the borrowed

capital. 5th factor is the financial statements including the cashflows.

Hence while projecting the finances it is important to project them as

per the prevailing market conditions rather than making some

unrealistic projections. It is only then the investors can get a sense of

guarantee in the business. It is also important for entrepreneurs to

have information about the entrepreneur and also his management

team.

He concluded saying that when all these factors are incorporated in

the business plan, then it is possible for SMEs to attract sufficient

investments and finance.

Shri Ajoy Jha – Chief General Manager, IDBI Bank, West II addressing the delegates

“MSMEs the world over are considered to be power engines of

economic growth of nations. Indian MSME sectors contributes

over 45% to India's manufacturing output and 40% to India's

exports and manufacture over 8000 products ranging from

traditional products to high-tech items”, commented Shri

Prabhakar Dalal, Executive Director, EXIM Bank. In order to enhance

the SME sector's potential to contribute towards the Indian

economy, it is important to adopt a composite approach consisting of

sound Macro-economic policies, conducive business environments,

good governance, abundant and affordable finance, suitable

infrastructure, supportive education, skilled labour as well as

through competitive private and public institutions enhancing the

competitiveness of the SMEs.

MSMEs in India are characterized by low technology which proves to

be the biggest hindrance in the globalised world, observed Shri

Prabhakar Dalal. Not many units have the ability to access the

technology not they have the ability to mobilize resources, which has

been the major reasons why SMEs have been lacking in their

competitiveness. Many countries like China, America was assigned

large amount of capital towards the development of MSMEs in order

to enable technology transfers and through competitive public

private partnerships in order increase the competitiveness of the

MSMEs in the countries and enhance the employability in these

companies.

Shri Prabhakar Dalal – Executive Director, EXIM Bank of India addressing the delegates

CO NNECT



Shri M. K. Nag – CGM (SME Business Unit), State Bank of India addressing the delegates

“In the current economic situation,

entrepreneurs across different states are

talking about problems and bottlenecks,

it is only in the State of Gujarat are still

talking about opportunities which

separates Gujarat from rest of the

country”, observed Shri M. K. Nag. SMEs

across the world play important role

towards the development of the economy.

While big companies are more visible, SMEs

are more important from the perspective of

industrial output, employment generation

also in terms of innovation.

Highlighting on the statistics of the Indian

SMEs sector, he emphasized on the

importance of the sector towards the

development of Indian economy. The

production output in the MSME sector for

last 4 years has grown by 11.36%,

investment in the sector has grown by 11.36

%. The production in the Indian MSME

sector has been higher than India's GDP

growth observed Shri M. K. Nag. He stressed

that it is important to significantly increase

the number of MSMEs units in India in order

to absorb large pool of workers that would

be available. He furthered commented that

credit is available to the MSME sector,

however there are few sectors where banks

have been hesitant in lending. Talking on the

different types of finances available for the

SME sector except from their own equity are

angel, venture and private equity funding;

hybrid capital in the form of convertible

loans, capital market with SME Exchange,

loans from friends and relatives, credit

subsidy from Government and Mezzanine

funds which are unsecured loans given for a

slightly longer period and come a fairly high

rate of interest. On the debt side funding

available is from banks and factoring

companies.

He further observed that private equity

activity though slowly picking up in India,

the large chunk of their activities is

concentrated in Western India mainly in the

states of Maharashtra and Gujarat mainly

due to the healthier investment climate.

Investment by the venture capitalist

accounted in the growth or early stage

enterprise accounted for 40% in volume

terms and 11% in value terms. Sectors of

investment include IT/ITeS, energy,

m a n u f a c t u r i n g , e n g i n e e r i n g a n d

construction. Speaking on the SME

Exchange, he mentioned that capital market

is going to be most important source of

funds for the SMEs in the near future and

hence SMEs have to develop their

competence.

