TANSTIA - FNF SERVICE CENTRE

Chairman's Foreword

CEO's Desk

About TFSC

Highlights (1992 – 2012)

Down the Memory Lane

Activities for the Current year April 2012 – March 2013

Studies and Researches

Highlights (2012-2013)

Wishes and Accolades

TFSC in Media

Focus for the future

Management & TFSC Team

CONTENTSCONTENTS

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21

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I am delighted and proud to present this Annual report, as TFSC is completing 21 years of its yeomen service to SMEs.

With Globalisation and Liberalisation, the economic environment of our country has become more competitive, and the SME Sector has had to face several challenges in order to survive, sustain itself and be successful, a support system was felt necessary so that the Micro and Small and Medium Enterprises(MSMEs) can use their fullest potential to compete in the global market. Thus, TFSC was set up with an objective to handhold the MSMEs by providing proper support services.

In the recent years the MSME sector has consistently registered higher growth rate compared to the overall industrial sector. The major advantage of the sector is its employment potential at low capital cost. Tamilnadu is one of the well developed States in terms of industrial development. In the post-liberalization era, Tamilnadu has emerged as one of the front-runners by attracting a large number of investments particularly in recent times. The SME sector has a major contribution to the economy of Tamilnadu.

Considering the need and importance of SME sector, TFSC offers a wide spectrum of services like Training, Information, Trade Mark Registration, IE Code, Detailed Project Reports, Techno Economic Feasibiltiy reports etc., We have also relaunched TFSC's portal on the Eve of our India's 67th Independance Day. Individual entrepreneurs and Associations should make use of the Portal for their benefits.

TFSC has been working with the District SME Associations and various Estate and product wise Associations of Tamil Nadu and other States, conducting various Managerial and Industry related Training programmes and also programmes related to Climate Change and Energy for their members. TFSC has also focused on Modular Employable Skills (MES) under the Department Labour and Employment, Government of India and has been an Assessing Body for Nine States in the country. TFSC is also working on Innovation Voucher Scheme ( IVP ) under the support of German Government.

With the SMEs becoming more pro active, I feel that the Road Map for TFSC in 2013-2015 would be to

Work more closely with MSME Associations and Entrepreneurs. Scaling up of Individual Entrepreneurs business focussing more on Micro sector by appropriate consultancy, Innovation, Hand holding.Work on B to B promotion of Business with more Trade delegations Abroad.Arrange for tie up with local and international support services to MSME's.Create a strong professional team in TFSC to take up activities to different levels.Create more Visibility of TFSC in the International Arena.

I conclude this Foreword with an assurance to MSMEs that TFSC would continue to be the one stop place to

augment their potentials and competencies in order to compete in the global market.

CHAIRMAN'S FOREWORD

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Dr.A.SelvarajChairman

For a number of reasons, TFSC's past year is without a doubt, the most important since it has completed 20 years of service

to SMEs. The organization continues to consolidate its position as the peak body representing the MSMEs and all the

associated stakeholders and now has national and international visibility.

We have a clear vision for the future and a thorough understanding of the necessary steps to achieve our objectives. Our

focus this year has been predominantly in innovation, skill training , Entrepreneurship development ,advocacy and policy

direction. The need of the hour is to consolidate and further expand on the desired lines so as to be in a position to

significantly Contribute towards the Government's programmes designed for promotion of MSMEs and skill development.

New initiatives this year includes

Capacity Building of the officials/functionaries engaged in implementation of different Schemes pertaining to MSMEs;

Enlarging/expanding the base of Partner Institutions and strengthening their capabilities so as to make provision of

training in fall areas

Concentration upon development of linkages with industrial/trade/ export associations/federations, etc. for identification

of the skill sets/trades witnessing deficient skilled manpower supply/availability;

Tie-ups with Universities, Institutions of Higher Learning etc. for introduction of Entrepreneurship Modules in their

respective course curriculum(s) for inculcating a spirit of entrepreneurship among students and catching them young.

As a land mark this year, TFSC has been chosen as an implementing agency for the SME Innovation Voucher Programme for

SMEs by DEG, Germany. The innovation voucher programme is a new initiative that aims to improve the innovation

capability and capacity of SMEs in ten select Districts of Tamil Nadu, as a pilot phase. The Innovation Voucher Program (IVP)

encourages collaboration between small to medium enterprises (SMEs) and Research and Development organisations.

MES programme has made rapid strides in all the nine states where TFSC has been operating as assessing body. To bridge

the gap in the level of knowledge and to provide a level playing field so as to develop skills and improve human resources in

consonance with the forward marching of global economy , the government has implemented the innovative scheme of

MES where TFSC play a major role. There has been tremendous impact and transformation in the lives of poor people

through effective implementation of this well conceived scheme which has contributed to the overall industrial climate.

In addition, sustainable development initiatives with emphasis on energy conservation and environment management

were given more focused in collaboration with FNF. Here We aim to incorporate environmental concerns and climate

change adaptation measures into development programmes and policies.

This year may also witness the advent of our new redeveloped website and IT system implementation which now supports

a range of e-commerce services and benefits to all our members, which includes a professional' search engine ,member

forums, blogs and twitter resource library and information banks . TFSC has credibility in its advocacy relationships with

Government, Regulators and MSME stakeholders and has played a significant part in felicitating policy settings and

regulatory framework. The current economic issues are also equally challenging for our MSMEs. We are confident that the

MSME sector, with its resilience and adaptability, will weather the challenges and emerge winner in the long run.

CEO's DESK

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P.LakshminarayananCEO

TANSTIA-FNF SERVICE CENTRE

(TFSC) is a collaborative venture

between Tamil Nadu Small & Tiny

Industries Association (TANSTIA),

Chennai and Friedrich Naumann

Stiftung fur die Freiheit (FNF),

Germany, established to provide

supporting services to small scale

industr ies. The centre was

inaugurated on August 26, 1992 by

Shri R. Venkataraman,

Former President of India.

ABOUT TFSC

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QUALITY POLICY

We at TANSTIA-FNF Service Centre, strive to provide high quality services, better value

addition and quick responses at all times to our esteemed customers, especially MSMEs, in

line with their needs and expectations. Together we will create an organization climate,

which will sustain our efforts by team work, innovation and continuous improvement.

VISION

To emerge as a nodal state of the art service centre in the service of SMEs.

