sme connect april july 2012

7/31/2019 Sme Connect April July 2012

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CO NNECTVolume 2 | Issue 2 | July 2012 | Pages 64 | 50

`Initiated by SME Chamber of India

MoU Exchange Ceremony

in the presence ofPrime Minister of Malaysia

MAHARASHTRA

SME SUMMIT

GUJARAT SME

MANUFACTURING SUMMITMALAYSIA VISIT

ACTIVITY REPORT OF

SME CHAMBER OF INDIA


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Empowering SMEs for Global Competitiveness

SMALL & MEDIUM BUSINESS DEVELOPMENT CHAMBER OF INDIA

OBJECTIVES FOR THE GROWTH OF SMEs

ACTIVITIES FOR THE GROWTH OF SMEs

Identify emerging business oppor tunities Empowerment for Competitiveness

Connectivity with Global Market

Entrepreneurship Development

Interface with the policy makers

Imparting knowledge and Education

OUR INITIATIVES BI-LATERAL TRADE PROMOTION DIVISIONS

Europe - India SME Business Council (EISBC)

SME Export Promotion Council

SME Business Management Institute

Indian Young Entrepreneurs Forum

Indian SME Knowledge Forum

Industrial and SME Research Centre of India (ISRCI)

SME Technology Development Council

SME Connect - Magazine and Portal

SME Business Club

SME Grievance Forum

India USA SME Business Council

India China SME Business Council

India Canada SME Business Council

India UK SME Business Council

India GCC SME Promotion Council

India Korea SME Business Council

India Turkey SME Business Council

India Zambia SME Business Council

India South Africa SME Business Council

India ASEAN SME Business Council

Registered & Head Office3, Upper Ground Floor, Samruddhi Venture Park, Marol MIDC, Industrial Estate, Andheri (E), Mumbai:- 400 093.

FOUNDER & PRESIDENT

MR. CHANDRAKANT SALUNKHE

Regional Offices:Representative Office:

Delhi, Bangalore, Ahmedabad, Pune, Chandigarh, Hyderabad, Chennai, Jaipur

USA, UK, France, Bulgaria, Turkey, China, Malaysia, South Korea, South Africa, UAE, Zambia, Singapore

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

Export & Trade Promotion

BankFinance,PE/VC and Investments

TechnologyUpgradation

Joint venturesandtechnology transfers

Contractmanufacturingtie-ups

International collaborationsandalliance

Marketing, BrandingandPromotion

Connectivitywithpotentialbusiness partners

Survey andResearch

Mergers andAcquisitions

Setup new Enterprises in Indiaandabroad

Conference, Seminars, Workshopsand trainingprograms

Exhibition,Trade Fairs, DisplayCentres

DelegationandTrade Missions

Redressalof issues andproblemswith concerned authorities

Rehabilitation / Revival of SickUnits

Recognitionand AppreciationAwards


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DearPatrons,

It gives me immense pleasure to present you the SME Connect

Magazine along with activity report of the Chamber from April to

July,2012.

As all of you are well aware, Indian economy, over years has become

increasingly integrated with the global economy and developed trade

relations with number of countries. However, the prolonged financial

crisis in the EU countries, Indian SME sector is facing several challenges.

The SMEs are also facing acute problems of global competition, lack of

connectivity, marketing facilities, un-availability of adequate and timely

finance, skilled manpower, decrease in export orders, increase in raw

materialcost,qualityinfrastructureandmanyothers.

Despite various initiatives taken by the Government towards the

development of theSME sector, the sector still finds it difficult to compete

in the local and international markets. It is evident that new path of

economicreforms andpolicies arerequired in order to enablethese small

units to become competitive, integratethem successfullyandoperatefully

intheglobalised industry.

Recently I have attended two programs in Malaysia and found that the

policy makers and government agencies there are highly proactive to

understand the needs of SME Sector and putting continuous efforts to

connectMalaysianSMEs withworldwidebusinesscommunity.

Our Chamber has also decided to organise many activities to connect

Indian SMEs with global enterprises for better business growth and

expansion.

I express my sincere thanks to the supporters and associates for

organisingactivitiesoftheChamberforthegrowthofSMEs.

Editor

Panel of Advisors

Publicity and Marketing

Team

Layout & Graphics

Mahesh Balasaheb Salunkhe

Chandrakant Salunkhe

A. Rameshkumar

Girish Bhagat

Sai Madhavan

Hemant Salunkhe (Director)

Saakshi Kulkarni

Neera Inamdar

Madhuri Khanwalkar

Omesh Kandalkar

Gandhi Gajelli

V. K. Venkatachalam

Bricks Marketing & Promotion Pvt. Ltd.

CONNECT

Volume 2 | Issue 2 | July 2012 | 64 Pages

Chandrakant SalunkheFounder & President

Small & Medium Business

Development Chamber of India

Email: [email protected]

SMALL &MEDIUMBUSINESSDEVELOPMENTCHAMBEROF 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

partywithout priorwritten consentof SMECHAMBER OFINDIA.

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

informationprovided herein.

www.smeconnect.inf h03Volume 2 | Issue 2 | July 2012

Foreword

SMECONNECT is Printed, Published & Ownedby Mahesh BalasahebSalunkhe. Printed at HindustanPackaging,Unit No1, KembrosIndustrial Estate, SonapurLane, OffL.B.S Marg, Bhandup (W), Mumbai- 400078. Publishedfrom101,Murlidhar BaldevEstate,NearVikas Estate, OffAarey Road, Goregaon(E),Mumbai -400063. Maharashtra.Editor- MaheshBalasahebSalunkhe

SMALL & MEDIUM BUSINESS

DEVELOPMENT CHAMBER OF INDIA


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Signing of MoU

BetweenSME Chamber of India

and Gyeonggi Small &

Medium Business Center

34

CONNECTContent

www.smeconnect.in f h04 Volume 2 | Issue 2 | July 2012

14MAHARASHTRA SME SUMMITRedefining the Growth of SMEs

15 | Shri Sachin AhirAddress by Hon,ble Ministerof State for Industries, Government of Maharashtra

16 |

J. K. Dadoo

Benefits of Anti-dumping

measures for Indian SMEs

17 |

Sanjay Sethi

SMEs, Industrial and Economic Scenario

of Maharashtra & New Industrial State Policy- Impacts and Benefits for SMEs

18 | Emerging Business Opportunities for SMEs

Dr. Rashid Al Leem

PANEL DISCUSSIONS

20 |

24 |

28 |

Driving Growth of SMEs

Enhancing The Capabilities of SMEs

Empowering SMEs For Better Growth

24 |

Sanjay Bhatia

GST (Goods & Service Tax)

Impact and Advantages for SMEs

State Level

GUJARAT ENTREPRENEURSHIP& SME EXCELLENCE AWARDS61

44 GUJARAT SMEMANUFACTURING SUMMIT46 | Saurabhbhai PatelAddress by Hon'ble Ministerof State for Industries, Government of Gujarat

47 | Ishwarsinh PatelAddress by Hon'ble Minister

of State for Cooperation, Sports, Youth Services and

Cultural Affairs, Government of Gujarat

PANEL DISCUSSIONS

52 |

56 |

58 |

Transforming SMEs to create sustainable value

Support Services for better growth of SMEs

Technology & Innovation for sustainable growth

& International Trade & Investment Opportunities

Exchange of MoU

Between

SME Chamber of India

and GMB Malaysia

12

VADODARA SME AND

ENTREPRENEURSHIP MEET36PANEL DISCUSSION

40 | ROLE OF BANKERS | FINANCE

INVESTMENT | INCENTIVES | FACTORINGPROMOTION | MARKETING & BRANDING

07Signing of MoU Between

SME Chamber of India and

Incheon Technopark, Korea

Felicitation by former

Prime Minister of Malaysia

(1981 - 2003) and MoU With

Malaysian Franchise

Association

10


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Annual Flagship Event

NRI BUSINESS SUMMIT4 - 6 January 2013 | Mumbai, Indiath th

Overviewof Indian Economy& Impact ofGlobal Financial Crisis

India'sNewManufacturing Policy Opportunities inManufacturingSector

Delhi-MumbaiIndustrialCorridor Newarena for investments

SpecialEconomicZones& IndustrialParks Opportunitiesand AdvantagesDoubleTaxAvoidanceAgreements ImpactsandBenefits

InvestmentsOpportunities, Profitabilityand Viability of Destinationsfor NRIs

Roleof ReserveBank of India, ForeignInvestmentPromotion Board (FIPB)

Roleof Department of Industrial Planning& Promotion(DIPP)

Investment Routes forNRIs

ForeignDirect Investments (FDIs) Rules andProcedures

ForeignExchangeManagementAct (FEMA) Relevance,Applicability& Implications

NRITaxation Rules andRegulations

Qualified ForeignInvestors NewRoute forNRIInvestments

Opportunitiesfor Public PrivatePartnerships(PPP)

Joint Ventures Opportunitiesin ManufacturingSector

Investment opportunities in Infrastructure, HealthCare, Tourism,AgroandFoodProcessingIndustry, SMEs, Education

TOPICS TO BE COVERED

Mobile: +91 - 98201 79494 | Email: [email protected]

Contact For Sponsorship, Speaking Opportunity

Ms. Saakshi Kulkarni - Director (Business Development)

Contact For Participation

Mr. Omesh Kandalkar

Tel: +91 - 22 - 6150 9800 / 6667 4444

www.nribusinesssummit.com

Supported by Supported by Knowledge Partner Event Managed by IT Partner

EUROPE - INDIA

SME BUSINESS COUNCIL

EISBC

PACKAGING INDUSTRY

ASSOCIATION OF INDIA

Solutions Private Limited

Industrial and SMEResearch Centre of India

Macro Events

and Exhibitions Pvt. Ltd.

