BSE, NSE gear up to launch SME trading

In a major financial move, Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) are gearing up to begin trading in the small and medium enterprises (SME) sector. A formal announcement is yet awaited, even as, market players stress that the key problems related to market-making and other costs are yet to be ascertained.

The First Steps

Previously, the Securities and Exchange Board of India (SEBI) had prepared a three-year criterion on market-making for SMEs which were planning a listing. This step was to ensure optimum liquidity and options for investors to exit. Generally, market makers are expected to forward two-way quotes. But, stock exchanges, which operate as facilitators to companies by linking them with merchant bankers, have failed to reveal specific details of costs related to market-making and other expenses.

In this system, in the first three years, there would be a market maker for a public issue who will be responsible for supporting sustenance of the offer by allocating a two-way quote. He will practically hold a certain number of shares of a particular SME and will assist trading in that security. When a buy order is received, he would immediately sell from his own share or seek an offsetting order. The process will support transactions in SME securities and also provide liquidity to them. SMEs would be expected to pay a certain fee to the market makers, which would contribute to cost of raising equity.

Way the Exchange Works

While one of the exchanges puts the entire expense of an issue around 8-10 per cent of the entire money raised, the other offers varied calculations. The exchanges are unwilling to look at companies with small fund requirements and want companies which want to raise at least 5 crores. Exchanges are expected to start with promising companies with ample growth potential. 

 

SEBI mentions that SMEs are allowed to raise amount as less as Rs 5 lakh and up to Rs 5 crore. Any enterprise whose post-issue capital has a face value of between Rs 50 lakh and Rs 10 crore can be included on the SME Exchange. Businesses with post-issue capital ranging between Rs 10 crore and Rs 25 crore can choose to be on the SME Exchange or the main exchange. A capital of over Rs 25 crore makes the companies eligible for the main board.

There are other fees for underwriting and sub-underwriting of a particular issue. Another point of concern is the fact that an investment banker will underwrite 15 per cent of the issue using his own resource and can include external investors for the remaining 85 per cent.

Calculating the Cost of an Issue

NSE officials estimate the cost of a particular issue as per the cost quoted by merchant bankers to their clients. They are planning to introduce a ‘call auction mechanism’ which would allow them to break the continuous trading sessions spanning the entire day into sessions of few minutes held on regular intervals. This is expected to bring down the market making cost and create a proper system to address cost issues.

SMEs are also expected to gain with the onset of many venture capitalists and foreign funds and the emergence of the India Venture Board which is proving to be a viable platform for SMEs.

IndiaMART.com Offers ‘Get Free Website’ via Facebook

Do you take social networking seriously? Now, you can take advantage of social marketing with IndiaMART.com, which has launched a great new page on Facebook to help you promote your business online… only as you surf. As social media marketing becomes an innovative, new and cost effective way to market your business, IndiaMART.com has taken it a notch further with an easy to use page. This page is available to you via Facebook that allows you to register yourself for a free website with IndiaMART.com. You can do it in 2 easy steps from Facebook itself:

1. Submit your Contact Info & Business Profile

2. Add Products to your Website

Easy to understand form on Facebook

Register At a Click

IndiaMART.com has always been at the forefront of partnering with SMEs to help them grow their business. We are doing it again with this facility of helping you develop your own website for free. It can’t get easier than this because you don’t have to access IndiaMART.com or go through a lengthy registration process to register yourself. You can do it easily via this Facebook page provided to you only by IndiaMART.com. At IndiaMART.com, we believe in building and nurturing the businesses of SMEs through a continuous focus on creating a world class marketing experience for you. This one’s a proof of that. 

 

With the Get Free Website facility from IndiaMART.com, you can now publish your own website simply by filling in some basic details about yourself, your business and the products you offer. It’s so easy and sure to yield tremendous marketing results because the website will give you the opportunity to market your products and services for free. It will take your business to all parts of the world. The website will also give you free space for advertising and your customers will have access to these advertisements for a longer period of time. You will also have the advantage of changing the content and graphics anytime you want, suiting your needs.

Fill in details about the company

Take Your Marketing Global

IndiaMART.com wants you to reach a wider clientele with your own free website. With this option of creating your own website for free, it’ll be easier for you to make your presence felt in the world market. This means you can expect your business to flourish like never before. So, if a person sitting in Europe wants your service, he would just need to browse through your website and get in contact with you. How simple is that! 

 

What advantages does this facility entail?

1. Make your business accessible to customers who are on Facebook and make your business more interactive.
2. There are no lengthy procedures involved, so registering for your own new website on Facebook is as easy as A-B-C.
3. Do business while you chat on facebook. It's 'Fun-biz' with IndiaMART.com.

Facebook has more than 800 million active users and more than 50% of their active users log on to Facebook in any given day. It’s a market that must be tapped. With this IndiaMART.com website, it will be convenient for customers on Facebook to browse through everything you have to offer—anywhere, anytime. So, you don’t have to turn down your potential customer when it’s time to close your shop. Once you publish your free website, it’ll be easier to deliver convenience to your customer. They will get personalized customer attention, which will add value to your offering. It will also be easier for you to update clients about your business. Another great advantage will be that you will get an IndiaMART.com Intermesh seal website that will win you the trust and confidence of your potential customer. 

 

Just submit your contact information and business profile in the form given to create a website that will open the doors of your business to the world. Add your products and services for people to avail them with you just sitting at home. You can sell products or services and get feedback from potential customers. You can also use various features such as visitor’s poll and surveys to understand the consumer’s psyche and tap the needs of your customer. So, now you don’t have to go to people’s doorstep to sell your products and services. With IndiaMART.com you will have people coming to you. 

 

Get, set and go to become the proud owner of your website with us @ IndiaMART.com.

Imperatives of skill development

Human resources are significant for the growth and development of SMEs and they should be managed well. It is extremely important to provide good training to employees. Every company has its own standards and so training employees is inevitable.  To save time and money, companies often tend to compromise on training of workers. It’s time to take this routine practice through a test.