He encouraged the SMEs to ensure

transparency in the balance sheet and other

financial statements in order to attract

PE/VC funding as well as funding from

capital markets. He also urged SMEs to use

the factoring services in order to improve

their cashflows by selling to the factoring

companies. Mezzanine loans are a very

costly source of finance since they are

unsecured loans and are to be used when

there are no other sources of finance

available and the entrepreneurs have a very

innovative idea with higher profitability.

He concluded by highlighting the schemes of

Government like Credit linked Capital

S u b s i d y s c h e m e f o r Te c h n o l o g y

Upgradation, Credit Linked capital subsidy

scheme for Food processing, Technology

Upgradation scheme for Textile Units,

Industrial and Infrastructure Upgradation

Scheme, India Opportunity Venture Fund.


CO NNECT



PLENARY SESSION

IMPROVING CAPABILITIES OF SMEs FOR BETTER GROWTH

Dignitaries (L to R) – Chief Executive Officer, Aditya Birla Finance Ltd., – Director, Choice International

Limited, – Director, MSME Development Institute, Gujarat, – General Manager (SME), Indian

Overseas Bank, – General Manager, Bank of Baroda, Ahmedabad, – Zonal General Manager, NSIC,

Ahmedabad and – CGM, State Bank of India, Gujarat State during Plenary Session.

Shri Rakesh Singh Shri D.K. Goswami

Shri Arvind Patwari Shri K. Subrahmanyam

Shri Umakant Bijapur Shri P. K. Jha

Shri Ramesh Rangan

Shri Kamal Kumar Dayani, commented that

an entrepreneur spends an ample energy in

coordinating and following up with several

agencies. On the contrary, an entrepreneur

should be spending more time in running its

business rather than coordinating with

government agencies, banks and other

agencies. He further observed that seminars

and workshops provide perfect networking

opportunities for the entrepreneurs to meet

these high level dignitaries from government

agancies, banks and financial institutions. He

observed that various agencies are keen to

support the SMEs since these are the most

important sector of the country and hence

they need adequate support from

government departments, banks and other

finance agencies. There are various schemes

that the central as well as the state

governments provide towards the

development of the SME Sector, which are

made available through the District

Industries Centre (DICs).

He highlighted on the benefits of Gujarat

Government's Interest Subsidy Scheme

where the SMEs get interest subsidy of 5%

for 5 years to new SMEs. Besides banking,

they are new alternate source of financing

options like private equity, venture capital

and NBFCs that have come up in order to

cater to the requirement of the SMEs. He

recommended that SMEs should take

advantage of these various options available.

He concluded by saying that SMEs should

take advantage of various hedging options

available in order to minimize their risks in

domestics and intentional markets.

Shri Kamal Kumar Dayani - Commissioner, Industries Department, Government of Gujarat delivering the

Keynote Address

CO NNECT



Shri Ramesh Rangan – Chief General Manager, State Bank of

India, Gujarat State addressing the delegates on "Role of Banks

for the Growth of SMEs”

General Manager, Bank of Baroda,

Ahmedabad addressing the delegates on

– General Manager (SME), Indian

Overseas Bank addressing the delegates on

– Director, MSME Development Institute,

Gujarat addressing the delegates on

Shri Umakant Bijapur –

"SME Loan Factory –

Successful Model to cater the Financial Needs of SMEs”

Shri K. Subrahmanyam

"Role of Indian

Overseas Bank for the growth of SME Sector”

Shri Arvind Patwari

"Role of Ministry of

MSME for the Growth of SMEs”

Shri Ramesh Rangan commented

that all Corporate started as SME.

Dhirubhai Ambani of Reliance group

started his life as a trader and has not

attended any conference. SMEs are

masters in their own field and are

very innovative and flexible. They

face immense competition and

operate with limited resources and

infrastructure. Their access to the Advisory Pool is also limited.

Hence, SMEs owners are under constant pressure to perform.

