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8/7/2019 ImprovingSME1

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Improving Competitiveness of

SMEsThe backbone of Indian Economy

This Program is organised by IIA and MCCIA, co-sponsored

by ICICI Bank, with Deloitte as Knowledge Partner

February 19th 20th, 2010


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The Small and Medium Enterprises are aptly regarded

as the backbone of the Indian economy. According to

the Union Ministry, the SME sector contributes up to

40% to the gross industrial manufacturing value added

to the economy, 35% to Indias exports directly and

around 8% to Indias GDP. Numbering more than 26

million units and employing around 60 million people,

the sector is the second largest employer after

agriculture. Presently, the SMEs in India are at a

crossroad and intense debate is centered on questions

like what would be the future of the small enterprises?How these enterprises can survive in the international

trade arena? The central issue of concern for the growth

of small and medium scale industry is how to

strengthen its competitiveness. Some of the issues that

impact the competitiveness of SMEs include:

Strategy and operations: Most SMEs have limited

regional geographic presence or limited customer base

with majority of them supplying to a few customers.

This not only limits their ability in negotiations and

bargaining but also hampers their growth perspective

based on the conditions experienced by their limited

customers. With the WTO regime of removing trade

barriers and increased globalizations, today, SMEs will

need to compete with their counterparts from other

parts of the world. While Indian players have the cost

advantages due to availability of cheap labor and

government incentives for the sector, they will need

to build their strengths on the technology front and

management and marketing skills in order to survive in

the global village.

Managing talent: A skilled and educated work force

enhances the absorptive capability of a firm. This is

because the human and knowledge capital within a firm

determines the firms overall ability to gain sustained

competitive advantage. SMEs are usually managed/run by entrepreneurs who lack formal management

education due to which they are not able to leverage

upon their existing strengths to take advantage of plethora of

opportunities available worldwide. SMEs also find it difficult to match

the wage rate, job security and career development opportunities,

available in larger organizations and therefore find it difficult to hire and

retain skilled and competent manpower. The trends consistently show

that most of employees of firms in unorganized sector belong to a group

which is predominantly uneducated and therefore unskilled. The labor

productivity as measured by value added per worker is lower for SMEs

than that for large firms.

Funding: The main identified sources of finance to SME units are -Public Sector/Commercial banks, State Financial Corporations, Small

Industries Development Bank of India and Informal sources. Out of these

financial resources, banks are a preferred source of financing by virtue of

their better reach and accessibility. Raising finance from the financial

institutions has the following draw backs:

The rate of interest charged is higher

Insufficient collateral

Restrictive and conditional working capital limits

Time consuming and cumbersome procedures

Indifferent attitude of the branch manager/staff

Non-availability of assistance at banks for completion

of forms and formalities

The terms of credit are hard

Furthermore, SME sector has remained aloof in raising the finance from

capital markets. There has been no separate active platform for providing

trading facility for securities of SME sector players. Moreover, the

Venture Capitalists (VCs) who showed enormous interest in financing of

start-up ventures during the high-paced growth era, of lately, have

become wary of investing in such ventures as an outcome of economic

downturn across the Globe. The situation is further worsened by limited

exit options for VCs.


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All of these factors restrict the SMEs ability to

increase the capacities and potential benefits that

could be derived from possible expansion. Therefore

almost Two-thirds of SMEs have to rely on informal

sources to meet their financial requirements.

Day & Date :- Friday & Saturday,

Time :- 09:30 am to 5:30 pm.

Venue :- Hall No 06 & 07, A Wing, MCCIA Trade Tower ICC Complex, Senapati

Bapat Road, Pune 411 016

Seminar programme

Day 1: Friday, 19th February 2010

Why Should You Attend?

As a result of globalization and liberalization, coupled

with WTO regime, Indian SMEs have been passing

through a transitional period. With slowing down of

economy in India and abroad, particularly USA andEuropean Union and enhanced competition from China

and a few low cost centers of production from abroad

many units have been facing a tough time. Those SMEs

who have strong technological base, international

business outlook, competitive spirit and willingness

Duration Topic

9:30 to 10:00 Inauguration and

ICICI

Presentation

10:00 to 11:30 Getting the

strategy right

11:30 to 12:00 - Tea Break

12:00 to Setting up Lean

13:30

Speaker

Mr. Hemant Joshi (Deloitte)

Mr. Anant Sardeshmukh (ADG MCCIA)

Mr. Harshil Mehta (National Head,

ICICI PSG)K. Kumar (Deloitte)

Mr. Ranjit Jakkli (Powercon)

Mr. Vikram Puri (CEO & MD Natasha Consultants)

Mr. Yogesh Vaghani (CEO & MD, Milton)

Mr. Arvind Navdikar (MCCIA Faculty)

to restructure themselves shall withstand the present

challenges and come out with shining colors to make

their own contribution to the Indian economy. This

seminar will address and help you overcome these new

Operations

13:30 to 14:30 - Lunch Break

14:30 to Direct and

15:30 Indirect

Taxation

Mr. Pramod Joshi (Deloitte)

Mr. Anant Awasare (Deloitte)

challenges faced by your organisation. Those SMEs who 15:30 to 16:00 - Tea Break

have strong technological base, international business

outlook, competitive spirit and willingness to restructure

themselves shall withstand the present challenges

and come out with shining colors to make their own

contribution to the Indian economy. This seminar

will address and help you overcome the challenges

faced by your organisation and improve your

competitiveness.

16:00 to

17:30

Managing Talent Dr. Sayali Gankar (Director MIT School of Mgmt)

Dr. Shekhar Chitale (Dean Pune University)

Dr. Sonia Yadwadkar

Mr. Anant Sardeshmukh (ADG, MCCIA)

Day 2: Saturday, 20th February 2010

Duration Topic Speaker

9:30 to 10:30 Managing Finance Mr. Nishikant Deshpande (MCCIA Faculty)

10:30 to

11:30

Understanding

Risk

Mr. Abhay Gupte (Deloitte)

11:30 to 12:00 - Tea Break

12:00 to Corporate

12:30 Governance

Mr. Hemant Joshi (Deloitte)

12:30 to

13:30

Raising Finance Mr. Viren Malhotra (Deloitte)

13:30 to 14:30 - Lunch Break

14:30 to

16:00

Panel Discussion Mr. Hemant Joshii (Deloitte)

Mr. Anant Sardeshmukh (ADG, MCCIA)

Mr. Vikram Salunke (Accurate Sales & Services)

Mr. M. M. Mehta (Finance Controller, Demech)

16:00 to 16:30 - Tea Break

16:30 to Open Floor for

17:30 discussions with

Financial

Advisors and

Bankers

(Bankers To be Confirmed)


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