Get the Industry In
Institutes are busy training people according to academia. It is time the industry steps in to tell the academia what they really require. Industries are now coming together with private universities to see how they can come together to develop a talented workforce that is employable. This has been a challenge so far and the attempts being made are few and far between.
 

Training on the Job
All leading companies train their workers because it is the single-most effective tool that has no substitute. Recruitment of the workers for white and blue collared ones is especially important and companies need to ensure that they are absorbed aptly into the company. Recruitment should be taken seriously and skilled HR capabilities should be employed to ensure right people are employed. 

Remunerating Well
People should be paid well and in accordance with their ability and skills. This not only ensures that they do a good job, it also means people stay with the company for a longer time. Of course, it is important to ensure that the person being recruited has a nice reputation and a good past record. Standards of recruitment should be high and competitive individuals should be given the right opportunities.    

What’s the Big Difference?
Say a company has sources technologically advanced machinery, but if the workers are not skilled and trained properly then the machinery would lie unproductive. So training of the employees is a must. They should go through training to hone their skills and to improve their performance. 

Human resources are the most powerful investment for any company. The workers should be managed intelligently and work should be assigned as per their capabilities. They should be encouraged to perform well for better productivity for the company and greater success for the person. Dedicated and hard working employees should be rewarded and they should be promoted with time. The training method should be interactive so that the employees can share their problems with the head. 

Unskilled workers are the biggest hurdle for the growth of a company. Therefore, they should be trained to generate more output and to meet their targets in a minimum time. The skilled work force tends to be more efficient and thus contributes in a big way to the advantage of the firm. Good workers add to the reputation of the company. It should be kept in mind that the employees who are given a healthy working environment are your biggest assets. 

Intelligent management of human resources is the key to success. A team of experienced and new workers should be engaged so that the freshers can learn. The leader should have a positive attitude to inspire workers to perform better and to the best of their ability. Adequate channelizing of resources makes it possible to reduce wastage and to raise turnover. So, skill development is crucial for the success of SMEs and a must-do for a productive tomorrow.

Get More with Social Networking

This is the age of the internet. With the technological boom, the internet has become an important marketing tool to augment sales. Social networking sites have become indispensable in this regard as there are 120 to 800 million users of these sites. You can market your product on popular social networking sites like Facebook, Twitter, My Space and Linked In. 

Attention Seeking 

It is important to grab the attention of the consumers and since a large mass of people are into using the social networking websites, you can capture a large amount of audience by targeting any of the generally famous social networking websites. Come up with a unique profile logo so that the customers can recognise your brand. You can make your profile interesting and attractive keeping in mind the recent trends.  

Interactive Medium 

Social networking sites are one of the most interactive mediums which can be used to communicate with the customers, as these networking sites provide the entrepreneurs with a common platform for communication with their customers. You can know customers’ responses and provide them with products according to their convenience. It is an easily accessible medium; with just a few clicks of the button, customers can access information about your product. It is important for you to keep your site updated and customer friendly. Keep posting the latest information about the product on your site. It has become crucial to analyze the new trends through this innovative socialising medium and act smartly to enhance the sales and maintain healthy relations with the customers.
 

Cost effective
This kind of marketing is cost effective and fast. You can invest once and then reap the benefits for a long time – unlike media advertising. It is extremely fast because internet marketing has brought the world to the fingertips. It is with just a single click of a button that customers can learn about your product. 

Targeting customers  

You can target your customers through this medium; this is not possible by advertising your product through other means such as the print and broadcasting media. It is important for you to know the type of audience that you can target and then build a community of potential customers. One needs to keep in mind that online marketing is markedly different from offline marketing. Offline marketing means the solutions seeking the people while the online marketing involves the people seeking the solutions. So the marketing should be planned accordingly.
 

Global market

Social networking sites offer you a global platform to advertise your product. The social media provides a fair opportunity to have unlimited exposure. It has no clearly demarcated periphery and you can expand your horizon. Your product gets more exposure thus incrementing your sales. It can have a global presence and the world becomes a single market.  

If you own or run a SME then social networking sites are the best mediums to promote your product. In a scenario where everyone is seeking cost effective options nothing can be better than launching your product through this fastest growing medium. In the era of cloud computing, it is prudent to choose social networking sites to handle the global competition.

Channelizing Human Resources in SMEs

If you manage your own SME, it is a must to manage your human capital well. This is meant not only to enhance productivity of the employees but also of all your other resources. Setting up the right hierarchy and organizing for better productivity are the keys.

So you appoint managers and team leaders to ensure management of employees. Employees need to grow with the organization. The thrust should be on a result-oriented approach for a strategic and comprehensive utilization of resources. 

Realize Their Potential
 

It is crucial for a leader to realize the potential of employees because it is essential to keep in mind their ability before assigning any work to them. If you make the wrong person work on a task that is not commensurate with his ability and interest then it would lead to lesser output. It is important to analyze the strengths and weaknesses of employees to generate better results. For the success of an organization, it is also significant to delegate responsibilities with a lot of thought. You should monitor the performance of the workers in a particular area and decide the future course of action. This would lead to a proper utilization of resources and result in higher turnover for the company. You should also encourage employees to do better as this would inculcate a positive working environment. A simple word of encouragement will instill them with enthusiasm and make them work even harder. This kind of motivation can really work wonders for the growth of a company. If you make an employee work in his field of interest then he would work with more commitment and dedication.

Maintain Friendly Relations
 

The relationship between employees and their leader should be friendly. A leader should keep interacting with the workers to be aware of their problems and difficulties. It is possible to channelize human resources in the best possible manner only if the workers are satisfied. Maintaining good relations with the employees help to make the working environment healthy. It is important to respect the employees’ decisions and be supportive. Allow them to take up challenges – this would polish their skills and help in their growth. There should be no communication gap between the employees and the employer. In the workplace, teamwork is always effective and reaps rich results in the long run. Proper channeling of resources makes the company prosper. You can tap the hidden potential of the each employee by proper management.  
 