Highlighting the problems of the sector, Shri Rangan commented

that the SMEs lack bargaining power, poor marketing strategies, lack

of succession planning, lack of delegated authority or one man show

business, less transparency and little concentration on developing a

viable business plan. They should have a plan ready to insulate

against fluctuations and develop linkages. A group of SMEs in an area

should form a cluster to solve common problems. They should also

take the advice of consultants from various fields for their expert

advice. He concluded by saying that the SMEs spent a lot of money on

unproductive items and suffer from less working capital. There is

also a tendency to show less profit to avoid taxes. SMEs should

remember that this lead to poor credit rating and also banks find it

tough to lend to such SMEs due to the lack of transparency in them.

He also encouraged the SMEs to take advantage of the Government

schemes and innovative products from the banking sector

Shri K. Subrahmanyam – GM (SME),

Indian Overseas Bank, whi le

commenting on his banks support

towards the SME sector said that the

growth of the Bank credit towards

SMEs in Gujarat is phenomenal. The

bank has developed various schemes

and products in order to cater to the

development of the SMEs including

nil margin loans in special categories.

He also mentioned that Stand-by credit facilities of term loan is

offered to SMEs for future utilization. IOB-SME plus is a combination

of term loan and working capital upto Rs. 1 crore without co-lateral

under CGTMSE Scheme. 8.5% of the total borrowers have availed

CGTMSE Scheme. There are special schemes for doctors, engineers,

architects and chartered accountants. IOB Royal is a product aimed

at high net work individuals. The bank received many awards for

contribution to the growth of SME Sector.

Shri Umakant Bijapur introduced

“SME Loan Factory” as a service to

the SME clients in order to provide

hassle free loans to these enterprises

efficiently. The facility is mainly

provided for SMEs in order to enable

them operate their machine shop

assembly model and also to finance

their raw material. He observed that

after establishing the 1st branch in

Gujarat in 2007 there are 12 such units in Gujarat. Once the

application from the SMEs is received by the branch and forward to

credit officers. The relationship manager interacts with the

applicant to obtain left out information. The data is entered into the

computer and analysed for financial ratios. Necessary clarifications

are obtained from the applicant through discussion. Then it passes

on to a sanctioning authority. There are trained and approved

advocates who verifies the valuation and statutory reports. The

approval note is sent to the credit officer on the 10th day. On the 11th

day the sanction letter is issued and on 12th day the stamping and

documentation is completed. The whole file is dispatched to the

branch on the 14th day. The branch manager completes the

formalities and on the 15th day the disbursement takes place. All the

officers are well trained in their areas of activities to minimize the

delay and one officer takes care of one specialized job.

He concluded saying that the next growth opportunity for SMEs lies

in Africa. It is an upcoming economy and they need everything from

groom to aircraft. Clothing, education, healthcare, infrastructure,

transportation are the potential sectors. The African Government is

proactive and it is reasonably safe to trade with them. Many Chinese

companies are trading and investing in African countries and some

of the Indian hospital chains are setting up shops there. Moreover,

the profit margin is also good for the Indian SMEs. Bank of Baroda

has branches in African countries and it follows Gujarat

businessmen wherever they go.

Shri Arvind Patwari observed that

there are many schemes by the

Ministry of MSME that are focused on

MSME Sector for their growth. The

SMEs innovate many products and

they need to be protected from

copying. So there are incentives

available for obtaining patent and

trade mark through intellectual

property right (IPR) Schemes. He also commented that ISO Scheme

enables the SMEs to obtain ISO Certificate with 70% subsidy. Export

marketing scheme, National Manufacturing Competitiveness

Schemes, Mini Tool Room Facilities, lean manufacturing practices,

quality upgradation schemes are some of the major schemes. The

department also imparts training to the employees for skill

development.