Supported byJointly Organised by


DEVELOPMENT CHAMBER OF INDIA GOVERNMENT OF MAHARASHTRA

IITC-INDIA

INDIA INTERNATIONAL TRADE CENTRE

(IITC-INDIA)MAHARASHTRA INDUSTRIAL AND

ECONOMIC DEVELOPMENT ASSOCIATION


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ADVISORY BOARD

OF

SME CHAMBER OF INDIA

(2011 - 2014)

MR. CHANDRAKANT SALUNKHEFounder and President

Small & Medium Business Development Chamber of India

(SME Chamber of India)

Mr. A. Rameshkumar

MD & CEO, Asia Pragati Capfin Pvt. Ltd.

Mr. Sanjay B. Chordiya

Founder President and Chairman

Suryadatta Group of Institutes

Mr. Matej MerljakChairman

Europe India SME Business Council (EISBC)

Mr. Prashant Nagre

Chief Operating Officer, Fermenta Biotech Ltd.

Mr. Pankaj Bhandula

Senior Vice President, Lavasa Corporation Ltd.

Mr. Ashok Sangolli

Project Consultant

Mr. S. Hemant Kumar

Director, Geoptech Solutions Pvt. Ltd.

Mr. Maheshkumar

Director, Macro Corporate Services Pvt. Ltd.

and General Secretary (Coordination)


Ms. Sangeeta Modi

Founder, Access Asset Managers

Ms. Neera Inamdar

Deputy Secretary General


Mr. Girish Bhagat

Director, India Nivesh Ltd

Mr. Sai Madhavan

Director

Nishtha Technologies Pvt. Ltd.

Mr. Ravindra KumarSenior Banker and Regional Adviser

Standard Bank PLC

Mr. V. P. Singh

Partner, Mavenvest Capital Partners LLP

Ms. Aslesha A Gowariker

Partner, Desai & Diwanji

Mr. Ajit Shah

Executive Consultant, K-Connections

Mr. H. P. Shah

CEO, Value Plus - The Family Office

Ms. Saakshi Kulkarni

Director

(International Relations & Business Development)


Mr. V. K. Venkatachalam

Advisor, SME Chamber of India

Mr. Omesh Kandalkar

Deputy CEO

Industrial and SME Research Centre of India (ISRCI)

MEMBERS


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&

Signing Ceremony of Memorandum of UnderstandingBetween

17 July 2012 | Hotel Hyatt Regency, Mumbaith

Mr. Kim, Ho Kyoung Mr. Chandrakant Sakunkhe Project Group Head, Director General, Incheon Technopark, South Korea and

President, Small & Medium Business Development Chamber of India signing the Memorandum of Understanding on 17th July 2012 at

mumbai

Mr. Kim, Ho Kyoung Mr. Chandrakant Sakunkhe Project Group Head, Director General, Incheon Technopark, South Korea and

President,Small& Medium BusinessDevelopmentChamberof Indiaexchangingthe Memorandum ofUnderstanding


CONNECT Activity of the Chamber


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Mr. Chandrakant Sakunkhe President, SME Chamber of India

addressing thedelegates

Mr. Kim, Ho Kyoung Project Group Head, Director General,

IncheonTechnopark,SouthKoreaaddressing thedelegates

17 - 22 July 2012 | Hotel Hyatt Regency, Mumbaith nd

KOREA BUSINESS DELEGATION IN INDIA


CONNECTActivity of the Chamber

ADDRESS BY DIGNITARIES

Mr. Chandrakant Sakunkhe President, SME Chamber of India with Korea Business Delegation in India

ONE - TO - ONE BUSINESS MEETING BETWEEN KOREAN & INDIAN DELEGATES


9/64


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FRANCHISE INTERNATIONAL MALAYSIA 201219th International Franchise Conference

Saturday, 7th July 2012 | Putra World Trade Centre, Kuala Lumpur, Malaysia

Mr. Chandrakant Salunkhe - President, Small & Medium Business

DevelopmentChamberof India addressingthedelegates

YABhg. Tun Dr. Mahathir bin Mohamad- Former Prime Minister of

Malaysia (1981-2003) felicitating Mr. Chandrakant Salunkhe -

President, SMEChamberof Indiaby presenting thetokenof Appreciation

Friday, 6th July 2012 | Putra World Trade Kuala Lumpur, MalaysiaCentre,

EXCHANGE OF MoUBetween



& MALAYSIAN

FRANCHISE ASSOCIATION

Mr. Chandrakant Salunkhe Mr. Malik Abdullah

YB Dato' Sri Ismail Sabri Bin Yaakko

YB Dato' Tan Lian Hoe and YB Datuk Rohani Binti Abdul Karim

- President, SME Chamber of India and - Chairman, Malaysian Franchise Association (MFA)

exchanging the MoU in the presence of - Hon'ble Minister of Domestic Trade, Co-operatives &

Consumerism, Malaysia, - Hon'ble Deputy Ministers of Domestic Trade, Co-

operatives& Consumerism,Malaysiaon 6thJuly 2012at KualaLumpur, Malaysia




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GLIMPSES OF

FRANCHISE INTERNATIONAL MALAYSIA 201219th International Franchise Conference

6th - 8th July 2012 | Putra World Trade Centre, Kuala Lumpur, Malaysia

YABhg. Tun Dr. Mahathir bin Mohamad- Former Prime Minister of Malaysia (1981-2003) andMr. Chandrakant Salunkhe - President, SME

Chamberof IndiawithorganisingCommitteeof Franchise InternationalMalaysia 2012

Mr.Chandrakant Salunkhe - President,SME Chamberof Indiawithdelegationof 2012TaiwanFranchiseand China Store Trade Mission toMalaysia

Mr. Chandrakant Salunkhe

YB Dato' Sri Ismail Sabri Bin Yaakko

- President, SME Chamber of India with

- Hon'ble Minister of Domestic

Trade, Co-operatives & Consumerism,Malaysia

Mr. Chandrakant Salunkhe - President, SME Chamber of India is

being felicitatedby theMalaysianFranchiseAssociation (MFA)




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Thursday , 21st June 2012 | Kuala Lumpur Convention Centre, Malaysia



YOUNG ENTREPRENEUR ORGANIZATION

MALAYSIA

&

EXCHANGE OF MoUBetween

ASEAN - INDIA SME CONFERENCE21st - 22nd June 2012 | Kuala Lumpur, Malaysia

(Left) -President,SMEChamberofIndiaaddressingthedelegates. (Right)

- Advisor to Malaysian Indian Business Council (MIBC),

- Malaysia Representative to the ASEAN India Business Council, - Chief Executive Officer, SME Corporation

Malaysia and - Adjunct Professor at the Department of Economics, Kulliyyah of Economics and

ManagementSciences, InternationalIslamicUniversityMalaysiaduringtheplenarysession2 :

Mr.ChandrakantSalunkhe

Tan Sri Dato' Ajit Singh Dato' Pradip

Kukreja Dato Hafsah Hashim

Datuk Supperamaniam a/l Manickam

ASEANin India : Blood, Sweatand Glory

Panelists from (Lto R)

- President, SME Chamber of India,

Mr.Chandrakant

Salunkhe

Mr. Chandrakant Salunkhe Mr. Agil Faisal Ahmad Fadzi

Datuk Ir. Mohamed Al Amin Hj

AbdulMajid

-President,SMEChamberofIndiaand -President,YoungEntrepreneurOrganization

(GMB Malaysia) exchanging the MoU in the presence of

-Chairman,SMECorpMalaysia.

YAB Dato' Sri Haji Mohd Najib bin Tun Haji Abdul Razak

Dato SriMustapa binMohamed

- Hon'ble Prime Minster of

Malaysia, - Hon'ble Minister of International Trade & I ndustry, Malaysia and




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Co - Organiser

MAHARASHTRA INDUSTRIAL AND


Industrial and SMEResearch Centre of India

EUROPE - INDIA


EISBC

SME BUSINESS

MANAGEMENT INSTITUTE

IITC-INDIA


(IITC-INDIA)

PACKAGING INDUSTRY


Partner Partner Supported by

Partner Partner Knowledge Partner Supported by

Macro Events

and Exhibitions Pvt. Ltd.