Set Practical Goals
 

Giving the right direction to employees’ skills would undoubtedly increase the output. You must set practical goals for the employees and guide them whenever they need help so that they do not refrain from approaching you. This approach promotes employee retention, employee involvement and employee engagement. Discover the untapped potential of the employees and give them an opportunity to present their ideas. They should be involved in the decision making process which falls under employee empowerment. This enhances their confidence and self esteem driving them to take responsibility. A trained and efficient work force is really an asset for the organization and helps to achieve long term goals. A result oriented approach is always an effective medium for the success of a firm.

So let’s work out on human resources, the lifeline of every organization.

Cheer Up Your Buyers with Online Promotions

The internet has become a fast-growing medium of promoting your product online. Information on attractive offers and discounts can reach customers at a faster pace via internet. It is possible to inform people about discounts and offers through social networking sites such as Facebook, Twitter, MySpace and LinkedIn. This has emerged as the best medium to reach out to millions of people. In fact, it has been estimated that there are around 100 million internet users in India itself. So, for the Indian SMEs, there could be nothing better than promoting their brands through internet. 

Time It Well

 
It is important to keep in mind that discounts are not to be given throughout the year as people start undermining the product then. They should be scheduled for special occasions such as during a festive season like New Year or Diwali. Discounts can be offered depending on the product. These offers and discounts are a must to gain a competitive edge in the market, but the time frame is also an important factor. 

Internet marketing makes it possible to remain in touch with the customers through emails and to notify them about special discounts and offers. It is crucial to realise that emails have always been and still are the most powerful marketing resource. You can also target customers that your firm would like to extend discounts to; this is not possible by advertising via television or through magazines. Companies can personally reach out to their customers through emails. They can manage their contacts but need to be careful not overdo it as this might lead the customer to discontinue receiving their correspondence. To make the advertisement more appealing, it helps to hire a good copywriting firm to frame customer friendly content for the website. Such professional copywriters could also make the content more search engine friendly. Individuals are more likely to become loyal repeat customers through positive online engagement. In the case of television marketing, consumers are passive recipients of the product. Such discounts reach your customers through the internet at a faster speed and you can also get their responses within few hours; an experience which seems next to impossible with television or print advertisements.
 

Viral marketing plays a crucial role in informing customers about the discounts. The company just has to update its website with details of the latest offers. All this costs a miniscule amount, unlike the conventional advertisements viz. magazines, newspapers and television where you would have to spend a fortune. Moreover, this is the most hassle-free method of marketing.
 

Offers and discounts play an important role in augmenting sales. This entails that the medium of communication be a fast paced one, in order to meet the demands of the present generation. 
 

Cost Effective Medium

It is significant for SMEs to realise how they can cut their costs in the regressive market conditions. Internet marketing proves effective in saving a lot of expenses incurred on advertising through the usual modes such as television and print. In fact companies can reach out only to a limited audience through these conventional mediums. On the other hand, internet marketing is growing by leaps and bounds because of its effectiveness, and it is quite obvious that it will soon outgrow television and print advertising viz. newspapers and magazines due to large number of people hooked on to the internet. Unlike the other modes, it is a cost effective medium and has a mass appeal. A company can expand its horizon through internet marketing and not have to remain confined to just a region or a country. The traditional mediums have a limited circulation and earmarked areas; the internet offers unlimited exposure. Anyone at any time can check the company website and learn about its product.
 

People usually look for information of a company on internet and so having an internet presence really makes a difference. It is important for the SMEs to understand that online marketing is the most important medium to boost their sales. The conventional promotion mediums require payments time and again but internet requires only the creation of a website which has to be regularly reviewed. If need be, a company can also make judicious use of internet by establishing a profile on social networking sites such as Twitter, Facebook and MySpace. It provides a platform to connect with new people and develop brand loyalty. Companies can maintain good personal relations with their customers and address their problems. All this can really help SMEs to win the confidence of their consumers. With a minimal cost, the company can be effective beyond imagination. A firm can also opt for other dynamic mediums such as viral marketing, blogging and podcasting. Increasing interaction with the customers can greatly help in generating sales. You should not miss out on getting your company listed in the several online business directories so that your firm can easily be traced by customers. This is an extremely convenient means to establish your web presence.   

Era of Marketing

There are 70% customers who trust online reviews. So you can aim towards gaining such online customer reviews, which, if positive, can benefit your company tremendously. There are over 100 million internet users in India itself, a fact which depicts the popularity of the medium. It is a good idea to conduct research and get in touch with the niche audience; this helps in framing an advertising strategy and boosting sales.
 

According to reports, India is home to an estimated eight million SMEs of which about 400,000 have a website and 100,000 have an active online presence. Internet marketing is flourishing and it is visible. A defined market strategy helps to attract the audience and create a profile for each segment. It is helpful to analyse customers’ problems and offer solutions after understanding their psyche. Make use of popular keywords to attract them. Make use of analytics to trace the customer’s response and direct yourself to the particular audience. This can help you to decide your future course of action. You should focus on increasing the internet traffic towards your company website to acquaint the people about your products.
 

In this new era of marketing, nothing can be more cost effective than internet marketing which has already begun to dominate the traditional methods of advertisement. Internet opens up endless opportunities with minimal investments. Maximise your sales with this innovative technique.

Targeted Marketing with Internet

Companies are increasingly using internet to promote products online. Social media has become a primary tool and internet marketing is increasingly being harnessed to curtail expenses besides saving precious time and energy. If you own a SME then you must discover the secret of saving your money through targeted marketing. Market research is its twin strategy that is again indispensable for a firm that wants to be successful.