CO NNECT



Shri P. K. Jha

"Role of NSIC for the growth of

SMEs”

Shri D. K. Goswami

"Financial Management

Strategy for better growth of SMEs"

Shri Rakesh Singh

"Financial Enablers

of SME Growth”

– Zonal General Manager, NSIC, Ahmedabad


– Director, Choice International Limited


– Chief Executive Officer, Aditya Birla

Finance Ltd. addressing the delegates on

Shri P. K. Jha commented that NSIC is a

nodal agency for implementing

various schemes of the Ministry of the

MSME. NSIC has developed various

schemes like single point registration

w h i c h e n a b l e s t h e S M E s t o

participate in the tenders without

having to pay the earnest money and

security deposits. It also provides raw

material assistance to procure raw materials by SMEs where

payment is directly made to suppliers. There is subsidy of 75% on the

cost of obtaining credit rating by a credit rating agency. Facilities are

also available for market development assistance and participating

in exhibitions in India and abroad. Bank syndication scheme of NSIC

helps SMEs to avail bank credit. He concluded by introducing NSIC's

B2B portal to facilitate trade by the SMEs in domestic as well as

international markets.

Shri D. K. Goswami, Director, Choice

International Limited observed that

Gujarat entrepreneurs are very

enterprising and create wealth and

employment. SMEs should choose to

do things differently in order to build

a sustainable and growth enterprise.

They should concentrate on a robust

business model, managerial issues

and expansion plans. They should not

cut corners to reduce cost and change inefficient technologies and

manufacturing processes. Further, he commented that the other

areas SMEs should focus increasingly on honing the bargaining

capacity, marketing strategies and supply chain management. He

also stressed that SMEs should use the loan amount correctly and not

use it to buy land and buildings or enter into real estate activities.

They should concentrate on their core activities, expansion and

diversification.

He concluded saying that inadequate working capital has been the

major reason of the sicknesses in many SMEs. Banks find it difficult

to lend to the SMEs mainly because of the lack of transparency and

the high failure risks associated with these enterprise. In the present

economical conditions SMEs should have a contingency plan in

place. He also insisted that SMEs should factory or business premises

on lease rather than buying outright.

Shri Rakesh Singh commented that

managing the cash flow is a very

important business activity for an

SME. It should be the endeavour of the

SME to find ways and means of

enhancing the cash flow. SMEs have

limited funds and they heavily depend

upon large companies for their

business and payment. More often the

payment is unduly delayed thus by affecting the cash flow the SMEs.

He also observed that for SMEs to avail the venture capital, the

chances are limited as the VC will look for high growth companies

with out of the box ideas. SMEs need to concentrate on the account

receivables and reduced cost of raw materials as it has heavy impact

on the business profitability. A recent study by CRISIL states that a

reduction of 1% of the raw material increases the profitability upto

12.5%. In majority of the SMEs the input cost of raw materials is

roughly 75%. Hence, unnecessary inventory building will eat away

the cash flow.

The best solution is to discount the invoice to improve the cash flow.

With this the SMEs can afford to give higher credit period to its

customers. It also enables more churning around of the inventory

and improved turnover of the company.


CO NNECT



PLENARY SESSION

INITIATIVES FOR DEVELOPMENT OF SMEs

Dignitaries (L to R) – Secretary General, SME Chamber of India, – Sr. Vice President & Head–SME,

CARE Ratings, Ahmedabad, – Deputy General Manager, Central Bank of India, Ahmedabad, – Chief

Executive Officer, Continental Capital Advisors, – Managing Director, Gujarat Venture Finance Limited, –

Associate Vice President–India, Imperial Serviced Offices Pvt. Ltd., – Deputy General Manager & Regional Manager, ECGC

and – Chief Executive Officer, Value Plus – The Family Office, Vadodara during Plenary Session

Shri V. K. Venkatachalam Shri Mehul Pandya

Shri D. G. Rajpal Shri Shailendra Jindal

Shri Mihir Joshi Ms. Meenal Sinha

Shri Nirdosh Chopra

Shri H. P. Shah

Shri D. G. Rajpal

"Initiatives &

Strategies of Central Bank of India for the business growth

of SMEs”Shri Shailendra Jindal

"International

Trade Finance for SMEs”

– Deputy General Manager, Central Bank of

India, Ahmedabad addressing the delegates on

– Chief Executive Officer, Continental

Capital Advisors addressing the delegates onShri D. G. Rajpal, commented that

Central Bank of India is committed to

providing required assistance to the

SME Sector. They have special SME

branches dedicated to cater to the

needs of the SMEs. There are 20 such

branches in Gujarat alone. Rs. 2700

crore has been disbursed as advance.

