HANDHOLDING INDIAN SMEs – A NEW INITIATIVE OF CII

SME FINANCE FACILITATION CENTRE

MSME is a vibrant and important sector of the Indian economy. It makes significant contributions to the annual GDP, exports and employment. In an environment of economic reforms and opening of the Indian economy, the role and importance of the MSME sector will be even more significant in the future. While the Government has taken several measures to promote the SME sector, access to credit remains a major issue which needs urgent attention. SMEs, which constitute 70% of CII membership, are facing a lot of pain due to rising costs, lower demand and high cost towards accessing credit. CII has taken various steps to provide an ecosystem for SMEs one such being the launch of the CII Finance Facilitation Centre.

There was a pressing need for setting up a support Centre to ensure that SME are provided with credit at cost effective rates, to meet their demand for working capital as well as for expansion and diversification. Further, it has been observed that the delay and other issues related to credit delivery to such companies are primarily due to a lack of understanding of various schemes offered by the banks and financial institutions as well as the procedures and documentation required for processing credit from banks.

Considering the need, CII has set up an Online SME Finance Facilitation Centre (CII FFC). The Centre was launched by Shri Kalraj Mishra, Hon’ble Minister for Micro, Small and Medium Enterprises, Government of India in the presence of Mr Madhav Lal, Secretary, Ministry of MSME, Government of India on 16^th June 2014 in New Delhi. The Centre is providing advisory and credit facilitation support to SMEs. It is operating as a one-stop-shop, aggregating financing options from multiple large financial institutions. SMEs can apply for their fund requirements through an online portal and can have access to multiple Banks and NBFC through this Centre.

CII FFC has partnered with leading Banks and NBFC which includes Indian Overseas Bank, State Bank of India, ICICI Bank, Indian Bank, Federal Bank, SIDBI, DHFL, DCB Bank, Muthoot Fincorp, Reliance Capital and Religare Finvest.

Apart from addressing financing needs CII FFC is also creating awareness amongst Indian SMEs by organizing National Conference, Roadshows, and Online Webinars. It has also created an online FFC Academy which provide online session on various topics like Financial Management, Credit Rating, Costing, Project Management etc.

CII FFC has received encouraging response after launch in June’2014. In last few months itself business proposals for more than Rs 120 Crore has been processed through the Centre which have come from across the country and diversified sectors like Manufacturing, ICT, Food Processing, Textile, Engineering, IT Enabled Services and E- Commence, FMCG,, Logistic & Transport etc.

CII FFC Roadshows were well appreciated by SMEs since financing is biggest challenge for them and these kind of platform are very well required to bring in stakeholders together and discuss on how to bridge demand –supply gap existing in SME financing. Since launch the Centre has organized Roadshows in Gurgaon (Haryana), Bhubaneswar (Odisha), Madurai, Mysore, Coimbatore, Trivandrum, Vishakhapatnam and Vijayawada.

During these Roadshows CII FFC reached to more than 1400 SMEs across the country, around 16 technical sessions were organized wherein presentations were delivered by our partnering institutions on their SME products and schemes. SMEs also got an opportunity to interact with the Bankers and raise their concerns.

Looking ahead CII Finance Facilitation Centre will continue supporting MSMEs for their funding needs and will organizing awareness sessions this year also through its offices across the country. Members can visit the Centre through www.mycii.in  and can post their fund requirements through our online portal, further they can also access online FFC Academy.

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Services Sector has huge potential: Madhav Lal, Secretary, MSME

CII launches www.ciitrade.in, an e-Commerceeway to boost business

The services sector has tremendous potential, stressed Mr Madhav Lal, Secretary, Ministry of Micro, Small and Medium Enterprises, Government of India. He was speaking at a session on ‘MSMEs in Services’ at the first edition of the Global Exhibition on Services, organized by the Ministry of Commerce and Industry in association with the Confederation of Indian Industry (CII) and the Services Export Promotion Council (SEPC) in New Delhi today.

For many years, he elaborated, the focus has been on the manufacturing sector, even though the contribution of the services sector to the economy has been significant, and the sector offers huge potential. And within services, he said, the MSMEs play a significant role and account for a substantial contribution to the sector.  Sharing figures, he said that the MSME segment contributes 7% to GDP towards manufacturing, but nearly 31% to the services sector. Therefore, there is a need to enhance the services sector, and MSMEs, to boost economic growth.  Speaking on the role of the Government, he reiterated Prime Minister Modi’s statement saying that the segments within services which have grown fastest have been those where Government presence has been minimal.  He therefore stressed on the role that industry can play in boosting this sector, with support from the Government. He spoke about initiatives such as the formation of clusters, and how technology could be effectively used to connect and disseminate information by way of virtual clusters.

Going forward, he said, the focus will be on creating different value chains, and the strength of the economy will arise from how many of these value chains are globally competitive. He encouraged industry to strengthen its role in boosting the services sector so that it is globally competitive. Appreciating CII’s initiatives, especially with regard to MSMEs and services sector, he spoke about how CII has facilitated loans from banks  for its MSME  Members, and said that the launch of CII’s portal, www.ciitrade.in would accelerate growth and boost connectivity, a pre-requisite in today’s global world.  CII has partnered with CloudBuy, the global provider of e-commerce technology and B2B buyer-supplier solutions to create a secure online trading platform for CII Members.

In her special address, Ms Lyn Duncan, CEO, CloudBuy, spoke of how the collaboration between CII and CloudBuy – the fusion of technology and CII’s wide membership base – would result in accelerating domestic and global trade using this platform.

Mr Omar Luis Farah, Secretary General, Association of Small and Medium Enterprises of Tandil Province, Argentina, shared the potential for India-Argentina cooperation with the audience, inviting them to do business with Argentina.

Earlier, in his opening remarks, Mr Praveen Toshniwal, Co-Chairman, CII National SME Council said that MSMEs are a major source of employment for over 100 million people and that India’s share in the global services industry can grow exponentially by improving cost value and global competitiveness.

Immense Business Opportunities for MSMEs in India: Shri Kalraj Mishra, Hon’ble Minister for MSMEs, Government of India

The emerging economic scenario in the country has thrown upon vast opportunities of development and diversification for the units in the Micro, Small and Medium Enterprise (MSME) Sector. This was stated by Shri Kalraj Mishra, the Hon’ble Minister of Micro, Small and Medium Enterprises, Government of India while inaugurating the 2-day Symposium on “Growth and Prospects of MSME Sector in Emerging Scenario” being organised by The National Institute for Entrepreneurship and Small Business Development (NIESBUD) in active association with Confederation of Indian Industry (CII) at India Habitat Centre during January 8-9, 2015.

The Sector owing to its inherent characteristics and innate strengths will play  a much larger role in the revival of the Indian economy and emerge as a potent tool to exploit the demographic dividend being enjoyed by the nation at present, added the  Minister.

The present Government’s initiative of “Make in India” and its emphasis upon increasing the share of the Manufacturing Sector in the Gross Domestic Product (GDP) from the present 14-15% to 25% by 2022, have the potential of transforming the fortunes of the Sector enabling it to scale hitherto unheard heights said the Hon’ble Minister in his Inaugural Address.

(L-R) Mr Arun Kumar Jha, Director General, NIESBUD ; Mr Surendra Nath Tripathi, Joint Secretary (SME), Ministry of MSME, Government of India ; Shri Kalraj Mishra, Hon’ble Minister of Micro, Small and Medium Enterprises, Government of India ; Mr Kavi Arora, Co-chairman, CII Northern Regional Committee on MSMEs ; Mr Sujith Haridas, Deputy Director General, CII.

Shri Kalraj Mishra delineating the plans and schemes of the Government of India for enabling the MSME units to play the role expected of them in the changing economic environment, impressed upon Panellist and Delegates of the Symposium to deliberate upon the strategies for strengthening the units so that their products are of world standard and easily acceptable in the global markets. The Government, he assured on its part is taking all steps for spreading the cult of entrepreneurship, skill development and sustenance of MSME units.  Mr Mishra also expressed hope that the deliberations during the course of the Symposium would further strengthen Government’s efforts in this regard.

Mr Surendra Nath Tripathi, Joint Secretary (SME), in his Key Note Address, on the occasion, while highlighting the significance of the MSME Sector in meeting different socio-economic objectives, elucidated as to how the Industry breathes through MSMEs, we must ensure their sustenance in the changing circumstances if the GDP of the country is to grow at the desired rates, added Mr Tripathi.

Mr Arun Kumar Jha, Director General, NIESBUD while dwelling upon the rationale of organizing the Symposium at this point in time expressed the hope that the deliberations during the event will enable formulation of a Road Map for the Sector in the changing economic scenario. Mr Jha also briefly spoke about the recent initiatives of the Institute in the areas of Entrepreneurship, Skill Training and Hand-holding Assistance towards enterprise creation and employment opportunities.

While applauding the Government’s recent initiatives and renewed focus on entrepreneurship and skill training in the backdrop of ambitious initiative of “Make in India”, Mr Kavi Arora, Co-chairman, CII Northern Regional Committee on MSMEs advocated adoption of a coordinated approach by all the concerned stakeholders for holistic development of the MSME Sector.

The Symposium is being attended by more than 300 delegates representing different Government Ministries; Industry; Industry Associations; Academia; Financial  Institutions; Support Organisations and Experts connected with the Sector.

New Delhi

8^th January 2015

CII IQ will play pivotal role in adoption of Mission Zero: Shunya ki Kranti

                                     CII IQ renames Centre of Excellence on Quality to “CII K N Shenoy Institute of Quality”

CII’s national ZED Campaign and the accompanying ZED Maturity Assessment Module, jointly in partnership with Quality Council of India (QCI) was launched today by Shri Kalraj Mishra, Union Minister for Micro, Small and Medium Enterprises, Government of India.

Speaking on the occasion, the Minister stressed that the key focus of the ‘Make in India’ campaign entails ease of doing business; focuses on Public-Private partnerships and harnesses the potential of Democracy, Demography and Demand. The resultant development to India, he said, was a ‘collective responsibility’ and the role of the manufacturing sector in it would be significant, especially in promoting exports. Besides creating jobs, the boost to the manufacturing sector would be crucial to first develop our country and then avail of the Foreign Direct Investment opportunity to further the gains for national wellbeing. India, he noted, already had a number of competitive advantages. India’s domestic market comprised over 600 million rural consumers; Indian workers wages were competitive as compared to China; it had a large talent pool including a strong engineering ecosystem. This however, he cautioned would remain unfinished without ensuring smoother state-centre relations to increase ease of doing business which in turn will be catalytic to attract further investments. Also the expected manufacturing renaissance was beset with challenges of infrastructure like power, ports, railroads coupled with a shortage of trained human capital and public sector control, he cautioned.

The Government’s New Manufacturing Policy, he reiterated, had the vision to enhance the share of manufacturing in GDP to 25% within a decade and creating 100 million jobs on a sustainable basis. Key policy instruments for achieving the above objective would include establishment of National Investment and Manufacturing Zones (NIMZs), self governing and Autonomous Bodies for Industrial Townships and proposals to improve access to finance for SMEs in the manufacturing sector. In this context, he lauded the launch of the ZED campaign which would go a long way to make Indian companies, especially the MSME sector,  world class.

He was speaking at the 2 day 22nd CII National Quality Summit 2014 ‘Make in India Revolution: The Zero Defect & Zero Effect Way’ which began in New Delhi today. In line with the Prime Minister’s speech and CII’s agenda to make India a Model Inclusive Nation with zero defects and maximum effect, the CII National Quality Summit discussed the way forward for India Inc to become “Zero Defect, Zero Effect” through an enabling environment; adopting excellence framework, systems and processes, incorporating the success factors of business models, consumer behavior, technology trends and future factories.

Mr Adil Zainulbhai, Chairman, Quality Council of India (QCI) delivering the Keynote Address, Zero Defect Manufacturing: Quality is the answer echoing the PM’s “Make in India” call and achieving zero manufacturing defects and zero environmental effect said that Quality was the cutting edge which could make Indian enterprises competitive, credible and profitable to improve the lives of its citizens. While some Indian companies had achieved global quality, he noted, many more needed to improve significantly especially government services and most manufactured products through a process of re-design and recasting processes. ZED, he said, could be achieved through incorporating the cardinals of Total Quality Management, Total Productive Maintenance, Green Manufacturing and Environment Sustainability in processes and products. The ZED model, with its 5 maturity levels provided the roadmap for Indian industries to proudly graduate to international class. QCI, he said would, in the next 10 years, first focus on the 48 million Micro, Small and Medium scale enterprises and then improve the quality of government services for the national wellbeing.

In his address, Mr T C A Ranganathan, ‎Former Chairman & Managing Director, Export-Import Bank of India noted the changing customer perceptions on quality and products since the late 1980 in the wake of the logistics, informatics and communications evolution. India, he said, would progressively need to turn to the world for increasing its trade upon which quality would be inculcated automatically. Stressing on the need to enhance spends on R&D, he also advocated the role of self regulation in Industry.

Earlier in his welcome address, Mr N Kumar, Chairman, CII Institute of Quality (CII IQ) & Past President CII & Vice Chairman, The Sanmar Group said that the Quality movement that CII began two decades ago in manufacturing, services, governance and education would reinvent itself to rigorously pursue the National Goal of “Zero Defects, Zero Effects”. CII through its Centers of Excellence would provide focused leadership, right competencies and adequate resources for ZED (Zero Defect, Zero Effect Way). The ZED vision is to catapult Indian Industry to a position of eminence in the global market place and leverage India’s emergence as the world’s supplier through ‘Made in India’ mark mission. He also announced re-naming the CII Institute of Quality, inaugurated in 2001, as the CII K N Shenoy Institute of Quality as a posthumous tribute to Mr Shenoy’s contribution in developing the Institute who as the  Chairman of ABB had sponsored the Building and lead the Quality movement.

Delivering the Theme address, Mr R Mukundan, Co-Chairman, CII Institute of Quality (CII IQ) & Managing Director, Tata Chemicals Ltd, said that the nation was at the threshold of heralding the 2^nd Quality Revolution. Stressing the need to build a national quality culture through an integrated approach, it was particularly significant that CII and QCI were jointly launching the national ZED (Zero Defect and Zero Effect) Mission today. ZED Mission would revitalize manufacturing tools and techniques to build a strong Brand India for goods and services with a focus both on the customer as well as society.

Mr L Krishnan, Convenor, Lean & Six Sigma, CII Institute of Quality (CII IQ) & Managing Director, TaeguTec India Private Limited, delivering the Vote of Thanks, while recounting CII Institute of Quality’s over 2 decade quality journey, lauded the launch of the ZED campaign. He stressed on the need to make Quality a way of living to make a successful “Make in India” movement deliver a high growth and development that was truly inclusive and sustainable.

Day 1 of the Summit will end with the 20th Anniversary of the Business Excellence journey in CII, which will witness the national winners of the CII-EXIM Bank Award for Business Excellence 2014 being felicitated. CII and the Export Import Bank of India joined together, in 1994, for promoting excellence among Indian Industry through these Awards, which are based on the internationally recognized EFQM Excellence Model.

The entire ZED movement built on four pillars of commitment, communication, delivery and objectives, will provide Indian companies the opportunity to work towards becoming ZED companies. The ZED Maturity Assessment Model Standards criteria will ensure compliance to Zero Defect and Zero Effect. Indian companies will re-design & re-invent overall manufacturing process to meet global benchmarks  & standards incorporating cardinal principles of TQM/ TPM/ Business Excellence/ Green Manufacturing / Environment Sustainability in processes & products especially food safety and quality. The movement will inspire & encourage all stakeholders in the supply chain to adopt ZED in a more participatory & inclusive manner, exploring the latent potential of the nation’s workforce to sharpen and upgrade their skills. It will imbibe a culture of pride & fulfillment in offering a zero- complaint regime, going the ‘extra-mile’ to focus on customer-delight while growing new markets and promoting alternate business models.

The day 1 of the Summit, brought together a galaxy of speakers who shared their views on a wide breadth of topics including Making India a Model Nation: Zero Defect Zero Effect; Managing Quality in an Outsourced Model; Succeeding in the connected world shaped by disruptive technologies and dynamic consumer behavior. The panelists included: Anil Jauhri, CEO, National Accreditation Board for Certification Bodies;Arati Verma, Chairman Appeals and Assessor Management Committee, National Accreditation Board for Hospitals & Healthcare Providers; Praveer Sinha, Chief Executive Officer and Executive Director, Tata Power Delhi Distribution Limited; David Harlock, Managing Director, British Standards Institute-Asia Pacific; Sunil Agarwal, Vice President – Business Development & Strategy, Siemens ; Ganesh Sundararaman, Executive Vice President-Foods, ITC Ltd; Anil Gupta, Executive Director (QA &I), NTPC Ltd ; Anu Madgavkar, Senior Fellow, McKinsey Global Institute;Ganesh Natarajan, Vice Chairman and CEO, Zensar Technologies; Soumitra Bhattacharya, Joint Managing Director, Bosch ; N Muralidaran, Chief – Special Projects, Director, NSE Infotech Services Ltd, National Stock Exchange of India Ltd.; L Krishnan, Managing Director, TaeguTec India ; V Narasimhan, Executive Director, Brakes India; Ashok Muthuswamy, Asst. Vice President – Continuous Improvement, Tata Chemicals ; K G Shenoy, Sr. V  P Mfg & SCM , Mahindra Tractor & Farm Mechanization Business, Mahindra& Mahindra; P Jeganathan, Vice President (Manufacturing &Logistics), Wabco; Vinaya Kumar, General Manager, Quality Control Division Toyota Kirloskar Motor Pvt. Ltd ; N N Misra, Former Director Operations, NTPC; Peeyush Vaish, Partner, Risk Consulting, KPMG and Keshav Rattan, NABET.

The programme on 20th November, Day 2 of the Summit, will focus on taking participants through experience sharing technical sessions by India’s leading manufacturing and services companies on; Operational Excellence, Business Excellence and Standards and Risk Management.