Specifying Customers and Analysing Behaviour Pattern
The first step before creating a searchable site is to know who you are targeting. You must bring to your customers what they really want. Critically examine your customers’ behaviour and then plan your marketing campaign accordingly. Targeted internet marketing allows the web-master to design a marketing program to draw the attention of the predetermined group of people. Your target market is your ideal customer in the specific segment of the population you attempt to reach. This might mean pin-pointing their gender, income, education level, geographic location, interests, dreams and desires, problems they want to overcome and so on, as these affect the decision to purchase. The more specific you get, the easier it is to find and market to your target visitor. You can develop stronger customer relationships by targeting the needs of a specialized group. You need to define your target market so that you can immediately capture the attention of customers.

You must let your customers know that you understand their lifestyle – this gives a unique dimension to your site. Through this, you can give a personalised touch to your website and excel in the market. So if you are selling a product then you must smartly target your customers keeping in mind the purchasing power as well as the kind of mindset people have. Targeted marketing is all about how people think because it helps to know the market. Therefore, it is important to analyze this phenomenon to become a successful entrepreneur.

Strategies for Targeting Customers
There are many innovative internet marketing strategies to track potential customers. You can opt for the banner advertising option on the internet to target customers. The advancing technology makes it possible for advertisers to make your ads appear on specific sites which contain content that is similar or related to that of your site. For instance, if you have a clothes firm then your advertisement would appear on the sites dealing with the clothes industry.

The next big revolution in this stream is geo-targeting where, by tracking the IP addresses of the user, you can have ads appear before them. Another powerful force in internet marketing is the Pay-Per-Click option. It allows you to create a small text ad and then it appears on the screen when the user is searching on keywords relating to your product or services. It provides you with an edge as your ad appears in the Sponsored Links section of the search result page. You can also dwell upon organic search where the listing is generated based on the HTML tags and the relevant content found in a website.

Behavioural targeting is another popular medium as it delivers ads to consumers based on their past search behaviour. This reveals their interest and it is easy to convert them into customers. You can also target users with paid search ads on landing pages after they leave a search site.

Not taking things for granted, it is better to research the probable behaviour of the customer and choose the keywords accordingly. You must analyse the behaviour pattern of the customers which manifests in a better response in the market. You can create a SEO (Search Engine Optimization) program to attract the targeted traffic. You can link with the sites which provide information that deals with your product. Keywords should be popular and relevant; you should not assume them but research them. You can also make use of the keyword research tool, to be more precise.

Local Market
You can also target the local market customers through internet marketing as you can publish the latest events; for example, winter sales or festive season discounts can appear in the local newspaper website. You can also send emails to potential customers.

Undeniably, the internet promises to replace blanket marketing with targeted marketing. It is popularly stated that 'time is money' and target marketing is a less time consuming and a less expensive method.

Government to hike investment cap in MSMEs

Medium Small and Micro Enterprises (MSMEs) play a vital role in the industrial development of a nation. A MSME is crucial for gratifying various socio-economic objectives, such as higher growth of employment, output, promotion of exports, besides being an instrument for alleviating regional disparities and fostering entrepreneurship. Indian MSMEs have been exposed to intense competition due to the accelerated process of globalization and this increment would provide better capital and help the firms in facing adverse market competition. The government has hiked the investment cap in MSMEs after a gap of five years by revising investment limits for classification of industries. This signifies a significant step for MSMEs because interest rates and costs have been rising consistently due to the ever-increasing inflation. The investment cap is also likely to be linked to inflation so that the industry does not have to depend on periodic revisions and they can scale up, as and when required. 

As recently reported by The Times of India, currently any unit in the manufacturing industry with an investment between Rs 25 lakh and Rs 5 crore is classified as a small enterprise, while units with an investment of Rs 5 – 10 crore are classified as medium enterprises. In case of services, the limits are lower, given the lower capital requirement in the sector. Earlier the small scale industry was not clearly charted out but now with the changed investment cap, the government has defined the micro and medium industries. This major hike will affect 2.6 crore micro, small and medium enterprises and will improve the credit flow to the sector.

This should be a fruitful decision because it would give a boost to the economy of the nation and the profits of the MSMEs. It would affect development and growth rate as it would employ six crore workers. This would significantly raise the manufacturing output by 45% and there would be an increase of 40% in exports to other countries. On the whole, this review would have an incredible impact on 2.6 crore micro, small and medium industries.

This plan is still in the pipeline as the government would consult the MSMEs before taking a final decision. Nevertheless, the investment hike would be a big thing as this would affect the country’s development. While the earlier mandate requires the government to procure 20% from MSME units, it is now going to change. Earlier, multi-brand retail chains were required to source 30% from MSMEs; this plan too has been put on hold.

The sector would wait to hear on what is going to be the future for MSME units who are continuously struggling with bad credit, poor facilities and lack of government support.

MSME sector wants separate pre-budget consultations

The micro, small and medium enterprises (MSMEs) sector feels that there should be separate consultations with them in the run-up to the Union Budget 2012-13.

The Federation of Indian Micro and Small & Medium Enterprises (FISME) has also stated that the MSME sector used to hold separate pre-Budget consultations with the Finance Ministry till 2004.

VK Agarwal, President of FISME, said, “Earlier, the finance ministry used to hold a separate session with the small-scale industry sector. But this practice has been discontinued since 2004 and the ministry now holds one single pre-budget session for industry where the majority of the people invited are representatives of large corporate groups.”

Read more at: http://news.indiamart.com/story/msme-sector-wants-separate-pre-budget-consultations-153984.html

Indian handicraft exports rose 9% in Dec 2011

The country's handicraft exports has surged 9% during December 2011, after reaching 32% in October. Reports suggest that the international shipments worth just $338 million due to the poor demand from US and also the European markets. 

 

This data has been offered by the Export Promotion Council for Handicrafts (EPCH). Both US and European Union account for 70% of India's handicraft exports. The products that witnessed the maximum export growth has been wood-ware (90%), followed by shawls as art-ware (almost 30%) and imitation jewellery (22.5%). 