Event Managed by

GOVERNMENT OF MAHARASHTRA

2 - 3 November, 2012

Hotel Sofitel BKC

Mumbai, India

nd rd



Organised by

WORLD SMEPARTNERSHIPSUMMIT9 International Event

th

HIGHLIGHTSOF THE SUMMIT

Overviewof GlobalSMESector

StrengtheningSMEs inEconomicSlowdown forBetter Growth

Indian SMEs Challenges andOpportunities

Theoutlookof innovativeIndia - Manufacturingand ServicesSector

EnhancingTechnologyAdoption in manufacturingindustries

DrivingProfitability through ICTadoption

Benchmarking Good ProductionPractices

Build competitivenessthroughR&D & Innovations

India's Industryvision in2020

Enhancing Knowledge basedServices

IntellectualPropertyRights Implications onSMEslookingbeyondBoundaries

Devising InnovativeIndustrialpolicies- Needof thehour

Next generationSMEs - Strategies forCompetitiveness

Outsourcingopportunitiesfor SMEs

UnderstandingFree TradeAgreements(FTA) - Benefitsfor SMEs

Joint VenturesandTechnologyTransfers BuildingProgressiveEnterprises

BuildingEffectiveSupplyChain throughforwardandbackwardlinkagesAccessingPrivate Equityand Venture CapitalFunds for Expansion

TOPICS TO BE COVERED

Connectivity and Networking

Presentation and Deliberations

Mentoring Keynote speeches

Identify business partners

Identify investment opportunities

Information on new technology

JV and Collaboration Opportunities

B2B Meets

Global SME Excellence Awards

Gala Dinner





Ms. Neera Inamdar - Deputy Secretary General

Tel: +91 - 22 - 6150 9800 / 6667 4444

www.worldsmesummit.net


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MAHARASHTRA SME SUMMITRedefining the Growth of SMEs

Friday, 15 June 2012 | Hotel Sofitel, Bandra - Kurla Complex, Mumbaith

INAUGURATION

(From L to R) Development Commissioner (Industries) & Secretary, MSME, Govt. of Maharashtra,

President, SME Chamber of India & MIEDA, Hon'ble Minister of State for Industry, Joint Secretary, Department of Commerce, Ministry of Commerce and Industry, Government of India, Chief General Manager, State

BankofIndia, Maharashtra, Director General, SharjahSea Ports, Customs & Sharjah Free Zones Authorityand

ManagingDirector, ONIDA

Shri Sanjay Sethi Shri Chandrakant

Salunkhe Shri Sachin Ahir Shri J. K. DadooDr. J. N. Misra

Dr. Rashid Al Leem Shri Vijay

Mansukhani

Shri Sachin Ahir Hon'ble Minister of State for Industry inaugurating the Summit




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Shri Sachin Ahir, Hon'ble Minister of State

for Industry, during his inaugural address,

observed that Maharashtra is the largest

economy ofthecountrycontributing13% to

thenationalincome. Over thelastfour years,

the State's economy has registered an

average growth of 9%.TheStatecontributes

20% of country's industrial output and net

value addition. Maharashtra ranks number

one in manufacturing valueoutput in 15 out

of 25 industry sectors. The service sector

has 62% share in the state GDP built on a

strongindustrialbase.

Commentingon the SMEssectorof theState,

Shri Sachin Ahir said that the State has

1,43,950 registered micro and small

enterprises providing employment to 19

lakh people. There are 4,221 Foreign Direct

Investment proposals amounting to Rs.

84,958 crores for the State amounting to

22% of the overall FDI coming to India. The

State has implemented Micro and Small

E n t e rp r i s e s C l u s t er D e ve l o p me n t

Programme (MSE-CDP) in order to support

the growth and development of the State

SME Sector.

Talking on the policies of the State for

d e ve l op i n g a n d b o os t i ng n e w a g eindustries, he mentioned the State has been

giving more emphasis on the industries

based on Information Technology (IT) and

Bio technology (BT). Thegovernmentis also

focusing on Agro and Food processing

industries in orderto givea boostto theSME

sector. The State has also been giving fiscal

and non-fiscal support to promote and

sustainindustries.

The Government is envisaging to attract

newinvestment of minimumRs. 5 lakhcrore

in the industrial sector over next 5 years to

achieve growth rate of 12 to 13 percent in

the manufacturing sector andcreate 20 lakh

newjobs.

He further observed that in orderto achieve

the targets envisaged for growth of

manufacturing sector, the Government

intends to continue to encourage mega and

large investments, make land available for

new industrial development, improve

i n f ra s t ru ct u re , ch a nn e l is e f l o w o f

investmentsto lesser developed areas of the

State, create investor friendly environment,

ease of doing business and develop skilled

manpowerrequiredforthe industry.

F o r e m p lo y me n t g e n er a t io n , t h e

Government intends to renew focus on

MSME, expedite launch of agro processing

pol icy, leverage State and Central

Government's skill development schemes,

assist unviable sick units with exit policies

and viable sick units with rehabilitation as

well as reserve adequate land for MSMEs in

industrialestates.

To improve the industrial infrastructure of

theState theGovernmentintendsto develop

industrial corridors, develop adequatei n f r a st r u ct u r e , f a c i l i t a t e l o g i s t i cs

infrastructure, leveraging setting-up

exhibition-cum-convention centres by

variousagencies.

He concluded by saying that Maharashtra

Government is adopting a holistic approach

to the development of MSMEs by providing

fiscal and non-fiscal support, by enhancing

their competitiveness. He also encouraged

the SMEs to take advantage of the

opportunities thrown open by the Delhi-

Mumbai Industrial Corridor for their

growth.

Shri Sachin Ahir- Honble Minister of State for Industries, Housing, Slum Improvement, Repairs & Re-

Constructions,Urban LandCeiling,Mines, Social Justice,De-AddictionActivities & Environment, Government

of Maharashtra

Shri Sachin Ahir Dr.Rashid

Al Leem Shri Sanjay Sethi

Shri Chandrakant Salunkhe Shri J. K. Dadoo

Dr. J. N. Misra Shri Vijay

Mansukhani Shri V. K. Venkatachalam

Hon'ble Minister of Statefor Industry delivering the inauguraladdress.Other dignitaries (from R to L) on the dais

DG, Sharjah Sea Ports, Customs & Sharjah Free Zones Authority, Development Commissioner (Industries) &

Secretary, MSME, Govt. of Maharashtra, President, SME Chamber of India & MIEDA, Joint

Secretary, Ministry of Commerce and Industry, Government of India, CGM, State Bank of India, Maharashtra,

MD, ONIDA and Secretary General, SME Chamber of India

Shri Chandrakant Salunkhe President, SMEChamber of India & MIEDA welcoming Shri Sachin

Ahir Hon'ble Minister of State for Industry with

bouquet offlowers




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Talking on Anti-Dumping measures for

SMEs, Shri J.K. Dadoo explained that when

the normal value of a product in the

exportingcountry is greaterthan the export

price of a product, it is called Dumping.

Defining the Anti dumping of goods, he

explained that the Law was framed in order

to protect the domestic industry from an

uncontrolled flow of foreign goods at price

lower than the domestic prices. He also

explained Margin of Dumping which is the

difference between Normal Value and

Export Price of the product based on fair

comparison

Explaining theprocessof anti-dumping, Shri

J . K. Dadoo said that antidumping

investigations are initiated when a country

suspects that its domestic industry is

threatened byimportssoldat unfairly cheap

rates. They may result in thelevyingof extra

duties on Dumped goods. He observed

that dumping is considered as an unfair

trade practice that can have a distorted

effect on international trade. As a result

most of the countries have anti-dumping

duty in order to rectify the trade distortive

effect of dumping and reestablish fair trade.

The antidumping is an instrument for

ensuring fair rate and is not a measure of

protection per se for the domestic industry.

It provides relief to the domestic industry

againsttheinjurycausedbydumping.

He concludedby sayingthatThe Directorate

General of Anti-dumping and Allied Duties

(DGAD) administers the Anti-dumping

measures in India. It functions in the

Department of Commerce in the Ministry of

Commerce and Industry. The Designated

Authority's function is to conduct the anti-

d u m pi n g i n ve s t i ga t i o ns a n d m a ke

r e c o m me n d a t i o n s t o t h e C e n t r al

Government (DOR) for imposition of anti-

dumpingduty.

Special Address by Joint Secretary, Department of Commerce, Ministry of Commerce and

Industry, Government of India addressing the delegates on

Shri J. K. Dadoo

Benefits of Anti-dumping measures for

Indian SMEs

Shri Chandrakant Salunkhe observed thatfor a long time Maharashtra was considered

as the leading industrial State of India.

However, now many neighbouring States

like Gujarat, Karnataka and MP have

achieved a great industrial progress. It is

important therefore to give a much needed

thrust for the industrial and economic

development of Maharashtra in order to

sustainthegrowthoftheState.