OUR MISSION

The Mission is to enable the small industries attain all round capabilities and

to lead the way towards high performance thereby enhancing their participation in the

national and global economy.

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ENTERPRISES

Manufacturing Enterprises

(Ceiling on investment inPlant & Machinery)

Rs 25 lakh

Rs 5 Crore

Rs 10 Crore

Service Enterprises

(Ceiling on investment inEquipment)

Rs 10 lakh

Rs 2 Crore

Rs 5 Crore

Micro

Small

Medium

Sai

len

t F

eatu

res

Definitions

Defines “Enterprise” instead of “Industry” to give due recognition to the Service Sector.

Pride of place to Micro Enterprises.

Investment ceiling for Manufacturing Small Enterprises raised to Rs 5 Crore.

Defines “Medium Enterprises” to facilitate technology upgradation and graduation

Memorandum

Two-stage registration process of SSI substituted with optional filing of memorandum with District Indistries Centres (DICs) by all micro and small enterprises

Filing of memorandum by Medium enterprises rendering services also optional.

Filing of memorandum by manufacturing medium enterprises with District Industries Centres (instead of the Central Governement)

Statutory Frame

Provides statutory basis (legally enforceable) to Procurement Preference Policies of Central & State Govt. for goods & Services provided

by micro & small enterprises.

Strengthens the legal provisions to check delayed payment to micro and small enterprises.

Representatives of enterprises Associations included in the MSE Facilitation Councils for adjudicating on cases of delayed payment.

Provision for ensuring timely and smooth flow of credit to MSMEs.

All Schemes/Programmes of assistance being notified under the Act.

Provides for a statutory National Board for Micro, Small & Medium enterprises to advise the Central Government on mattters under the Act.

TANSTIA (TAMIL NADU SMALL AND TINY INDUSTRIES ASSOCIATION):

The Apex State Level Association for Small Industries in the State of Tamil Nadu, established in as early as 1956 has been in service of small and tiny industries for the last five decades. With around 2000 individual members and all District Associations, product wise associations in its fold, this association functions as an umbrella organization representing the interests of the small industries in Tamil Nadu.

The main focuses of TANSTIA are:

Taking up current problems of small industries with the Government and other authorities concerned.

Assisting the State/Central Government in promoting policies for small industries.

TANSTIA is duly represented in many of the policy groups and committees like SSI advisory board, taxation, credit

committee etc.

Since TANSTIA has a cross section of members from different districts and different regions, the association assists

in opinion gathering on the various policies and schemes formulated for small and tiny industries promotion.

FNF (FRIEDRICH NAUMANN STIFTUNG FÜR DIE FREIHEIT)

The Friedrich Naumann Stiftung für die Freiheit (FNF) is the Foundation for liberal politics. It was founded in 1958 by,

amongst others, Theodor Heuss, the first German Federal President after World War II. The Foundation currently works in

some sixty different countries around the world – to promote ideas on liberty and strategies for freedom. Our instruments

are civic education, political consultancy and political dialogue.

The Foundation lends its expertise for endeavours to consolidate and strengthen freedom, democracy, market economy

and the rule of law. As the only liberal organization of its kind worldwide, the Foundation facilitates to lay the groundwork

for a future in freedom that bears responsibility for the coming generations.

Within South Asia, with its strong tradition of tolerance and love for freedom, with its growing middle classes which

increasingly assert themselves, and with its liberalizing economies, the Foundation works with numerous partner

organizations to strengthen the structures of democracy, the rule of law, and the economic preconditions for social

development and a life in dignity.

NEW NOMENCLATURE AND CLASSIFICATION OF MSME

THE PARTNERS

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MSMEs play a pivotal role in the overall industrial economy of the country. MSMEs in India

account for more than 80% of the total number of industrial enterprises and produce over 8000

value-added products. It is estimated that in terms of value, the sector accounts for 45% of the

manufacturing output and 40% of the total export of the country and employs over 6 crore

people.

With the Economic Environment becoming more competitive since liberalization, this

important sector has to face lot of challenges to survive, sustain and to be successful. There is

no level playing ground and the micro and small enterprises are disadvantaged by factors like

lack of affordable training, inadequacy of institutional support including financial support, lack

of access to timely and up-to-date market and technology information, limitations, adopting to

modern technologies etc. A support system is therefore felt necessary to bring out the full

potential of the Micro and Small sector.

TFSC (TANSTIA-FNF Service Centre), which is the collaboration between the apex association

meant for MSEs and the liberal Foundation viz., FNF, could understand this sector better and

was started with the objective of helping the entrepreneurs overcome some of the difficulties

mentioned above.

With the Economic environment becoming more competitive since liberalization, this

important sector has to face lot of challenges to survive, sustain and to be successful. There is no

level playing ground and the micro and small enterprises are disadvantaged by factors like lack

of affordable training, inadequacy of institutional support including financial support, lack of

access to timely and up-to-date market and technology information, limitations on adopting

modern technologies etc., A support system is therefore felt necessary to bring out the full

potential of the micro and small sector.

TFSC (TANSTIA FNF Service Centre), which is the collaboration between the apex association

meant for MSEs viz., TANSTIA and the liberal Foundation namely FNF, could understand this

sector better and was started with the objective of helping the entrepreneurs overcome some of

the difficulties mentioned above.

The Centre endeavors to assist the vibrant sector of Small and Tiny Industries in the changing

scenario. It has grown in leaps and bounds since it inception. It is a professional body with an

ISO 9001:2008 accreditation.

THE NEED FOR TFSC:

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At the Macro level, we advocate SSI friendly policy framework and work towards the promotion of SME's

through Studies & researches, Think Tank Meets etc. At the Micro level we render supporting services to

Small and Tiny Industries by encouraging entrepreneurship and promoting enterprise creation.

Activities and Services at the Macro and Economic Level

Policy level studies / researchesEconomic LecturesConferencesTrade PromotionInformation servicesThink Tank Meets

TrainingConsultancyInformationHandholding

The Centre is equipped with a unique Information Division and also a specialized panel of Consultants with

more than 250 experts carefully evaluated and coordinated by the Centre.

TANSTIA being the apex Association for Small Enterprises in the State of Tamilnadu and hence we work

more at the grass root level closely with SMEs.

The experience of TANSTIA and the expertise of FNF help us to emerge as a unique model for filling up the

existing gap and offer the right support to micro, small and Medium Enterprises.