To read more, click here: http://news.indiamart.com/story/indian-handicraft-exports-rose-9-dec-2011-153843.html

ET NOW-IndiaMART Leaders of Tomorrow Award to Highland Holiday Homes under Travel & Hospitality Category

When the time and tide were against him, it was Mr. Devadas Y. Naik's (Chairman, Highland Holiday Homes (Goa) Private Ltd.) perseverance, hard work and right attitude that converged eventually to overturn them and emerge a winner. What better an acknowledgment for this victory than India's most prestigious awards for MSMEs - ET NOW-IndiaMART Leaders of Tomorrow Award 2011. He was conferred with this award being the best MSME under Travel and Hospitality category at the recently held Awards Ceremony. Mr. NR Narayana Murthy, Chairman Emeritus, Infosys Technologies, an inspirational figure for the entire Indian business community, congratulated Mr. Naik on this well deserved feat.

Ecstatic on being adjudged Leader of Tomorrow, Mr. Devadas Y. Naik, said, "This was the most challenging of all the awards I have won in the recent past. The elimination rounds, the rigorous implementation of rules to level the playing field, explaining my innovation and getting the attention of juries from the cream of the corporate world was a unique experience. It gives me further impetus to continue the growth trajectory I am following with Team Highland. Be warned: more innovations follow..."

Mr. Naik started out with a dream to create wealth. Since then, it has been a roller coaster ride for him experiencing acute lows and steep heights during the journey. He began with running a successful inter-state tea and coffee blending business, saw it fail when the USSR broke up and the big players flooded the Indian market with their products. He had to start from the scratch all over again but this did not discourage him and he opted for real estate, construction and hospitality. Eventually, he owned a marvellous Highland Beach resort in Candolim, Goa, which brought his dreams to life and won the prestigious ET NOW-IndiaMART Leaders of Tomorrow Award for him.

Mr. Naik's journey is just one of the numerous inspiring tales at 'ET NOW-IndiaMART Leaders of Tomorrow Awards 2011', India's leading platform that acknowledges the efforts and achievements of the Indian MSMEs. The opportunities are lurking and waiting for all aspiring entrepreneurs to grab. With this platform, it is the time to prove the metal and mettle to the world.

Sweet success for Hosmac India Pvt. Ltd. at ET NOW-IndiaMART Leaders of Tomorrow Awards 2011

With another feather of appreciation added to his hat of success at the felicitation ceremony of 'ET NOW-IndiaMART Leaders of Tomorrow Awards 2011', Dr. Vivek Desai, Managing Director, Hosmac India Pvt. Ltd. is now doubly charged up to establish his company as the top notch healthcare consultancy across the globe. Hosmac stood meritorious and ranked number one under the Healthcare and Biotech Category at the Awards. Mr. Desai was bestowed upon with the award by Mr. NR Narayana Murthy, Chairman Emeritus, Infosys Technologies, who congratulated him for his entrepreneurial efforts in setting higher benchmarks for healthcare consultancy in India.

Excited after winning the award, Dr. Vivek Desai, Managing Director, Hosmac India Pvt. Ltd., said, ”The award means a lot to our organisation especially due to the unique model of our business. We have grown over the past 15 years to become Asia’s largest healthcare consulting firm and this award recognises our effort and would enable us to move further into the market. With the industry growing at a very fast pace, this would strengthen our leadership position in India and also help our footprints outside India.’

Dr. Desai followed his entrepreneurial instincts and founded HOSMAC in 1996, which now has a dedicated pool of highly qualified professionals from various facets of Healthcare Consultancy and Design. A renowned name in Hospitality & Management field in India and overseas, he is a visiting faculty to premier institutions like Tata Institute of Social Science, IHMR Jaipur, IIT Mumbai, Indian School Of Business Hyderabad, All India Institute of Local Self Government, etc. In his successful career of over a decade, he has not only advised more than 400 hospital projects in areas of feasibility studies, market research, hospital planning and management consultancy in India and abroad; but also served as an advisor to numerous multilateral agencies like the World Bank, UNICEF, WHO, IL&FS, Ministry of Health and Family Welfare etc.

The healthcare sector is evolving in India demanding more and more such entrepreneurs who have a knack of it and could explore its vast potential. All it demands is entrepreneurs and leaders like Mr. Desai who do not sit at the shore but chase their dreams and dive deeper in the ocean to discover the pearls of success.

Sequel Logistics Bags ET NOW-IndiaMART Leaders of Tomorrow Award

While India is aiming to become the economic superpower, the supply chain management companies are acting as a catalyst to accelerate the growth process and perpetually strengthen the logistical backbone of the nation. Recognising the feat of such behind the scene heroes, 'ET NOW IndiaMART Leaders of Tomorrow Awards 2011' felicitated Mr. Sujoy Guha, Director & CEO, and Mr. Sharad Jobanputra, Chairman, Sequel Logistics Private Limited, with this prestigious award under the Transport and Logistics Category. Mr. NR Narayana Murthy, Chairman Emeritus, Infosys Technologies, congratulated them while giving away the award on their persistent efforts and commendable work.

Exhilarated at holding the award in his hands, Mr. Sujoy Guha, Director & CEO, Sequel Logistics Private Limited, said, “It feels great to win such prestigious award and be recognised by our peers, industry and the business community, in general. Sequel Logistics is proud to be a catalyst in this country's growth story, working across all other industry verticals - acting as a common thread and contributing to their overall development. We have built our business model on a platform of trust, integrity and continuous innovation, which now has been endorses by this award. As Team Sequel, we now have the responsibility to act as a leader in our field and continue adding value to our esteemed Customers.”

