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)