TFSC is a strong and influential promoter and supporter of entrepreneurship in India. It is known all over

the country as a highly qualified provider of information, training, and consultancy for SMEs. TFSC is an

effective link between SMEs in India and world market requirements. It is the one-stop institutional help

for people wanting to become an entrepreneur as well as for already established entrepreneurs in the

SME-sector. TFSC, in the final analysis, is both, a competent practical supporter for entrepreneurs, and a

catalyst for change towards a more conducive environment for free entrepreneurship resulting in the

creation of job opportunities and improvement of the economic wellbeing of the people in India!

A Registered Trust under Indian Trust Act

Exempted from IT under section 80G(5) (vi) of the Income Tax Act 1961.

Registered under Section 6 (1) (a) of the Foreign Contribution Regulations Act 1976 vide

Registration Number: 075901006, Nature: Economic

Registered for service tax under Section 69 of the Finance Act 1994 (32 of 1994) vide registration

No: 0ID/CH.IV/05/STC

TFSC WORKS AT TWO LEVELS – MACRO AND MICRO

Macro Level Micro Level

AIM OF TFSC :

FACT FILE

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HIGHLIGHTS (1992 – 2012)

ACTIVITIES FOR THE PERIOD 1992-2012

I. Researches & Studies undertaken & Coordinated

Including study on Micro industries, Documenting Enterprise Creation

Process & Exit Policy for SMEs with specific reference to Tamil Nadu Public Private Partnership Policy 20

II. Economic Activities

Policy level Conferences on SSI related issues

Eg. State of Economy and SSI, SME Development Bill 2005 18

TFSC Economic lectures 25

III. Training Activities

Total Number of training programmes 490

Special Programmes for women entrepreneurs 25

Programmes conducted for Government/other institutions 48

Guest lectures made More than 200

IV. Consultancy Services

Advisory services & Counselling done for entrepreneurs 7112

Direct Consultancy assignments

Eg. Detailed project report for various products, foreign collaboration, techno-economic

feasibility reports, product improvement etc. 458

Number of units assisted for ISO certification 30

Number of units taken up for Cleaner Production 9

Assisting Government in socio economic project for special category of entrepreneurs

Ex. Marketing support for SHG products for Dept. of Rural Development /

rehabilitation study on Knitwear Estate of Scheduled Caste entrepreneurs 8

V Information services

Establishment of smelink portal with members Organisations like SIDO, Indian Institute of

Entrepreneurship, Gauhati, District Industries Centres of Tamil Nadu and International organizations

like SMEDP, Nepal and SMED, Srilanka are some of the organization members of the portal. 379

Export Information seminars organized Eg. Investment opportunities in biotech industries, export

opportunities for textiles in the post quota scenario 33

Trade Delegations organized 5

Established Project EIS (Entrepreneur Information Service Centres) in Vellore, Dindigul, Coimbatore,

Tiruvarur, Tirunelveli and Port Blair. 6

Participation in Major Exhibitions & Fairs Intec, Food Pro, ACMEE, Asia Pacific Food Expo and so on. 12

Value Added Information services – beneficiaries 11081

Hand Holding services Provided Including Export Handholding 122

Networking with Academic and Technical organizations- Eg. MOU with Crescent Engineering College,

MGR Deemed University, Arunai Engineering College, Tiruvannamalai etc., 12

VI. Entrepreneur promotional Initiative

Project profiles & Publications of Working Guides

Project profiles on various sectors like Food, Chemical, Plastic, service, Packaging, Herbal,

Engineering, Information Technology and other industries 314

Tiny scale project profiles in Tamil 100

CD on profiles taken by – SMED, Srilanka, Ahmedabad Management Association, Coimbatore &

Madurai Small industries Association

Study reports and working guides on various topics relevant to SSIs.

Some of the organizations purchased our publications eg. SIDO, FAPSIA,

Indian Bank Staff Training college etc. 16

Entrepreneurship Development Programmes conducted including BRIDGE Program 55

Business Plan Competition for small & tiny entrepreneurs 1

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DOWN THE MEMORY LANE

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Lean Manufacturing for MSME at PondicherryBusiness Plan Competition

Seminar on "Export Opportunities for Processed Foods"

Mr.Sudarsana Nachiyappan Hon'ble Minister Inagurating a Programme

Vendor Development

Seminar on Biotech Industries in Kancheepuram

Programme on Leveraging FTAs

Dissemination Meet in Enterprise Creation Study Programme on India - Japan EPA Negotiations

Round Table Meet

I. CONSULTANCY:Advisory:

Advisory services has been provided to the aspiring/existing entrepreneurs/exporters on a poly clinic concept and this service has

been well received by the public.

The aspiring entrepreneurs availed the advisory services of the centre on various subjects like project identification, enterprise

setup, availing Government schemes, scope for setting up Food Processing Industries, Chemical Industries, Raising Finance etc.

Two SME exporters have availed IE Code Registration and Two SMEs have been provided with Trade Mark Registration and six

Detailed Project reports on various projects have been undertaken during this period.

II.INFORMATION:

Entrepreneurs availed various information services from the Centre on Website Hosting , Trade offers, Importers addresses,

Machinery Address, Export and Import statistics, Membership etc.

Information Seminars:thProgramme on Export Procedures and Documentation on 18 October 2012:

Keeping in mind that the new and existing exporters face difficulties in generating the genuine leads, not knowing the right

procedures, TFSC organized the programme on the Export Procedures and Documentation.

The programme covered topics like Export Procedure and Documentation, Foreign Trade Policy, Export Promotion Councils and

ECGC.

TFSC extends its support to the participants post seminar so that the new and existing exporters can export with quality. Hard copy

of the Course material was provided to all participants. Overall feedback of the programme was good.

III. TRAINING

I. Entrepreneurship Awareness Camp (EAC)

Entrepreneurship Awareness Camp at Prathyusha

Institute of Technology and Management, Tiruvallur

organized by TFSC with the support of Ministry of Science

and Technology, from 29th October 2012 to 31st October

2012. 10 resource persons handled the sessions on

various topics on entrepreneurship. The Progamme was

inaugurated by Mr. Sakthivel, General Manager, District

Industries Centre, Tiruvallur. In his address he briefed

about the significance and need of entrepreneurship and

why entrepreneurship awareness camp is conducted at

colleges and how the students can be converted into

entrepreneurs in future.