A Mechanical Engineer from NIT Calicut and a Post Graduate from Warwick University of UK, Mr. Guha has a wide industry experience of 27 years with one of the leading brands of the logistics sector. The rich experience paid off really well when he joined this venture, Sequel Logistics Pvt. Ltd., in the year 2010. The company specializes in providing comprehensive supply chain management solutions, services & products in 'Critical Sequel Logistics'.

The journey of Mr. Sujoy Guha has just begun after winning the ET NOW-IndiaMART Leaders of Tomorrow Award as he has to set higher goals for his company and achieve them. The leadership standards which he has set now welcome others to follow.

Expert Speak: Mr. Nandan Sharma, TATA Communications

MPLS - The Gen-Next Intelligent Networking Solution for SMEs

Small and medium enterprises (SME)s today leverage the power of technology to ‘go global’ and stay connected with associates and clients ‘24x7’. In this age of globalization and localization or as we say “glocalization”, small enterprises need to conduct bulk of their business over the internet and in a secured manner.

There are multiple options, but the best suited is the Multi-Protocol Label Switching (MPLS), the networking system that is reliable and secure for national and global connectivity. What makes MPLS the most sought after technology to deliver voice and data services for small enterprises? It is mature, sophisticated and delivers voice and data services faster. MPLS provides faster packet forwarding for IP routers and supports Virtual Private Network (VPN) services with traffic engineering and network convergence.

In addition, by virtue of its performance and versatility, MPLS offers lower network total cost of ownership (TCO) than any other solution.

Now, as a SME business, would you not want a fully managed solution that helps you streamline your business operations more efficient? MPLS not only provides you with cutting edge technology with ample capacity for future expansion but also offers cost-effective scalability across multiple locations. After all, you do not want to spend a fortune on your network infrastructure.

But it is not just costs, in this age of cut-throat competition among businesses in all domains, SMEs always need to improvise and enhance product or service in order to carve a niche in the market.  We understand that you need to concentrate on your core competencies instead of struggling with high-end technologies and networking system. 

MPLS networking service provides you with a fully managed solution for all network and connectivity requirements along with supporting business critical applications. MPLS service thus is the key for you to get an edge over your competitors.

The contributor for this blog is Mr. Nandan Sharma, Product Head, Network Services, Tata Communications-SME (http://www.tatacommunications.com/sme/mpls.asp)

Indian SMEs raise doubt over govt's decision to permit 100% FDI in single brand retail sector

The small and medium enterprises (SME) sector is worried if Centre's decision to permit 100% FDI in single brand retail sector will help the sector or not.

The Indian government has permitted 100% foreign direct investment (FDI) in single brand retail. It has notified the regulations and stated that all wholly owned global brands will be needing to source minimum 30% of their need from the domestic small and cottage industries, which have a maximum investment in plant and machinery of $1 million (almost Rs 5 crore).

The Federation of Indian Micro, Small and Medium Enterprises (FISME), which is an apex body for the sector, has stated that the mandatory sourcing rider won't be making much of difference.

Read more at: http://news.indiamart.com/story/indian-smes-raise-doubt-over-govts-decision-permit-100-fdi-single-brand-retail-s-153463.html

Techno- Savvy Age

Internet marketing is also known as web marketing, online marketing or e-marketing. It is a broad term and cannot be confined to just marketing through the internet but also through other mediums such as the wireless or email. The world, as postulated by Marshal McLuhan, can be regarded as a global village. McLuhan envisaged the world as interconnected by an electronic nervous system; this is popularly regarded as the internet. We live in the world of cloud computing where everyone is connected. No one can escape technology seeing that, everyone from a rickshaw puller to a billionaire, carries a mobile.

Web Presence
Technology is the pulse of life of the present generation. When a company establishes itself, it is extremely important for it to have a web presence. This acquaints the customers not just with the product but also with the company. Nowadays, the consumers are intelligent and the internet is the best medium to lure them. The media has a strong impact on the mindset of the people, who live in the world of virtual reality. Due to its nature, the internet medium allows consumers to research and to purchase products and services conveniently. So the internet has become a must in order to make a positive utilization of internet marketing.

Age of Information
It is essential for SMEs to realize that we live in the age of information. The way information is conveyed plays a very important role in boosting the sales of the product. This is the world of mediacracy and there could be nothing better than the internet to attract customers. Marcus Sheridan, the owner of ‘The Sales Lion’, says that effective content leads to winning the trust of the customer which further helps to get a lead in the market and thereby increase sales. So embrace internet marketing if you want to remain ahead in the promotion of the sales of your company.
 

Fast and cost effective mode
The best part is that with a small amount of investment just about anyone can have a web page on the Internet. In this manner, almost any business can reach a large market, directly, fast and economically. It is irrespective of the size or location of the business. This medium is cost effective as any SME can save its funds through internet marketing. This is because, anyone who can read and write can have access to the World Wide Web. According to the Internet World Stats, India has a large number of internet users which has gone up to about 100,000,000 till December 31, 2010.

Interactive medium
The internet has consolidated itself as a very powerful platform with an impact on the working culture and the manner in which people communicate. It has changed the working environment and affected the way businesses operate. It is about interaction — interaction creates relationships and those relationships open up the opportunities for you to share information about your products and services. Good personal relations can actually boost your sales.

Thus it is important to ensure that your website is user friendly, concise and up to date. In this way you can inform the world about the latest developments in your firm. Make good use of the innovative method of marketing through the internet to generate a more positive responses towards your business.

Expert Speak: Mr. GK Pramod

Back to Basics to Achieve Profitability for SMEs

With the ever changing demand and supply dynamics of the markets, SMEs do feel pressurized to meet the requirements. The major challenge which they came across is to sustain and fulfill the requisites without hampering enterprise's profitability.

After covering two 'Sutras' for effective business growth - Scalability and Sustainability, we will have a session on third Sutra – Profitability in this blog. By understanding its various aspects, you can imply them practically and make them instrumental to accomplish organisational growth.

