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Vol II, Issue 22: November 15, 2012 Activities   News   Members   Contact     Print Version  

President's Message

Read More

" Delayed payments with

underfunding of MSMEs’ working

capital needs continue to be a

cause of serious concern. Now that

both Finance Ministry and RBI are

taking steps to deepen Corporate

Bond Market, it is high time a Debt

Capital Market got created by

promoting Companies for

securitizing Trade Receivables of

MSMEs. These Companies may

issue bonds based on their

performance track record out of

their securitized pools of Trade

Receivables. A market based

solution like this can make a huge

impact. "

- Shri V.K. Agarwal, President FISME

Read More

Read More

Activities

l Finance Secretary Meets FISME Team

l Nepalese delegation in India to learn SME development

l Eleventh India SME Forum organised in Mumbai

Business Banter: Lessons from Entrepreneurs

l If you want to create, learn to destroy !

Macro Metre

l IIP contracts by 0.4 per cent in Sept, India Inc seeks rate cut by RBI

l Rupee 12 paise down against dollar

l Higher food prices push up inflation to 9.75% in Oct

Domestic Digest

l Muniyappa inaugurates MSME Expo-2012 at IITF

l Popular MSME schemes to continue in 12th plan period

State Scan

l Uttarakhand sets up MSME department

World Watch

l Wenzhou to inject capital into SMEs

l US Chamber in Shanghai launches its SME Centre

Knowledge Store

l Why ICT matters to SMEs?

l Simple tips for SMEs to reduce borrowing cost, save money

...And A Lot More

Finance Secretary Meets FISME Team

Nepalese delegation in India to learn SME development

Shri R.S. Gujral, Finance

Secretary, Govt. of India

held a d iscussion wi th

FISME team on range of

i s s u e s c o n c e r n i n g

MSMEs in India including

Union Budget 2013-14,

SME Exchange, Publ ic

Procurement and Revival

o f s i c k u n i t s . S e n i o r

officials present during the meeting which was held in North Block, New Delhi

on Nov 1st, 2012 included Shri Anurag Jain, Joint Secretary, Department of

Financial Services and Shri P.K. Bagga, OSD, Department of Economic Affairs.

FISME delegation was led by Shri V.K. Agarwal, President which included Past

Presidents Shri Dinesh Singhal and Shri Neeraj Kedia and Shri Anil Bhardwaj,

Secreatry General.

Read More    

A Nepalese delegat ion

compr is ing of o f f ic ia ls

f r o m t h e M i n i s t r y o f

F i n a n c e , M i n i s t r y o f

Industry and Federation of

Nepal Cottage & Small

Industries (FNCSI) visited

FISME on Nov 6, 2012.GIZ

http://www.fisme.org.in/newsletters/Nov_15_2012/ Page 1 / 9

NCEDAR 2012

Date:Dec 4-6, 2012

Venue: Bangalore

See Details

AIFPA Show 2012

Date: Dec 13-15, 2012

Venue: New Delhi

See Details

PLASTO 2012

Date: Dec 20-23, 2012

Venue: Pune

See Details

SAURASHTRA PLAST 2012

Date: Nov. 28 - Dec. 2, 2012

Venue: Rajkot

See Details

The recent advise of RBI to banks will bear fruits: Survey

Eleventh India SME Forum organised in Mumbai

Nepal coord inated the

visit. Nepal faces big challenges to alleviate poverty. Starting up of cottage and

small enterprises is identified as the most important strategy in this direction.

The members of delegation were keen to learn about entrepreneurship and

other MSME development institutions, especially the Indian experience in the

field of private sector development.

Read More    

Re l i ance Commerc ia l

Finance in partnership

with FISME and several

o t h e r a s s o c i a t i o n s

organised the eleventh

I n d i a S M E F o r u m o n

November 3, 2012 in ITC

Maratha, Mumbai. T h e

SME Forum is a series of

events being organised to

select SMEs for the ‘India

S M E 1 0 0 A w a r d ’ and

ranking them under the India SME Forum & Award. Mr Dinesh Chandra Tripathi,

Executive Committee Member, FISME & Managing Director NSD Global Trade

Pvt Ltd started the session with the welcome address.

Read More    

Are views and concerns of MSMEs adequately reflected in

Indian News Papers?

Yes No

You can also view online

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If you want to create, learn to destroy !

“Unless there is fear (bhaya), there is no hunger (bhook);

Unless there is sacrifice (bali), there is no food (bhog)”

What do you do when you face tough times due to increased competition,

margin pressure, sluggish growth and stagnating profits? There are two

pr inc ip les that govern nature and the same two pr inc ip les govern

organisations: violence and seduction. How can you shake yoursel f of

lethargy? How to reinvent yourself?

[Adapted from ‘Management Mythos’ series Devdutt Pattanaik, Corporate

Dossier, The Economic Times]

Read More    

Macro Metre

IIP contracts by 0.4 % in Sept, India Inc seeks rate cut by RBI

http://www.fisme.org.in/newsletters/Nov_15_2012/ Page 2 / 9

According to The FISME Factor

survey, 60% of MSMEs feel that

the recent advise of Reserve

Bank of India to banks will bear

fruits.

Marketing Mantras

Website design: creating a

site for your SME

Why ICT matters to SMEs?

Finance Fundamentals

Simple tips for SMEs to reduce borrowing cost, save

Provide your customers a HOME

to visit, a place which is open 24/7

and is designed to reach them.

The best websites are

constructed in such a way to

appeal the target audience of the

company and there are three

steps to formulate the perfect

small business website.

Read the full article

New communication technologies

like mobile phones and the

Internet are increasingly

becoming a part of lives and

SMEs cannot afford to shut their

eyes to these developments,

which have potential to dictate

success and survival of a small

business.

Read the full article

Rupee 12 paise down against dollar

Higher food prices push up inflation to 9.75% in Oct

Domestic Digest

Muniyappa inaugurates MSME Expo-2012 at IITF

Govt releases Rs 1,276 cr to support MSME projects

RBI allows SIDBI to raise up to $500 million for SME lending

Belying hopes of an early economic

revival, industrial production contracted

by 0.4 per cent in September on account

of dismal performance of manufacturing

and capital goods sectors, prompting

India Inc to press for interest rate cut by

the Reserve Bank. The industrial output

g r o w t h r a t e t u r n e d n e g a t i v e i n

September after showing 2.3 per cent

growth in the previous month. The Index

of Industrial Production (IIP) was at 2.5 per cent in the corresponding period of

last year.

Read More    

The rupee fell by 12 paise to 55 against the American currency in the late

morning trade on sustained dollar demand from banks and importers amid

weakness in local equities. The rupee resumed lower at 54.98 against dollar

from last Monday's closing level of 54.88. It dropped further to 55.08 before

quoting at 55 at 1040 hrs. The domestic currency hovered in a range of 54.95-

55.08 during the morning deals.

Read More    

Driven by rising prices of food items

such as sugar, pulses and vegetables

as well as clothing, retail inflation moved

closer to the double digit mark at 9.75

per cent in October. It was 9.73 per cent

in the previous month, according to the

Consumer Pr ice Index (CPI ) da ta

released recently. The highest rise in

prices during the month was recorded by sugar, up 19.61 per cent, year-on-year

basis. It was followed by edible oil which turned expensive by 17.92 per cent,

while pulses were dearer by 14.89 per cent on the annual basis.

Read More    

Min i s te r f o r M ic ro Sma l l Med ium

Enterprises (MSME), K.H. Muniyappa

has inaugurated the MSME Expo-2012,

Techmart India 2012 and Khadi Pavilion

at The India International Trade Fair

( I ITF) in New Delhi recently. In his

a d d r e s s t h e m i n i s t e r s a i d , " T h e

objective of this exhibition is to recognize the strength of India's Micro and

Small-Scale un i t by showcasing the technology adopted by them in

manufacturing products and also to provide a suitable platform at reasonable

cost to develop a platform for future trade and business not only domestically

but globally."

Read More   

The government has released Rs 1,276 crore in the current fiscal to support

53,826 projects which are expected to generate about 4.31 lakhs jobs, the

Minister of Micro, Small and Medium Enterprises (MSME), K H Muniyappa said

recently. “During 2012-13, an amount of Rs 1,276 crore for 53,826 projects have

been released which are likely to generate jobs for around 4.31 lakh,” he said

on the occasion of the inauguration of Techmart at the India International Trade

Fair (IITF) 2012 in New Delhi.

Read More   

The Reserve Bank recently said it has allowed Small Industries Development

Bank of India (SIDBI) to raise up to USD 500 million per annum (about Rs 2,700

crore) through External Commercial Borrowing (ECB) to fund small and

medium scale industry. "...it has been decided to include SIDBI as an eligible

borrower for availing of ECB for on-lending to MSME sector," RBI said in a

notification.

http://www.fisme.org.in/newsletters/Nov_15_2012/ Page 3 / 9

money

Policy Polemic

Red tape makes India a hell of a place for SMEs to do

business

In today's cut throat competition a

rupee saved is a rupee earned

and more so for small enterprises

that need to fight with global

giants. With the following few tips,

they can attempt to save some

money.

Read the full article

Governments that love red tape

make it sheer hell for businesses,

particularly small businesses, to

operate. And governments in

India, at every level from the

Central to the States, appear to

love weaving reams of red tape

that constrain small businesses

from realising their potential.

Read the full article

Directory of Testing Laboratories in India

Buy our one-of-a-kind guide to all

industrial testing laboratories in

India. Find the one most

convenient for getting your

products tested and certified. An

invaluable compendium for all

industrial units and exporters.

PP: 894, Hard Cover.

Price: Rs 900.

50% discount for members.

MSME minister recalls friendly ties with Mozambique

MSME to train 5 lakh youth

Popular MSME schemes to continue in 12th plan period

Focus on small clients helps Merck India beat slowdown

NPC’s Kakrapar, Lanco Infratech bag safety awards-2011

Karnataka Bank cuts base rate

SBI: Mid-corporate, SME loans still stressed

Read More   

In order to st rengthen the re lat ion

between the micro, small and medium

enterpr ises (MSMEs) of Ind ia and

Mozambique, the Minister for MSME,

K.H. Muniyappa has recalled the friendly

t ies that India has histor ical ly with

Mozambique. Muniyappa welcomed the

visiting delegation led by Leda Hugo, Vice Minister of Education, Republic of

Mozambique in New Delhi recently.

Read More   

The Micro, Small, Medium Enterprises (MSME) Ministry will identify five lakh

unemployed youths and will train them as entrepreneurs. In turn, they will

provide jobs to eight people each who will help to solve the unemployment

problem, said MSME Minister K H Muniyappa. He told Express recently that in

the 11th financial plan, the Ministry had got Rs 11,000 crore and during the 12th

five year plan, the Ministry received Rs 24,000 crore.

Read More   

The Ministry of Micro, Small and Medium

Enterprises is scrutinizing the MSME

schemes in order to take a decision

which of them are to be cont inued

during the 12th Five Year Plan period,

said MSME Secretary Vivek Rae to SME

Times recently. "Since the 11th five year

plan has come to an end and the 12th five year plan is starting, we usually

review all our schemes and see which are the schemes which are doing well,

for which the demand is there and for which we are able to spend money. And,

wherever there is a need for cost correction, we make the cost correction. So,

we are doing this exercise now," he said on the side-lines of an event in the

national capital.

Read More   

Merck India, a specialty chemical company, and part of the

€10.3-billion Merck Group, plans to renew its focus on

sma l l and med ium-s ize (SME) c l ien ts to grow i ts

per formance mater ia l business. The per formance

materials division of Merck comprises the units of liquid

crystals and advanced technologies and ef fect ive

pigments. Effect pigments is a multi-talented pigment, and finds use in a variety

of sectors such as consumer goods, cosmetic, personal care and decorative

paints.

Read More   

Kakrapar Atomic Power Station of Nuclear Power Corporation in Tapi, Gujarat,

Lanco Infratech in Korba, Chhattisgarh and Nobel Synthetics, Navi Mumbai,

have bagged safety awards for 2011. The awards, instituted by the National

Safety Council of India, are given to organisations in the manufacturing,

construction and MSME sector.

Read More   

Karnataka Bank has reduced its base rate by 25 basis points with effect from

November 10. The bank ’s base rate now stands reduced to 10.75 per cent from

the earlier 11 per cent. As a result, all its base rate linked loans get cheaper by

25 basis points. A bank release said recently that the reduction is applicable to

the existing loans and also for the future loans. This will enable retail and MSME

customers to avail funds at reduced rates.

Read More   

http://www.fisme.org.in/newsletters/Nov_15_2012/ Page 4 / 9

Handbook for Managing Export Payment Risks  

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FISME Policy Paper  

Fertilizer quality control in

India: Need for change 

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FISME Policy Paper SME

Exchanges in India: Review and

Suggestions

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This monograph argues for a

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for those in policy-making

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Tata Steel targets SMEs as auto sector demand shrinks

Bronze Infra-Tech rises 7% on debut trade on BSE platform

eProcBay® provides Management Service for MSMEs

The net profit growth of State Bank of India was driven by one-off items even as

asset quality stress continues unabated. Muted net interest income growth due

to fall in margins also took a toll on the profitability. SBI wrote provisions worth

Rs 260 crore back, which it had set aside for investment depreciation. This

coupled with Rs 230 crore profits on sale of investments led to a net profit

growth of 30 per cent.

Read More    

Hit by a slowdown in steel demand from auto makers, Tata Steel is looking at

new avenues and is targeting the small and medium enterprises (SME) sector.

At the launch of its Astrum brand of hot-rolled steel, T.V. Narendran, the head for

flat steel in the company, said the company is planning to sell 1 million tonnes

of the product next year, generating Rs. 4,000 crore in revenue.

Read More   

Infrastructure firm Bronze Infra-Tech recently surged by seven per cent over its

initial public offering (IPO) price on its debut trade on the BSE's SME platform.

The company has become the 11th firms to get listed on the BSE's Small and

Medium Enterprises (SME) exchange. Bronze Infra-Tech attracted robust

investor demand for its shares and saw its stock opening at Rs 16.70 per share

-- 11.33 per cent above its IPO price of Rs 15.

Read More   

SMEs are adopting automation solutions to ensure high quality products,

enabling them to be competitive and face multiple challenges. eProcBay

Services provide simple, yet powerful, solutions to ensure success for SMEs.

Edge Business Solutions Private Limited has especially designed the services

to suit the Indian working environment.

Read More    

Andhra Pradesh    

MSMEs are the engine of economic growth: official

Punjab    

Road show held to promote engg expo

Maharashtra    

K r i s h n a D i s t r i c t

I n d u s t r i e s C e n t r e

G e n e r a l M a n a g e r G .

Rajendra Prasad recently

sa id micro, smal l and

m e d i u m e n t e r p r i s e s

(MSMEs) were the engine

of economic growth and

for promoting equitable

development. Addressing

a meeting organised in connection with the MSME Day celebrations at the

Automobile Technicians Association Hall in Autonagar, organised by the Andhra

Pradesh Small Industries Association and the DIC, Mr. Rajendra Prasad said a

major advantage of this sector was its employment potential.

Read Details   

The association of Ludhiana Machine tools industries recently organised a road

show to promote the upcoming Engineering Expo which will be organised from

December 20 to 24 at Greater Ludhiana area development authority (GLADA)

grounds. The show was flagged off from district industry centre (DIC) by GM

Mahesh Khanna and Director of Micro small and medium enterprises (MSME) B

S Dhillon.

Read Details   

http://www.fisme.org.in/newsletters/Nov_15_2012/ Page 5 / 9

FISME regularly receives monthly

reports on the economies of

various countries from their

missions in India. These reports

provide information on key

economic parameters, trade

related information and all news

relevant for importers and

exporters. In this edition you can

take a look at reports on:

Oman

Bahrain

Andheri SMEs welcome CRR cut by RBI

Madhya Pradesh    

RBI Deputy Gov concerned about shrinking credit to MSMEs

Uttar Pradesh    

Proposals invited for industrial clusters

Uttarkhand    

Uttarakhand sets up MSME department

Orissa    

Government urged to promote sale of MSME products

Tamil Nadu    

Subsidy must be given to low-power generators: trade body

Last month the Reserve Bank of India (RBI) slashed the cash reserve ratio

(CRR) - the minimum amount banks have to keep with RBI - by 25bps to 4.50

percent, while keeping the interest rates unchanged. The move is still causing

ripple effects within the government. The SME sectors from Andheri East are

happy with the RBI move. "RBI intends to keep the liquidity easy and support

growth," D Subbarao, RBI governor said earlier.

Read Details   

Reserve Bank Deputy Governor K C Chakrabarty recently said MSMEs (micro,

small and medium enterprises) play a major role in employment generation

and economic growth and expressed concerns over declining credit to the

sector in Madhya Pradesh. "The MSMEs play important role in employment

generation and contribution to economic growth," he said addressing a

seminar on 'Issues and Challenges in Micro Small and Medium Enterprises

Financing' in Bhopal.

Read Details   

In a bid to boost small scale industrial investment, the state government has

decided to invite proposals for developing two industrial clusters in each district,

a government spokesperson said recently. The decision was taken at a review

meeting presided over by small scale industry minister Bhagwat Charan

Gangwar recntly. Gangwar said that such proposals should reach Udyog

Bandhu by December.

Read Details   

The Uttarakhand government has decided to set up a separate department of

micro, small and medium enterprises (MSMEs) in the hill state. The new

department is likely to benefit nearly 40,000 MSMEs, which have mushroomed

in the state. “This is a unique experiment through which we are setting up a

separate department of MSMEs, to strengthen industries, especially khadi and

village industries,” said Chief Minister Vijay Bahuguna.

Read Details   

Micro, small and medium enterprises (MSMEs) have cal led upon the

Government to come out with a reservation policy for procurement of MSME

products manufactured in the State by the large- scale industries, PSUs and

Government departments. The Centre, in its Public Procurement Policy for

MSME-2012, provides for procurement of 20 per cent of the requirement of the

Central Government departments and PSUs from the MSME sector.

Read Details   

The Tamil Nadu Small and Tiny Industries Association (TANSTIA) has called

upon the State government to give subsidy being given to high-power

generators to the smaller genets also as they are used largely by the micro,

small and medium enterprises (MSMEs). While thanking the government for

enhancing the capacity of generators eligible for subsidy from 125 KVA to 320

KVA and increasing the ceiling of subsidy to Rs. 5 lakh from Rs.1.50 lakh with

effect from November 11, 2008, the trade body said that most of the small units

used only smaller generator sets with a capacity of 10 KVA to 30 KVA and will

not benefit from the subsidy.

Read Details   

http://www.fisme.org.in/newsletters/Nov_15_2012/ Page 6 / 9

Europe    

EU debt crisis restricting SMEs access to credit

China    

Wenzhou to inject capital into SMEs

UAE    

Dubai Chamber launches Guidelines for Financing SMEs

Indonesia    

Asia-Europe business forum focuses on SMEs

Ireland    

99% of Irish businesses are SMEs

The banking and debt

c r i s i s i s i nc reas ing l y

r es t r i c t i ng access t o

credit by the euro zone's

small and mid-size firms,

acco rd i ng t o a s t udy

released recently by the

European Central Bank.

The report is based on a

s u r v e y c a r r i e d o u t

between Sep 3 and Oct 11 among 7,514 companies in the euro area. "Access

to bank loans continued to deteriorate," the text said, citing a 22 percent

worsening in the availability of credit.

Read More    

Pr iva te fund ing i s no

longer the only way small

compan ies can ra i se

capital in Wenzhou as the

c i t y m o v e s t o w a r d

financial reform that will

inject more money into

the system to help small

and medium-sized enterprises. In March, Wenzhou was selected by the State

Council as the nation's first lending pilot project after a number of local

entrepreneurs failed to repay their debts last year and fled.

Read More    

As part of efforts to assist SME growth in the emirates, Dubai Chamber of

Commerce and Industry launched its ‘Guidelines for Enhancing SME Finance ’

during a seminar held at its head office recently. The seminar, held in

cooperation with the Ministry of Economy, sought to highlight efforts aimed at

reducing the gap between supply and demand of SME finance. It provided SMEs

with a unique opportunity to learn what essentials are required when applying

for financing, how to maximise the effectiveness of an application, and speak to

bank representatives on the spot.

Read More    

Participants in the 13th Asia-Europe Business Forum (AEBF) paid particular

attention to small and medium enterprises (SMEs) during the two-day meeting

that ended recently. Held back-to-back with the ninth Asia-Europe Meeting

(ASEM) Summit in the capital of Laos, the forum recommended, among other

things, the need to establish specific credit guarantee funds with financial and

technical assistance from international development banks.

Read More    

SMEs accounted for almost all businesses in the Republic in 2010 but

generated just half of turnover, according to a new analysis from the Central

http://www.fisme.org.in/newsletters/Nov_15_2012/ Page 7 / 9

U S    

US Chamber in Shanghai launches its SME Centre

Statistics Office. The Business in Ireland 2010 study also found that SMEs,

which represented 99.8 per cent of enterprises, accounted for 46.8 per cent of

gross value added, a key measure of business income.

Read More    

The American Chamber

o f C o m m e r c e i n

S h a n g h a i ( A m C h a m

Shanghai) launched its

SME Center recently, an

in i t ia t ive dedicated to

b o o s t i n g t h e

competitiveness of U.S.

small- and medium-sized

e n t e r p r i s e s ( S M E s )

c o m p e t i n g i n C h i n a .

Located in the Chamber ’s Shanghai office, the SME Centre will provide services

and resources tailored to the needs of American small businesses exporting to

China and those considering the China market as a destination for investment

and business expansion, according to Brenda Foster, president of AmCham

Shanghai.

Read More    

Write and Win prize!

Write your comments on the FISME Factor. Share your views and suggestions

on MSME issues. Win prize! The best mail will get a special book every fortnight.

send mail to: newsletter@fisme.org.in

   

Business Opportunities for India in Turkey

TThere are business opportunities available for Indian companies in Turkey.

The interested candidates can check details.

Read Details    

4 new members join FISME

During the period from November 1 to November 15, 2012 a total of 4 new

MSMEs became members of FISME.

Read Details    

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Federation of Indian Micro and Small & Medium Enterprises (FISME)

Headquarter: B – 4 / 161, Safdarjung Enclave, New Delhi – 110029

Telephone: +91 11 26187948, +91 11 26712064, +91 11 46023157   Fax: +91 – 11 – 26109470

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