The students have been briefed about how to start an

MSME unit what are initial govt. formalities and procedures and what are the financial support provided by the DIC was very well

explained by Mr Manivannan, Asst. Director, Tiruvallur and Financial schemes was explained by Mr. T.R. Suresh, Lead Manager,

Indian Bank , Tiruvallur.

Around 100 students attended the awareness camp for three days and got benefitted.

ACTIVITIES FOR THE CURRENT YEAR (APRIL 12 - MARCH 13)

No of Beneficiaries 359

No of Beneficiaries 175

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ii.Technology Based Entrepreneurship Development Programme on Food Processing:st Inauguration of TEDP on Food Processing at Institute of Hotel Management on 1 February 2013

Mr.Rajamohan, Principal, Institute of Hotel Management, Mrs.R.Vijayalakshmi, Additional Director, TFSC & Mr.Trilokchandar,

HOD, Department of Nutrition, Institute of Hotel Management, during the inauguration of the programme.stA six week long Training on Technology Based Programme on Food Processing Industries was commenced on the 1 February 2013.

Four week technical training and two week of managerial training on Food Processing industries is the sponsored programme by

Department of Science and Technology, Government of India. The programme was organized at the Indian Hotel Institute of

Management, Taramani and twenty seven aspiring entrepreneurs have enrolled for this programme.

iii. Training programme on “ Personality Development “ at Javadu Hills on 21-23 rd February 2013 .

Tanstia FNF Service Centre and Rajiv Gandhi National Institute of Youth Development,

Sriperumbudur, jointly organized the Personality Development Program for the unemployed youth at Javvadhu Hills from 21 to 23

February, 2013.

Mrs. Vasanthi Ranganathan, and Mr.Banu were the resource persons for the program. 42 unemployed youth attended the three

days program. Dr. M.P. Kaliaperumal, Consultant Professor, RGNIYD, was also attended the program.

iv.Video Discussion:

TFSC in association with Madras Management Association organized video discussions on the following topics during this year.

tha.“ Time Management “ on 16 May 2012 b.“Improving Workplace Performance For Empowerment” on 26th June 2012c.“Exploding the Myths of Leadership” on 24th July 2012d.“ SUPERVISORY SKILLS” on 24th August 2012e. “ Decision Goals and Plans” on 24.09.2012f. “ Business Correspondence” on 20.12.2012g.“ Strategic Marketing” on 24.01.2013h.“ Leadership by Empowerment ” on 22.02.2013

sti. “ Effective Communication” on 21 March 2013

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a.Programme on “Micro Credit” on the 26th May 2012 at

Nagapattinam:

TFSC invited senior management officials from the Indian

overseas Bank and Tamilnadu Industrial Investment

corporation in continuation of its efforts to organize the District

programme . The District meet on Micro credit held at

Nagapattinam on May 26th, 2012.

The focus of the sessions was facilitating finance for the Micro

Small and Medium Enterprises (MSMEs).The president

(Mr.Ramachandran) in his inaugural address explained the

dynamic nature of business environment and the ever growing

need for adequate and cost effective finance and financial

services calls for a regular and productive interface between the

users and providers of funds.

Mr. Rajamani of IOB,addressed the participants on various

financing options available with the bank for MSMEs.Mr.

Kumar from TIIC gave a presentation on the delivery channels,

loan products,payment gateways etc.

The programmes helped in generating awareness about the

continuous initiatives of the financial institutions across various

business verticals among the borrowers, deliberated on

solutions to problems faced while dealing with such verticals

and also offered excellent networking opportunities for

representatives with the leading bankers in the towns

In his final note Mr. K.R.Gnanasmabandan thanked the Bankers

b.SME Finance Meet in Tirunelveli on 17th October 2012:

TFSC with the support of Friedrich Naumann Stiftung fur die

Freiheit organized a Programme on Financing for MSMEs in

Tirunelveli District on 17th October 2012 at Palayamkottai.

Chairman, TFSC Mr.Gunasingh Chelladurai welcomed the

participants and reiterated the importance of Finance in

business and informed that the programme is aimed to create

awareness and explore the various avenues available with

various institutions.

Mr.Subodh Kumar, Executive-Programmes, FNSt in his

introductory address briefed the work of FNF in India and how

this project helps in Economic promotion of the country.

Mr.Ananda sekar, President, NELSTIA informed that Finance is

very important in Business and thanked TFSC for organising

such a programme as it would be useful to SMEs.

Mr.Thangaraj, President,TANSTIA in his inaugural address

informed that Finance and Power are two major factors which

are needed today and power has been a problem for the last

one year and though the Government is assuring to resolve this,

there is no solution as of now. Hence, an alternate model need

to be created by ourselves to resolve the issue of power. He also

conveyed his thanks whole heartedly to FNF for conducting

many programmes in the last two years in various Districts

which has increased the competitiveness of the SMEs.

Mrs.Vijayalakshmi in the vote of thanks briefed the new

programme on SME Innovation Voucher and the funding given

to the new innovations for business potential analysis and

development of prototype etc., She also requested the

participants to convey this message to the SMEs known to them

so that they can send the applications for availing the funds for

Innovations.

She thanked the guests and the participants for their time and

the resource persons who have come from various

organizations like TIIC, NABARD, DIC and NSIC.

The Technical sessions started with the introduction by

Mr.Lakshminarayanan, CEO who stressed the importance of

Finance in Business and also requested the participants to be

attentive and interact as there are so many schemes in the

various organizations and how the participants can make use of

the same.

Participants found the programme very useful and also

informed that they are able to understand the various schemes

of the institutions.

In the end Mr.Gunasingh Chelladurai chairman thanked all the

Resource persons and also requested the participants to avail

the various financial schemes available with the institutions.

He also said that he is one of the beneficiary for availing

schemes of TIIC and NSIC and being successful in business.

thc.Awareness Programme on Solar Power at Madurai on 18

October 2012

An awareness programme on solar power was organised on

18th Oct2012 Thursday by Madurai District Tiny and Small Scale

Industries Association (MADITSSIA) jointly with TANSTIA - FNF

Service Centre, (TFSC) Chennai.

M. Srinivas Ramprasad, Chief Executive Officer of Persept

Solar, a Bangalore-based solar firm said that while the huge

capital investments and large land requirements were factors

Mr.

IV.DISTRICT PROGRAMMES:

12

inhibiting micro, small and medium enterprises (MSME) from

taking to this technology, he said that this company had created

a business model to tackle both these issues.

Through this business model, industries could have a fixed

power tariff for 10 to 15 years as the cost of Government-

supplied power was only going to increase in the future as

subsidies were eliminated.

The cost of per unit of solar power, he said, would be lower than

that of the power generated from diesel-powered generators

and would come closer to the commercial tariff charged by state

electricity boards. Terming his company as an Independent

Power Producer, Mr. Ramprasad said that it offered captive roof

top solar PV power on a 'build, own, operate and transfer' model

to Indian industries.

V. CLIMATE CHANGE INITIATIVES:

i.Economic Lecture on “Solar Energy – is it a viable option now” thon 11 April 2012:

Solar Energy is the genesis for all forms of Energy. Solar Energy

can be utilized for varied applications. So the answer to “Why

Solar” question can be sought from two different perspectives:

utilizing solar energy for grid-interactive and off-grid (including

captive) power generation.

The Ministry of New and Renewable Energy (MNRE) provides 70

percent subsidy on the installation cost of a solar photovoltaic

power plant in North-East states and 30 percentage subsidy on

other regions. When there is so much of thrust on solar and also

considering the acute power shortage, it was felt that the SMEs

to take full advantage of this and explore the potential of this

energy resource and hence this Economic Lecture cum Panel

Discussion was organized. The programme was attended by 75

participants mainly from Industries who are aspiring to venture

into Solar projects, Energy management consultants and Policy

makers in Tamil Nadu.

Mr.Sudeep Jain, I.A.S., Chairman, Tamil Nadu Energy and

Development Agency in his inaugural address said that Tamil

Nadu Government is coming out with a major thrust on solar

energy and that the street lights in select areas are going to be lit

through the solar energy source on experimental basis. The

research for this is right now going on with IIT Chennai and will

be launched soon.

The panel discussion emerged with following points viz., Solar

power can potentially meet 7% of India's power requirement in

next ten years ; It can mitigate 2.6% of India's carbon emissions;

It can enhance India's energy security by reducing dependence

on energy imports.

ii. Programme On “Energy Efficiency And Climate Change”,

14th And 15th April 2012 At Ooty:

Making homes, vehicles, and businesses more energy efficient

is seen as a largely untapped solution to addressing the

problems of pollution, global warming, energy security, and

fossil fuel depletion. Energy efficiency is the buzz word in

today's power scenario in Tamil Nadu.

To address this, a programme for the Hon.General Secretaries thof the District Associations was organized at Ooty on the 14

thand 15 April 2012.

Mr.Sundaramurthy, a lead auditor in Energy, in his presentation

said that Industry uses a large amount of energy to power a

diverse range of manufacturing and resource extraction

processes. Many industrial processes require large amounts of

heat and mechanical power, most of which is delivered as

natural gas, petroleum fuels and as electricity. In addition some

industries generate fuel from waste products that can be used

to provide additional energy.

Because industrial processes are so diverse it is impossible to

describe the multitude of possible opportunities for energy

efficiency in industry. Many depend on the specific technologies

and processes in use at each industrial facility. However there

are a number of processes and energy services that are widely

used in many industries. Various industries generate steam and

electricity for subsequent use within their facilities. When

electricity is generated, the heat that is produced as a by-

product can be captured and used for process steam, heating or

other industrial purposes. Conventional electricity generation is

about 30% efficient, whereas combined heat and power (also

called co-generation) converts up to 90 percent of the fuel into

usable energy.

Industry uses a large number of pumps and compressors of all

shapes and sizes and in a wide variety of applications. The

efficiency of pumps and compressors depends on many factors

but often improvements can be made by implementing better

process control and better maintenance practices.

Compressors are commonly used to provide compressed air

which is used for sand blasting, painting, and other power tools.

Since the General Secretaries of the Associations are from

varied sectors they could easily relate the energy efficiency

concept to their industries and the interaction was good. He

briefed the definition of Energy conservation and Energy

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efficiency and how energy efficiency contributes to Energy

conservation. The programme was attended by 30 Members

from all over Tamil Nadu.

iii. Programme On Electric Energy And MSMES – How To

Achieve Goals Of Efficiency And Cost Saving?

A Seminar was held on Electric Energy and MSMEs – How to

achieve goals of Efficiency and Cost Saving? On 25 April, 2012, It

was designed to introduce to the audience the low hanging

fruits in the energy efficiency area and to learn from them what

needs to be done to get people to grab those fruits. The concept

note on the event was as follows:

“Power Cost Saving is Easy – But how can one make it happen?

Electricity is in short supply in India and will remain so for a

decade at least. Coal availability and cost is proving to be a

major hindrance to power sector growth. Industries, offices

and residences are facing power cuts as well as tariff increases.

Besides, the power sector in India accounts for almost 40% of its

non-land use Greenhouse Gas emission, something that causes

Climate Change and resulting damage. Thus, efficient use of

electricity – and the saving that results from it - becomes critical

from both Climate Change and energy shortage perspectives.

MSMEs have a considerable stake in efficiency improvement in

this area – more so, because of the power cut they face and the

tariffs going up - and there are some government policies that

prod them towards it; yet the gap between potential and

achievement remains large. There are quite a few low hanging

fruits – benefits far outweighing the costs - in this area, but

most units do not tap them. There are issues of knowledge

transfer, investment needed and competing claims on

management time and financial resources. All these need to be

addressed and balanced if the end result of optimal efficiency is

to be achieved and MSMEs get substantial cost savings.

The Chairman of TFSC, Mr Gunasingh Chelladurai, welcomed

the gathering and and Mr C E Karunakaran, Chair, New and

Renewable Energy, Energy and Fuel Users Association

introduced the topic and explained how some of the electricity

saving measures can give very low payback periods, but yet

were not widely used.

iv. Economic Lecture On “Opportunities in the rapid growth of thRenewable Energy” On The 30 April 2012:

v. Programme on Renewable Energy – viable option for

SMEs“ 13th December 2012

Power consumption in the State has been increasing by about 9

per cent annually but additions to power generation capacity

have not matched the growth in demand. Of the 58 billion units

of electricity supplied annually, over 11-12 billion units is being

supplied to high tension, primarily industrial consumers. But

over the last four years, restriction and control measures have

been adopted to tide over the electricity shortage. This has hit

all segments of consumers.

There is wide scope for tapping Renewable energy sources like

solar power & wind power in Tamil Nadu and as all of us are

aware, Renewable Energy Industry in India has seen an

unprecedented growth in the last decade. The industry is

expected to grow at an even higher rate in the Twelfth Five Year

Plan period (2012 – 2017).

To create an awareness among the SMEs about how renewable

energy is a viable option for them, in today's scenario of power

shortage, TFSC with the support of Friedrich Naumann Stiftung

and in partnership with TIDITSSIA organized a programme on

13th December 2012 at Trichy.

Mr.Subodh Kumar, Executive Programmes, FNSt in his

introductory address said that he is very honoured to be present

in this programme and shared his experience how Germany is

planning to phase out all the nuclear plants in the country due

to the effect of global warming. He also said that the objective

of this programme is not only to create awareness among the

SMEs on renewable energy but what is the policy framework in

TFSC organized an Economic Lecture on the above subject

wherein Mr.Syed Ahamed of TEDA presented on various

schemes available from the Government for the opportunities

in the Renewable Energy sector and Government helps SMEs

who are going in for Renewable energy models.

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Renewable Energy that hampers the growth of the SMEs and

how to set this right and take it forward.

Mr.Rajappa Rajkumar, Trustee of TFSC that TFSC is mainly in the

development activities for SMEs and he assured that this

programme will be useful to the SMEs in the region.

Mrs.Vijayalakshmi, Additional Director briefed the activities of

TFSC and the climate change initiatives of TFSC.

Mr.Sivakumar of Alter Energy systems in his technical

presentation briefed on how the Solar Power is making a big

difference in the power scenario today in Tamil Nadu. He also

presented some of the case studies where the industries have

taken up solar power.

Mr.Christopher in his presentation presented on wind power

and how effective is the Renewable Energy certification is for

the MSMEs.

Mr.Arun Rebero detailed about the solar energy policy of Tamil

Nadu and how the SMEs can avail subsidies by using the solar

power panel in their units. He also detailed the cost of erection,

maintenance etc. and how effective it is in today's climatic

conditions.

Around 70 SMEs attended the programme.

vi. Programme on “Solution & Road map to minimize Power ndCrises through Solar Energy Projects” held in Salem on the 2

March 2013:

Under the climate change initiative of FNSt, it was felt that the

SMEs should be made aware of the current challenges faced

under Climate change and to equip themselves to choose

alternate energy models for better productivity. In this

connection, a Seminar was organized by TFSC jointly with Salem

District Small Scale & Tiny Industries Association on the topic

“Solution & Road map to minimize Power Crises through Solar

Energy Projects” and this was inaugurated by Mr. K. Dhanavel

IAS, Secretary MSME Dept. Govt. of Tamilnadu.

vii. Seminar on “ Soorya Sakthiyum Siru Thozhilkaluku Adhan Payanpaadukalum” on 23rd March 2013, at HOSTEC 2013, Hosur.

The major crisis faced by Industries and Domestic populace today is the Power cut, which plays a vital role in paucity of production process, affecting the MSMEs and how this could be dealt with an alternate solution .

Solar Energy is the only alternative solution for this current power crisis in Tamil Nadu. Keeping in this mind TFSC along with HOSTIA organized a seminar on “ Soorya Sakthiyum Siru Thozhilkaluku Adhan Payanpaadukalum” on 23rd March 2013, at HOSTEC 2013, Hosur.

The Seminar was inaugurated by Dr.K.Ramalingam, President, Hosur Small and Tiny Industries Association, in his inaugural address briefed about the need for organizing the seminar and how this seminar will be helpful for the MSMEs in Hosur region.

Mr. Boniface, Director, Ulaginoli Energy Solutions the resource person of the seminar explained briefly about the benefits/uses of uninterrupted power supply with the help of solar energy. He elaborated the economic feasibility and the commercial tariff of setting up of solar PV Panel.

Around 70 participants attended the seminar and it was interactive. Mr. J.C.A. Saravannan, Chairman HOSTEC 2013 Seminar Committee rendered vote of thanks.

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THVI. FREEDOM TALK ON " ECONOMIC FREEDOM FOR SMES" ON 26 AUGUST 2012:

th thTFSC celebrated its 20 Anniversary by organising a Freedom Talk on “Economic Freedom for SMEs" on 26 August 2012 at My

Fortune Hotel.

Mr.Gunasingh Chelladurai, Chairman welcomed the participants.

Mr.B.S Raghavan, Ex- IAS officer B.S Raghavan decried bias towards rural regions. He also released the annual report and the first

copy was received by Mr.Gurumurthy.

Mr.Siegfried Herzog, Regional Director South Asia, Friedrich Naumann Foundation (FNSt) said “ India has grown tremendously since

the post globalistaion era of the 90s. He also mentioned that he comes from Germany where SMEs comprise the backbone of the

economy. SMEs should develop at the grass roots and a synergy with the stakeholders would be beneficial.

Mr.S.Gurumurthy, Columnist said that the SMEs represent the real economy; banking institutions that help them need promotion.

We have an order in India which promotes medium and scale enterprises, which needs exploration. He cited the impressive

performance of the Tamil Nadu Mercantile Bank, a community managed bank that lended only to entrepreneurs, and auto major

Toyota – a conglomerate of many smaller auxiliary manufacturing firms –as cases in point. Germany is an example of a hard

economy with its firm footing on manufacturing, he said.

Mr.Lakshminarayanan, CEO proposed the vote of thanks.

VII. DISSEMINATION MEET ON "STUDY ON PUBLIC PRIVATE PARTNERSHIP”

TFSC with the support of Friedrich Naumann Stiftung fur die

Freiheit brought out a study on Public Private Partnership Policy .

TFSC in association with IIM A Association TFSC has joined hands

with IIM-A Alumini Association of Chennai Chapter for a project

study on MSMEs Development through Public - Private thPartnership. A dissemination meet was organized on the 15

October 2012, to disseminate the findings of the study. The study

talked about the current developments of MSMEs the effectiveness

of public-private partnership for SME development and

suggestions of future strategies for MSMEs regarding how to utilize

the Renewable Energy model.

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regions in each State have to be recruited for assessment. He wished a productive future for all and hoped to meet them again in another 6 month's time.

Power Point presentation was made by MES team reviewing the performances of all the States and the targets which were fixed during the last SR meeting in January 2012. In this presentation it was clear that only Gujarat and Tamilnadu have achieved their targets and all others were lagging behind. But the SR's assured that there are still 5 months to go and they will exceed the targets.

iii. Rajiv Gandhi National Institute of Youth DevelopmentWe have collaborated with Rajiv Gandhi National Institute of Youth Development to assesses 1021 candidates in 14 Districts of Tamilnadu.

iv. Provisional Accreditation

National Accreditation Board for Education and Training (NABET) were pleased to inform us that based on document review and central office assessment of our organization, NABET Accreditation Committee has approved provisional accreditation to us and the Provisional Accreditation number is AB 1216 022 and is valid from 2nd June 2012 to 1st June 2013

Several Skill development training programmes to create entrepreneurs were organized in Vellore under STED.a. Three day cell phone servicing is being organized for the unemployed youth in Milagai Kuppam Village in Vellore District and twenty people took part in this training. The Additional director Mrs.Vijayalakshmi handed over the certificates on the

th27 October 2012.Two Entrepreneurship Awareness camps are conducted in Vellore and one EDP was conducted in a village near Ranipet.A meeting was organized with Oscar Institute of Management for organizing programmes related to food processing industries.

IX. SPECIAL PROJECTS:

i.STED Vellore :

a . Project on Sc ience and Technology through Entrepreneurship Development was awarded to TFSC for implementation and this is the second year.

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VIII. MODULAR EMPLOYABLE SKILLS SCHEME:

During the year 2012 – 2013 the following candidates were assessment by MES Department of TFSC in Tamilnadu and Other States:

Month Tamilnadu Other StatesApril 275 1,070May 235 774June 149 791July 0 390August 63 412September 175 293October 267 1,146November 29 1,467December 58 1,078January 229 3,363February 148 1,862March 347 3,295TOTAL 1,975 15,941

I. MEPMA (Mission for Elimination of Poverty in Municipal Areas)TFSC has applied for empanelment of “Assessment-cum-Certification” partner for Placement Linked Skill Training Program for the year 2012-15 under MISSION FOR ELIMINATION OF POVERTY IN MUNICIPAL AREAS (MEPMA), Department of Municipal Administration & Urban Development, Government of Andhra Pradesh. The MEMORANDUM OF AGREEMENT was signed between TFSC and MEMPA on 21 September 2012. TFSC was empanelled as “Assessment-cum-Certification” partner for 4 Sectors and 10 Courses. MEPMA started to allot candidates for assessment from 16 October 2012 onwards and till date they have allotted around 1200 candidates in various sectors and courses.

ii. State Representative Meeting On 20 November 2012A Special Address was delivered by Chairman. He conveyed his happiness to know that the targets are being met gradually and requested the SR's from other States to emulate the performances of SR's of Maharashtra and Gujarat in this respect. He reminded the SR's that the candidates in all the

b. Training on Fashion Jewellery: 18.03.2013 To 23.03.2013, DEEDS centre Tirupattur

c. Programme on Pickle and Sauce Making: 25. 03.2013 To 31.03.2013, DEEDS centre Tirupattur

d. Programme on Photography & Videography in Pallikonda from 11. 03.2013 to 21.03.2013

ii.STED Tiruvallur

a. Launch of STED in Tiruvallur District.

Entrepreneurs attended the programme and the feedback was good. The participants used The trainees were given tools and raw materials for hands on training on Fashion Jewellery. Basic knowledge on the usage of tools and raw materials was given in the first hour and following which various designs were taught. Twenty aspiring their own creativity and developed various fashion jewellery during the programme. All members felt happy on that what they produced which had monetary value and was very much appreciated.

The trainees were given hands on training on how to make pickle out of banana flower, tomato, citron, mango and amla. The final day they were given training on making tomato sauce. They were also instructed on the quality of production in terms of maintaining the place, personal hygiene, dress code and manner of production.

Ten day training on Photography and Videography was organized under STED, Vellore and twenty aspiring entrepreneurs attended this training. The programme aimed at participants to start own Photo studio and can also provide employment to few people.The programme covered topics like Studio management – Setting up of a studio, furnishing & indoor lighting system,Digital dark room (Computer scanner, printer, storage and software), Introduction to Photoshop and photo editing tools, Designing albums and different templates, Picture composition and its various stages – Practical, Picture storage in different modular – Practical. They were also shown a working of a photo studio, which gave them practical knowledge.

TFSC has been awarded for implementation of STED in Tiruvallur District for a period of four years wherein we have to create 200 entrepreneurs with science and technical units.TFSC has initiated activities like District Mapping and the launch of the project in Tiruvallur. Mrs.Vijayalakshmi, Additional Director met the District Collector, General Manager, DIC in this regard.Skill development Training programmes are planned in August.

The Project STED (Science and Technology through Entrepreneurship Development) was launched in Tiruvallur by the Tiruvallur District Collector Mr.Ashish Chaterjee, IAS on 20th September.

Mr.Sakthivel. General Manager,District Industries Centre, Tiruvallur and Mr.TR.Suresh ,Lead District Manager,Indian Bank, participated as Guest speakers on the occasion, P.Lakshminarayanan,CEO,TFSC welcomed the participants. He invited the chief guest and other members on the dias. He explained the activities of TFSC and welcomed all participants for the programme.

Mr.Sakthivel appreciated the efforts taken by the TFSC in implementing this programme and advised the participants to make advantage of this useful project. The programme was inaugurated by Mr. Ashish chaterjee, IAS. and he explained the social issues related to entrepreneurship and advised all the participants to make use of this scheme and wished the scheme all success.

Mr.Suresh ,Lead Manager, Indian Bank in his speech urged the importance of this programme and informed the participants to approach the -coordinator for knowing all the details.

The programme concluded with vote of thanks by Ms.Vijayalakshmi, Addl.Director TFSC. She also explained some of the success stories of STED, Kanchipuram.

A four week skill training on Tailoring is being organized to around 20 women entrepreneurs in Tiruvallur District. Two awareness camps were organized for the aspiring entrepreneurs.

Two Entrepreneurship Awareness programmes and one Entrepreneurship Development programme was organized in Tiruvallur District, during December.

The four week long training on tailoring was given to the aspiring entrepreneurs and the certificates have been issued to them on the 17th December 2012 at Tiruvallur.

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A two week training on Computer hardware has been started thon the 18 February 2013. Twenty aspiring Entrepreneurs

participated in the programme.

b. STED Review Meeting at IIM, Ahmedabad:

The Project Directors of STED from all over India was invited by the Ministry of Science and Technology for the review meeting and Mrs.Vijayalakshmi attended the meeting and presented the activities of STED, Vellore.

Frankfurt Business School and Management is partnering with TFSC in identifying innovations among SMEs and support them in their venture. In this connection, the officials from the Management School along with DEG, Germany visited TFSC and had discussed on the plan of action. The project was launched in December 2012.

TFSC has been selected as the implementing agency for this programme, in identifying innovations among SMEs and support them in their innovations. The project will be launched as pilot phase for a period of 12 months. The funding of the process/product innovations will be provided after assessing the need.

Ms.Maren Richter, consultant, Frankfurt school of Management along with Mr.Wolfgang Weiler, DEG, Germany visited TFSC for working out the methodologies for implementation of this programme to the SMEs.

X. SME INNOVATION VOUCHER PROGRAMME:

The officials from DEG and Frankfurt School of Finance and Management visited TFSC and participated in the Advisory Committee Meeting of the IVP wherein members like General Manager, SIDBI, Director, MSMEDI, Dean, IITM participated along with the officials of TFSC.

The formalities and procedures for running the programme and the marketing of the programme were discussed during the meeting.

TFSC organised an awareness programme exclusively for Indian Institute of Foundry men regarding Innovative R&D funding programme of TFSC IVP. The programme was held on 26th march evening at TANSTIA HALL guindy. It was more of an interactive nature and members showed active participation by raising various clarifications on vouchers A B C and product innovation and process innovation definitions..eligibility criteria etc., CRP india- indsat corporation- KKMsoft-Schneider proto typing-IP rings ltd-wave current precision parts- etc company proprietors are a few to mention.. Mr Anbuselven chairman IIF Chennai chapter assured he will take the programme to his 40 odd members and good R&D assignments from foundry sector can be expected, he added.

The response was quite encouraging as we have received the applications for the various innovations in various sectors like Engineering – Agriculture – Pharma - Auto ancillary - Machine building / SPM – Green Energy etc ; fields' projects are presently under evaluation. There is practically no restriction for the business segment.

i. Awareness Programme for IVP for Indian Institute of Foundry Men

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XI. OTHER ACTIVITIES:

i)Final Accreditation: NABET Skill Certification Accreditation Committee has approved the Final Accreditation to our organization as Skill Assessment Body under MES Scheme of DGE&T.

ii) Visit of International delegates from NIMSME, Hyderabad

to TFSC in the month of March 2013:

stiii)Visit of DIC Officials of Kerala to TFSC on 1 February 2013:

Around 30 officials from the Department of Industries and

Commerce, Government of Kerala were on a tour to Southern

States of India to study the best benchmarking practices so that

they can adopt the same in Kerala.

In the above lines, they visited TFSC to study the working of TFSC

and they also showed interest in the publications and project

profiles brought out by TFSC.

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Project Study on MSMEs Development through Public Private Partnership:

TFSC has joined hands with IIM-A Alumini Association of Chennai Chapter

for a project study on MSMEs Development through Public - Private

Partnership. This study examined the current developments of MSMEs the

effectiveness of public-private partnership for SME development and

suggestions of future strategies for MSMEs regarding how to utilize the

Renewable Energy model.

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Studies and Researches

Economic Lecture on Renewable EnergySeminar on Electric Energy and SMEs

Programme on Solar energy in Salem

Economic Lecture on renewable energy, Trichy

Meet on PPP Policy

Advisory Meeting of IVP

Team Building Workshop for Staff

MES State Representative meet MES Certificate distribution

Launch of STED Tiruvallur by the District Collector

HIGHLIGHTS (2012-2013)

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WISHES & ACCOLADES

TFSC IN MEDIA

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FOCUS FOR THE FUTURE

TFSC has been an enthusiastic and dedicated partner of Micro,

Small and Medium Enterprises. The Centre looks to consolidate

its gains and expects to take initiatives of greater innovation and

thrust towards growth of Micro, Small and Medium Enterprises.

· Implement Lean manufacturing practices in MSMEs

· Undertake Studies and Researches to lead to the much-

needed policy measures for MSMEs

· Enable Micro and Small entrepreneurs to fully exploit the

potential of Information and Communication technology

· Strengthen the network of SMEs across the world

· Improve the energy and environment management systems

in MSMEs

· Facilitate and enhance export contribution from this sector

· Facilitate and support SME Cluster Initiatives

· Facilitate International Trade among MSMEs through

dedicated Trade Facilitation Desk

· Build a comprehensive Database for Micro and Small

Industries in the State of Tamil Nadu

· Strategic and Business Consulting to SMEs

· Provide Investment Advisory Services

· Establishing and Strengthening Industry Academia Linkage

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MANAGEMENT & TFSC TEAMMANAGEMENT & TFSC TEAM

Standing (L to R)

Team of Trustees

Standing (L to R)

Ms.B.Gayathri, Coordinator-Ms.I.Chitra, Admin Executive, IVPMr.P.Lakshminarayanan, CEOMr.H.Praveen Kumar, Technical Expert, IVPMs.R.Vijayalakshmi, Additional DirectorMs.M.Usha, Executive-InformationMs.M.T.Rajalakshmi, Accountant

MES Mr.D.Reuben Solomon, Manager-MESMr.Ronald, Executive-MESMr.S.Rakesh, Executive-MESMr.G.Vadivelu, Executive-MESMr.A.Rangarajan, Admin AssistantMr.T.S.Sankaranarayanan, Advisor, MESMr.T.S.K.Rao, Project Manager, IVP

Mr.C.Muthusami, Vice President, TANSTIAMr.S.Anburajan, Vice President, TANSTIAMr.T.S.Dhanapalan, Former Chairman,TFSCMr.K.Mariappan, Treasurer, TANSTIAMr.Gunasingh Chelladurai, Immediate Past Chairman, TFSCDr.A.Selvaraj, Chairman, TFSC

Mr.K.Gopalakrishnan, President, TANSTIAMr.Rajappa Rajkumar, Vice President,Mr.C.K.Mohan, Hon.General Secretary, TANSTIAMr.Subodh Kumar, Executive-Programmes, FNStMr.C.Babu, Vice President, TANSTIAMr.P.Laskhminarayanan, CEO, TFSC

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