Profitability
A Microlevel organization is said to be Profitable when it makes enough profit to take care of its employees, customers, investors and the Microlevel Entrepreneur in a satisfied manner.

Importance of Profitability

• Profitability plays an important role in motivating the Microlevel Entrepreneur in the right direction
• If the profitability is not in there in the business, it becomes extremely difficult for a Microlevel Entrepreneur to continue in the business

Do’s

• Make sure the business unit makes profit from day one of its operation
• Cut down all unnecessary expenses
• Make sure that the Microlevel Entrepreneur focuses on the core business

Dont’s

• If the existing unit is not making profit, first make sure that it becomes profitable
• Don’t open up a new business unit if the first unit is not profitable
• Don’t spend extra money on additional resources

Case Study:

Case Study-1: (Product Business)

Ms. Usha is a Microlevel Entrepreneur from Mysore in Karnataka. She is selling natural fresh juice. The details of Ms. Usha’s business organization unit are as follows:

1) Name of the entrepreneur:               Ms. Usha
2) Name of the organization:                Sushruta Fresh Juice Centre
3) Nature of business :                         Sale of Natural fresh juice

4) Details of turnover for the past 3 years:

Let us understand the analysis regarding Profitability factors for Ms. Usha’s business (Product Business):

• Ms. Usha’s business has made 30%, 35% and 40% profit in the past 3 years
• She is making good profits
• As the turnover is increasing, she is also able to increase the profit margin
• This is a good, profitable business

Challenges in Profitability

• Uniformity in production and  packaging. 
• To create awareness among their customers that natural fresh juice will provide good health.

Case Study-1: (Product Business)
 

Mr. Charan Singh is a Microlevel Entrepreneur from Jalandhar in Punjab. He is selling fertilizers. 

                                                                                                                 
The details of Charan Singh’s business organization unit are  as follows:
1) Name of the entrepreneur:                  Mr.Charan Singh
2) Name of the organization :                  Guru Gobind Agro
3) Nature of business :                            Selling fertilizers, Seeds and Chemicals
4) Details of turnover for the past 3 years:

The analysis regarding Profitability factors for Mr. Charan Singh’s business (Product business) suggest:

• Mr. Charan Singh’s business has made 10% profit in the Past 3 years.
• He is not making good profits.
• As the turnover is increasing, he is not able to increase the profit margin.
• This is not a profitable business.   

Challenges in Profitability

• Mr. Charan Singh is making a large turnover but less profit.
• The challenges for Charan Singh are to increase his profitability along with his turnover.

Key Points to remember:

• Make sure that the existing business unit is profitable. Increasing the profitability doesn't necessarily mean, you may have to open up more units. You can increase the profitability either by increasing the price for your products/services or increasing the customer base.
• Once the existing unit becomes profitable, a Microlevel Entrepreneur can think of opening new business units.

With this the journey of understanding the three vital 'Sutras – Scalability, Sustainability and Profitability' for business growth ends here followed up by your actions to implement them practically in the business growth strategies and witness the difference.

We will continue our journey of understanding various 'must know' topics for Small and Medium Enterprises (SMEs) in the subsequent blogs.

The blog has been authored by Mr. GK Pramod, Co-founder, The Second Gear - MBA for Non MBA's Mentoring Module Concept.

To contact the author, e-mail at gk@tothesecondgear.com

Leave your comments and queries here:

What the Auto Expo Means for SMEs?

What does the Auto Expo do for you? If capitalized right, the Auto Expo can provide ample opportunities to micro, small and medium enterprises. Smaller companies can showcase their products to most of the industry and new entrants can find themselves good opportunities. This hyped show is taking place at Pragati Maidan in New Delhi and it has the ability to attract a large number of customers.

Technological Advancements
Technological innovation is the thing to watch out for at the Auto Expo. Small component manufacturers need to keep an eagle’s eye on technological developments. The Auto Expo is a great place to know what is happening. It gives a holistic view of the automobile and components industry and if you are in that business, this is the best place to learn of new research and latest technological advances. There are also new national and international brands to be launched in India and the Auto Expo will introduce you to these opportunities. India is a growing market and if you operate in this booming industry then you need to acquaint yourself with the latest technological advancements because this knowledge will assist you to plan your business and give it a giant head start.

Perfect Platform
The Auto Expo is also the best outlet to showcase or even launch your product. It gives you an access to Indian and international buyers that no other marketing plans can provide. The small and medium auto component manufacturers are developing new technologies and offering new products. There could not be a better place to showcase these products because of the scale and industry-wide platform it offers. With 1500 exhibitors from 24 countries, this is also a wonderful international platform to participate in.

Explore More
This is the largest automotive show in India and you will be able to see the latest technology products from all leading and upcoming brands of the industry. The Auto Expo will introduce SMEs to new and locally designed or developed auto components, component designs and new age electronics.

The special focus of the Auto Expo would be on technological innovations in the field of safety, environment and fuel efficiency. These are great ways to improve and enhance your business. You can also check out special automobiles such as cars, SUVs, MUVs, CVs, two or three wheelers, hybrid vehicles, electric vehicles and special vehicles.

New Opportunities
If you run a small firm, every purchase you make has to be planned. If you are contemplating buying vehicles for your firm, this is the place. You get to identify, purchase and choose from a variety of special vehicles. In a highly competitive market, the Auto Expo comes as a buzzing and informative coalition of all large and small auto manufacturers. The Auto Expo is also the place to meet company representatives who will take you through different products with all the information that you require. This helps you to understand the market, competition and what is the future. It is also a great place to understand what the Indian markets requires.

If you have been wondering about the many brands entering India, the Auto Expo will help you understand what makes India the hottest market for foreign automobiles. Find out the hows and whys of the Indian automobile and components industry here.

RBI asks Banks to acknowledge, streamline MSME loan applications

The Reserve Bank of India (RBI) has directed the banks to compulsorily acknowledge all the loan applications, submitted either manually or online, by the micro, small and medium enterprise (MSME) borrowers. 