He stated that as finance is the life-line of

enterprises, the credit flow from the Banksand Financial Institutions to the SME Sector

should be adequate and smooth. However,

recently the credit flow to the sector haswitnessed the slowdown mainly due to the

rising impact of the crisis as well asthe high

interest costs. He also observed that the

industrial policyof theStateshould focuson

creating more employment opportunities,

education and skill development and other

measures to empower SMEs of the State to

succeed. Investor friendly policies and

removing the bottlenecks will go a long way

in attracting the much needed investments

intotheState.

Address by President, Small & Medium Business Development Chamber of

IndiaandMaharashtraIndustrialandEconomicDevelopment Association (MIEDA)

Shri Chandrakant Salunkhe




17/64

Keynote Address by Shri Sanjay Sethi

SMEs, Industrial and Economic Scenario

ofMaharashtraandNewIndustrialStatePolicy-ImpactsandBenefitsforSMEs

Development Commissioner (Industries) & Secretary, MSME,

Government of Maharashtra delivering the Keynote address on

Dr. J. N.Misra observed that asSMEsare very

heterogeneousin their sectoral composition

and size, their need is also very much

diversified. He commented that in order to

assist the SMEs, SBI hasreached every nook

and corner of the country with the portfolio

of more than Rs. 1.2 lakh cores in MSME

Advances. The Bank has also developed a

wide array of products to meet thechanging

needs of the industry. The Bank has 600

SME intensive branches and has set up

centralized processing cells (CPC) for

processing and sanctioning loans. Through

a special scheme called SBI Small and Micro

Interest Free Loan as equity (SBI SMILE)

loans are granted to entrepreneurs free of

interest payable over a long period to meet

theshareof PromotersEquity.

While talking onother productsfor SMEs, he

said Cluster financing, collateral free loans

under CGTMSE and Supply Chain Finance

are some of the other initiatives towards

assistingSMEs.He concluded bymentioning

about relationshipmanagerswhohave been

specifically appointed to provide requiredguidance and assistance to the SMEs in all

mattersrelated tothe Bank.

Address by Dr. J. N. Misra

Banks' support towards Growth of SMEs

Chief General Manager, State Bank of India, Maharashtra addressing the

delegateson

ShriSanjaySethi observed thatMaharashtra

is considered as one of the largest State

economy contributing 13% towards India's

GDP and growing at an averagerate of more

than 9% in last three years. The State

manufacturing output (21%) is higher than

India'smanufacturingoutput (16%).

He observed that over period of time the

focus of the economy shifted towards

service sector and manufacturing activity

dropped down on the priority list of theeconomy. However the importance of

manufacturing sector towards the growth of

the economy cannot be overlooked as it is

the real contributor towards the economic

development.

He also mentioned that the Government is

concentrating more on creating industrial

clusters where the SMEs can come together.

Maharashtra though for a long time has

remained the industrialist State of India,

other states are matching the rate of

Maharashtra's growth. However, due to

natural advantage of the State, it has

competitive edge over other states

especially in the manufacturing sector. He

also highlighted that the State is ahead of

other states in terms of implementation of

severalmegaprojects.

He a l so m e nt i on e d t h a t t h e S t a t e

Government has renewed its focus on

development of MSME Sector through

C l u s t e r d e v e lo p m e nt , E n h a nc e

competitiveness of MSMEs and provide

incentivestounitstoreduceburdenofinitial

set up cost and working capital. He also

mentioned about the manufacturing

competitiveness program to enhance the

competitiveness of MSMEs and enable them

compete in the domestic as well as

internationalmarkets.

Talking on the various incentives of the

Government for the State MSME sector, he

mentioned about the packaged scheme of

i n c en t iv e s o n e o f w h i ch b e i ng

reimbursement of VAT on a yearlybasis. The

Government also provides interest

subsidies to those companies He also spokeonDistrictIndustryCentres(DICs) thathave

been empowered to support the industries

in the State and for enhancing capability of

MSMEs in respective jurisdictions. He

concluded with several Incentive packages

for SMEs in order to assist them strengthen

their operations and improve their

competitiveness.




18/64

Knowing and doing are two different things,

commented Dr. Rashid Al Leem, Director

General, Sharjah Sea Ports, Custom &

Sharjah Free Zones Authority. Throughout

the world, over 70% of the employment is

generated by the SME Sector. The SMEs in

order to become competitive should

enhance and develop their knowledge and

capabilities in their field of activities and

implement them. Differentiation is the key

to success in a competitive environment,

observed Dr. Leem. Wherever necessary theSME should also look for diversification

opportunities. Quoting the example of

NOKIA, who is the leading mobile handset

manufacturers, he mentioned that their

original business was manufacturing paper,

however sensing the upcoming opportunity

in field of telecommunication, the company

diversified its business in to the field of

mobile handsetsmanufacturing makingit to

be the World's largest mobile handset

manufacturers. He encouraged the SMEs to

keep track of upcomingopportunities in the

market andgrabthemin orderto stay ahead

ofthecompetition.

He also observed that all the business

activities should address the economic,

social and environmental concerns. The

SMEs should also focus on their core

activities and add value to the customers.

While Disney Land is focused on children it

also adds valueto their parents. Thesuccess

of the Wal-Mart lies in their effective cash

flowmanagement.

He concluded by stating the importance of

benchmarking practice for SMEs that will

enable them to become more competitive

and also expand their business operations

aspertheindustrystandards.

No enterprise big or small can progress

without a proper business strategy,

observed Shri Vijay Mansukhani, An

enterprise can be very good in operations

however, unfocussed strategy can adversely

impact the organization. The strategies

should strengthen the core business

activities and hence it is important to

consider all the business functions in order

to devise appropriate business strategy. He

also commented that Automation and

economies of scale are the two aspects for

growth of the SMEs. SMEs need to have a

clear cut policy regarding make or buy

decisions in order to effectively compete in

the market. He observed that Indian SMEs

have the ability to produce variety of

products and can effectively compete with

countries including China. However, the

Indian SMEs suffer from lack of focus on

quality of products and services. SMEs

therefore should focus their attention on

improving the quality of products to meet

international standards.

In order to improve the skill development

andstandards of theworkershe appealedto

the Government to formulate policies and

framework for employment. He suggested

that the Indian Government should

benchmark the same level of incentives

offered by the Chinese to their SMEs instead

of subsidising diesel, food etc in order to

support the growth and development of the

IndianSMEs.

Address by Shri Vijay Mansukhani

IndustrialSlowdown- ImpactonSMEs

Managing Director, MIRC Electronics Ltd. (ONIDA) addressed the

delegateson

Address by Director General, Sharjah Sea Ports, Customs & Sharjah Free Zones

Authorityaddressingthedelegateson

Dr. Rashid Al Leem

EmergingBusinessOpportunitiesfor SMEs




19/64


20/64

Shri Ravindra Kumar Shri Rakesh Singh

Enhancing Cash Flows through Invoice

Discounting

Senior Regional Advisor, South Asia,

Standard Bank PLC and Member, Advisory Board, SME

ChamberofIndia.

- CEO, Aditya Birla Finance Ltd addressed

the delegates on

Shri Ravindra Kumar observed that

with the current economicsituation,

b u s i n e ss e n v i ro n m e nt h a sundergone rapid changes. The crisis

in PIIGS countries has affected

economies worldwide including the

BRICS economies. This has thrown

number of challenges especially

infrontoftheSMEs.

He concluded by encouraging SMEs to stay abreast of worldwide

economic situation, new technology development and maneuver

theirbusinesses inordertostay ahead ofthecompetition.

Shri Rakesh Singh observed that

Indian SMEs contributes 12-15% of

GDPwhich is far less when comparedto 51% in the Developed Economies.

He also noted that 59% of SMEs in

Indiado nothaveaccessto formalized

lending such as Bank Credit and the

situation of SMEs in India is

comparable to that of SMEs in low

income/Developingcountries.

He further commented that the most essential criterion for the

success of an enterprise is the effective management of cash-flow.

Well managed cash flows will translate into increased turnover

through greater churning, reduced cost of goods due to greatercredit periods, continuous stock repurchase which will ensure less

downtime. Increased profitsthrough reduceddebtcharges,efficient

fund utilization via focused Investment in assets / expansion needs

and Improved cost and balance sheet structure are other

advantages of good cash flow management. This will also result in

betterdebtratiosforgreaterleverage.

He alsoencouraged SMEsto clearly differentiatebetween profit and

cashflow, realisedand unrealized payments.

He concludedby stating therecent CRISIL study that a decline of 1%

in raw materialprices couldincrease the Operating Profit Margin for

SMEsto6.32%from5.62%,indicatingariseof12.5%.Thereisahuge

gap between demand and supplies and the SMEs should opt for

appropriatefunding optionsincluding invoicediscounting facilities.

PANEL DISCUSSION ON

DRIVING GROWTH OF SMEs

Panelists from (L to R) CEO, Continental Capital Advisors, Managing Director & CEO, Invent Assets Securitisation& Reconstruction Pvt. Ltd., Sales Head, ClApp , TrimaxIT Infrastructure& ServicesLtd.,

Senior Regional Advisor, South Asia, Standard Bank LLC and Member, Advisory Board, SME Chamber of India,

H ead P roduct S ales Data S ervices, B harti A irtel L td., M D, P roquest S olutions a nd C EO, A ditya

BirlaFinance Ltd.

Shri Shailendra Jindal Shri P. H. RavikumarShri Sanjay Mukhopadhyay Shri

Ravindra Kumar Shri Divya

Sethi Shri Biswas Nair Shri Rakesh Singh

Delegates at the Summit




21/64

Shri Divya Sethi

. Telecom Solutions to

Fuel BusinessGrowth

Shri Sanjay Mukhopadhyay -

Low Cost IT

InfrastructureandSoftwareSolutions forSMEs

- Head Products Sales, Data Services, Bharti

Airtel Ltd addressed the delegates on

Sales Head, CIAPP, Trimax IT

Industries. addressed the delegates on

Shri Biswas Nair

Advantageof Cloud/ ERPSolutions forSMEs

- Managing Director, Proquest Solutions addressed

thedelegateson

ShriDivya Sethi, HeadProductsSales,

Data Services, Bharti Airtel Ltd.,

observed that there are around 1

billion people utilise online services

w h ic h s h ow s t h e s c o p e o f

o p p or t u ni t i es i n t h e t e le com

business. Companies have started

g i v i ng e q u a l i m p o r t a nc e t o

as much as to

. The meaning of

business communication is changing continuously and there is a

need for real time information to empower businesses located at

remotest locations.

There is a digital divide in the country, which needs to be bridged in

order to bring digital revolution in the country. The enterprises

shouldchangetheirfocusfromphysical transactionto m-Commerce,

e-CommerceandSocial Networking forproviding the customer ease

of transaction, convenience and choice and alsoto drive efficiency in

the organization.

He also observed that Information Technology has changed the face

of the entire education industry transforming Instructor Dependent

System into learner empowerment models. This has facilitated the

interaction between teacher and students and alsooffers any-time,

anywhere learning. This has reduced costs on infrastructure and

classrooms. This has also facilitated real time assessments of

performance and skill-up gradation for teachers thus transforming

theentireeducation system

In thehealth care sector, IT solutions haveenabledthe patients from

accessing the inaccessible health care facilities and also obtain

preventive medical aid 24x7. Remote data collection, remote

monitoring, remote diagnostic and treatment support and disease

and epidemic outbreak tracking are the latest innovations that have

changed the healthcare sector and transformed it to benefit society

atlarge.

He concluded by commenting that due to every changing business

environment and rapidly changing consumer needs and demands,

there areplenty of opportunitiesforICT solutionproviders to match

the changingbusiness dynamics.

Shri Biswas Nair observed that the

Small and Medium Enterprises

understand the importance and

usefulness of the ICT solutions but

are reluctant togo in for thesamedue

to constraints on budget. However,

cloud computing offers the best

substitute for SMEs as it does not

block their valuable capital in thehardware and software expenses and

give themfreedom tochoosea system

that matchestheir requirements.

Elaborating on cloud computing, he said that the main attraction of

the solution is that it enables the customers to pay as per the usage

and outsource the installing, upgrading and maintenance of

hardwareandsoftwareto the serviceprovider.

Automated backups, maintenance, Automated upgrades, hosting ofSolution, Modern web based integration and accessibility of data

through web and mobile from anywhere are the benefits of cloud

computing, said Shri Biswas Nair. The other characteristics of cloud

computing are Easy Accessibility of data, Service Management,

Agility, Flexibility, User Metering, Cost Efficiency, Automation and

Virtualization.

Further he observed that Cloud computing enables businesses to

stay abreast of latest accounting andregulatorychanges, more easily

scale a distributed global organizationand reallocateIT budget from

maintenance to innovation. It also helps to get automated upgrades

and eliminate wasted maintenance, benefits from economies of

scale for security and data management, usea modern and easierto

integrate solutions and typically get more tightly integratedanalytics

Shri Sanjay Mukhopadhyay observed

that the current scenario of Indian

SME Sector is not encouraging. The

s e ct o r co ns i st s o f S m al l a n d

fragmented business entities with

over 95% having no access to any

formalinstitutional credit from banks

or financial institutions and are

mostlyproprietorship or partnership

based.

With globalisation and liberalisation picking pace, SMEs are finding

it difficult to survive and sustain in the competitive and globalised

market place. Due to their small nature and lack of access to the

capital around 80% of the industrial enterprises lack technological

know-how, managerial and financial resources, working capital and

marketing support. This has resulted in lack of innovation ability,

sub-optimal scales of operations, low R&D investment,

Technologicalobsolescenceandlack ofmanagement skills & trained

personnel.

In order to grow, it is necessary for SMEs to upgrade skills, develop

systems and processes, invest in technology, scale up operations,

speed-up processes and delivery time, attract and identify right

talent, cut down on response time, maintain a repository of past

projects as well as delivery details and details of customers. It will

enable SMEs to bring down cost of operation, aid penetration into

the global markets, drive efficiency in the business and enable them

tosetnewerand higher standardsforgrowth.

He concluded by saying that the SMEs can benefit immensely by

adoptingCloud Computing Servicesto obtain value formoney. Cloud

solution allows SMEs run their business without owning anything

and help them to be part of globalecosystem which was till recently

meant foronlylargeenterprises.

Information Flow

Ca sh F low




22/64

Shri P.H. Ravikumar

Restructuring and Business Improvement

Strategiesfor SMEs

- Managing Director & CEO, Invent Assets

Securitisation & Reconstruction Pvt. Ltd. addressed the

delegates on

Shri P.H. Ravikumar commented that

the SMEs normally become sick due

to various reasons - 75%of which are

self created due to ignorance of few

critical aspects of the business, 15%

isduetotechnologyand10%isdueto

externalreasons. The primaryreason

for SMEs falling sick is mainly due to

the lack of financial management

ability where in the entrepreneur

utilizes working capital funds to

acquire fixed assets rather than financing the business operations.

Thesecond is expanding thebusinesswithout adequate capital. The

third one is the diversification of funds to ventures other than thecore business. The fourth one is the delayed payments from the

customeror shipmentand lackof actionsforreceivingthe payment.

He asserted that SMEs should keep in mind various financial ratios

forbetterfinancialmanagement andto avoidbecoming sick.

Explaining variousfinancial ratioshe saidthat notmore than40% of

EBIDTA should be usedtowards repaymentof principaland interest.

Theentrepreneurshould tracktotal debt andnot just long term debt

total debt which should not exceed 2.25 times the net worth plus

quasi equity. Total debt should not exceed 4 times the EBIDTA

margin.

Further, he added that SMEs should regularly write off old and non-

moving stock and focus on speedy recovery of payments. The

entrepreneur should avoid borrowing moneyfrom privatepartiesto

pay interest. He also encouraged the SMEs to share the cordial

relations with their bankers and share all their business issues and

challenges with the banks. Thiswould helpSMEsduring challenging

situations wherein banks can assist them in restructuring their

debts.

Highlighting the benefits of restructuring, he said that restructuring

wouldhelpSMEsinmanywaysi.e.

Portions of problems areas are separated and moved to long-termloancategory withlow interest rates

Lowerinterest ratesonworkingcapitaland other borrowings

Repaymentsarealignedto expectedcash flows

Painofrestructuringtobebornebybothborrower&thebank/s

l

l

l

l

INTERACTIVE SESSION WITH SPEAKERS

DELEGATES AT THE SUMMIT




23/64


2 Editionnd

SME ICT SUMMIT

Organised by Organised by


DEVELOPMENT CHAMBER OF INDIA GOVERNMENT OF MAHARASHTRA

Supported by

IITC-INDIA


(IITC-INDIA)

Friday, 7th September 2012 | Mumbai

Topics to be covered

Overview of SMESector

Growingneeds of ICTSolutions for SMEs

Adoption of ICTby SMEs Challenges & Opportunities

Govt.schemes & initiatives for ICTAdoption bySMEs

Improvedbusiness efficiencythroughadoptionof ICT

Low Cost ICTsolutionsfor SMEs CRM,ERP

Formative infrastructurefor ICT adoptionin SMEs

Social Networking Platform Driving Revenue, Boost

Efficiencyand Innovation

DigitalMarketingStrategy Roleof SearchEngines

DrivingSalesgrowththroughE-commerce Solutions

Targeting customers throughSMSSolutions

Integrating ICT and Supply Chain to drive Operational

Efficiency

B2BMarket placesfor SMEs

Virtualization & CollaborativeTechnologies forSMEs

ManagingProjectsbyusing ICT

DigitalMarketingStrategy

Tele-presence throughvideoConferencing

HowCloud technologycould transformyour business?

www.smeictsummit.com

MAHARASHTRA INDUSTRIAL AND


Partner Partner Knowledge Partner IT Partner

Solutions Private Limited

Industrial and SME

Research Centre of India

EUROPE - INDIA


EISBC

PACKAGING INDUSTRY


Macro Events

and Exhibitions Pvt. Ltd.SME BUSINESS

MANAGEMENT INSTITUTE

Supported by Supported by Supported by Event Managed by





Ms. Neera Inamdar - Deputy Secretary General

Tel: +91 - 22 - 6150 9800 / 6667 4444


24/64

PANEL DISCUSSION ON

ENHANCING THE CAPABILITIES OF SMEs

Panelists from (L to R) CEO, Continental Capital Advisors, GM, (Priority Sector), Central Bank of India MD, TheMaharashtraAgroIndustries DevelopmentCorporationLtd (MAIDC),

ePresident,SMEChamberofIndia &MIEDA, Partner,

SmartHeadStrategySolutionsPvtLtd.and Manager(SME),Mahindra&MahindraFinancialServicesLtd.

Shri Shailendra Jindal Shri R. B. GuptaSmt. Meeta Rajivlochan Shri SanjayBhatia

ShriChandrakantSalunkh Shri SanjivNanda

ShriRohitKumarSinha

Commissionerof

SalesTax, Governmentof Maharashtra,

Shri Sanjay Bhatia observed that Goods and

Service Tax (GST) is set to be one of thebiggest taxation reforms in India and

integrate economies of all states and boost

overall growth of India. GST will create a

single, unified Indian market to make the

economy stronger. In 160 countries around

theworld,GSTisinplace.

He furtherexplained thatimplementationof

GST will lead to the abolition of other taxes

such as VAT, Entertainment Tax, Sales Tax,

Service Tax etc. It will avoid multiplicity of

Central and State Taxes and the cascadingeffects thereby reducing the tax burden on

the entire industry. This will result in lower

tax rate by increasing the tax base and

minimizing the exemptions. He also

observed that the biggest challenge for GSTimplementation is obtaining thefullsupport

of all the states. This has portrayed

Maharashtra to be the biggest hurdle in the

implementation of GST due to its prevalent

Octroi duty and is the only State where

Octroidutyis imposed.

Explaining the benefits arising from

implementation of GST, he said that there

will be a single common registration on

national level and common returns. The

registration, submitting returns andpayment will be through electronic mode.

Further, forcompanies with turnover of less

than Rs. 50 lakhs, GST may not be

c o m p u l s o r y. T h e G o v e r n m e n t i s

concentrating on automation of alloperations before introduction of GST. PAN

will be thecommon identifier and there will

be only one reporting authority. Rates for

Goods and Servicesshould be the same. It is

expected to help build a transparent and

corruption free tax administration. GSTwill

be levied only at the destination point and

not at various points from manufacturing to

retailoutlets.

He concluded saying that introduction of

GST will bring lots of benefits for SMEs as itwillreducetheimpactoftaxationonSMEs.

Keynote Address by Commissioner of Sales Tax, Maharashtra State addressed the

delegateson

Shri Sanjay Bhatia

GST(Goods&ServiceTax)ImpactandAdvantagesforSMEs




25/64

Smt. Meeta Rajivlochan introduced MAIDC

as a 40 years old organisation with a

turnover of around 100 Crore and with the

objective to make available the standard

quality fertil izers, pesticides, agro

engineeringimplements andannual feeding

at competitive rates to the farmers of

Maharashtra.

MAIDC provides lotof assistance to theSME

Sector engaged in food processing industry.

They supply fertilizers and pesticides

including bio-fertilizers under the brand

name Krishi Udyog through a network of

over1500 dealers.It hasits ownR&D centre

and is a lso engaged in developing

infrastructure and industrial estates and

foodparks.

She also mentioned about the quality

certification for branding, retailing and

energy audit services for SMEs. Other skill

up-gradation initiatives include short-term

courses on seed upgradation, food

processing andpackaging.Assistance is also

provided for customer information,

advertisement, automation, testing, safety

standards etc. For development of cold

storagefacilities incentives areavailable.

She encouraged the SMEs to enter into the

agro and food processing industry business

because it is sunrise industry providing lots

of opportunities.

Keynote Address by Managing Director, Maharashtra Agro Industries

Development Corporation Ltd. (MAIDC) addressed the delegateson

Smt. Meeta Rajivlochan

Role of MAIDC for the growth of SMEs

in Food Processing Industry

Shri U.R. Tata

Collateral Free Loan and Financial Facilities for Startups

Role of CGTMSE

Shri R.B. Gupta

Financial Supportfor Marketing

andPromotionforSMEs

CEO, Credit Guarantee Fund Trust for Micro

and Small Enterprises (CGTMSE) addressed the delegates on

GM (Priority Sector), Central Bank of India

addressedthe delegates on

While explaining the difficulty of

SMEs in accessing the finance, Shri

U.R. Tata mentioned that the first

generation entrepreneurs with any

legacy find it difficult to provide

collaterals and 3rd party guarantees

to avail bank credit. Credit GuaranteeFund trust for Micro and Small

Enterprises (CGTMSE) was set up by

the Government of India and SIDBI

mainly to assist and encourage such entrepreneurs to start their

businessoperationswithout providing anycollaterals.

The main objective of CGTMSE is to make credit facility available

based only on the primary assets created out of the funds disbursed

bythe banks. Theprojects shouldbe self sustainableand is available

to existing and new Micro and Small Enterprises, including service

enterprises with a maximum credit limit of Rs. 1 crore. The scheme

guarantees to the extent of 75 to 80% of the sanctioned amount of

the credit facility to the memberlending institutions (Banks). Manybanks arethe membersof thisschemeexceptcooperative banks.The

scheme is not available to traders and training and institutional

institutes.

For credit facility upto Rs. 5 lakh, the guarantee fee is 1% of the

amount sanctioned. For amounts beyond Rs. 5 lakh and upto Rs. 1

crore theguaranteefeeis 1.5%.Someof thebanks sharethisfee with

theSMEs.

Shri R.B. Gupta mentioned about the

new product introduced by the Bank

for the benefit of SMEs who aredesirous of participating in various

exhibitions and trade shows around

the world. There is an increased

awareness amongst the SMEs to

attend such events to identify new

businessopportunities.

Theessenceof thescheme is that theborrower shouldprovide 25%

margin money. For loans upto Rs. 1 lakh, no collateral security is

required. Beyond Rs. 1 lakh collateral will be required in theformof

LICPolicies, GovernmentBonds etc. Therate of interest is 4%above

thebaselendingrate.

He concluded by saying that SMEs should take advantage of such

schemes to promote their products and services in the domestic as

wellasinternationalmarket.




26/64

Shri Sanjiv Nanda

Transforming SMEsinto

emerging Corporate By Reengineering the Systems and

Processes

Shri Rohit Kumar Sinha

Alternative FinancialSources for SMEs

Shri Shailendra Jindal

International Trade Finance

Opportunities forSMEs

Partner, Smart Head Strategy Solutions

Pvt. Ltd. addressed thedelegates on

Manager (SME, Mahindra &

Mahindra Financial Services Ltd. addressed the delegates on

CEO, Continental Capital Advisors

addressed the delegates on

Shri Sanjiv Nanda commented thatfor SMEsto succeed in the longrun it

is necessary for them to create a

common goal for theenterpriseand it

should be percolated to all the

employees in order to make them

aware of the objectives and goals and

actiontobetakentoachievethemasa

team. There should be clear idea and

plans forbusiness growthin theareas

of revenue,geographicspread, productdevelopmentandservices.

He also encouraged the entrepreneurs to adopt changes and

transform the business in order to respond swiftly to the challenges

arising due to changing business environment. It is important for

businesses to attract the right human talents and it is all the more

important to retainthem. Theentireactivities of thebusinessshould

be process driven and should not be dependent on any individual

saidShriSanjivNanda.

Talking on the importance of business plan he said that

organisations should prepare business plan on the quarterly, half

yearlyand yearlybasis in orderto keepthe trackof thebusiness. Due

importance should also be given to Corporate Governance, Ethics

and Compliance. In order to achieve success the SMEs should

continuously improve thequalityoftheproductsand servicesand be

responsiveto theneedsof market,customersandsociety.

He concludedby stressing ontheimportance ofhavingright talent of

the right job as they are the most important stakeholders for the

company.

Shri Rohit Kumar Sinha spoke on the

role of NBFCs towards financing the

SME sector. He observed that Non-

bankingfinancial companies(NBFCs)

are an alternative source of funds for

the SMEs apart from banks and otherinstitutions.

The traditional lending finds SMEs to

be risky clients mainly dueto thelack

of transparency in their businesses

and financial statements. The traditional sources rates the SMEs as

pertheirrisk perceptions whichare mainlythe risks associated with

theoperations of theenterprise.Also theconventional sourcesof the

finance have financing limit as they can't finance more than 4 times

the finance limit in the year mainly because they find it extremely

risky to invest such a big amount in any of the small businesses and

are averse to multiple financing. Also there is a large number of

documentation involvedin the conventionalsources of financing.

He commented thatrisk aversenature of theconventional sourcesof

financing provides ample opportunities for NBFCs to tap in to. The

advantages NBFCs enjoy over conventional sources are that the

NBFCs are sector focused andlendingis done only to specific sectors

mainly due to their association with those sectors in the past or due

to the inherent understanding of those sectors. This understanding

of the sectors enables the NBFCs to eliminate the information

asymmetry that the conventional lenders face thereby reducing

theirloansanctioningtime.He also observed that NBFCs tend to be more flexible in their

approach as compared to the conventional lenders mainly due to

their targeted approach, quick processes, minimum documentation

besideslittle mandatory andregulatory documentation.

He concluded by saying that NBFCs have been more effective in

lending to SMEs mainly due to their understanding the customer

needs better than the conventional lenders and more emphasis on

Management and Value chain partners apart from financials. The

NBFCs' process of lending involves financial analysis, due diligence,

meeting with customers, collateral verification and valuation and

creditrating..

Shri Shailendra Jindal noted that

there are three major sources of

international f inance namely,

External Commercial Borrowings

(ECB), Normal Trade Finance and

EquityCapital.

External Commercial Borrowings

(ECBs) are one of the modes for

sourcing of funds for corporate. ECBcan be accessed under two routes, Automatic Route and Approval

Route. ECB is useful for investment in real sector-industrial sector,

infrastructure sector-in India, and specific service sectors as

indicatedareunder AutomaticRoute.

International Methods of Payment consists of Open Account,

Documentary Collection (Time), Documentary Collection (Sight),

Letters of Credit (Time), Letters of Credit (Sight) and Payment in

Advance.

Explaining international trade finance, he said that there are many

avenues to avail international trade finance. They are - Letters of

credit (L/Cs), Import bills for collection, Import financing, Shipping

guarantees, Pre-shipment export financing, Post-shipment credit,Invoice financing, receivables, purchase and Export credit

guaranteesor insurance.

Trade Credits (TC) refer to credits extended for imports directly by

the overseas supplier, bank and financial institution for maturity of

less than three years. Depending on thesource of finance, such trade

credits includesuppliers'credit orbuyers' credit.

Suppliers' credit relates to credit for imports into India extended by

the overseas supplier. Buyers' credit refers to loans for payment of

imports into India arrangedby theimporter froma bank or financial

institutionoutside India.

SMEs face problems in accessing the above type of financing mainly

due to Higher Transaction Costs, their diverse and more opaquenature than large firms, ability to give limited collateral, higher risk

ofdefault,less transparency inoperations.




27/64


28/64

PANEL DISCUSSION ON

EMPOWERING SMEs FOR BETTER GROWTH

Panelistsfrom(LtoR) CreditManager,SMEDivision,CorporationBank, AvighnaaAdvisoryServices,

Coordinator, Design Clinic Scheme, National Instituteof Design, Secretary General,SME Chamber of India, Director, SME Testing Centre (WR), Ministry of MSME, Govt. of India and

ExecutiveDirector, NationalCentrefor QualityManagement

Shri KunalDhoke Smt.Manisha Gupta

Shri Jitendra Singh Rajput Shri V. K. VenkatachalamShri S. Vijay Kumar Shri Uday M. Gaitonde

Shri Sunil Kakkar

ImportanceoffinancefortheSMEsector

Shri Vijay Kumar

Testing

facilitiesfor better quality improvement

Circle Head, UCO Bank, Mumbai addressing the

delegateson

Director, SME Testing Centre (WR), Ministry of

MSME, Government of India addressed the delegates on

Shri Sunil Kakkar mentioned that the

Bankhas 12 SME hubsto cater to the

n e ed s o f S m al l a n d M e d i u m

Enterprises. Finance is the very

critical elementfor thesuccess of any

enterprise. He suggested SMEs totake advantage of non-fund based

facilities such as letter of credit and

bank guarantee. There should be a

judicious mix of fund and non-fund

portfoliosin order toeffectivelymanage thefinances forthe business

operations.

He observed that SMEs normally overstate their working capital

requirements while applying for a loan and end up paying more

interest. It is advisable to avail only what is required by keeping a

peak limit for future requirements and use it wisely only to finance

the business operations. He also encouraged importance of ICT for

driving efficiency in the business and also manage their finance

effectively. He also encouraged the SMEs to maintain cordial

relationship with the concerned officials of the banksin orderto get

required assistance fromthebank attheright time.

He stressed on thefact that SMEs need to understand that under the

current economic circumstances the business cycle have become

shorter and with severe impact. Hence it is important for SMEs to

concentratemorethe quality of theproducts as well as tapping in to

thelargecustomerbase.

He called upon the SMEs to be transparent in their financial

statements especially while dealing with banks and other financialinstitutions as the banks judge the performance of an enterprise

through its financial statements. This is very crucial for SMEs in

ordertoenhancetheiraccesstofinance.

He concluded by stressing that SMEs should not depend on a single

customer or single supplier as it would be detrimental for the

survivaloftheenterprise.

Shri Vijay Kumar highlighted the keyservices of MSME-DO - advising the

Government in policy formulation for

the promotion and development of

MSMEs, providing techno-economic

a n d m a n a g er i a l co n s u l t a ncy,

common facilities and extension

services to MSMEs and providing

facilities for technology upgradation,

modernisation, quality improvement

and infrastructure. Apart from the above, the organisation is also

engaged in developing Human Resources through training and skill

upgradation as well as evolving and coordinating Policies and

Programmes for the development of MSMEs as ancillaries to large

industries,said Shri VijayKumar.

He also commented that the objective of theMSME Testing Centre is

to provide testing facilities to MSME units as per national &

international standards specifications. It also assists in improving

the quality of products of MSME units to participate in government

store purchase programme, defense establishments, Railways,

CPWD etc. Assistance is also provided for calibration of their

instruments and gauges, etc. and imparting trainings for testing

professionals.

He concluded bylisting thefacilities theCentreprovidesfor carryingout the testing facilities - Well equipped Mechanical, Electrical,

Chemicaland Meteorological laboratories.




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Shri Uday Gaitonde

Business

ImprovementInitiativesforSMEs

Shri Kunal Dhoke

Innovative

CreditSchemesforSMEs

Importance of Project Management for

SMEs

Shri Jitendra Singh Rajput

Design Needs forSMEs

Executive Director, National Centre for

Quality Management addressed the delegates on

Credit Manager, SME Division,

Corporation Bank addressed the delegates on

Smt. Manisha Gupta Avighnna Advisory Services addressed

the delegates on

Coordinator, Design Clinic

Scheme,NationalInstituteof Design addressedthe delegateson

Shri Uday Gaitonde commented that

in business operations SMEs facemany problems such as Breakdowns

/ Downtimes, Product Rejections,

High Cost, Delays in Delivery,

Accidents due to Poor Safety

Practices, Dissatisfied Customers,

High Employee Attrition, Untidy

Workplaceand Mixed-upInventory.

Thetraditionalcharacteristics of SME

is One Man Management, Untrained Manpower, Unstructured Way

of Working, Poor Empowerment and Involvement by employees,

little exposure to modern manufacturing practices, absence of long-

term planning, obsolete technology etc. Large numbers of small

enterprises focus on higher production to reap higher profits,

however, due to unplanned production end with lots of inventory

therebyincreasingthe entirecost ofoperations.

Business can be improved only if SME adopt steps to improve the

productivity and quality, reduce the cost of production, adhere to

environmental protection norms, health and safety policies as well

as adopting good manufacturing practices. He discussed various

ways in which the company can improve its productivity, quality,

innovate and the benefits arising due to the adoption of those

practices.

He concluded by saying that on the supply side, the need is to

concentrate on improved services, keep up on time delivery,

motivation of employees and constantly innovate the products and

servicesto meetthe marketdemands.

Shri Kunal Dhoke highlighted various

services devised by the banks

especially for the SMEs. 'SME

P r o ce s s i ng C e l l s' h a ve b e e n

established in all Zonal Offices andSME Nodal Officers have been

designated in all the zones to attend

tothegrievancesof SMEclients.

The Bank has adopted Cluster Based

Approach for Lending to SMEs and signed an MoU with SIDBI for

financing SMEs. It hasalso signed MoUswith reputedratingagencies

to rate its SMEcustomers andoffer them an interestrateconcession

of 0.5% to 0.25% for rates SMEs. He spoke on exclusive SME Loan

Centres the bank has started to service its SME clients engaged in

production, processing and service activities. It consists of a

dedicated centralised processing centre and a team of Relationship

Managers who would provide guidance / counseling to SME

entrepreneurs as well as liaise with CCPC, Branches, Valuers and

Advocates.

He concluded by highlighting the special scheme focused on SMEs

engagedintextileandautoindustries.

Smt. Manisha Gupta observed that

Small and Medium Enterprises

undertake several projects and it is

important forthem to understand the

methods of managing the projects. A

well-managed project will result in

higher Quality of product / service,

better risk assessment and control,

l o w er c o s t , e f f i c i e nt t i m e

management and improved customer satisfaction levels. Explaining

project management process, she said that a project is technically

defined as a temporary endeavor to create a unique product orservice. Project management is the application skills to execute the

project effectively and efficiently which in-turn leads to a better

quality of products and services. A Project Management Life Cycle

consists of five stages namely Initiation, Planning, Execution,

Monitoring & Control and Closing. She also explained the each stage

oftheprojectlife-cycle.