Gujarat region of the bank is doing extremely well and Ahmedabad

has witnessed 33% growth over past few years commented Shri

Rajpal. Further he said that Bank has developed dedicated offices to

understand the requirements and problems of the SMEs, guide them

in preparing the documents and about also enable them understand

financial products. He observed that most of the delays or rejections

of loan applications happen if the banks don't find the loan

documents to be complete or satisfactory. If the documents are in

order even loans can be disbursed within 7 days.

He highlighted that fact that many SMEs approach Banks for

switching over from the existing banks for credit enhancement.

Though most of the SMEs prefer this method, banks prefer lending

only under the exceptional situation. The bank understand their

urgency and inform them the acceptability or otherwise of the

proposal. If found suitable, the disbursement takes place within the

shortest possible time.

Shri Shailendra Jindal commented

that the businesses have become

global and SMEs are not exception. In

order to compete, the most important

thing is to reduce the cost of

manufacturing. Apart from other

inputs the interest cost plays a vital

role in business profitability.

Talking on the interest cost, Shri Jindal mentioned that in the

international markets, the funds are available slightly above the

LIBOR, whereas in India the average interest rate is around 14% per

annum. Moreover it takes 6 months to one year to start a business,

whereas in overseas within two weeks a business can be started.

This has a significant impact on the business and its profitability.

He also spoke on the different types of international funding

available for SMEs such external commercial borrowing, project

finance, mezzanine finance, buyers credit, suppliers credit and

factors.

CO NNECT



Shri Nirdosh Chopra –

Shri Mehul Pandya

"Advantage

of Credit Rating for SMEs”

Shri Mihir Joshi

"Role of GVFL for SME

growth”

Shri H. P. Shah

"Strategies for

next generation”

Deputy General Manager & Regional

Manager, ECGC

– Sr. Vice President & Head–SME, CARE

Ratings, Ahmedabad addressing the delegates on

– Managing Director, Gujarat Venture Finance

Ltd. addressing the delegates on

– Chief Executive Officer, Value Plus – The Family

Office, Vadodara addressing the delegates on

Shri Nirdosh Chopra, observed that in

the currency economic scenario the

export business has become very

risky. No matter how good the buyer

may be, the payment might get

delayed due to various reasons.

P o l i t i c a l t u r m o i l , e c o n o m i c

uncertainty and several other policy

matters in various countries affect the

payment. Even though LC is issued

there could be problems in getting payment.

Talking about ECGC he mentioned that ECGC offers credit insurance

to SME Exporters with various products to suit different needs.

There are also “No Claim Bonus” available to customers who have not

claimed any insurance benefit. ECGC has branches in Ahmedabad,

Baroda, Surat and Rajkot to cater to the needs of Gujarat SMEs.

He concluded by encouraging the SME exporters to avail the ECGC

services in order to safe guard their export products and also the

impact of the external events on their business profitability.

Shri Mihir Joshi, commented that

SMEs in Gujarat are enterprising and

always look for new opportunities.

Normally an SME starts as a small

company. It grows to certain level and

start another SME and end up with

owning 5 or 7 different SMEs. The

logic behind this is to retain the SME

status and to arrange the incentives.

But the SMEs should not lose sight of

their growth. They should consolidate and become a bigger

enterprise in order to compete with effectively in India and global

markets, observed Shri Joshi. They should focus on scaling up their

operations with partnerships and licensing arrangements. It is

important to understand and analyse the market potential and

utilize the venture capitals as the ideal partners for this growth.

Talking on the venture capital funding, Shri Joshi observed that that

in order to tap in to venture capital it is important to prepare the

business plan that will project the growth plan of the company.

Venture capitalists mainly look for growth-oriented companies to

invest in and hence it is necessary for SMEs to develop a growth plan.

The real benefit of having venture capitalist on board is that they

enable manage the enterprise and also improve the top line and

bottom lines of the organization. They bring with them a huge

expertise in different industries and hence enable the companies to

touch high growth path.

Shri H. P. Shah, commented that SMEs

are started by an entrepreneur and he

faces various challenges to build an

enterprise and ensure its growth. But

it is necessary to have succession plan

so that the benefit of the enterprise is

passed down to other generation.

More than that in order to ensure the

continuity of an enterprise it is

necessary for entrepreneur to think

out of the box and have either the person from family continue the

business operations or an outside person who can carry on the

reigns of the enterprise. Succession planning also enables the

entrepreneur to concentrate on his areas of interest while allowing

the successor to handle the responsibility of the core business.

Talking about his company, Shri Shah mentioned that the company

provides business advisory services to younger generation in the

family owned business, their education options, motivation etc. They

also provide services such as export opportunities, funding

arrangements and expansion plans. Some people learn from their

mistakes and while few learn from other mistakes. The company

provides expert services to the younger people in family owned

business to take charge from their seniors.

Shri Mehul Pandya, commented that

Rating has become the most

important part of the business

operations. While businesses go

through various life-cycles and adopt

to various funding options, the start-

ups tend to rely on their own

resources and those of their family

and friends. The purpose of rating

initially is for self assessment and to take corrective actions in order

to improve their business performance. After two years and after the

improving their business performance significantly the SMEs choose

to go in for revised ratings. The rating gives due recognition to the

SMEs and improves their credibility and visibility. He further

observed that there are many new clusters that are emerging in

order to avail the benefits and advantages of working in clusters and

hence CARE rating has come with a separate rating for the clusters as

well. With this rating the lenders can choose a cluster of their choice.

Globally it is presumed that the SMEs do have the ability to conduct

proper business and hence are not rated properly which results in a

weaker rating for them. The main aim of an SME to go for rating is to

obtain bank loan. It is necessary for the SMEs to come out from the

traditional way of thinking and use rating as a tool for enhancing the

performance.

He concluded by giving an overview of rating system where AAA

rating is considered as the lowest risk. NSIC – CARE rating is a 15

point matrix. Normally financial indicators are considered for risk

assessment, whereas NSIC – CARE Rating focuses on performance

capability. The attractive point is that 75% of the rating cost is

subsided by the Government and encouraged the SMEs to go for

ratings in order to enhance the business performance.

CO NNECT



Ms. Meenal Sinha –

"Let

Servcorp Take Your Business To New Heights”

Associate Vice President–India, Imperial

Serviced Offices Pvt. Ltd. addressing the delegates on

Ms. Meenal Sinha, observed that reputed business depends upon the

impression it creates, its address, its presentation of the owner, the

team and the company. The real estate cost all over the world is very

expensive and it is difficult to own an office in a prestigious location

by SMEs.

Talking about her company she mentioned that the ServCorp assists

the SMEs and young entrepreneurs to create world class

infrastructure without paying a much for it. ServCorp Business

offices are available in Mumbai, USA

and Singapore. Virtual office are the

need of the hour which suits the SMEs

as they need not have a physical office,

board room and meeting room of

their own. This would enable SMEs

save lots of costs involved in the

physical infrastructure. The SMEs can

avail 24x7 service offices to suit their

budget and hence keep their capital

cost minimum. They are suitable for 1-10 people and creates a great

impression with the stake holders.

Q & A SESSION

Delegates asking questions during the plenary session

Shri K. Subrahmanyam – General Manager (SME), Indian Overseas

Bank addressing the questions of the delegates

Shri Umakant Bijapur – General Manager, Bank of Baroda,

Ahmedabad addressing the questions of the delegates

CO NNECT



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