 

The central bank has issued the directive after receiving complaints from industry associations/ chambers that banks have not been acknowledging loan applications. The banks have been asked for ensuring that a running serial number is seen on the loan application form and also on the acknowledgement receipt. 

Moreover, the banks are strengthened to commence a central registration for loan applications, said RBI. The same technology is expected to be used for online submission of loan applications for enabling online tracking. 

For the micro enterprises, the simplified application-cum-sanction form, printed in regional language, needs to be unveiled for loans up to Rs 1 crore.

For more information, click: http://news.indiamart.com/story/rbi-asks-banks-acknowledge-streamline-msme-loan-applications-153008.html

Road to Success: Akar Impex Pvt Ltd

It has been more than two decades since Akar Impex (P) Ltd. came into being but the focus and determination to be the best is as strong as ever. Its name is taken amongst the leading companies providing water and waste water treatment solutions. The company has progressed from being a beginner in the field to one of the well-known enterprises in the industry. This was possible with a forward looking approach of the company's Director Mr. Taral Vaidiya. “I am a mechanical engineer by qualification and we manufacture water and waste water treatment plant,” says Mr. Vaidiya by way of introduction.

http://www.indiamart.com/corporate/success-stories/akar-impex.html


Initial days for Mr. Vaidiya were hard fought as there were various challenges that were blocking their road to the top. But, Mr. Vaidiya did not let it deter him from keeping his mind focused on his goal. “We have added to our strengths in terms of manufacturing, on site services, after sales services, tried to build up new projects with the limited staff strength. So challenge has been basically to evolve ourselves.” shares Mr. Vaidiya. Like any other company, the beginning was slow with a focus to solve set of challenges and shortcomings within the company which included manpower, technical know how and market presence but they overcome these hurdles with panache.

Factors that contributed to the challenge were turned into company's strengths but not before they had worked towards achieving it. “We have got two strengths which define our working process – the first is manpower and other one being the ability to come up with innovative solutions,” proudly shares Mr. Vaidiya. The company also has a well-defined marketing strategy which can be termed as the third pillar of the company on which it stands firm. “Having hands on approach basically helps us, you will not find any of our marketing personnel with no idea how an equipment is manufactured,” adds Mr. Vaidiya. Marketing personnel who are well acquainted with the products and their operations adds to the repute of the company and this has been well identified by Mr. Vaidya.

Shifting the focus on varied clientele, Mr. Vaidiya says, “The textile industry is one of the major clients for us, apart from that hotel industry is a very big client for us and we also specialise in residential complexes.” Looking to fly even higher, Mr. Vaidiya associated himself with IndiaMART.com. “IndiaMART.com made sure that projection of our company's real strengths has gone to the customers,” says Mr. Vaidiya.

Talking about his future plans, Mr. Vaidiya says, "The future for us is developing more and more such innovative solutions, try to see that cost is brought down in such a way that efficiency is not compromised, and at the same time, develop something which a customer is able to save space with and make sure that effluent quality is such he can use it for recycling and at the same time, try to make a product that lasts for a long long time."

Expert Speak: Mr. GK Pramod

Sustain 'Sustainability' for elevated growth in business

To achieve top-line growth and bottom line results, sustainable business growth strategy is the practical approach. Preferably, the Indian SMEs should embrace sustainability to optimize their operations enabling enhanced overall performance.

While we delved deeper on 'Scalability' in the previous blog, it would be equally interesting to touch upon 'Sustainability' – the second 'Sutra' of business growth.

The Business Growth has to be Sustainable. If there is no sustainability in the Business Growth, it becomes very difficult for a Microlevel Entrepreneur to survive.

Sustainability
If a Microlevel Entrepreneur is able to maintain the business without affecting the quality of the product/service, with consistency in increasing turnover and profitability, such an attribute is called Sustainability.

Importance of Sustainability

• This is an important parameter for a Microlevel Entrepreneur. If there is no Sustainability, he/she may have to completely close down the business unit.
• However, large business organizations can still survive with one wrong step forward, but a small Microlevel Entrepreneur has to be very careful.

Do’s

• If you are a Microlevel Entrepreneur, be very clear before expanding your business whether you will be able to survive even after the business expansion.
• Prepare a detailed excel sheet summarizing all the revenues and expenses of the new unit. This would give you a clear idea.

Dont’s

• If the expansion of the business doesn’t promise to provide Sustainability, please do not expand.

Case Study
We will discuss a case study of Ms. Usha who is Microlevel entrepreneur from Mysore. Ms. Usha sells natural fresh juice.

The details of Ms.Usha’s business organization unit are as  follows:

1) Name of the entrepreneur:        Ms.Usha
2) Name of the organization:         Sushruta Fresh Juice Centre
3) Nature of business:                   Sale of Natural fresh juice juice            
4) Details of turnover details for past 3 years:

Analysing the sustainability factors for Ms. Usha’s business (Product Business), we have the following observations:

• Ms. Usha’s business is sustainable because she is able to deliver the same quality of juice in all the juice centers run by her.
• She is manufacturing the juice in one centralized location, thereby reducing the cost of production.
• She is running each of the juice centers as a profitable business centre.
• She has a common production Machine, Production staff, Marketing staff, Finance staff and HR staff for all the juice centers. This makes her business more Sustainable.

Challenges in Sustainability

• Uniformity in production and packing packing.                            
• To create awareness among their customers that natural fresh juice will provide good health.

To my belief, practicing the three 'Sutras – Scalability, Sustainability and Profitability', would lead your organisation towards business growth. Wrapping up the detailed discussion here, we would learn about profitability in our next blog.

The blog has been authored by Mr. GK Pramod, Co-founder, The Second Gear - MBA for Non MBA's Mentoring Module Concept.

To contact the author, e-mail at gk@tothesecondgear.com

For your comments and queries, please scribble down: