CO NNECT an Initiative of SME CHAMBER of INDIA

CO NNECT An Initiative of SME CHAMBER OF INDIA

www.smeconnect.in Volume 6 | Issue 24 | August 2016 | Mumbai |` 50

Shri CH. Vidyasagar Rao – Hon’ble Governor, Maharashtra launching theMUMBAI BUSINESS FORUM . Others (L to R) Shri Deepak Kesarkar – Hon’ble Minister of State for Finance & Planning,Shri Subhash Desai – Hon’ble Minister for Industries and Shri Chandrakant Salunkhe – Founder & President, SME Chamber of India and Maharashtra Industrial and Economic Development Association (MIEDA) as well as Founder of Mumbai Business Forum SME BUSINESS MANAGEMENT INSTITUTE

ACTIVITIES OBJECTIVES Ü Training Programs, seminars, workshops Ü To educate and train SMEs from manufacturing and Ü Conferences, Conclaves, Deliberations service sector Ü Courses and Programs Ü To integrate business tycoons and promising Ü Mentoring Sessions entrepreneurs - Young and Women Entrepreneurs Ü Ü Interactive Sessions Toempower entrepreneurs to become competitive Ü Ü Project, Plants and Factory Visits Toaccomplish India's inclusive growth Ü Ü Study tours Toimpart business management skills & concepts Ü Ü Awareness programs Toidentify training needs of prospective and existing entrepreneurs Ü Research Programs and Initiatives Ü Toenhance business performance Ü Consultancy Programs and Initiatives Ü Publish periodicals and magazines

SUPPORT SERVICES Ü Preparation of Project Reports Ü Private Equity and Venture Capital Ü Financial and Business Proposals Ü Survey Reports on Potential Markets Ü Conduct sector-wise market surveys and reports Ü NPAs & Sick Industrial Units Revival / Re-structuring Ü Schemes and Incentive facilities Ü Logistics and supply-chain Management Ü Financial Management Services Ü Cloud Computing Ü Project Management Consultancy Ü Online and Internet Marketing Ü Set up new enterprises or industrial units Ü Group Marketing Strategy Ü Export Documentation and Procedures Ü Franchises and Business partnerships Ü Joint Ventures and TechnologyTransfers

Education | Knowledge | Competence | Empowerment

For More Information and Details Please Contact Mr. Rohit Salunkhe - Director Tel: +91 – 22 – 6150 9800 / 6667 4444 | Fax: +91 – 22 – 2825 0414 / 2927 1750 Email: [email protected] | Website: www.smebschool.com Registered & Head Office: 3, Upper Ground Floor, Samruddhi Venture Park, Marol MIDC Industrial Estate, Andheri (E), Mumbai – 400 093. CO NNECT Foreword An Initiative of SME CHAMBER OF INDIA

Volume 6 | Issue 24 | August 2016 | 52 pgs

Dear Fellow SMEs,

The last three months have seen a number of significant events that impact and will in different ways shape the Indian SME sector. The passage of the long awaited GST Bill in Parliament brought some cheer to an increasingly easing paradigm. Of course the road ahead is hard still with various issues to be cleared and sorted as the states debate their adoption of the bill and make it a reality, but the first steps have been taken.

India’s 7.5%+ growth projection remains the beacon of hope in a world that is staring at economic stagnancy in more developed markets. The panacea stimulus of lower interest rates does not seem to be working well across large parts of the planet and regulators will be forced to examine growth issues more critically as well as creatively. But one thing remains starkly underlined – this is now India’s time. Our economic future is ours to build or fritter away depending on how innovative, agile and flexible we choose to be.

I am certain in my mind that we need to change the lens of our perspective. Instead of looking to developed economies to send us business we need to aggressively expand our footprint in those markets and create business for ourselves. At this time we must look at acquisitions, of businesses, assets, infrastructure and goodwill and leverage these to drive our economic impact globally. This is the time to focus on capital creation for leverage to grow business rather than merely for safe Chandrakant Salunkhe assimilation. Founder & President Small & Medium Business Development China’s growing interest in investing in Indian entities is a weathervane that we must track. That till Chamber of India recently Chinese capital – Chinese businesses remain the world’s most ardent capitalists – was more keen on opportunities elsewhere, but now has a sharper India focus should help us believe that they Email: [email protected] believe the next surge of economic growth will happen here. We must gear up to utilize it for India’s benefit.

On the home front, your Chamber put together two summits that focused on two critical areas for Indian business. The Electronic Payment Facilitation Summit in July spotlighted the need for easing liquidity for business through adoption of fintech plays. It was a valuable initiative that threw up deep insights. The SME Manufacturers & Exporters Summit combined with the Maharashtra Business Excellence Awards celebrated value creation and excellence as the foundation stones for future growth.

The Awards also threw up some outstanding stories of inspirational achievement including Badve Engineering, Supriya Lifesciences, Microscan, AD’s Finance and Sri Saigan Industries. To all SMEs who are troubled by what seems a less than conducive paradigm, I would like to say, these success stories have come from amongst us and their path can be emulated.

I am delighted to announce the appointment of Mr.Shrikant Badve of Badve Industries as the Brand Ambassador for Maharashtra Business Excellence 2016-17. I am sure his energies, experience and passion will bring value to the entire ecosystem.

In the coming months we will maintain focus on stimulating manufacturing, skill pool creation for SMEs, creation of a more easily accessible digital business framework, transparency, the working capital logjam and diversity in SME business. I hope you will reach out to us with not only your problems and issues but also your ideas and suggestions, so that everyone may benefit from your thought process and learnings.

My sincerest gratitude to our members, well-wishers,contributors, guest speakers, event sponsors and of course, our gracious advertisers.

© SMALL & MEDIUM BUSINESS DEVELOPMENT CHAMBER OF INDIA (SME CHAMBER OF INDIA). The concepts, activities and events have been designed by us and are exclusively the property of SMALL & MEDIUM BUSINESS DEVELOPMENT CHAMBER OF INDIA (SME CHAMBER OF INDIA). No part of the titles and contents or images should be used, reproduced, stored in a retrieval system or transmitted, in any form or by any means or discussed with any third party without prior written consent of SME CHAMBER OF INDIA.

SMALL & MEDIUM BUSINESS Views and opinions expressed in this magazine are not necessarily those of SME CONNECT,its publisher, printer, owner and DEVELOPMENT CHAMBER OF INDIA / or editors. We (SME CONNECT) do our best to verify the information published but do not take any responsibility for the absolute accuracy of the information. SME Connect does not accept responsibility for any investment or other decision taken by readers on the basis of information provided herein.

SMECONNECT– bi monthly Owner Printer Publisher Editor Mr.Mahesh Balasaheb Salunkhe, Printed at Hindustan Packaging, Unit No1,Kembros Industrial Estate, Sonapur Lane, Off L.B.S Marg, Bhandup (W), Mumbai - 400 078, Published at 101, Murlidhar Baldev Estate, Near Vikas Estate, Off Aarey Road, Goregaon (E),Mumbai-400063. Maharashtra. Editor - Mahesh Balasaheb Salunkhe. RNI No : MAHENG / 2011 / 48842 www.smeconnect.in gh03 Volume 6 | Issue 24 | August 2016 | CO NNECT Contents

Events £ SME Manufacturers & Exporters Summit | Maharashtra Industry and SME Meet 6 £ Maharashtra Business Excellence Awards 12 £ Electronic Payment Facilitation Summit 19 £ Netherlands India Business Meet 2016 42 £ Interactive Meeting with Dignitariesduring visit to UNITES STATESOF AMERICA 44 £ Interactive Meeting with Dignitariesat EUROPEAN BUSINESS SUMMIT 2016 46 £ Interactive Meeting with Dignitariesduring visit to BRUSSELS & SOUTH WALES 48

Success Story £ Badve EngineeringLimited, Pune 13 £ Supriya Lifescience Ltd., Mumbai 24 £ AD's Finance, Mumbai 33 £ Shree Saigan Industries, Aurangabad 38 £ Microscan Computers Pvt. Ltd., Mumbai 40

Articles / Interview £ An Exclusive Interview with Shri Suresh Khatanhar - CGM, IDBI Bank Ltd. 15 £ Indian ‘SME Enterprises Confidence Index’ & ‘State of Indian SME Sector’ Study 17 £ SIDBI’s pioneeringrole in Promoting & FinancingMSMEs 27 £ Key Developments in the MSME Space – MSME Minister’s Overview 30 £ Welcome Chinese Investors in India 31 £ SMEs & The Changed Financial Context 34 £ Marvelous Melbourne 35 £ Insight Germany 36 £ The Science and Art of Forex Risk Management 37 £ 5 Reasons for Start-ups to embrace RFID technologies 43 £ Factoring in India 45 £ Forex Risk and SMEs 47 £ GST: Road Map to Acche Din 49 £ International Commerce Made Easier – The Maersk Way 50

CO NNECT | Volume 6 | Issue 24 | August 2016 gh04 www.smeconnect.in MUMBAI BUSINESS FORUM An Interactive Bridge for Business Connectivity & Growth “Entrepreneurs, Industrialist, CEOs of Corporate, MNCs & FIs, SMEs and Start-ups” Launching of Forum

Shri CH. Vidyasagar Rao – Hon’ble Governor, Maharashtra launching the MUMBAI BUSINESS FORUM. Others (L to R) Shri Rajeev Kumar Agrawal – Whole Time Member, Securities and Exchange Board of India (SEBI),Shri Deepak Kesarkar – Hon’ble Minister of State for Finance & Planning,Shri Subhash Desai – Hon’ble Minister for Industries, Shri Chandrakant Salunkhe – Founder & President, SME Chamber of India and Maharashtra Industrial and Economic Development Association (MIEDA) as well as Founder of Mumbai Business Forum andShri Arun Tiwari – Chairman & MD, Union Bank of India. Objectives £ Interaction and Networking £ Experts Talksand Debates £ Business Opportunities and Business Conversations £ Exchange of New Business Ideas and Concepts £ Round TableDiscussions £ Branding, Marketing, Promotion £ Mentoring, Knowledge and Education £ Growth and Success Stories Focus On £ Integration of Entrepreneurs, Start-Ups £ Exchange business ideas and new concepts £ Explore Emerging Business Opportunity £ Recommendations and Business referrals £ Connectivity with large Corporate, MNCs and FIs £ Focus on Policy, Schemes and Incentives £ Interaction with top CEOs, Policy Makers & Bankers £ Deliberations on issues of Industry and SMEs £ Identification of Investment Partners £ Integration of Members from family businesses group £ Support to expand business contacts £ Finance, Investment, Venture Capital & Private Equity £ Guidance to set up New Business and Expansions £ Advance Technologyand Manufacturing Excellence £ Business Transformation and Succession Planning £ Brand Building and Business Promotion £ B2B with visiting overseas delegations £ Guidance to Young and Women Entrepreneurs Initiated by Co-Partner Co-Partner

IITC-INDIA MAHARASHTRA INDUSTRIAL AND SMALL & MEDIUM BUSINESS INDIA INTERNATIONAL TRADE CENTRE START UPs ECONOMIC DEVELOPMENT ASSOCIATION DEVELOPMENT CHAMBER OF INDIA (Investment & Trade Promotion Organisation) COUNCIL OF INDIA Chandrakant Salunkhe Founder & President, Mumbai Business Forum Registered and Head Office C/O. Maharashtra Industrial and Economic Development Association 3, Ground Floor, Samruddhi Venture Park, SEEPZ - MIDC Central Road, Andheri (E) Mumbai - 400 093. Tel : 022- 6150 9800 / 6667 4444 | Email : [email protected] | Website: www.mieda.in www.mumbaibusinessforum.com EVENT Annual Event SME MANUFACTURERS & EXPORTERS SUMMIT Theme: “Strengthening SMEs for Better Business & Export Growth” Maharashtra Industry and SME Meet and 23rd Foundation Day Celebration Organised on 19th August 2016 | Hotel Sahara Star, Mumbai

Inaugural Address

Shri CH. Vidyasagar Rao – Hon’ble Governor of Maharashtra delivering the inaugural address at the Summit.

“ am pleased to be associated with and Maharashtra Business Excellence Awards for opinions, suggestions and plans and the congratulate the SME CHAMBER OF their sense of devoted enterprise, who have Government would certainly help. He once IINDIA on their 23rd Foundation Day delivered in spite of numerous hardships, again cited examples of real life and its Founder and Chairman Shri from little or nothing and have become entrepreneurship in Amravati, Yevatmal in Chandrakant Salunkhe for having confident, self-reliant and have led by Maharashtra and in Andhra Pradesh too successfully steered the CHAMBER over example. The need of the hour was to develop when he was a Government servant/official, the last 23 years and for taking affirmative micro-level policies at sub-strata levels of then. steps for the empowerment of SMEs” . Such society so as to inspire entrepreneurship of His Excellency also emphasized the need to were the opening remarks by the Hon’ble small enterprises in search of sustained organize such meetings in all districts to Governor of Maharashtra, Shri CH. growth. He cited real life examples in the encourage the youth there towards ingenuity, Vidyasagar Rao at his inaugural address at course of his address. innovativeness and technology. Industry and this distinguished gathering of Captains of His Excellency, the Hon’ble Governor quoted Education had to work and function as one Industry and SMEs. a reference from the book – “ The Clash of towards skill development and skilling the His Excellency said that this summit was Civilizations” by Samuel Huntington where youth in rural and tribal areas too . organized at a most appropriate juncture India in the 1700’s was mentioned as the Success of the SME sector is closely inter when our Prime Minister is making serious richest country in the world based on its linked with the success of MAKE IN INDIA and all-out efforts to promote SMEs and agri–based enterprise . program. Government of Maharashtra is all Start-ups. He, the Prime Minister is most keen India was referred to as the ‘Golden Bird’ for the SME sector and the ease of doing that the youth from the metros and small then. He spoke of our strengths in Agro- business and he thanked the State for its towns be inspired to unleash their spirit of Processing and our philosophy of Ayurveda endeavor. He thanked all those present free enterprise and start their own small and that it was time for the ‘Golden Bird’ to fly especially Shri Chandrakant Salunkhe for his business activities. As a result of our Prime again and reclaim our place and role in the initiative in setting up of the MUMBAI Minister’s International diplomacy, the Committee of Nations with pride and BUSINESS FORUM and launching of the SME perception of the World towards India has privilege. CONFIDENCE INDEX. These would prove changed remarkably for the better. It is therefore time to revive and rejuvenate useful and beneficial for both State and His Excellency the Governor went on say that our position through the strength, enterprise Central Governments. He thanked the India will be the youngest country in the and dedication of our SMEs. Government of Maharashtra for being world in that by 2020 the average age of associated in this endeavour. He once again youth would be just 29 years. This is a He cited real life examples of innovations reiterated the need for practical suggestions. from the Agricultural and Engineering demographic dividend and we must His Excellency the Hon’ble Governor capitalize on this now. Universities in Pune and Parbhani respectively , which had been put into concluded his address and assured the For this to happen , we must accept practice and enabled and assisted rural distinguished gathering that the State of suggestions from the common man and make down-trodden to look at life with self- Maharashtra is committed to aiding and concentrated efforts to guide and catalyze the reliance and positivity . enabling a positive atmosphere , investment youth by promoting innovation & research , and economic co-operation as well as promoting skill development and Indian education institutes had churned out empowering SMEs and Industries . He stated encouraging our youth to become graduates without skills for long. It is for us to that he had great expectations from this entrepreneurs and in turn be job givers and change the mindset of our youth and Summit and looked forward eagerly towards not job seekers . encourage them to become entrepreneurs. the outcome of the deliberations and wished Hence please give us your meaningful He marvelled at the recipients of this year’s the Summit all and every success.

CO NNECT | Volume 6 | Issue 24 | August 2016 gh06 www.smeconnect.in EVENT Inauguration of the Summit

Shri CH. Vidyasagar Rao– Hon’ble Governor, Maharashtra inaugurating the Summit. Others (L to R) Shri Rajeev Kumar Agrawal – Whole Time Member, Securities and Exchange Board of India (SEBI),Shri Udai Kumar – MD & CEO, Metropolitan Stock Exchange of India Ltd., Shri Deepak Kesarkar- Hon'ble Minister of State for Finance and Planing, Shri Subhash Desai – Hon’ble Minister for Industries & Mining and Shri Arun Tiwari – Chairman & MD, Union Bank of India Launching of “MUMBAI BUSINESS FORUM”

Shri CH. Vidyasagar Rao– Hon’ble Governor, Maharashtra launching the All India Level SME CONFIDENCE INDEX.

CO NNECT | Volume 6 | Issue 24 | August 2016 gh07 www.smeconnect.in EVENT Keynote Address

Shri Subhash Desai – Hon’ble Minister for Industries delivering the Keynote Speech at the Summit hri Subhash Desai, Hon’ble Minister Government has reserved plots for these bureaucracy was in favour of only mega of State, commenced his address to particular segments with announcement of projects and is biased towards SMEs. This will Sthe distinguished gathering by subsidies on land cost and effected financial not be so as his Ministry is committed to thanking his Excellency the Governor of schemes leading to the cluster development devote maximum time, energy and resources Maharashtra, Shri CH. Vidyasagar Rao, his scheme in Kurkhumb near Baramati and towards the development of the SME sector, cabinet colleague Shri Deepak Sarkar, promoted by the Dalit Chamber of Commerce . which is our strength. Minister of State for Home, Planning and The Government has also announced special The Hon’ble Minister requested the Central Finance and all speaker dignitaries incentives for the SME sector by way of VAT Government and the Banking Sector to be present. refunds, stamp duty concessions and more. more open and un-biased towards SMEs and He thanked the Hon’ble Governor for having Such innovative cluster development, relating permit adequate and substantial funding spared his valuable time to be present and to specific Industries and sectors have also which is conducive to SME growth. The always inspirational in his approach. He also been effected in Dhule, Malegaon, Nashik, present scenario must change for the better. thanked Shri Chandrakant Salunkhe and his Aurangabad, Ratnagiri, Sangli and other RBI has issued guidelines for this, but no team for organizing this Summit dedicated to districts too . All this will provide the SME public sector bank has put these guidelines the empowerment of SMEs by promoting sector creative opportunities to handle into practice. We continuously write off bad their performance and exports. modern machinery, new technologies, skill debts to the tune of thousands of crores on The learned Minister went on to say that SMEs building and exposure to professional advice. account of large Industrial houses. were our strength and the Government of Besides, agro based industries will give boost So why we are so biased to the SME sector Maharashtra was singularly dedicated and to locally produced products and connected who contribute to nearly 40% GDP and who focused to them. SMEs would get beneficial exposure to the will certainly not disappear? We should lucrative International markets. Many SMEs In the SME sector alone, the State had more therefore increase share of finance to this will benefit with the establishment of these sector and Public sector banks must be more than 8000 crore rupees in investment and clusters. provided employment to as much as 50 lakh user friendly to micro, small and medium people and more. These came from the 3.50 Over the past two years the Government has industries. lakh SMEs registered with them and there introduced innovative policies towards ease The SME sector will certainly grow. The were many more, and not to mention the of doing business in the State. These include Hon’ble Minister mentioned the sterling countless MSMEs who also had to be bought the reduction of ‘red tapism’, reduction of examples of Shri Satish Wagh of Supriya Life within the ambit of registration. Concentrated permission and NOC’s required , removal of Sciences and Shri Srikant Badve of Creative efforts are on to identify and register them. the river regulation policy, simplification of Group who grew and came up of their accord NA permissions and one point approach to through strength of will and purpose from All these contribute immensely by providing the Collector who is empowered to dispose of employment, industrial growth and in turn zero and are now giants in their respective applications. FSI’s have been augmented in fields. exports. He was proud to say that at the agricultural land deals and all this harbors recently held MAKE IN INDIA week in well for SMEs by these good will gestures We are proud and happy for them and there February 2016 , of the 2600 MOU’s signed by from the Government. are many more such shining examples sitting foreign and national investors, as many as in this august forum belonging to the SME 2400 MOU’s were from the SME sector. The Government is duty bound and has to sector. work continuously to retain its position as the The Government is working in a very lead industrial State in the Country. He Shri Subhash Desai concluded his inspiring transparent and professional manner requested all to come and work together to address to all present and added that the towards managing of specific data and in its take the State forward. Foreign Direct success stories of the SMEs in front of him approach to easing SME infrastructure Investment [FDI] inflow has increased in were scripted because of their very own specifically in the areas of land, water, power, Maharashtra and is presently 35% of the total efforts, dedication, commitment and passion skilled manpower and certain resolutions FDI flowing into the Country. Exports are also with little or no Government assistance. The have been passed and put into motion. The growing. A modern container terminal is time is ripe for the Government to assist in online system is being revamped and made being developed at JNPT at Nava Sheva to be every way possible and he called on Shri more user and industry friendly, with the ready next year with Mumbai handling more Chandrakant Salunkhe for suggestions and tendering process being made more than 50% share. complaints and that the Government would transparent and accountable to all. sit and sort them out and attend to these so The hon’ble Minister of State was most Further, minimum 20% plots have been that all is resolved. Let us therefore come concerned about the grievances and together and take Maharashtra forward from allocated for MSMEs in each MIDC Industrial complaints of the SME sector which cannot be area. Also to commemorate the 125th birth strength to strength, so concluded the Hon’ble ignored nor forgotten. Many times he has Minister. anniversary of Dr Babasaheb Ambedkar, the received complaints and allegations that the

CO NNECT | Volume 6 | Issue 24 | August 2016 gh08 www.smeconnect.in EVENT Address by Dignitaries

Shri Rajeev Kumar Agrawal – Whole Time Member, Securities and Exchange Board of India (SEBI) addressing the delegates at the Summit. Others (L to R) on the diasShri Udai Kumar – MD &CEO, Metropolitan Stock Exchange of India Ltd., Shri Deepak Kesarkar – Hon’ble Minister of State for Finance and Planing,Shri CH. Vidyasagar Rao – Hon’ble Governor of Maharashtra, Shri Subhash Desai – Hon’ble Minister for Industries, Shri Chandrakant Salunkhe – Founder & President, SME Chamber of India and Maharashtra Industrial and Economic Development Association andShri Arun Tiwari – Chairman & MD, Union Bank of India

Shri Arun Tiwari – Chairman & MD, Union Bank of India addressing the delegates at the Summit. Others (L to R) on the dias Shri Udai Kumar – MD &CEO, Metropolitan Stock Exchange of India Ltd., Shri Rajeev Kumar Agrawal – Whole Time Member,Securities and Exchange Board of India (SEBI), Shri Deepak Kesarkar– Hon’ble Minister of State for Finance and Planing, Shri CH. Vidyasagar Rao – Hon’ble Governor of Maharashtra, Shri Subhash Desai – Hon’ble Minister for Industries and Shri Chandrakant Salunkhe – Founder & President, SME Chamber of India and Maharashtra Industrial and Economic Development Association

Shri Chandrakant Salunkhe – Founder & President, SME Chamber of India and Maharashtra Industrial and Economic Development Association addressing the delegates at the Summit. Others (L to R) on the diasShri Udai Kumar – MD &CEO, Metropolitan Stock Exchange of India Ltd., Shri Rajeev Kumar Agrawal – Whole Time Member, Securities and Exchange Board of India (SEBI), Shri Deepak Kesarkar – Hon’ble Minister of State for Finance and Planing,Shri CH. Vidyasagar Rao – Hon’ble Governor of Maharashtra, Shri Subhash Desai – Hon’ble Minister for Industries andShri Arun Tiwari – Chairman & MD, Union Bank of India

CO NNECT | Volume 6 | Issue 24 | August 2016 gh09 www.smeconnect.in EVENT Plenary Session – I STRENGTHENING SMEs FOR BETTER GROWTH – INITIATIVES AND STRATEGIES

Panelists (L to R)Shri Chandrakant Salunkhe – Founder & President, SME Chamber of India and Maharashtra Industrial and Economic Development Association,Shri Udai Kumar – MD & CEO, Metropolitan Stock Exchange of India Ltd (MSEI), Shri Debashish Mallick – Dy. Managing Director,EXIM Bank of India,Shri Satish Wagh – Chairman & Managing Director,Supriya Lifescience Ltd and Shri P.H. Ravikumar – Chairman, Bharat Financial Inclusion Limited during the Plenary session

Shri Udai Kumar – MD & CEO, Metropolitan Stock Exchange of India Shri Sanjay Sethi – CEO, Maharashtra Industrial Development Ltd (MSEI) addressing the delegates on MSEI: The Alternate Corporation addressing the delegates on Supporting SMEs to Investment Exchange of India enhance manufacturing activities – Initiatives of MIDC

Shri Debashish Mallick – Dy. Managing Director,EXIM Bank of India Shri Jamal Mecklai – CEO, Mecklai Financial Services Pvt. Ltd. addressing the delegates on Role of EXIM Bank for promotion of addressing the delegates on Forex Risk Management for SMEs Exports

Shri P. H. Ravikumar – Chairman, Bharat Financial Inclusion Shri Satish Wagh – Chairman & Managing Director, Supriya Limited addressing the delegates on Indian Financial Market Lifescience Ltd. addressing the delegates on Challenges & issues for Evolution - Challenges & Opportunities for SMEs SME Manufacturers and Exporters

CO NNECT | Volume 6 | Issue 24 | August 2016 gh10 www.smeconnect.in EVENT Plenary Session – II SUSTAINABLE INDUSTRIAL AND SME GROWTH – CHALLENGES & OPPORTUNITIES

Panelists (L to R)Shri M. Senthilnathan – Executive Director, ECGC Ltd., Shri Devendra Patil – Senior Director, DHL Express India Pvt. Ltd., Shri S. Maheshkumar– Director and General Secretary, SME Chamber of India, Shri K. G. Alai – CGM, SIDBI, Shri G. K. Kansal – CGM- SME Business Unit, State Bank of India,Shri Sanjay Tiwari – Head of Sales (Maersk Line Trade Finance), Maersk, Shri Sameer Narang - Associate Director (I), IDFC Bank Ltd. andShri Gautam Agarwal – Vice President - Forex, Kotak Mahindra Bank Ltd. during the Plenary session

Shri G. K. Kansal – Chief General Manager- SME Business Unit, State Shri M. Senthilnathan – Executive Director, ECGC Ltd. addressing Bank of India addressing the delegates on Next generation SMEs- the delegates on Credit Risk Insurance Cover - advantage & Strategies & Competitiveness for better growth benefits for SMEs

Shri K. G. Alai – Chief General Manager,SIDBI Shri Sanjay Tiwari – Head of Sales (Maersk Shri Devendra Patil – Senior Director, DHL addressing the delegates on Role of SIDBI for Line Trade Finance), Maersk addressing the Express India Pvt. Ltd. addressing the the empowerment of SMEs delegates on International Trade Finance & delegates on Enabling business beyond Business Opportunities for Indian SMEs boundaries

Shri Gautam Agarwal – Vice President - Shri Sameer Narang – Associate Director (I), Shri. Mahendra Vesawkar – Business Forex, Kotak Mahindra Bank Ltd. addressing IDFC Bank Ltd. addressing the delegates on Development Head, Tata Docomo Business the delegates on Managing forex risk using Structural recovery on the Cards Services addressing the delegates on Smart currency forward and options Solutions for Enterprises

CO NNECT | Volume 6 | Issue 24 | August 2016 gh11 www.smeconnect.in EVENT Presentation Ceremony MAHARASHTRA BUSINESS EXCELLENCE AWARDS - 2016 Organised on 19th August 2016 | Hotel Sahara Star, Mumbai Initiated by Co-Partner

MAHARASHTRA INDUSTRIAL AND SMALL & MEDIUM BUSINESS ECONOMIC DEVELOPMENT ASSOCIATION DEVELOPMENT CHAMBER OF INDIA

The Awards was presented by Shri CH. Vidyasagar Rao – Hon’ble Governor, Maharashtra in the presence of Shri Subhash Desai – Hon’ble Minister for Industries and Shri Chandrakant Salunkhe– Founder & President, Maharashtra Industrial and Economic Development Association (MIEDA)

MAHARASHTRA BUSINESS EXCELLENCE AWARD for Excellence MAHARASHTRA BUSINESS EXCELLENCE AWARD for Excellence in "MANUFACTURING SECTOR" to Badve Engineering Limited., in "SERVICE SECTOR - INFRASTRUCTURE" to SCON Projects Pvt. Pune.Award received by Shri Shrikant Badve – Managing Director, Ltd., Pune.Award received by Shri Nilesh Shankar Chavan – Badve Engineering Limited Managing Director,SCON Projects Pvt. Ltd.

MAHARASHTRA BUSINESS EXCELLENCE AWARD for Excellence MAHARASHTRA BUSINESS EXCELLENCE AWARD for Excellence in "EXPORT SECTOR" to Supriya Lifescience Limited., Mumbai. in "SERVICE SECTOR - FINANCE" to AD’S Finance (AD’S Award received byShri Satish Wagh – Chairman & Managing Consultancy Services Private Limited), Mumbai. Award received Director,Supriya Lifescience Limited. byShri Deepesh Nigam and Shri Anurag Shrivastava – Co- Founders, AD’S Consultancy Services Private Limited.

MAHARASHTRA BUSINESS EXCELLENCE AWARD for Excellence MAHARASHTRA BUSINESS EXCELLENCE AWARD for Excellence in "MANUFACTURING SECTOR" to Shree Saigan Industries, in "SERVICE SECTOR - IT" to Microscan Computers Pvt. Ltd., Aurangabad.Award received by Shri Kirankumar D Chilatre – MD Mumbai.Award received by Shri Sandeep Donde – Managing & CEO andShri Ajay Gandhi – Director,Shree Saigan Industries Director,Microscan Computers Pvt. Ltd.

CO NNECT | Volume 6 | Issue 24 | August 2016 gh12 www.smeconnect.in Success Story

Badve Engineering Limited, Pune

he story of Shrikant Badve, CMD, Badve Group, is painting on plastic parts, powder coating, ACED coating etc. We are inspirational. Especially, for all the enterprising young into manufacturing and supply of components, subassemblies for TIndians who aspire to be successful entrepreneurs. The two, three and four – wheelers such as Exhaust systems ( Silencers ), Badve Group is one of the leading component manufacturers in Chassis, Brake pedal, Gear change lever, etc. In plastics we make all automotive and home appliances sector. parts of motorcycle and various parts for FMCG such as refrigerators, After completing engineering graduation in Electronics and TV,microwave oven, air conditioners, etc, ”. Telecommunications with distinction from Jawaharlal Nehru The group boasts of renowned customers like - Bajaj Auto Ltd., Tata Engineering College, Aurangabad in 1987, Badve wanted to start his Motors Ltd., Honda Motorcycles & Scooters India Pvt Ltd , Ashok own business. I wanted to do something different rather than Leyland Ltd., Exide Batteries, Volvo, Suzuki, Yamaha, Eicher, follow the conventional path. Mr. Shiv Khera’s famous thought, Mahindra, Fiat, LG Electronics, General Motors, Faurecia “Winners don’t do different things, they do the things differently” Automotive Seatings and Royal Enfield. They have multistate inspired immensely. In fact, as an entrepreneur also it gave me the presence, in Maharashtra, Uttarakhand, Karnataka, Madhya Pradesh, courage to choose the untrodden path. I dreamt differently and have Gujrat & TamilNadu, Rajsthan . taken relentless and strenuous efforts to fulfill my dreams,”he says. So, what has been his success formula? “If you have mastered A young engineer belonging to a typical middle class family,with very technology, that is going to be the winning formula, particularly weak financial support is now a prosperous industrialist just within a in this competitive era,” he says. The company boasts of the world span of 28 years. He started his factory with only three workers at a renowned, Japanese innovated, ‘Total Productive Maintenance rented place of 150 sq ft. The first year’s turnover was just Rs One (TPM) System’. It is recognized as ‘tough to implement and continue’. lakh i.e. a mere Rs 8,000 per month. There was a time when Badve Badve has very high respect for Sueo Yamaguchi San as his TPM Guru. himself worked on the press machines “Yes, those were the Badve plants have adopted other progressive systems as well, struggling years. I had to do this to ensure the commitment given including implementation of SAP so as to integrate all our plants at to the customer for timely deliveries,” he says. various locations. At the time there were seven suppliers of Roller Brackets but there Today “Quite a few significant businessmen have influenced me, the was a perpetual scarcity of the component. Badve Engineering most important and my idol is Narayan Murthy of Infosys. I am utilized the latest if expensive tooling technique of using wire-cut die overwhelmed by his simplicity, actions, thoughts, wit, his concern for manufacturing. This resulted in good quality parts that developed staff and more by his futuristic approach. His entire prime time is customer confidence in him. spent for Infosys and taking Infosys to the top position in IT sector,” The journey, however, has not been easy “In the beginning I went Badve believes success is a ‘process’ leading to desired achievements through financial pressure as my factory capacity was highly and not the end result. According to him, “Well-planned, carefully underutilized and paying interest to the bank was also a tough implemented and controlled processes beget the results. Success challenge. Earlier, I worked as a tier II supplier. Many times is survival. Relentless efforts in the right direction always lead to personally delivering finished parts weighing almost 70 kgs by the ultimate goal”. scooter to save money.Due to hard labour health complications arose Badve encourages a spirit of competition among young aspirants. leading to hospitalization, but he persevered with hard work and “No ambition is bad when fair practices are adopted. High determination. ambition does not ruin anybody if conceived properly with a As was prevalent then, funding was a problem, Maharashtra State strong mind and apt application” he says. Financial Corporation did not accept his project since collateral But he is of the opinion that one cannot become a successful securities could not be provided; then Saraswat Bank came to the entrepreneur by sitting within one’s comfort zone. “You may relax rescue and played a major role in helping Badve Engineering grow. and retrospect for a while, but, to be a growth-oriented The ability to take calculated risks has also been a major contributor entrepreneur, you always need to be on your toes. This needs a lot to success. of physical and mental efforts to keep away from conventional Breaking into Bajaj Auto Ltd., was a turning point and Badve worldly comforts,” he thinks. Engineering grew with BAL. Today, @ 52 per cent of our business Shrikant Badve enthusiastically supports philanthropy Blood comes from there. This association was fueled by strict adherence to donation camps are arranged regularly and members of the group BAL’s stringent requirements of Quality, Quantity, timely completion donate blood in bulk. He also planted about 5000 saplings at of new Development and economics. Khandewadi, Aurangabad. “Today, Badve Engineering is an established supplier of automotive The group’s main goal is to expand the business and to nurture a components and aggregates, manufacturing sheet metal stampings culture in where employees not only enjoy the work but have fun too. and fabricated parts, plastic moulded components, having facilities The intent is to expand the business globally, and manufacture world including robotics and multiple surface treatments such as nickel class products chrome plating, heat resistance liquid painting, poly urethane

CO NNECT | Volume 6 | Issue 24 | August 2016 gh13 www.smeconnect.in RECOGNITION AmbassadorBRAND for MAHARASHTRA BUSINESS EXCELLENCE : 2016 - 17 at the hands of Shri CH. Vidyasagar Rao Hon’ble Governor of Maharashtra to Shri Shrikant Badve Managing Director Badve Engineering Limited, Pune

Shri CH. Vidyasagar Rao – Hon’ble Governor, Maharashtra presenting the memento of Brand Ambassador for MAHARASHTRA BUSINESS EXCELLENCE : 2016-17to Shri Shrikant Badve – Managing Director, Badve Engineering Limited., Pune in the presence ofShri Subhash Desai – Hon’ble Minister for Industries and Shri Chandrakant Salunkhe – Founder & President, Maharashtra Industrial and Economic Development Association (MIEDA) and SME Chamber of India

ROLE & RESPONSIBILITIES

Role Model as Successful Entrepreneur Mentoring and Supporting SMEs & Start-Ups Guidance to Entrepreneurs for Business Growth and Excellence Representation at Industry, Government and Overseas Active Involvement in Entrepreneurship Development Activities Sharing Knowledge and Views on Industrial Developments, Economy and Regulations Initiated by Co-Partner

MAHARASHTRA INDUSTRIAL AND SMALL & MEDIUM BUSINESS ECONOMIC DEVELOPMENT ASSOCIATION DEVELOPMENT CHAMBER OF INDIA

19th August 2016 Mumbai Interview

countries etc. to name a few. Trade finance is one of the factors and in my opinion our banking system is fully supportive to the manufacturers in extending trade finance. Currently, elongated global financial crisis is the main reason and I hope once global economies start recovering, Indian manufacturers will have substantial opportunities.

With the forthcoming launch of TReDS on the horizon, what are the key challenges you see for trade receivables factoring and how should they be addressed? Trade Receivables electronic Discounting System (TReDS) is an electronic platform for discounting both invoices as well as the bill of exchanges of MSMEs on the strength and credibility of the Corporates that procure goods. This will enable the MSMEs to realize the receivables at the earliest in transparent manner and improve liquidity. As all lending institutions participate through this platform for discounting bills of any MSME unit, competition will help to offer better price, resulting in reduction of post-production cost of credit for MSMEs.

We have to understand that discounting of bills takes place on the strength of the corporate and after acceptance of the bill/invoice in the electronic platform by the Corporate. Delay in honouring the bill on due date will be treated as a default by the Corporate and it will have wider ramifications. Challenge is how willingly corporates will accept the bill/invoice in the electronic platform and encourage the An Exclusive Interview with MSMEs to opt for the same. Shri Suresh Khatanhar Awareness level and skill set to utilise the platform by MSMEs, especially by micro and small will also be another challenge in the CGM, IDBI Bank Ltd. initial stage.

The Banking & Finance paradigm is in a state of flux in India What are the most important initiatives you feel Indian Banking today, what according to you are the most important issues needs to undertake in the future to support the Prime Minister’s facing Indian Banking today? Make in India initiative? The biggest concern is asset quality, resultant provisioning, impact Make in India is a noble vision of Honourable Prime Minister to on Capital Adequacy and the way forward for resolution. attract FDI and propel manufacturing growth. Enactment of Insolvency and Bankruptcy Law is expected to attract more Economic recovery globally is getting more prolonged than expected. investments. Passage of GST will improve business sentiment and The capacities built during good times by large corporates are still will stimulate growth in the long run. These developments are in the underutilized and creating stress in the system. However, Govt is interest of the banks as there will be credit growth and opportunity taking various policy initiatives to trigger domestic demand and to deploy funds. I understand that Banks are in a position to meet the speed up growth. Efforts are made to revive stalled infrastructure credit needs arising out of Make in India initiative. Capital adequacy projects. Results are already visible and we are the fastest growing may be a matter of concern in this context, however, Govt has made a large economy today. Implementation of 7th pay commission is detailed plan called ‘Indradhanush’ to address the issue of PSBs. expected to trigger consumer demand that will spur growth. What will be the impact of Digital India on Indian Banking & RBI on its part, initiated Asset Quality Review popularly called as business? AQR with an objective of cleaning the banks’ balance sheets and make Digitisation will help in creating various reliable data bases and data it more transparent. Though there have been short term pains, the warehouses. Banking being a customer centric service industry,data initiative has enhanced the credibility of the Indian banking system mining from reliable data base is essential for demographic and accordingly the future looks bright for banking industry. segmentation, understanding the lifestyle and pattern of the customers & developing customised segment specific products and Would you agree that trade financing has been a huge appropriate risk management tools also. Additionally, digitisation bottleneck for Indian manufacturing and has stopped India helps in migrating customer’s transactions to alternate channel like from aggressively expanding her global footprint? ATM, net banking, mobile banking, app based payments like e-wallet Not exactly. There are many factors that contribute to Indian which are more convenient, speedier and cost effective to both manufacturing in expanding its global footprint. Govt’s Exim policy, customers and banks. Therefore, with better business intelligence, stimulus packages, manufacturing policy, competitiveness of the digitisation will create huge impact and may completely transform product, exchange rate, economic growth and demand in other the way banking services are offered and business is carried out.

CO NNECT | Volume 6 | Issue 24 | August 2016 gh15 www.smeconnect.in Interview

Indian banking has often been accused of not treating banking cluster based approach in order to understand the unique as a business but as a privilege – what is your view on that? Does advantages and requirements of manufactures in a particular cluster Indian banking need to change some attitudes? and have rolled out cluster specific products to meet their needs. We That attitude might have prevailed long back and not in the present have entered into arrangements with various auto manufacturers scenario where there is stiff competition. Take the case of our bank, and taxi aggregators for funding under SRWTO scheme, particularly we have a robust sales set-up supported by relationship managers at for Micro segment. This initiative has resulted into gainful each and every branch, who reach the customer at their door step for employment for thousands of underprivileged youths. The efforts services. Though we are a late entrant to commercial banking arena, have helped the bank to ensure substantial flow of credit to MSEs and we have optimised our products and services to reach each and every it will continue. That apart, we are continuously providing strata of the society. For instance, our growth in Micro Enterprises vocational training and helping SME entrepreneurs in capacity business through branch channel is close to 159% during FY 16. We building through our Rural Self Employment Training Institute. surpassed the assigned target under Pradhan Mantri Mudra Yojana. We have reached some of the remotest areas also through Business Correspondent/Business Facilitator channel to serve the under What is your key message to Indian SMEs? privileged. Also the success of PMJDY, PMSBY, PMJJBY, APY, PMMY Contribution of SMEs to the Indian Economy is commendable. and the contribution of banking industry to these social schemes are Lending to SMEs is now looked at as a profitable proposition. well known to all. These are testimonies that banking is not extended However, the technological advancement, penetration of internet only to the privileged but to the masses and the poorest of poor. and advent of e-commerce portals and aggregators has thrown open opportunities and threats. A change in mindset to adopt new What are some key areas where IDBI Bank will support Indian technologies, technical tie-ups, creating common facilities for SMEs, SMEs over the next few years? sharing of resources will help in reaching economy of scale and Our focus would obviously be ensuring smooth and substantial flow sustainability. Transparency in accounting practices will be much of credit to MSMEs. Our bank’s priority is to increase the retail share appreciated by banking community and will be mutually helpful. and has planned for significant growth in MSME segment. We have simplified structured products for each and every segment of MSME like traders, service sector,manufacturers, transport operators and a separate product for receivables financing also. We are adopting

CO NNECT | Volume 6 | Issue 24 | August 2016 gh16 www.smeconnect.in SME CONFEX Indian ‘SME Enterprises Confidence Index’ & ‘State of Indian SME Sector’ Study Flagged Off By Governor of Maharashtra Mr. C Vidyasagar Rao S ME Initiated by Knowledge Partner C EX

SME CONFIDENCE INDEX SMALL & MEDIUM BUSINESS DEVELOPMENT CHAMBER OF INDIA A Majestic MRSS Company

“We want an economy with mass production and production by masses. The SME sector can help in generating substantial employment for the youth” – Narenda Damodar Modi, Prime Minister of India

he Small & Medium Enterprise is universally recognized as the engine for a nation’s economic growth. However, like almost any other kind of endeavour,for SMEs to deliver results and drive forward the economy, a vibrant, supportive ecosystem has to be created Tthat proactively addresses their most prominent needs and concerns. In the last two years much has changed at the ground level in a significant effort from the government side to improve the operating conditions of SMEs and to help them become globally competitive. This de-bottlenecking will allow the SME segment to create even more value and employment.

Launch Announcement of All India Level SME CONFIDENCE INDEX (SME CONFEX)

On August 19, 2016, the Governor of Maharashtra Mr. C Vidyasagar Rao, formally flagged off the SME Enterprises Confidence Index and the State of Indian SME Sector Report in the presence of Mr. Subhash Desai, Minister for Industry, Government of Maharashtra; Mr. Deepak Kesarkar, Minister of State for Finance, Planning & Home, Government of Maharashtra; Mr. Rajeev Agarwal, Whole Time Member SEBI; Mr. Arun Tiwari, CMD, Union Bank of India and Mr. Chandrakant Salunkhe, Founder President, SME Chamber of India.

This marked a significant shift in the approach towards SME centric decision making. This article talks about the SME Enterprises Confidence Index or SMEConfex, the State of Indian SME Sector Study, the need for these scientific research led initiatives, their significance to the SME ecosystem and the results expected therefrom.

CO NNECT | Volume 6 | Issue 24 | August 2016 gh17 www.smeconnect.in SME CONFEX

What are the ‘SME Enterprises Confidence Index’ & ‘State What is the Plan of Execution? of Indian SME Sector’ Study? The research framework is based on the renowned Porter’s Diamond The SME Enterprises Confidence Index is a measure of the prevailing model or Porter’s Five Forces model for the competitive advantage of SME sentiment with regard to their business prospects over the nations, developed by the acclaimed strategist Michael Porter of the coming period, basis their experience of the preceding period and the Institute for Strategy & Competitiveness at Harvard Business School. changes they have observed. The Index will be arrived at as a single The study will use a mix of qualitative and quantitative approaches to coefficient indicating this sentiment, but will be constituted from ensure scientific and rigorous examination. The qualitative portion several different components like regulatory framework, financial of the investigation will be based on free-flowing, unstructured, in- availability, infrastructure availability, macro- & micro-environment depth interviews with industry, economists and other relevant etc. experts to generate an enriched and comprehensive list of issues and The State of SME Sector study is intended as a statistically designed create cues for determining their relative weights. and executed research investigation based on more than 6500 The quantitative segment of the research will be based on structured industry interviews conducted across the country and various SME personal interviews across the country covering every region, segments. This study will yield logically quantified, empowering and industry segment and size segment. This part of the study will help us actionable information regarding relative weights of various arrive at the weights of various issues, their contribution to overall concerns SMEs have and the support they require, as well as their confidence, their prioritization and their impact on the SME sector. understanding, usage and attitudes towards various enablers made The study will ensure representation of all important clusters, available to them. whether geographical or sectoral. Why create the ‘SME Enterprises Confidence Index’ & All interviewers will be conducted with decision makers for the ‘State of Indian SME Sector’ Study’? enterprise to ensure enriched perspective. Most of the currently available information regarding SME needs and What is the Planned Frequency? areas of future effort is anecdotal and journalistic in nature. While The first or baseline study will encompass perspectives not only for these can form a good starting point for exploring needs, they are the current time but will also seek to track the evolution of the non-evidentiary and do not establish either hierarchy or weightage paradigm and confidence over the last three years to try and of different needs. establish the background. A scientifically designed investigation based on established The main investigation is intended to be repeated annually with the statistical techniques, of statistical significance and executed with option of quarterly or even monthly updates depending on stated world class rigor is the only way to establish relative importance of industry need and the response to the investigation. various issues, from which prioritized actionables can be derived for all stake holders including Governments, regulators, industry How Should Industry & Stake Holders Respond? partners, supporting infrastructure & services, as well as industry Any such massive effort can succeed only with unremitting industry initiatives that seek to support SME growth. support, inputs and perspective. We have received great response Developed economies have often been known to use such indexes as from regulators, policy makers and stake holders to the concept. a barometric gauge of the mood of the economy while directing their There is an opportunity here for companies that seek to do better policy making and environment creation using such studies as business with India’s burgeoning SME sector to add their queries to direction mapping tools. Both investigations and the consequent the investigation especially regarding the decision making matrix for reporting is intended to occur on an annual basis. product and service users, their usage and attitudes, their What are the Study Objectives? expectations and their response points. The global objective of the study will be to deliver actionable data on How ToEngage? SMEs in India with a view to obtaining an understanding of the With this announcement we are also signaling an invitation to confidence SMEs have of the ecosystem created. industry to engage with the SMEConfex secretariat on such In specific terms, we would seek to investigations, so that it becomes a more robust decision making tool for corporates active in the SME space. £ Monitor the health of SMEs in India Opportunities for engagement, participation, sponsorship and £ Calculate and report the impact of ecosystem creation efforts on representation are open and dialogue can be initiated with SME sentiment immediate effect. £ Identify, quantify and prioritize statistically the most urgent We invite contact and engagement and corporates, banks, FIs, needs of the SME ecosystem for growth and development Institutions and other stake holders can connect with the SMEConfex £ Identify pain points, bottlenecks and key thrust areas for future secretariat by reaching out to effort and their relative impacts £ SMEConfex CEO Amitabh Sinha on £ Uncover what more needs to be done to help improve operations [email protected] of existing SMEs £ SME Chamber of India General Secretary & Director S Maheshkumar on [email protected] £ Determine areas that require attention to enable new business £ Knowledge Partner MRSSI Managing Director Sarang to set up, survive and grow Panchal on [email protected]

CO NNECT | Volume 6 | Issue 24 | August 2016 gh18 www.smeconnect.in EVENT Conference on ELECTRONIC PAYMENT FACILITATION SUMMIT Opportunities and Challenges Organised on 29th July 2016 | Hotel Sahara Star, Mumbai Inauguration of the Summit

Shri Deepak Kesarkar –Hon’ble Minister of State for Finance, Planning and Home, Government of Maharashtra inaugurating the Summit. Others (L to R)Shri Rajesh Kumar – Chief General Manager, Digital and e-Commerce (Corporate Strategy & New Business) State Bank of India,Shri Porush Singh – Country Corporate Officer, India & Division President, South Asia, MasterCard,Dr. K Shivaji – Chairman & MD, Small Industries Development Bank of India,Shri Deepak M Sharma – Chief Digital Officer, Kotak Mahindra Bank and Shri Chandrakant Salunkhe – Founder & President, SME Chamber of India. Release of MasterCard Report on “SME BUSINESS ENVIRONMENT INDEX”

Shri Deepak Kesarkar –Hon’ble Minister of State for Finance, Planning and Home, Government of Maharashtra Releasing the MasterCard Report onSME BUSINESS ENVIRONMENT INDEX. Others (L to R) Shri Amitabh Sinha – Director (Finance & Investment), SME Chamber of India,Shri Deepak M Sharma – Chief Digital Officer, Kotak Mahindra Bank, Shri Chandrakant Salunkhe – Founder & President, SME Chamber of India,Dr. K Shivaji– CMD, SIDBI, Shri Porush Singh – Country Corporate Officer, India & Division President, South Asia, MasterCard,Shri Rajesh Kumar – CGM, Digital and e-Commerce (Corporate Strategy & New Business) State Bank of India and Shri Rohan Mishra – Vice President, South Asia, Global Policy Affairs & Community Relations, MasterCard

Inaugural Address

Chief Guest, Shri Deepak Kesarkar,Honourable Minister of State cyber-fraud and the need to fight cyber crime and for educating for Finance, Planning and Home (Rural), Government of and creating awareness among all users. Cyber crime had to be Maharashtra spoke about the importance of SMEs and of the controlled or else people will not have faith in e-payment and e- vital role they play in ‘Make in India’, ‘Make in Maharashtra’ and commerce he said. The Minister reiterated the government’s the importance of Digital India. He spoke of the prevention of commitment to digitization and facilitating SME growth.

CO NNECT | Volume 6 | Issue 24 | August 2016 gh19 www.smeconnect.in EVENT Keynote Address

Dr. K Shivaji– Chairman & MD, Small Industries Development Dr Shivaji stressed that knowledge and new technology adoption will Bank of India (SIDBI) spoke on the power of digital technology, the enable SMEs to stay ahead of the curve, thereby saving time, money ease and functional freedom it would provide to all SMEs. Wireless and maintaining a competitive edge through better cash flows via and digital solutions would bring about fastest and choicest faster trade receivable turnaround. SIDBI has always been in the alternatives with secure and effective penetration. This IP-centric forefront of SME enablement and is committed to build and approach would drive down costs, create more activity and in turn transform the changing financial landscape with universal mobility, enhance productivity. He also addressed the importance of agility business acumen and set targets with bold vision. and innovativeness in using the smart phone as a facilitation tool.

Theme Presentation

Shri Porush Singh – Country Corporate Officer, India & Division of interest. Those who used digital payments would make more President, South Asia, MasterCard highlighted the importance money more efficiently. In short there is an inherent value in and need for digitization in an efficient and easily understood electronic payments. manner for the nearly 5.77 crore SMEs who contribute to 40% of India’s GDP. 13% of MasterCard’s workforce is based in India and this would be increased as and when the situation demands. MasterCard is also He stated that 40% SMEs transact digitally and they make more working with other platforms to enable SMEs to commence money,earn higher profits, reach more customers and provide better transacting through other digital payment mechanisms. Disruptions employment on a larger scale. Electronic payments are critical for are part of growth. We must embrace technology, progress and move this segment as it assists in better cash flows, profit forecasting, rapidly forward where there is growth for all and in turn for the better business visibility, increased access to credit, improved economy. sources of financing for payables and receivables and reduced rates

Delegates at the Summit

CO NNECT | Volume 6 | Issue 24 | August 2016 gh20 www.smeconnect.in EVENT Address by Dignitaries

Shri Chandrakant Salunkhe – Founder & President, Small & Medium Business Development Chamber of India (SME Chamber of India) started by speaking about the recently released Google Inc – BCG Report which indicates that India’s digital payments will be worth $ 500 billion by 2020, generating nearly 80 million jobs with the transformation and utilization of the e-commerce platform. He congratulated MasterCard on playing a crucial role in creating this engagement between the digital payment ecosystem and industry as well as regulators. Mr. Salunkhe talked about opportunities and challenges and the strengths of the digital platform. Simultaneously he spoke about cyber crimes, fraud and phishing threats to digital payment growth. He said it is the priority of SME Chamber of India to educate and create awareness amongst all SMEs and other stakeholders.

Shri Deepak M. Sharma, Chief Digital Officer, Kotak Mahindra Shri Rajesh Kumar – Chief General Manager, Digital and e- Bankdiscussed the need for collaborative partnerships and Commerce (Corporate Strategy & New Business) State Bank of expressed his opinion that growth would be driven by the service India spoke of his experience in Germany and that SMEs there sector, especially domestic growth and by smaller businesses. His possessed more patents. He went on to say that conditions were Institution stands committed to electronic payment platforms. He congenial in India and we were ahead in many respects. emphasized the need of the hour to switch to electronic eco-systems by building one’s own payment eco-system through digital portfolios He envisioned the obsolescence of plastic money, and its by evolving collaborative partnerships and benefit by easy access to replacement with virtual cards and wallets. This would have positive timely credit. impact on SMEs through the tremendous use of mobile tablets and in turn digital money.

The virtual card process has commenced. Boundaries between banking for day to day needs, B2B, B2C and other financial products will vanish and all these and more will be transacted seamlessly through omni-channels via mobile phones, tabs, laptops etc.

Shri Navin Jain – Vice President, Global Products & Solutions, South Asia, MasterCard addressed the delegates on MasterCard Report on SME Business Environment Index

CO NNECT | Volume 6 | Issue 24 | August 2016 gh21 www.smeconnect.in EVENT Session - I : Panel Discussion on "Digital Payments Framework –Opportunities, Challenges and Perspective”

Panelist (L to R) on the daisShri Krishnakumar Dharmaraj – ED & Head, Commercial Banking, Transaction Banking, South Asia, Standard Chartered Bank,Shri Debajyoti Gupta–– General Manager, Union Bank of India, Shri Mehul Mistry Director, Digital Banking, IDFC Bank, Shri Rohan Mishra - Vice President - South Asia, Global Policy Affairs & Community Relations, MasterCard andShri Amitabh Sinha – Director (Finance & Investment), SME Chamber of India during the Panel Discussion on "Digital Payments Framework –Opportunities, Challenges and Perspective"

The topics discussed were digital payment frameworks, SMEs It was stated that players should address client needs depending on financing, technology fast tracking, role of PSU Banks, building a their preferences; utilize data analysis levels, partner and digitize so faster and safer electronic system and our learning from other as to ascertain and manage consumer consumption and purchase countries. patterns. The menace of online fraud and phishing and requirement of creating continued and increased awareness to all customers was The panel discussed SMEs concerns about inadequate cash flows, mentioned. Banks should follow best security measures and high debt, negligible funding, limited payment visibility and lack of practices to reduce fraud, introduce tokenization and block chain timely bank finance. SME finance is a thrust area for PSBs and the technology. situation is being closely tracked at executive management level. Bank efforts to digitize the loan process were discussed. India needs to make the right kind of investment in Cyber security where the business of trust is the fundamental pillar and where there It was discussed that there was a distinct buyer disinterest in is no dampening of consumer confidence. Customers should also adopting digital payments due to issues of transparency required. invest in security. There is an intense need to create and build a seamless payment ecosystem for consumers and which required interoperatorbility of all participants on a universal platform, always in a dialogue and collaborative mode. There is a need for less competitiveness and more collaboration amongst all players. High ‘point of sale fees’ need to be rationalized .

CO NNECT | Volume 6 | Issue 24 | August 2016 gh22 www.smeconnect.in EVENT Session - II : Panel Discussion on "Digital Payments Paradigm Evolution: Where are we and where are we going?"

Panelists (L to R) on the daisShri Arijit Roy– Head, Business Development, Happay, Shri Ritesh Agarwal – Founder & CEO, FonePaisa Payment Solutions Pvt. Ltd.,Shri Nalin Bansal– Vice President, BBPS, National Payments Corporation of India, Shri Jaishankar A.L. – Vice President (Strategic Alliances), Tally Solutions Pvt. Ltd.,Shri Ravish Jhala – COO, Cognizance Enterprise Services and Shri Navin Jain – Vice President, Global Products & Solutions, South Asia, MasterCard during the Panel Discussion on "Digital Payments Paradigm Evolution: Where are we and where are we going?"

he discussion opened with the existence of cards, gateways, The question of challenges SMEs would face if they had to mobile wallets and other solutions all vying for attention as incorporate digital payments was addressed. The need to route Ttransactions went digital . Platforms were already there and payments through smart phones and the need for more digitization as there is innovation, consolidation will take place. The apps which at source were offered as solutions. The panel felt that Banking is appeared early were discount based and as the customer became critical but banks are not so there is need to integrate and aggregate choosy, these were quickly forgotten. There must be sufficient interoperatorbility into applications. interoperatorbility for the digital paradigm to work and co-exist. Shri Navin Jain added that most payments revolve around smart Education and awareness of banking, finance, digitization and cyber phones. So there was a great need to incentivize schemes to induce crime were discussed as a must - a concerted educative program is SMEs to use digital platforms. But then someone has to lead the way vital. Biometric authentication to minimize fraud and accurate and Government should incentivize to encourage SMEs and small management of terminals was suggested. However, there was a view businesses to adapt and adopt digital systems in a pro-active manner. that biometric approach for authentication could be risky. Shri Jaishankar said that adoption will come at scale when SMEs The need to get payments to SMEs in time was discussed as a key feel that the systems are simple and inclusive and also how all imperative. Panelists talked of the existence of two realms, B2C and relevant payment systems will get together to make life more B2B; for the former, one has to calculate cost of risk, cost of finance, convenient to run businesses . He also added that GST will go a long cost of ATM v/s POS and then integrate efficiently in a collaborative way in getting things organized and we should continuously look at manner so that it is simplistic and easy to reach the customer.For B2B going the digital way .It may not be a cashless economy but a less cash there is a need for Banks to effectively design business focused on economy! It is also how we get across to SMEs en masse. SMEs are growth in a seamless manner for receivables and payables as SMEs largely ignored. We must get across to SMEs continuously and for that have multiple bank accounts. This calls for better integration at we have to simplify. affordable costs . Shri Ritesh Agarwal and others were one in saying that more voices SMEs work in core and non-core areas, from providing goods and were being raised than in 2015 about the emphasis on digitization services to providing credit. A routing or escrow account where SMEs and RBI and Finance Ministry would definitely see and do justice in would park their money first could be a solution, especially as SMEs incentivizing digital payments, come 2017. are skeptical about banking support. Shri Navin Jain thanked all the panelists for their contribution to this Mindsets need to be created and benchmarks set for the entire eco- most educative session and presented bouquets to all. system to work together. This isn’t easy as we have to first understand perspectives of each other and thereafter engage and Shri Amitabh Sinha conveyed his deepest and sincere thanks to all evolve together in a mature manner. The biggest challenge faced by panelists for their absorbing and interesting discussions and who SMEs is reconciliation of receivables and payables. We have to work contributed in a brilliant manner to the discourses. He also thanked out multiple payment systems thereby helping SMEs to build the the audience who sat patiently through the day and who were flexibility that suits their markets, their businesses and their present in numbers despite bad weather. business cycles. Specific cases should be identified and solutions built accordingly to effect settlements. How all specific information is A lot of ground was explored and covered today and we need to focus used to build into the SMEs system is most important. on and build consensus and move along positively, so concluded Shri Amitabh Sinha.

CO NNECT | Volume 6 | Issue 24 | August 2016 gh23 www.smeconnect.in Success Story

Satish Wagh Chairman & Managing Director

How and when did you start your business? I, Satish Waman Wagh born on 29th Dec 1955, hail from a Maharashtrian middle class working family, being the second amongst the five siblings of three sisters and a younger brother.After working as a Plant Supervisor in a Bulk Drug manufacturing company for about 10 years and gaining valuable experience, in strength which is most important requirement for a start-up. I begun 1987, I took a bold decision to quit the job and start my own chemical with a meagre investment of Rs 50,000/- supported mainly by my manufacturing business. mother and younger maternal uncle. The shift to APIs manufacturing was a very huge decision but typical What was the reason and motivation for starting the of my natural instinct to accept greater challenges in this complex business? Also, mention the reason for choosing the field of Chemical manufacturing. This bold decision has today specific sector/segment? culminated in Supriya becoming the largest manufacturer of I have completed my basic graduation in Economics and also Chloropheniramine maleates in the World and as if to vindicate my Chemistry from University of Mumbai. I had seen my mother work decision, we are today exporting this product in bulk quantites to with great distinction in the national social field and have also seen China. my father work with great integrity as a Public Relations Manager. Thus driven by the deep rooted values of honesty, integrity, During this tenure I have been blessed by God to find enough strength dedication, hard work, a deep sense of national pride inherited from to carry out social service in national interest without any my parents and the basic background of economics, the idea of expectation. starting my own unit started taking shape in my mind. Today, I am the VICE CHAIRMAN OF CHEMEXCIL. I have been Probably the initial nurturing by my uncle in the field of chemical leading this Council for more than 8 years & taking care of 47 manufacturing generated a lot of interest in me to choose the field of Billion Dollars of India’s chemical exports. Chemexcil has 6400 Chemicals. Further Chinese imports into India had begun creating Manufacturers from all over India. huge challenges for the Indian manufacturer. The inner instinct of In last two decades of manufacturing and exporting business, the national interest pushed me to accept this challenge and take on the company has achieved more than 25 awards for its outstanding Chinese competition. The shift to manufacturing of Active achievements in various operation of business. Such as Best Pharmaceutical Ingredients was natural as the Pharmaceutical Quality Award, Best R & D, Consistent Export growth and segment was witnessing a paradigm shift in the nineties opening up Consistent Performance etc. from various government and non- great opportunities. As they say every challenge always opens up a government organizations, significantly two prestigious State bigger opportunity. and four National Awards presented by the likes of Hon’ble Dr.Abdul Kalam, Hon’ble Dr.Manmohan Singh, by Hon’ble Explain about your journey so far, which were the major Pratibha Patil’,Hon.Rajendra Darda . ups and downs that you witnessed in your business and what are the learnings? The major learnings in this fascinating journey is that you will always It has been a fascinating journey so far starting right from my face different challenges and need to keep finding a solution to experiences as a Production supervisor in my Uncle’s factory to overcome them. People are always there to help you as long as your starting my initial business in textile auxillary manufacturing and intentions are good. You need to be humble enough not to forget now owning a Rs 200 crore API unit in the form of Supriya Life people who have helped you. I have been lucky enough to have met Science Limited. It is quite natural that such a long journey of 30 years the likes of Smt Mrunal Gore, Shri Suresh Salvi , Shri Sharad Kale, Shri would always have its ups and downs especially for a first generation M.S. Patwardhan, Shri Ntin Nabar ,Shri Sharad Upasani, Dr. M.M. entrepreneur like me. Sharma,Shri Rajeev Kher, Shri Banthiya , Shri Madhukar Sarpotdar, The initial biggest challenge was to find adequate funding to start my ShriManohar Joshi, Shri M.S Bagadi. own Factory. I had approached all my relatives but they could offer Here I would like to mention the name of Dr. Shankar Karmarkar me only their best wishes. However my mother stood firmly by my separately whose contribution has been invaluable to my success side and she gave me the initial funding. It was not too huge however story and to whom I shall ever remain indebted. it was supported by her whole hearted blessings. It gave me the moral

CO NNECT | Volume 6 | Issue 24 | August 2016 gh24 www.smeconnect.in Success Story Please explain 5 major reasons in detail as to why you Your message to the struggling SMEs to not only survive have been selected for India SME Excellence Award? but thrive in the present market conditions £ Supriya Life Science has been performing consistently and has £ Always be respectful and humble to your parents and have a registered a very healthy growth rate of 20-25 % over the last 12 sense of responsibility towards your family. They are the pillars years. In the last 12 years the company TO has increased from of your citadel. 13.0 crores to 185 crores. £ Take good education and become resourceful in your attitude. £ The company has also performed exceptionally well in terms of £ Have high ambitions but also be flexible in your approach. exports and has been given the status of Export House. From a small beginning of exporting to 15-20 countries, today Supriya £ Work hard and with dedication and integrity Life Science Ltd is exporting to more then 85 countries, a fact £ Always be grateful to those who have helped you especially in which was like a pipe dream in the early years of this company’s your earlier bad days. growth story. At the same time, the company is also a major supplier of APIs to the local market taking care of the growing £ Yourgrowth story will always have its waxing and waning period. needs of its own country’s population. This has been achieved by You need to have a back up plan ready to overcome the bad days. offering products at the most competitive rates and also at times £ People are always ready to help you as long as your intentions are at rates bettering that offered by the country’s main competitor, noble. China. £ Always strive to inbuild honesty, dedication and integrity in your £ The company has not only achieved not only financial success but approach as in the long run these are the values which gives you also has become a technical power house offering more than 50 the maximum satisfaction. products which have been developed in its in- house R & D centre for customers all over the world. The company has a small but £ Trust in the Almighty and work with your full energy. vibrant R & D which is constantly working to improve its £ Success is always there and only there for those who Strive to processes of existing products and add new products. achieve it. £ The company today has become a force to reckon with in terms of the quality of products it offers and also as a solution provider to complex requirements of the API industry such as particle size distribution, polymorphic forms forwarded by customers. £ The company has already received several certifications such as ISO 9001 and WHO GMP.The company facility has been receiving regulatory approvals from various international approving bodies such as US FDA, EDQM, etc since the last few years. £ The main manufacturing site at Lote in Ratnagiri had undergone US FDA certification audit inspection in mid April 2016 successfully for two products namely Chloropheniramine maleate and Bromopheniramine maleate. This is indeed a significant milestone in the history of the company’s growth story. This achievement is more significant in the face of the current trend of many reputed companies being issued notices by the US FDA authorities questioning their systems. £ Growth is a very important part of any company’s future survival. Keeping this is mind the company has invested in crores to develop two new sites. Once of these sites at Chiplun has started operations in April 2016. The other site at Ambernath is scheduled to commence operations in Oct 2016.

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Banking & Finance

SIDBI’s pioneering role in Promoting & Financing MSMEs

Shri K. G. Alai Chief General Manager, SIDBI

mall Industries Development Bank of India (SIDBI), set up on April 2, 1990 under an Act of Indian Parliament, functions as the Principal Financial Institution for the Promotion, Financing and Development of the Micro, Small and Medium Enterprise (MSME) Ssector and for Co-ordination of the functions of the institutions engaged in similar activities. SIDBI has its HO at Lucknow and Corporate Office at Mumbai. It operates through a network of 80 plus branches across the country. Financial support to MSMEs is provided by way of £ indirect finance / refinance to eligible Primary Lending Institutions (PLIs), such as, banks, State Financial Corporation’s (SFCs) etc having a combined branch network of over one lakh for onward lending to MSMEs, and £ direct assistance with focus on the niche areas. mature markets Factoring is a preferred alternative to banking finance especially for the likes of high growth but cash trapped SMEs

Differentiation made through niche interventions: SIDBI provides direct finance, with special focus on the following areas, Quasi - Equity Assistance: With a view to ameliorating the problems faced by the MSMEs in accessing growth capital, SIDBI provides risk capital to support the growth requirements of MSMEs including leveraging of senior loans, marketing / brand building, technical knowhow, etc. where such investments are non-asset creating. This type of quasi-equity support is collateral free, having higher moratorium on repayment and a flexible structuring. Addressing Delayed Payments: In order to help the MSMEs for quicker realization of their receivables, SIDBI has been operating Receivable Finance Scheme under which it fixes exposure limits for well-performing purchaser companies and discounts receivables / usance bills of MSMEs supplying goods and services to such purchasing companies, so that the MSMEs / service sector units realise their sale proceeds quickly. Sustainable Development: As a part of its Green initiative, SIDBI has developed specialized loan schemes to promote energy efficiency (EE), cleaner production (CP) and environment protection in the MSME sector. SIDBI also disseminates information on various EE/ CP measures for the benefit of MSMEs. Service Sector Financing: In view of the growing importance and share of service sector in GDP, employment and entrepreneurial opportunities, SIDBI has been focusing on financing of service sector activities.

Aligning with Government of India & Reserve Bank of India (RBI) programmes for MSMEs: Government of India has recently launched an ambitious ‘Make in India’ campaign to make India a manufacturing hub and has identified 25 sectors under the ‘Make in India’ initiative. To take forward the Government’s initiative and help MSMEs take part in the Government’s ‘Make in India’ initiative, SIDBI has launched a `10,000 crore ‘SIDBI Make in India Soft Loan Fund for Micro, Small & Medium Enterprises (SMILE)’ to make available soft loan to MSMEs, in the nature of quasi-equity to meet the required debt-equity ratio and also term loan on relatively soft terms for establishment of new MSMEs, as also for pursuing opportunities for growth of existing MSMEs. Focus will be on all the identified 25 sectors earmarked under Make in India Programme of Government of India, or other sectors as may be added, to the Make in India Programme.

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To further address the problem of delayed payments of MSME sector, Reserve Bank of India (RBI) has granted an"in-principle" approval to three companies including a joint venture between Small Industries Development Bank of India (SIDBI) and National Stock Exchange's NSE Strategic Investment Corporation Limited (NSICL) to set up and operate a new Trade Receivables e-Discounting System (TReDS) to be formed under the Payment and Settlement System (PSS) Act 2007. TReDS will allow MSMEs to upload their bills on the system and get them discounted electronically at competitive rates on the same day. As part of up-scaling its initiatives to address the gaps in the start-up eco-system, SIDBI has created an on-line platform www.sidbistartupmitra.in. The portal enables start-up entrepreneurs to get connected with various stakeholders, viz. incubators, mentors, angel networks, venture capital funds, etc. Around 500 start-ups, 48 incubators and 50 investors had registered on this platform as at end of March 2016. India Aspiration Fund (IAF) was launched by SIDBI with a corpus of ` 2,000 crore to give boost to start-up Venture Capital ecosystem in the country.IAF acts as Fund of Funds managed by SIDBI and contributes to MSME-focussed VCFs, which enables the latter to raise private capital, thus enhancing their capacity to invest in equity of start ups and growth stage MSMEs in the country. Stand-up India Scheme of Government of India is intended to provide credit in the range of` 10 lakh to` 1 crore, to at least two new enterprises (one enterprise of SC/ST and one of woman) per bank branch across the country. It is expected to benefit at least 2.5 lakh borrowers. The Stand-up India Scheme is strengthened through refinance support from SIDBI with an initial amount of` 10,000 crore and by creation of a credit guarantee mechanism through the National Credit Guarantee Trustee Company (NCGTC), an associate of SIDBI. In order to foster smooth implementation of“Stand-Up India” Scheme, SIDBI has developed a comprehensive web-portal “www.standupmitra.in” which is designed to obtain application forms, provide information, enable registrations, provide links for handholding, tracking and monitoring. SIDBI has recently operationalised another portal viz.,www.udyamimitra.in, which offers various on-line facilities like MUDRA loans (upto```` 10 lakh), Stand-up India loan for SCs / STs & Women ( 10 lakh to 100 lakh) & SME Loans (presently upto 100 lakh). The portal provides access to 1.25 lakh bank branches and 17,000 plus hand-holding agencies who assist in filing of applications, providing financial training, skill training, mentoring, access to margin money,subsidy,etc. Ministry of MSME, Govt. of India has allocated` 60 crore to SIDBI under Scheme for Promotion of Innovation, Rural Industry and Entrepreneurship (ASPIRE) for managing the fund through investing in VCs with investment focus on start-ups and early stage enterprises in the areas of Rural and Agro based Industries.

Credit Plus Approach SIDBI adopts a‘Credit Plus’ approach by providing various Promotional & Developmental (P&D) support as given below: Promoting Youth Entrepreneurship: SIDBI has developed a website www.smallB.in, which is a virtual mentor and handholding forum for the potential / budding and even existing entrepreneurs to set up new units and grow the existing ones. MSME Advisory: With a view to help MSMEs in obtaining credit, SIDBI has set up MSME Advisory Centres (MACs), in partnership with industry associations, to guide new / existing entrepreneurs regarding availability of schemes of banks / FIs, government subsidies / benefits, provide borrowers with debt counselling, answering queries raised by banks, financial linkages etc. Skill Development: With a view to strengthening the technical and managerial capacities in the MSME sector, the Bank supports reputed management/ technology institutions to offer certain structured skill management / development programmes, viz. “Skill-cum-Technology Upgradation Programme” (STUP) and “Small Industries Management Assistants Programme” (SIMAP). Cluster Development: SIDBI has adopted cluster-based approach for providing credit and non-credit support to the MSME sector. Under cluster development approach, SIDBI provides various Business Development Services (BDS), such as, new technologies, use of IT, skill development, energy efficiency,marketing, etc. Other services provided by SIDBI: promotion of micro enterprises at rural areas through Micro Enterprises Promotion Programme (MEPP), capacity building of Regional Rural Banks (RRBs) / Urban Cooperative Banks (UCBs) and financial inclusion programmes to improve credit access for poor men nad women in low income states.

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SUBSIDIARIES & ASSOCIATES:

SIDBI Venture Capital Limited: SIDBI Venture Capital Ltd. (SVCL), a India SME Technology Services Limited: India SME Technology subsidiary of SIDBI, is an investment management company, Services Limited (ISTSL) offers technology advisory and presently managing seven funds with a cumulative corpus of `1,902 consultancy services for projects / assignments related to Energy crore as on March 31, 2016, namely, National Venture Fund for Efficiency and Demand Side Management, Renewable Energy Software and Information Technology Industry (NFSIT) with a (particularly solar) etc. ISTSL also provides services such as committed corpus of `100 crore, SME Growth Fund (SGF) with information on technology options, technology match making, committed corpus of `500 crore, India Opportunities Fund (IOF) business collaboration and organizing seminars. with a drawable corpus of `421.30 crore, Samridhi Fund (SF) with a committed corpus of `440 crore, TEX Fund (TF) of `40.83 crore, West Bengal MSME VC Fund (WB Fund) with a targeted corpus of ` 200 crore and Maharashtra State Social Venture Fund (MS Fund) with a targeted corpus of ` 200 crore. India SME Asset Reconstruction Company Ltd.: India SME Asset Reconstruction Company Ltd. (ISARC) is the country's first MSME focused Asset Reconstruction Company striving for speedier resolution of non-performing assets (NPA) in the MSME sector by unlocking the idle NPAs for productive purposes which would Micro Units Development and Refinance Agency: As per the facilitate greater flow of credit from the banking sector to the announcement in Union Budget 2015-16, Micro Units Development MSMEs. & Refinance Agency (MUDRA) was launched as a subsidiary of SIDBI with the main purpose of funding the unfunded by way of providing access to institutional finance to the small units upto `10 lakh.

National Credit Guarantee Trustee Company Ltd (NCGTC) was set up by the Department of Financial Services, Ministry of Finance, Government of India to, inter-alia, act as a common trustee company Credit Guarantee Fund Trust for Micro and Small Enterprises: In to manage and operate various credit guarantee trust funds, viz. order to encourage banks to lend more to micro and small Credit Guarantee Fund for Skill Development (CGFSD), Credit enterprises (MSEs), Government of India and SIDBI set up the Credit Guarantee Fund for Education loans (CGFEL), Credit Guarantee Fund Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) in for Factoring (CGFF) etc. NCGTC is also the implementing agency for July 2000 to provide credit guarantee support to collateral free / MUDRA Credit Guarantee scheme and Credit Guarantee Scheme for third-party guarantee free loans upto `100 lakh extended by banks ‘Stand-up India’. SIDBI provides management and infrastructural and lending institutions for MSEs. support to NCGTC.

SMERA Ratings Limited: SIDBI, along with Dun & Bradstreet (D&B) and several Public and Private Sector banks, set up the SMERA Ratings as an MSME dedicated third-party rating agency to provide comprehensive, transparent ratings to MSMEs.

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Key Developments in the MSME Space – MSME Minister’s Overview

ransparency and accountability are the key changes in implementation of schemes during last two year in MSME Ministry stated by Kalraj Mishra, union minister For MSME and Giriraj Singh Minister of State(MSME) Tduring there interaction with media. Interesting stats shared by the minister about the MSME industry and Ministry is as follow:

£ More than10 lakh jobs has been created in last 12 years, under ‘ Prime Minister Employment Generation Program’along with ‘Khadi’ , ‘Coir’ & other government programs £ Promotion of ‘Khadi’ by Prime Minister in‘Mann Ki Baat’ resulted in a record production and sale, even coir exports increased by 35% in 2015-16. £ ` 200 crore of funds have been allocated for performance and credit rating, which will help more than 10,000 units.

Key achievements by the ministry during the last two years:

£ Ministry shows transparency by putting every scheme, grievance monitoring and MSME census on the internet. £ ‘Udyog Aadhar Memorandum’ was launched in Sept. 2015 by ministry to participate in ease of doing business, which reflects around 8 lakh registration in 8 ½ months which is highest compared with 22 lakh registration from last 67 year. £ ‘National Small Industries Corporation’is the only ‘Mini-Ratna’ company under the MSME ministry, which supplied 10 lakh metric tonnes of raw material and credit support of 700 crore during the year 2015-16. £ Number of MSME’s increased due to ‘Mudra’ and ‘Standup’ schemes. £ Under the government scheme ofSFURTI, 38 clusters work is in progress, while 20 clusters will be completed in sep. 2016. Also 15 livelihood business incubator and two technology business incubator will be set up by end of June 2016.

Also talking about schemes provided by government to promote the MSME industry is

£ ‘One Man Committee’ has been provided with a formal office and till 31st October 2016 all the recommendations for the same is expected to be finalized. This will play a pivotal role in growth of MSME industry. £ ‘MyMSME’ will be launched for the mobile friendly businesses of national manufacturing competitive programmes which include lean manufacturing, technology and quality upgradation, design clinic etc. £ Entrepreneurship and Skill Development Programmes, Job Melas organized by ‘National Institute for MSMEs’ , Hyderabad resulted into creation of wages and self employment for more than 30,000 persons, also 34 international training programs organized for professionals of 140 countries on various government schemes. £ Ministry also focusing for the growth of schedule caste and schedule tribes by finalizing national hub modalities. It also assures to set up technology center for north-eastern state including Sikkim.

The ministry has also assured that new scheme will be launched for revival and rehabilitation of MSMEs, till that time banks will set up their own committees to take up revival cases of MSMEs. This will ensures a simpler and faster way to address stress accounts of MSMEs and to facilitate the promotion and development of MSMEs.

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WELCOME CHINESE INVESTORS IN INDIA

hat there is an ongoing geopolitical battle between China MAKE IN INDIA and India is evident. Yet India has chosen to lay down the red OPPORTUNITY Tcarpet for Chinese Investors though it’s Make in India Doing Business with Indian SMEs campaign. India is world’s 8th largest and Asia’s 3rd largest economy and is emerging as an lucrative destination for Chinese investors due Gujarat while about 100 small and medium Chinese enterprises to its better labour laws, lower wages and booming capital markets. have promised investments worth US$1 billion.

China is poised to make huge investments across variety of sectors The Chinese are also eyeing India’s fast-growing start-up sector. including Narendra Modi Govt’s flagship projects like Smart cities Chinese online travel companyCtrip picked up a strategic stake in and digital India. President of India Mr. Pranab Mukherjee, Makemytrip whileBaidu is contemplating investments in several during India China Business forum at Guangzhou stated that, Indian internet startups.Alibaba has made substantial investments India is a growth story and has recorded a steady growth rate of in India’s Snapdeal and Paytm last year.Hillhouse Capital , one of the 7.6% over a decade now and Chinese investors should take largest China-based investment funds, also picked up a stake in advantage of the opportunities that abound in growth of both the online classifiedsplayer Cardekho last year. economies. Major Chinese mobile handset makers see an Indian mobile handset China is also battling with its own set of problems as manufacturing, market that is soon projected to overtake the US and emerge as the the primary motor of Chinese miracle, continues to sputter so does second-biggest smartphone market behind only China. Huawei, construction, another key driver of the economy. Moreover the China’s biggest telecom devices company, says India is one of the key ageing population and saturated markets are a greater challenge to markets where it wants to grow. Companies such as Xiaomi, Oppo tackle for the corporations. and Vivo have expressed similar sentiments.

Currently more than 300 Chinese companies including Huawei, In the flurry of Chinese investments and takeovers, analysts are also TBEA, ZTE, Sany, LiuGong Machinery and Haier Group have observing new patterns emerging. established flourishing businesses across Indian states with plans to expand footprints in sectors like textile, food processing and “While earlier, Chinese companies would focus primarily on mega automobile. infrastructure projects like power, ports, transport, they are now far more open to newer and smaller sectors, even startups, which is This yearWanda , China’s largest commercial real estate developer, quite refreshing,” said Ajay Raheja, a consultant with FICCI. “This is a announced investment worth $10 billion in the northern state of win-win for both parties as smaller Indian companies can benefit Haryana.SAIC Motor , China’s largest carmaker, has proposed taking from the Chinese cash infusions while the latter get to park their over the US carmaker General Motors’ facility in the western state of surplus money in innovative Indian businesses.”

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China Small & Medium Enterprises Investment Group has also Besides, CFLD desires to set up 10 industrial parks in India and has signed an MoU for an industrial park in Gujarat with a total applied for loans from BRICS Bank. investment plan of US$1billion. SMEs from China are also planning to invest US$1 billion across sectors ranging from Such is the level of interest among the Chinese for manufacturing in telecommunications to electrical equipment to appliance India that when Taiwanese firm Foxconn decided to invest US$5 manufacturing and machinery as part of President Xi Jinping’s billion last year for its production base, it created a major flutter in announcement in 2014 of investing US$20 billion in India over China. The move had marked the first by a top international firm to five years. Modi has also assigned officials to specifically deal with opt for India over a decelerating Chinese economy. Chinese investments. Policy makers say the entry of Chinese entities bolstering two- “The entry of new Chinese companies into India is in sync with the way trade would also be a great relationship lubricant while also Chinese strategy to shift the focus of its economy from investments whittling down the trade deficit. Though India-China trade has and exports to consumption and services,” said Probir Sen, Former gone up ten-fold from US$5 billion to US$72 billion in the past 10 Economist at the World Economic Forum. years, the growth has been lopsided with India’s trade deficit with China peaking at US$48 billion last year. It’s not unrequited love. With 2016 designated as “Visit China year in India,” Indian companies, especially in service sectors like IT,are also While the activity augurs well for bilateral amicability, analysts making substantial forays into China to tap the full potential of the emphasize that a lot more needs to be done to keep the Chinese Chinese markets. engaged and interested. The Make in India campaign promised to reducebureaucracyandimproveinfrastructuretolurebig India is also emerging as a solid manufacturing base alternative. multinationals and other foreign investors. China is planning to invest US$6.8 billion in two industrial parks in Gujarat and Maharashtra. Chinese companies like Huaqin, Tinno, However, progress has been tardy in improving the country’s Windtech, Sprocomm, Vsun and Chino-e have also evinced keen inadequate roads, rail lines and ports while corruption remains a interest in setting up manufacturing facilities in India. significant issue. As Arun Jaitley, India’s Finance Minister, put it: “Ease of doing business is still a work in progress in India.” It is reliably learnt that big Chinese business groups including Shanghai Automotive company, Chint group (that deals in renewable Article is Complied by an Intern from SME Chamber of India. Mr. Jairaj energy propsoes to invest $ 1.5 bn in India), Sopo Group, Dingshen Savant Student of Chetana's Institute of Management and Research , (manufacturing sector that could create 3000 jobs), Shanghai Batch - PGDM 2015-17 Electric company plans to make substantial investments in India.

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Mr. Deepesh Nigam Mr. Anurag Shrivastava Co-Founder Co-Founder

How and when did you start your business? Please explain 5 major reasons in detail as to why you We incorporated AD’s Finance on 3rd of December, 2005 with only 4 have been selected for India SME Excellence Award? people and with a vision to help clients grow through honest and £ Our commitment to our clients has always been the most effective advisory service. The aim was not to act as a consultant but important reason behind our success and this selection too. as partner. £ In the past 11 years we have adhered to these same values. What was the reason and motivation for starting the £ We have won awards as best business partners from various business? Also, mention the reason for choosing the banks such as Citi Bank, Standard Chartered Bank, DCB Bank, specific sector/segment . Deutsche Bank, Dhanlakshmi Bank, Magma Finance, Reliance We realized working at the banks that this sector has immense Capital and Barclays Bank over the years. opportunities and it would be one of the fastest growing sectors in £ India. Since 2000 Indian economy has been growing at rapid pace To add to the value-added services we offer, we have diversified and companies needed finance to grow, most of the times companies into Insurance Broking and Advisory and soon we are launching faced liquidity problems due to cash-flow mismanagement and the growth-stage focused Category II Alternative Investment Fund. financial services advisory sector being unorganized. Therefore we £ We also have business interests in Entertainment sector, QSR, decided to incorporate AD’s Finance which would advise and Hospitality sector and few start-ups to encourage syndicate funds for companies. entrepreneurship in India.

Explain about your journey so far, which were the major Your message to the struggling SMEs to not only survive ups and downs witnessed in your business so far and but thrive in the present market conditions . what are the learnings? We would recommend SMEs to consider finance as the most vital raw At AD’s Finance, we have always developed trust and faith in our material. It requires same kind of planning and strategies as any people. Being in the service industry our core assets has always been other vital raw material. Promoters who ignore the planning for our team. When the markets crashed in 2008 and people started cash-flow or do not possess the skill required to plan finance for down-sizing their head counts, we thought it was the time to show future would face risks of cash flow mismanagement which results in our real character by believing in our people. It was our belief in the liquidity crunch. We at AD’s Finance would like to work as virtual people that kept us calm in the most adverse time of 2008. The CFOs to the SMEs which can benefit from all financial related queries confidence which AD’s Finance showed in its people motivated the from our financial experts having experience of more than 15 years. whole organization. In the whole process, the non-core team We will also run a series of events which would focus on SMEs and its transferred into a highly efficient core team which also generated opportunities and challenges. extraordinary results, more than our expectation.

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o much has been written about the contribution of SMEs to the Indian SMEs & THE CHANGED Seconomy and employment generation. However, while one hears of the large scale restructuring packages and handholding FINANCIAL CONTEXT efforts for large groups which have become financially stressed in the last few years, one P. H. Ravikumar has not heard of any such handholding efforts for the SME sector participants. In fact, if at all any single sector has been severely hit by the economic slow down in the last three or four years, the SME would top the list. In my view the single largest factor which has contributed to continuing deceleration of Indian exports for last several years has been the severe financial stress in the SMEs; it is widely acknowledged that SMEs have been contributing about 45% of the total Indian exports year on year before the onset of the larger base, beween the mutual funds and the underlying cash flows than borrow and economic slow down. growing life insurance companies, it would keep accounts with banks as The era of liberalisation has seen the be appropriate to say that the better performing/standard. developmental support that Indian financial governed and run SMEs no longer depend on £ Excessive reliance on fudging of accounts institutions have been providing been banks for a large proportion of their working based on ill informed accountants and jettisoned; it is like throwing the baby out capital requirements; a much larger hiding stress (until it is too late) from with the bath water. Our capital markets as proportion of this is met by these two investors and lenders has also been an well as our private equity providing institutional segments at far lower costs than important cause of the problems of SMEs. structures have not evolved to a level which the level charged by banks. SMEs need to maintain their books of can provide long term funds that SMEs need The last four years of experience has accounts and internal MIS in order; badly particularly at the nascent stage. taught SMEs the following lessons: opaque practices must be given a go by. £ Typically in the 1980’s and a large part of £ The days of 20% capital and 80% bank A significant learning has been not to sell 1990’s the financing model has been that the funding are over – the developmental rather than selling for long periods on SME entrepreneur brings 20% of his own characertistic which was there in 1980’s credit when the cash generation and funds ( his as well as his family and friends) and somewhat in the 1990’s is fully equity base are not strong. and the banks and Development Financial jettisoned by lenders; SME needs to now £ Finally SMEs have started realising that if Institutions were providing about 80% of the find anywhere between 35% to 50% of they aspire to grow, they need to pay balance requirement both for his fixed assets the total fund requirements if they are to taxes. as well as for his working capital expect fair treatment from credit rating SMEs must learn to raise and strengthen their requirements. This model indeed in current agencies and banks; scenario is flawed since the downside of any equity base from private equity investors or £ SMEs have also learnt not to bite more unit’s performance lands largely on the the SME platforms of stock exchanges and than they can chew; in fact, diversion of funding institutions without corresponding learn to live with their presence of other liquidity from parent unit to fund benefits from a sound performance of the investors in their Boards. Even as bond expansion without closing means of unit accruing to them. markets open up hopefully, SMEs must learn finance for expansion, foray in to real to partner entities to credit enhance Further SMEs had to suffer from delays in estate and investment in to building of themselves and bypass for part of their funds payment of their dues from the larger retain chain hae been the main sources of requirements from tradiitonal funding industry participants; they had to suffer from problems for the SMEs which were doing sources like banks. SIDBI and other similar higher interest incidence from banks who well. apex organisations must immediately launch could squeeze SMEs but not the better rated £ SMEs have learnt that banks do not revise such credit enhancement structures to larger industry participants; cuts in RBI repo the approach to working capital limits support the efforts of SMEs in this regard. rates which were not passed on to borrowers quickly even if the operating conditions Entities like Chambers of Commerce and SME were largely from the SME sector. have fundamentally change; SMEs must associations can pay a vital role in learn to increase their capital stake when In recent years credit rating agencies have handholding SMEs and becoming catalysts such fundamental operating changes assumed a strong say in the cost of funding for growth of PEs which can support SMEs. In happen in the environment to remain particularly for SMEs; enough has been said fact, in the financial services space, there are healthy; about the role (or lack of it) on the part of no players who can provide between USD.2 £ rating agencies in the global meltdown of When there is stress, SMEs have learnt million and USD.15 million support to SMEs. 2008. Suffice it to say that the credit rating not to borrow and service banks’ interest agencies continue being mired in the and principal repayments; when in stress Lastly given the costs of new technologies, it approaches of 1990’s when the rest of the the primary and only goal must be to use is imperative that the definition of what an banking and financial system has moved on. all liquidity to keep the business running SME needs radical change. It needs to be and generating revenues; it is better to based on employee strength and turnover as An important development in last five six default and force banks to restructure is the global practice if the SMEs are to remain years has been rapid take off of the mutual their dues in line with realistic relevant in the next generation globally. fund sector. With their stronger in flows and The views expressed are author’s personal views

CO NNECT | Volume 6 | Issue 24 | August 2016 gh34 www.smeconnect.in Insight Melbourne

Source : Department of Economic Development, Jobs, Transport and Resources, Victoria State Government

CO NNECT | Volume 6 | Issue 24 | August 2016 gh35 www.smeconnect.in Insight Germany

Ms. Heena Nazir Director, GTAI Mumbai

ermany Trade & Invest is the economic development agency Stocks in Germany (2014). The ICT & Software sector has accounted of the Federal Republic of Germany. The company helps for the highest share of Indian FDI projects since 2010. Most Indian Gcreate and secure extra employment opportunities, firms are located in North Rhine-Westphalia and Hessen. Baden- strengthening Germany as a business location. With more than 50 Württemberg has the highest total share of employees. Both offices in Germany and abroad and its network of partners Germany & India recognize that there is immense potential for throughout the world, Germany Trade & Invest supports German cooperation between small and medium-sized enterprises in companies setting up in foreign markets, promotes Germany as a Germany and India. It is these enterprises that guarantee growth, business location and assists foreign companies setting up in innovation and jobs. Some of the successful strategic tie ups is the Germany. Indo-German Manager Training Programme which links SMEs from both countries thus enhancing the understanding of the respective According to recent studies, Germany ranks as the top investment business culture. location in Europe. Along with its relative economic stability, Germany is the largest domestic market within Europe, creating a Germany Trade & Invest (GTAI) operates out of two locations in large and stable customer base for investors. India: Delhi and Mumbai. The Mumbai office was established in early 2011 on the premises of IGCC Mumbai. Apart from working closely Almost 10 percent of Europe's manufacturing companies are with each other and sharing information, GTAI and IGCC also jointly German. They generate 30 percent of the EU's gross value added in host events. manufacturing alone. In fact, they represent more than one fifth of all of Germany's value added – one of the highest shares in Europe. Ms. Heena Nazir is the Director of the GTAI Mumbai office. She Increasingly more foreign companies are placing their faith in reports on various macro aspects of the Indian economy as well as Germany as an essential location for production sites and are sectoral reports covering the political & economic outlook, benefiting from the country's excellent business framework and prospects, policy challenges, investment, and development projects. superior productivity rates. These reports are published in journals and other official media of GTAI. GTAI’s foreign trade division also provides services such as Exports are driven by Germany’s backbone of highly innovative small market and industry reports, business and tax law information, calls and medium-sized enterprises (SMEs). These constitute 99.6 for tender and business contacts, and other practical business percent of all companies that employ 62 percent of all employees in information. Germany. Many of these SMEs are world market leaders in their respective niche segments. Together with internationally leading GTAI supports international companies from market entry to companies - such as Bayer, BASF, Daimler, Volkswagen, and Siemens business start-up in Germany. Expert project teams advise and assist to name but a few - they make up Germany’s manufacturing in the business establishment phase. Our support services for foreign industrial base. companies usually include location selection for their business, tax & legal information on setting up a company, information on Most significant industry sectors for investment in Germany are ICT government incentives for businesses & information about key & Software, Business and Financial Services, Automotive and industries in Germany. Exclusive Annual Investors conferences are Industrial Machinery, Chemicals and Plastics. Germany’s main organized by GTAI in different parts of India. In 2015 for example, the import sectors are chemicals, machinery and crude oil and gas. The “25 Years of Reunification – Business Opportunities for Indian main export sectors for Germany are machinery, road vehicles and Companies in Eastern Germany” conference was part of an Indian chemicals. In 2014, Germany primarily imported textiles, chemicals roadshow with stops in Mumbai and Bangalore. and machinery from India. India ranks 36th with respect to FDI

CO NNECT | Volume 6 | Issue 24 | August 2016 gh36 www.smeconnect.in FOREX

Jamal Mecklai - CEO, Mecklai Financial Services Pvt. Ltd. THE SCIENCE AND ART OF FX RISK MANAGEMENT

Managing risk is widely acknowledged as one policies is the inadvertent (in most cases) function. While market risk is a key business of the key aspects of running any business. By discretion provided to the operating team. risk for financial institutions, it also has huge definition, risk is something unknown, and While discretion is not unreasonable, significance to non-financial companies, in managing risk requires a blend of both art – provided it is, again, “artistically” designed, terms of the impact it can have on their call it a combination of experience, sensitivity most audit committees are not aware of the businesses – there are myriad examples that to circumstance and events, and, of course, extent to which hedge decisions are left to the crop up each time there is a dramatic jerk in intuition – and science – experience (again) discretion of the operating team. For FX rates. and hard facts and analysis. The first without instance, if a company has a policy to hedge, However, none but the very largest non- the second could lead to disaster; the second say, 50% of forecast exposures on a rolling financial companies in India have a fully without the first usually results in sub- 12-month basis, it is seldom made clear functional middle office or risk officer. In optimal performance. whether the hedge should be taken on the most other cases, companies are not even first working day of each month, or, say, I have been in the business of advising aware of this need; in others, there is an averaged over the first five working days, or, companies on foreign exchange risk awareness, but it may not appear as in one case I know, 25% is hedged on each management for over 30 years, and find, commercially feasible to run and fully staff remarkably, that, even today, a very, very such a function. One alternative is to small fraction of companies in India (and, I outsource the middle office, which, like any daresay, the world) have anything remotely outsourcing operation, requires setting up a resembling a sound FX risk management strong information exchange protocol with framework, which I would call the science of the vendor by, say, a daily email exchange. Of managing risk. course, the best way is to fully automate the treasury to ensure that there is a complete First off, the framework should have a policy, audit trail to enable monitoring of all customized to the company’s business model operations from timely dataflow to and at-risk cash flows and balance sheet. regulatory compliance to hedge strategy While a huge number of companies do have a compliance to independent transaction FX risk management policy documents – we Wednesday at 10 a.m. confirmation to reporting to accounts. have developed over 200 such documents While I am not recommending the ourselves – most of the policies we have seen Today, most companies – and this includes straightjacket implied in the last definition, are deficient in at least two ways. companies with sales of several billion the point is that most audit committees don’t dollars – are woefully behind the curve in this The first is that their objectives do not state know how much discretion is left on the area, still using spreadsheets like Excel, to explicitly that in the effort to ensure that the operating ground. Equally, they generally monitor their FX exposures and risk. These, company’s margins are never threatened by have no idea as to how much this inadvertent while convenient and easy to use, have currency fluctuations, there will definitely be discretion is costing (or, indeed, from time to limited robustness but, more importantly, occasions when the company will suffer time, earning for) the company. preclude having any audit trail, which, by opportunity loss. This is critical to enable the Now, the only way the audit committee can definition, precludes sound risk operating team to actually follow the policy have the kind of analytic information it needs management. without fear of reprisals in the event the to enable it to make the necessary “artistic” market moves against a hedge. If opportunity The good news is that, driven by IFC decisions is to have an independent skilled losses appear too high, the audit committee reporting guidelines, audit committees are team (or, at least, person) who monitors needs to reassess the policy – the art, increasingly recognizing the importance of a treasury activity in near-real time to generate mentioned earlier – to see how it could be structured approach to FX risk management, this data and convert it into usable tweaked to continue to protect margins and and many are now reaching out to secure the knowledge. Large financial institutions, like also enable lower opportunity losses. “science” of the process, which is a critical banks and insurance companies, have well- precursor to enable them to move up the The second major failing I have found in most staffed middle offices that render this curve to the art of risk management.

CO NNECT | Volume 6 | Issue 24 | August 2016 gh37 www.smeconnect.in Success Story

Shri Kiran D. Chilatre Shri Ajay R. Gandhi Managing Director & Ceo Director

How and when did you start your business? Please explain 5 major reasons in detail as to why you This is a partnership firm started in year Ist January 2007 with the have been selected for India SME Excellence Award? motto to serve our self as well as our other friends, creating jobs with Firstly we express our sincere gratitude to the award selection the expertise we earn during our service. committee. When we understand about our selection we started reviewing ourselves about our journey and achievements and our What was the reason and motivation for starting the presence today. business? Also, mention the reason for choosing the £ We are first generation entrepreneur started with minimum specific sector/segment? investment with great vision to serve the nation by creating jobs My passion was always creation when I met with my friend and and supplying world class products. observed same passion, we decided to start business as we firmly £ We were able to sustain ourselves in all up & down market believe that this platform can only give opportunity for creation in conditions with our expertise in using equipments effectively, terms of product and people. which resulted in low cost manufacturing. £ We have given employment to needy and uneducated peoples by The business of heavy press shop was the need of hour and we had giving them proper training. expertise, hence decided to go for this sector without giving much £ We participated in various CSR activities like donation to thought on selection as we felt that waiting for good idea is a bad idea. orphanage home every year. We also motivate for blood donation activities. It is now in ‘auto mode’. Explain about your journey so far, which were the major £ We are rated as best supplier/vendor in customer lists due to ups and downs witnessed in your business so far and world class quality, low cost automation and consistent delivery what are the learnings? performance. We have also shown our effectiveness in speedy Indeed, it was roller coaster journey. It started well initially but in development. latter stage we faced various challenges like market conditions, more players but we survived with our commitment to give excellence. In Your message to the struggling SMEs to not only survive this we learnt not to depend on one type of product and single but thrive in the present market conditions. customer. SME’s are the backbone of any nation. Be proud of yourself. £ Always keep eye on what you do and act. Accordingly we started to look for different sectors and different £ Keep track on pain areas of customers and gain business. products and we observed only set-up cannot give you a business but £ Keep yourself updated with latest technology and get trained your attitude of excellence. yourself. £ We approached various customers and proud to say that we were Travel, move, observe the world and develop your view. This will able to add more feathers to our cap. The main expertise which was help you to upgrade yourself, your business & keep yourself appreciated by all customers is our low cost innovation in distinctly ahead. manufacturing process. £ To survive we must give thrust in maintaining financial discipline in the area of purchase and process. Only focusing on sales will not support SMEs to survive.

CO NNECT | Volume 6 | Issue 24 | August 2016 gh38 www.smeconnect.in

Success Story

Shri Sandeep Donde Managing Director

How and when did you start your business? Please explain 5 major reasons in detail as to why you Microscan Computers Pvt. Ltd. was established in 1996 .Having have been selected for India SME Excellence Award? debuted by giving complete solutions in Computer Hardware, we Microscan has been selected for the award for its quality,delivery and quickly branched out into networking. By dint of sheer hard work, excellence in: ethical practices and a 'Customer First' approach, we successfully Infrastructure: The Infrastructure Provider license by GOI allows established Microscan's reputation as a reliable company and one of Microscan to provide dark fiber & wavelength services, Right of Way, the best in its league. Duct space and Towers on lease/sale basis to licensed mobile & telecom providers. What was the reason and motivation for starting the Cloud Video : Microscan offers End-to-End Wholesale over the Top business? Also, mention the reason for choosing the Platform and offers Video Head end as a service for international OTT specific sector/segment? Providers. Microscan has direct Content Delivery Network peering & Though today ‘digital’ is a living room discussion topic, back in the content aggregation to facilitate international delivery of Indian 1990s, computer related services were only starting to bloom. Being channels at the prime time of the destination country. a visionary, Sandeep could foresee the requirement as well as an opportunity to develop network facilities to make life easier and Internet: Microscan is a licensed Class B ISP (Internet Service safer for others. The organization is now a direct contributor in Provider) to retail and corporate customers. The network is flexible making it possible for health care, education, sports and businesses to support every business and user needs. Our robust infrastructure to flourish not only in India but Overseas through its high- running on our own fibre network coupled with 24x7 support performance network, delivering over their own fiber network and provides a quality user experience. backed by state of the art 24 x 7 Network Operating Center and Data Network Operations & Maintenance : The 24x7 NOC monitors and Center. maintains the network for continuous operations, while the redundant architecture ensures nonstop working. The 24x7 Explain about your journey so far, which were the major monitoring team ensures the primary failures are quickly rectified. ups and downs that you witnessed in your business so far MPLS VPN : Based on Carrier Ethernet Technology using MEF and what are the learnings? certified products using the latest generation metro area transport Like many organizations in our industry our major ‘downs’ come technology. Services include support for Layer 2 point-to-point, because of competition from the more capital rich organizations. point-to-multipoint and multipoint-to-multipoint topologies. Microscan has been progressively successful at overcoming the challenges of competition through its intense expertise and a Your message to the struggling SMEs to not only survive dedicated work force. What we lacked in capital in the early days, we but thrive in the present market conditions. made up for by expertise and a dedicated work force. One of the lessons we have learnt here at Microscan is that nothing is With very limited infrastructure at the beginning of its life cycle, we impossible. We also have learnt that there is no easy way to success. have built a world-class infra structure and supporting system that One of the key ways to develop your business is to give utmost can bear the load of complicated business requirements. importance to skill and competency development. All businesses face their challenges, embracing these challenges as opportunities of Another very intense challenge is to function in a system that has learning are the key to enhanced longevity. Some sure ways of certain amount of non-cooperation from government authorities. succeeding is the ability to take failures. Whenever the struggling Many organizations may bend, or break under such pressure. SME experiences failure, it’s essential to step back, re-look at what However, under the exemplary leadership of Sandeep, most of the may have gone wrong, re-strategize, and take another plunge. times the teams have been able to successfully persuade govt. officials to see the vision and with complete transparency as well as ethical conduct, managed to overcome most of the resistance. This ethical conduct weaves in its thread in all its day to day functioning.

CO NNECT | Volume 6 | Issue 24 | August 2016 gh40 www.smeconnect.in

EVENT NETHERLANDS INDIA BUSINESS MEET 2016 “AGE OF CO-CREATION” Organised on 31st May 2016 | Netherlands

Organised by Co-Partner

The Netherlands India SMALL & MEDIUM BUSINESS Chamber of Commerce & Trade DEVELOPMENT CHAMBER OF INDIA

Mr.Chandarkant Salunkhe - Founder & President, SME Chamber of Mr.Chandarkant Salunkhe - Founder & President, SME Chamber of India delivering the Keynote address on Strengthening Economic India withMr. Vipin Moharir - Chairman, The Netherlands India Cooperation between India & The Netherlands Strategy and Chamber of Commerce & Trade (NICCT) on 31st May 2016 Initiatives

Mr.Chandarkant Salunkhe - Founder & President, SME Chamber of India with dignitaries during Netherlands - India Business Meet on 31st May 2016 at Netherlands

CO NNECT | Volume 6 | Issue 24 | August 2016 gh42 www.smeconnect.in Technology 5 Reasons for startups to embrace RFID technologies

tartups have had a golden year in rolling out discounts to customers and selling harness their resources – both material and 2015. In India itself, a cumulative products at a break even or even at a loss. This human- would undoubtedly be RFID. To Sfunding of over US$ 8 Billion has been will obviously lead to a failure by most of corroborate my thought process, I spoke to a made available. There are eight startups with these companies. So how can these startups number of entrepreneurs to see if indeed a valuation of overUS$ 1 B illion each. The insure themselves against failure? Probably RFID could help them be one of the growth for almost all these companies has the most compelling methodology will be “survivors” in the startup eco system. The been at a breakneck speed – most of them efficient utilization of available resources and aim of the interaction was to educate startup have been in existence for less than a decade. maximizing its effectiveness to generate good founders (mostly youngsters) on the use of However, there are very few return on investment. RFID technology and its benefits and to dispel companies, if any, that are making profits. To In this scenario one of the best myths around RFID technologies and its keep competition at bay, these companies are emerging technologies to help startups implementation.

This article is a result of this interaction and highlights the 5 key reasons for startups to embrace RFID technology.

1 Efficient Asset management: Whilst the 34Controlling the sellable inventory:A Automation and hence, less hiring: cash rich startups buy new assets whenever good example of this is Justbooks, a Startups cannot afford to hire people and the need arises, inefficient use of the same Bangalore based startup for renting books. teams for all activities. It is important to leads to over stocking of such assets. In The company has automated some parts of automate many processes, especially non- recent studies it has been proved that the one’s library usage, for instance RFID based core ones. Efficient tagging and maintaining inventory of assets can be reduced by as unmanned kiosks. Owing to RFID tagging, of assets and inventory and generating much as 25% if RFID tags are used on the JustBooks’ kiosks have the real time reports for senior management can all be assets permitting an efficient tracking of the information about books (current automated by efficient use of RFID. Smart same and thus enabling maximum owner/location of the book etc.) that helps startups, especially in sectors such as utilization of assets. For example, in them keep the cost low. The unmanned kiosk logistics, food delivery can use RFID based hospitals it has been found that the number outside the library equipped with the tagging and reports to not only optimize of mobile equipment quantities can be Library Management Software (LMS) and their operations but also serve their reducedjustbybeingabletotrack the tag reader acts as a one-stop shop for all customers better. It also enables startups to equipment by use of RFID. requirements of the reader, right from hire less people at the beginning and hence finding the book of choice to depositing it saves time and effort on administration and 2 Make optimum use of available human after reading. The LMS is mapped according human resource management. resources: Startups are in a dynamic state to the layout of the library and is also linked all the time. The human resources are scarce with the inventory and back-end, which 5 Leveraging Data Mining for better and it is critical to make the best use of those helps to point the exact location of the book. decision making: By effectively using RFID available. For a start up doing mass Due to effective use of RFID, JustBooks has technology, startups are able to access and recruitment, it will always happen that some been able to maintain optimum inventory, gain invaluable business relevant knowledge employees take undue advantage of lax HR reduce cost of resources and track and by Data Mining. The RFID generated data can policies and wander away in working hours. manage its assets efficiently. be analyzed by startup’s to understand RFID systems can ensure that employees can patterns and insights on usage of resources be efficiently tracked thus ensuring and map the return on investments. With optimum productivity thus reducing the effective use of Data, startups are able to alter need to increase manpower. This becomes strategies and make better decisions. This critical in the service industry where timely enhances the probability of their success and availability of services makes or breaks a helps them to grow much faster. startup.

It would be evident from above that RFID can technologies, I would urge startups to think at the ground level and efficiently aligns actually address the top reasons why of RFID as an investment which can yield strategy with execution. This enables startups fail. The natural next question is if it short term benefits in automating operations startup’sto sharpen focus on revenues and is worth the investment for startups. As a and long term returns by effective Data profits and thus, attain profitable growth. keen student and practitioner of RFID Mining. It also gives clarity on the execution

CO NNECT | Volume 6 | Issue 24 | August 2016 gh43 www.smeconnect.in Interactive Meeting Interactive Meeting With Dignitaries During Visit to UNITES STATES OF AMERICA 14th - 22nd June 2016

H.E. Mr. C.L. “Butch” Otter- Governor, Idaho, USA and Mr. Chandrakant Mr. Vinai Thummalapally - Executive Director, SelectUSA, U.S. Salunkhe - Founder & President, SME Chamber of India during Department of Commerce, International Trade Administration and Mr. interactive meeting on 19th June 2016 at Washington D.C Chandrakant Salunkhe - Founder & President, SME Chamber of India during interactive meeting on 19th June 2016 at Washington D.C

Mr. Arun M. Kumar - Director General of the U.S. and Foreign Mr. Chandrakant Salunkhe - Founder & President, SME Chamber of Commercial Service and Secretary for Global Markets, U.S. Department of India withMr. Kiyohiro Mitsui - Chief, Headquarters Procurement and Commerce, International Trade Administration and Mr. Chandrakant Support Service, United Nations Procurement Division, New York during Salunkhe - Founder & President, SME Chamber of India during Interactive meeting on 18th June 2016 at New York. Interactive Meeting on 21st June 2016 at Washington D.C

Mr. Markus J. Beyrer- Director General & CEO, BusinessEurope and Mr. Mr. Chandrakant Salunkhe - Founder & President, SME Chamber of Chandrakant Salunkhe - Founder & President, Europe - India SME India withMr. Mark Jafee - President & CEO, Greater New York Chamber Business Council (EISBC) and SME Chamber of India during interactive of Commerce during Interactive meeting on 18th June 2016 at New York meeting on 2nd June 2016 at Brussels to explore investment opportunities between Indian and US SMEs.

CO NNECT | Volume 6 | Issue 24 | August 2016 gh44 www.smeconnect.in Banking & Finance

FACTORING IN INDIA

actoring in India has been in nascent stage since past many years in India, however, in reality genesis can be linked with implementation of Factoring Regulation Act 2011. Not many are aware of Factoring product vs. the standard banking finance. However Fin more established and mature markets Factoring is a preferred alternative to banking finance especially for the likes of high growth but cash trapped SMEs

What is Factoring? Factoring is a service covering the financing and collection of accounts receivable in domestic and international trade. It involves a contract between a seller and a Factor wherein the former agrees to assign its receivables to the Factor who in turn agrees to perform at least two of the following services: £ Financing by way of pre-payments against invoices £ Sales ledger Maintenance £ Collection of Account Receivables £ Credit protection against default in payment by the Buyer

Why Factoring? Benefits for the clients £ Usually Factoring is an Unsecured facility £ Covers the fundamental requirements of open account transactions which is increasingly insisted by the buyers across the globe £ Mobilizes cash tied up in receivables thus unlocking cash flows enabling seamless working capital cycle £ Cleans up the balance sheet – with only contingent liability for domestic offering £ For exports, being a without recourse* facility,provides complete balance sheet management solution £ Client is protected against losses arising solely from buyer credit issues (default and insolvency)* £ Alleviates clients’ internal administration work on account receivables as ledger are maintained by the factor that also follows up with the buyer thus providing collections service as well. £ Factoring enables the client to focus on core business activities – a cost benefit £ Primarily based on quality of receivables Vs. Usual banking facilities – Balance sheet strength

CO NNECT | Volume 6 | Issue 24 | August 2016 gh45 www.smeconnect.in Interactive Meeting Interactive Meeting With Dignitaries at EUROPEAN BUSINESS SUMMIT 2016 1st - 2nd June 2016 | Egmont Palace, Brussels

Mr. Jean-Claude Juncker - President, European Commission & Mr. Donald Tusk - President of the European Council & Former Former Prime Minister of Luxembourg and Mr. Chandrakant Prime Minister of Poland andMr. Chandrakant Salunkhe - Founder Salunkhe - Founder & President, Europe - India SME Business & President, Europe - India SME Business Council (EISBC) and SME Council (EISBC) and SME Chamber of India during interactive Chamber of India during interactive meeting on 1st June 2016 at meeting on 2nd June 2016 at Brussels Brussels

Mr. Eric MAMER - Director, European Commission, DG for Internal Mr. Michael Peters- CEO, Euronews and Mr. Chandrakant Market, Industry, Entrepreneurship and SMEs, Directorate A - Salunkhe - Founder & President, Europe - India SME Business Competitiveness & European Semester and Mr. Chandrakant Council (EISBC) and SME Chamber of India during interactive Salunkhe - Founder & President, Europe - India SME Business meeting on 2nd June 2016 at Brussels Council (EISBC) and SME Chamber of India during interactive meeting on 3rd June 2016 at Brussels

Mr. Markus J. Beyrer - Director General & CEO, BusinessEurope and Mr. Anatoliy Kinakh - Former Prime Minister of Ukarine and Mr. Chandrakant Salunkhe - Founder & President, Europe - India President, Ukrainian League of Industrialists & Entrepreneur(ULIE) SME Business Council (EISBC) and SME Chamber of India during andMr. Chandrakant Salunkhe - Founder & President, Europe - interactive meeting on 2nd June 2016 at Brussels India SME Business Council (EISBC) and SME Chamber of India during interactive meeting on 1st June 2016 at Brussels

CO NNECT | Volume 6 | Issue 24 | August 2016 gh46 www.smeconnect.in FOREX FOREX RISK AND SMEs

Gautam Agarwal Vice President - Forex, Kotak Mahindra Bank Ltd.

orex markets have shown extreme oneself hedged through the Forex hedging and part utilization possible & simple bouts of volatility especially in the last instruments permissible by RBI. Two simple documentation. few years. Business fraternity in India, products available from banking platform F Option Contract gives buyer the right, but not involved in foreign trade, are exposed to are booking ‘Forward Contracts’ and currency risks arising from such volatility. purchase ‘Option Contract’. the obligation, to buy or sell an underlying India Rupee has immediate impact from asset (foreign currency) at a specified strike multiple factors such as; US Fed’s decision on Forward Contract is an agreement between price on a specified date. The features of Interest rate increase, scheduled FCNR two counterparts to exchange currencies on a booking options are; entity will exercise the outflows in H2 of CY 2016, uncertainty of the future date at a fixed rate. An exporter option only when they are in the money, easy Chinese currency valuation management, receives forward premium while an importer documentation and cost of the option can be etc.. pays the forward premium. A rate is booked billed in the pricing of the product/service. and on the date of maturity the contract is SME entities are especially exposed to executed, this will protect the Indian entity SME entities should stay completely hedged, currency risks, due to their general form currency movements. The features of or at least partially hedged, as this will give incompetence in predicting the currency booking forward contracts are; maturity can them an opportunity to focus on their core movement, and the lack of depth in financial be a single date or a range of dates and pre business. management framework of these organizations. Banks do provide inputs to clients but specific cash flow level data would not be available and therefore the currency market information is more generic in nature. Predictive models do have their drawbacks and actions based on such advice may not always be accurate for SMEs who operate on thin margins to compete with international competition.

The most suitable form of safeguarding oneself from the currency volatility is to keep

CO NNECT | Volume 6 | Issue 24 | August 2016 gh47 www.smeconnect.in Interactive Meeting Interactive Meeting With Dignitaries During Visit to BRUSSELS & SOUTH WALES 3rd - 6th June 2016

Rt. Hon. Carwyn Jones AM - First Minister (Chief Minister) of Wales, Mr. Patrick Gibbels - Secretary General, European Small Business United Kingdom andMr. Chandrakant Salunkhe - Founder & Alliance (ESBA) andMr. Chandrakant Salunkhe - Founder & President, SME Chamber of India during the interactive meeting at President, Europe - India SME Business Council (EISBC) and SME Wales on 6th June 2016 Chamber of India during interactive meeting on 3rd June 2016 at Brussels Business and Education links strengthened between India and Wales

USINESS links between India and South Wales were discussed when Bthe president of the SME Chamber of India visited the South Wales Chamber of Commerce.

Chandrakant Salunkhe met with the Newport-based south wales chamber president Liz Maher.

Ms Maher said the meeting, at the chamber's Enterprise Way headquarters, helped to move forward business links and maintain a strong relationship offering 'mutual benefit' to both countries.

“Access to an established business network in India will bring a wealth of knowledge (L to R) Mr. Julian Rose- Head of Finance, South Wales Chamber of Commerce, Dr. Paul that our members can access to give them Davies (USW), and Ms. Liz Maher - President, South Wales Chamber of Commerce with the confidence to move into new markets,” Mr. Mr. Chandrakant Salunkhe- Founder & President, SME Chamber of India and Mr. Ms Maher added. Satyandva Patel during Interactive Meeting on 6th June 2016 at Wales

“Within our chamber network we have a Mr Salunkhe said: “We will support the support start up entrepreneurs and range of businesses that already export to university to get students here from India particular female entrepreneurs chime India and we are looking to support others to study and to provide & entrepreneurship well with our graduate development looking to develop an export market.” or internship to the students that are programs. We will certainly be looking at looking to get a job within business or the the opportunities to deliver both distance Both chambers also discussed educational trade market.” learning and work placements for our own support with University of South Wales students and for Indian students looking to business development co-ordinator Paul Mr Davies said: “We feel that the plans that enhance their business skills.” Davies. the SME Development Chamber has to

CO NNECT | Volume 6 | Issue 24 | August 2016 gh48 www.smeconnect.in GST Goods & Service Tax The Road Map to Acche Din

he Indian economy is on a growth In addition to this, along with RBI, the upswing. India’s rural economy was government is doing a complete overhaul of Tundergoing a severe demand the banking system. Apart from contraction on the back of two years recapitalising PSU banks with Rs700bn of of drought. A normal monsoon should additional capital, PSU banks are being reverse this. In addition to this, urban merged and NPAs are being cleaned up. The demand will see an uptick on the back of Pay structural reforms in PSU banks are a Commission awards to government necessary condition to step up growth. The employees. With consumption demand state governments are also undertaking expected to see an uptick, growth is likely to reforms to ensure that rigidities in input improve. In addition to this, the reforms markets are removed. In addition, states are being undertaken by the government are Sameer Narang working on reducing rigidities in the farm likely to result in a structural recovery, thus Associate Director (I), IDFC Bank Ltd. economy in order to ensure that role of improving India’s potential growth rate. middlemen is reduced thus leading to higher spending. Roads sector has been a key realisation for farmers and lower retail The biggest reform push by the government beneficiary of government’s reform agenda. prices. The uptick in FDI inflows over the last has been in the form of GST which will lead to A lower fiscal deficit along with decline in two years is a direct result of India’s potential lower logistics costs and also improve ease of international oil prices and better as a market as also reforms undertaken by doing business in the country. In addition to management of food prices led to substantial government to remove bottlenecks. this, cascading impact of taxes will be decline in inflation which opened up room for avoided. GST is supposed to give an impetus RBI to cut interest rates by 1.5%. Thus as a result of a combination of cyclical as to “Make in India” by reducing the taxes on well as structural factors, India’s growth manufactured products while increasing the The government and RBI have now signed a measured in terms of GVA at basic prices is same on services. As manufactured products definitive agreement to ensure retail expected to increase from 7.2% in FY16 to gain competitive advantage, domestic inflation remains below 6% or in a band of 7.5/ 7.7% in FY17/ 18E. The consumption production should improve. The government 4%+/-2%. This should ensure a stable driven growth will give way to investment led has also been able to successfully reduce the inflation regime in the country which is growth once global demand improves fiscal deficit to 3.9% of GDP in FY16 while conducive for growth. (exports) and existing excess capacity is ensuring a healthy increase in capital utilised.

CO NNECT | Volume 6 | Issue 24 | August 2016 gh49 www.smeconnect.in International Trade

International Commerce Made Easier – The Maersk Way

s the SME Chamber seeks to promote provides Trade Finance solutions to an heart, Enabling Global Commerce. exports by its member companies increasing number of exporters across the Ayou must find yourself looking for globe. We are already active in India, Spain, Maersk Line Trade Finance is keen to work enablers that will make it easier for Singapore, Dubai and The Netherlands. Our with the SME Chamber and its members to companies to gain access to international Trade Finance arm provides so – called pre- offer Trade Finance solutions that will help markets. and post-shipment financing to exporters, up the members increase their access to to 80% of the value of the underlying goods. international markets. In an era in which Make in India is being promoted and the country is desperate to What sets Maersk Trade Finance apart is that increase exports a lot of the pressure comes it really finances value chains, looking at the onto small and mid-sized enterprises. How underlying value of the products being easy is it for SME’s to take business from a transported and sold, as well as the history sales lead to shipment and to collection of that the exporter has with Maersk and his their money? How can an SME explore buyers. Maersk does not take fixed assets as markets in Europe, the US, Latin America and collateral. Africa without having the kind of large network that major corporations do? For exporters and consignees alike the interaction with Maersk Trade Finance is Companies and SMEs in particular, are significantly easier than with traditional typically held back from increasing their financial institutions. The same company exports as they are unfamiliar with overseas that issues your shipping documents now markets and buyers, can’t find appropriate also provides trade financing! Consignees no transportation solutions and most longer have to run from a bank to a shipping importantly, can’t access capital when they line and back again but can conduct all most require it. Uncertainty about the bona business under one roof. fides of the party at the other end of the world The global Maersk network plays a Sanjay Tiwari is also a major factor. Head of Sales (Maersk Line Trade significant role in helping to verify the bona Finance), Maersk In response to many of these issues Maersk fides of exporters or consignees. In doing so Trade Finance, part of the Maersk Group, Maersk plays a role that lies very close to its

CO NNECT | Volume 6 | Issue 24 | August 2016 gh50 www.smeconnect.in START UPs COUNCIL OF INDIA

Integration | Empowerment | Growth About Council

“START-UPs COUNCIL OF INDIA” is creating a robust and sensitive institutions, large corporate and MNCs. The Council will also encourage ecosystem to promote entrepreneurship in India. The Council provides entrepreneurs to set up manufacturing industries and service businesses to opportunities to Start-Ups and Young Entrepreneurs to integrate for take advantage in era of “Make-in-India” initiative. It will concentrate on skill developing Business Partnerships, Converting Unique Ideas into practical development, grooming and incubation process to provide useful Business Activities, Support for Innovations and Inventions, New Product information, handhold and organise activities to guide them in different development, Accessing a developed facilitation framework of associated aspects of business development and management. A large part of the services, Connecting with mentors and advisers, Raising capital, Improving Council’s efforts would be towards developing relevant networks that can Quality of Services and Promotion of group business concepts. support young enterprise.

The Council will support entrepreneurs for Business Promotion, Marketing & The Council assists entrepreneurs to establish and enhance business Branding, Channelising Finance and Investment, Accessing Venture Capital, contacts, adapt of Latest technology, explore synergies and joint ventures Incubation of Enterprises, Skill Development & Training, Legal & Compliance with Indian and Foreign companies, develop business collaboration, contract as well as connectivity with mentors, facilitators, service providers, financial manufacturing and other business alliances with potential partners. Areas Of Work Activities

Ü Ecosystem Creation Ü Identify emerging business opportunities Ü Business to Business Meetings Ü Influence Government Policy Ü Education and training for better growth Ü Seminars and Workshops Ü Ü Business Advisory Ü Interface with support networks Conferences Ü Interactive Sessions Ü Mentoring Ü Facilitate networking & business Ü Project Visits Ü Integration and connectivity associations/ partnerships Ü Delegations Ü Ü Develop facilitation networks Awards and Recognition Ü Exhibitions and Trade Fairs Ü Provide facilitation services Ü Training Programs Support Services

Ü Identify Investment and Business Partners Ü Navigating the regulatory landscape Ü Promotion of New Products and Services Ü Legal and Compliance Ü Guidance to start a manufacturing and service business Ü Identification of export markets Ü Channelise Bank Finance and Venture Capital Ü Upticking Quality and Productivity Ü Business Management Facilities Ü Identification of Advanced Technology Ü Improving performance of family business Ü International Cooperation and Joint Ventures Ü Preparing a Business Plan Ü Innovation and Inventions Ü Enhancing of Business Skills Ü Marketing, Branding and Promotion Ü Knowledge Sharing & Management Ü Listing in SME Stock Exchange Initiated by Partner

IITC-INDIA SMALL & MEDIUM BUSINESS INDIA INTERNATIONAL TRADE CENTRE SME BUSINESS DEVELOPMENT CHAMBER OF INDIA (Investment & Trade Promotion Organisation) MANAGEMENT INSTITUTE Partner Partner Partner Partner

Connectivity

Quality MAHARASHTRA INDUSTRIAL AND SIAI Price SME TECHNOLOGY ECONOMIC DEVELOPMENT ASSOCIATION SME IMPORTERS ASSOCIATION OF INDIA DEVELOPMENT COUNCIL Chandrakant Salunkhe Founder & President Registered & Head Office: 4, Ground Floor, Samruddhi Venture Park, SEEPZ - MIDC Central Road,, Andheri (E), Mumbai - 400 093. Phone: +91 – 22 – 6150 9800 / 6667 4444 | Fax: 2825 0414 | [email protected] | www.startupscouncilofindia.com OBJECTIVES SUPPORT & ASSISTANCE Ü Integration of Entrepreneurs DOMESTIC BUSINESS OPPORTUNITY & GROWTH Ü Capacity Building Ü Business Advisory Services Ü Business and Export Growth Ü Business & Trade Opportunities Ü Implementation of Government Policies Ü Connectivity with Buyers, Manufacturers and Suppliers Ü Ü Protect Business interest of SMEs & Industry Procurement support in PSUs and MNCs Ü Vendor Development in Government PSUs Ü International Business Co-operation Ü Marketing and Distributorship in India Ü Entrepreneurship Development Ü Certification of evaluation of capacity of the Company Ü Awards and Recognition Ü Listing without an IPO in Stock Exchange Ü Identifying investors or business partners ACTIVITIES Ü Setting up manufacturing unit Ü Trade Promotional Programs FINANCE & INVESTMENT Ü Connectivity with MNCs and Government Ü Channelise Finance from Bank and Financial Institutions Ü Interaction with Bankers and Government Officials Ü Private Equity / Venture Capital Ü Ü International Conferences, Seminars & Roundtables Project, Export Finance & External Commercial Borrowing Ü Term loans in local & foreign currency Ü Inbound and Outbound Investment Ü Vendor Finance Facility Ü Channelise Bank Finance and PE / VC Ü Factoring and Forfeiting services Ü Strategic Business Alliances Ü Finance Facility for Participation in International Exhibitions Ü NPA Settlements Ü Marketing and Promotion Ü Restructuring and Revival of financially stressed SMEs Ü Knowledge Transmission Ü Awareness Programs INTERNATIONAL BUSINESS CONNECTIVITY Ü Interaction with Governments AND OPPORTUNITIES Ü Delegations and Study Tours Ü Export Business Enquiries and Import Facilitation Ü Ü Research and Survey Contract Manufacturing Tie-ups with Overseas Companies Ü Joint Ventures, Collaborations and Technology Transfer Ü Exhibition and Trade Fair Services Ü Business Alliance with Overseas SMEs and Companies Ü Restructuring and Revival of stressed SMEs Ü Identification of Buyers, Importers and Distributors Ü Ü Redressal of issues & problems Sourcing Advanced Technology, Machinery & Equipment Ü Marketing and Distributorship in Specific Market INVOLVEMENT IN ACTIVITIES OF THE CHAMBER Ü Connectivity & Contact Building Ü Join Delegations to connect with foreign buyers / Ü Interaction with CEOs of Corporate, Banks, MNCs & investors and to promote exports Government Officials and SMEs Ü Present issues & problems to appropriate Govt. Authorities Ü Seminars and Training Program for Knowledge Ü India SME Excellence Awards for remarkable Enhancement achievements FOUNDER & PRESIDENT CHANDRAKANT SALUNKHE For Membership, Assistance & Support Services Contact Registered & Head Office 3, Ground Floor, Samruddhi Venture Park, Adjoining Hotel Tunga Paradise, SEEPZ - MIDC Central Road, Next to Akruti Centre, Andheri (E) Mumbai - 400 093. Tel: 022 - 6150 9800 / 6667 4444 | Fax: 2825 0414 [email protected] | www.smechamberofindia.com Regional Offices: Delhi, Ahmedabad, Bangalore, Pune, Jaipur, Hyderabad, Chennai and Bhopal Representative Office: USA, UK, Europe, Canada, China, Malaysia, South Korea, South Africa, UAE, Singapore, Bahrain and Hong Kong The Chamber is a Private Organisation and Registered Under Section 25 of The Indian Companies Act, 1956.