She concluded by saying that it is important to note how to execute

the project to meet the specified scope with acceptable quality and

within the targeted time and cost as it is very crucial for the SMEs.

Normally projectsend up withcost andtimeoverrunwhich should

be avoided. Sheencouraged theSMEs to take advantage of the latestIT packagesto monitorand controltheprojects.

Shri Jitendra Singh Rajput observed

that Design is recognised as an

innovativediscipline thatcan helpthe

SMEs to sustain and grow in the

competitive market.

E n t r e p re n e u r s m a n u f a c t ur e

products either by copying the

existingone orbyincorporatingsome

modifications in thedesign and other

attributes. He stressed that improving the design of the product is

very much necessary to sustain in the competitive world. Design is

not simply about new products or technology. It is about how to

improve the products of everyday use, leading to reduced cost,

increased utility, acceptability and resulting in new business

opportunities.

He concluded by mentioning various services of the Institute offers

to helps SMEs create awareness about designing products such as

assisting them in creating the design, handholding and support infinalising thedesignas wellas providefinancialassistance.




30/64

I

Entrepreneurial

Locational expansions

Growth Spurts

In Transit

ContractDuration

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

estateprices at commercialhubs toskyrocketeven further.

The basic types of these new businesses which have fuelled the

spurtingspacedemandare:

Newsetups, with dynamic needs, donot needto

make longtermcommitmentsas theyarestill assessing theirneeds

typically headquartered elsewhere,

exploring a new territory to establish a business presence, mostly

salesandbusinessdevelopmentoutfits

companies that have outgrown their current

spaces and need more while they plan their long term

accommodation strategy

movingoutofonespace tooccupy newer/ bigger offices

whichhavesometime togobeforetheyare readyfor occupancy

executingaprojectoranoff-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

seenasidealsolutions.

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

theservicedoffices andvirtualofficesindustry ina very short time.

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

developed total business solutions which offer maximum flexibility

to theoccupant.Clients canliterallywalkin withtheirlaptops, 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

servicesare'payperuse', sono standingcosts.In IndiaK RahejaCorp

has an exclusive franchise agreement with Servcorp to offer these

businesssolutions.

To support those businesses that do not have a requirement forphysicaloffice space, there areVirtual Office packages.Virtual Office

clients cantakeadvantageof the prestigiousaddresses utilizingit 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 datastorage system,

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

availableclientscan access theirdataonline.

I believe market demand forthese serviceswill soonoutstrip supply,but we at Imperial Servcorp are gearing up to extend our facilities

whereverneedarises.


CONNECTAdvertorial

Right Office Solution for SMEs

Hyderabad

Mindspace Complex

Mumbai

Vibgyor, BKC

Authored by

AVP, Servcorp IndiaMs. Meenal Sinha


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Real Solutionsto help your business succeed

Servcorp Virtual Office

provides tailored solutions that save you

time and money and let you focus on driving your business.

Our exclusive offer for SME Chamber of India members is:

free trial ona ServcorpVirtual Officewitha setup fee of only INR 100.00*

@ half price No further obligations*

Onemonth

Next Twomonths

* This offer is only valid for packages starting in July 2012, Security Deposit as per package opted for will be applicable. To avail theoffer, this coupon needs to be presented. Offer valid only for SME members. Valid only for Servcorp Indian locations.

AUSTRALIA | NEW ZEALAND | INDIA | SOUTH EAST ASIA CHINA | JAPAN | EUROPE | MIDDLE EAST | USA | UK

www.servcorp.co.in

To avail the offer or for any queries,

Call / at 022 - 4090 7000 / 040 - 4033 9800Monika Misra Shreekanth Pranjal

ServcorpVirtual Officeprovidesyou:

Prestigiousbusiness address

Dedicated landline numberwith professional call answering

Trained teamsupport

Technology to support your office requirements

Access toour global network inover130 locations and

Manymorevalue addition features


32/64

Seminar on

DOING BUSINESS IN SOUTH AFRICAWednesday, 23rd May 2012 | SME Chamber of India Conference Hall, Andheri (E), Mumbai

From (L to R) Ms. Sushama Kanetkar Ms. Seema Sardha

Mr. Richard Zurba Mr. Chandrakant Salunkhe

- SRK and Associates, Bangalore, - Consul (Economic),Consulate of South Africa in

Mumbai, - Director, Zurcom International (Pty) Ltd., South Africa and - President, SME Chamber

ofIndiaduringtheSeminar

Mr. Chandrakant Salunkhe

President, Small & Medium Business

Development Chamber of India

Ms. Seema Sardha

Consul (Economic),Consulate of South Africa

in Mumbai

Mr. Richard Zurba

Director, Zurcom International (Pty) Ltd.,

South Africa





33/64

Keep Succeeding. This is the instinct that we, at Onicra Credit Rating Agency of India, have encouraged in India's

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34/64

Signing of Memorandum of Understanding Between



Mr. Ki-Hwa Hong Mr. Chandrakant SakunkhePresident& CEO,GyeonggiSmall& MediumBusinessCenterand President,Small& MediumBusinessDevelopmentChamber of India signingandexchangingtheMemorandumofUnderstanding

H. E. Mr. KimYoung-geol

Mr. Kyung-Sun Min

Deputy Consul General, Consulate General of the Republicof Korea in Mumbai,

Executive Director, Trade SupportDivision, Gyeonggi Small & Medium Business Center during the MoU signing Ceremony between SME Chamber of India and Gyeonggi Small &

MediumBusiness Center

Mr.Ki-Hwa Hong

H. E. Mr. Kim Sung-Lyul Mr. Chandrakant

Sakunkhe

President & CEO,

Gyeonggi Small & Medium Business Center, Vice Governor, Gyeonggi Province, Republic of Korea,

President, Small & Medium Business Development Chamber of India and

SIGNING CEREMONY OF

MEMORANDUM OF UNDERSTANDING

15 May 2012 | Hotel InterContinental The Lalit, Mumbaith




35/64

H. E. Mr. KimYoung-geol Dy.ConsulGeneral,

Consulate Generalof theKorea, Mumbai

Dr. K. Shivaji (IAS) CEO, Maharashtra

IndustrialDevelopment Corporation(MIDC)

H. E. Mr. Kim Sung-Lyul Vice Governor,

GyeonggiProvince,Republicof Korea


Mr. Ki-Hwa Hong President & CEO,

GyeonggiSmall& MediumBusinessCenter

Mr. Chandrakant Sakunkhe President,

SMEChamberofIndia

Mr. Chandrakant Sakunkhe H. E. Mr. Kim

Sung-Lyul

&

ViceGovernor,Gyeonggi Province

OPENING CEREMONY OF THE FAIR

H. E. Mr. Kim Sung-Lyul Dr. K. Shivaji (IAS)

Mr. Chandrakant Sakunkhe

H. E. Mr. KimYoung-geol

Mr. Kyung-Sun Min

Vice Governor, Gyeonggi Province, Republic of Korea and CEO, Maharashtra Industrial

Development Corporation (MIDC) inaugurating the G-Fair, President, Small & Medium Business Development

ChamberofIndia, DeputyConsulGeneral,ConsulateGeneraloftheRepublicofKoreainMumbai,

Executive Director, Trade Support Division, Gyeonggi

Small& MediumBusinessCenterwerepresent

Mr.Ki-HwaHong

President & CEO, Gyeonggi Small & Medium Business Center, and

15 - 17 May 2012 | Hotel InterContinental The Lalit, Mumbaith th

G-FAIR - KOREA SOURCING FAIR




36/64



State Level Flagship Event

VADODARA SME AND ENTREPRENEURSHIP MEETTheme: STRATEGIES AND INITIATIVES FOR BETTER GROWTH

Friday, 4th May 2012 | Hotel Surya Palace, Vadodara

Panelists President, SME Chamber of India,

Managing Director, Ram Ratna Group of Companies, Vadodara,

Shri Chandrakant Salunkhe

ShriTribhuvanprasad Kabra

(L to R) Managing Director,

Century Pharmaceuticals Ltd, Director, MSME Development Institute, Ahmedabad, Zonal General

Manager Gujarat Region, Central Bank of India, Deputy Commissioner of Industries, Gujarat and

CEO, ValuePlus- TheFamilyOffice, Vadodara

Shri Janak Sheth

Shri Arvind PatwariShri B. K. Singhal

Shri R. N. Raval Shri H .P.

Shah

PANEL DISCUSSION ON

MANUFACTURING & SERVICE SECTOR | GOVERNMENT POLICIES | TECHNOLOGY

INTERNATIONAL MARKET & COMPETITION | NURTURING FAMILY AND BUSINESS

Speaking on the economic prosperity of Gujarat, Mr. R. N. Rawal

observed that socio-economic development is the main essence of

the

sme connect april july 2012

Documents