SUPPORTING INDIA’S SMALL INDUSTRIES

Small Industries Development Organization

(SIDO)

Rome
12th December 2002 1
 SME DEFINITION IN INDIA

n Micro – Plant & Machinery

n < Rs 2.5 m (~ $ 52,000)

n Small – Plant & Machinery

n < Rs 10 m (~ $ 210,000)

n Selected Sectors -
n < Rs 50 m (~ $1.05 m)

n Services – Fixed Assets excluding L & B

n < Rs 1 m (~ $ 21,000)

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 PROFILE OF SMEs IN INDIA
(2001-02)
n ESTIMATED NO. OF SMALL UNITS: 3.46 million
n EMPLOYMENT PROVIDED : 19.30 million
n EXPORTS (2000-01) $14.8 billion
n CONTRIBUTION TO GDP: 6.29%
n SHARE IN INDUSTRIAL PRODUCTION : 39%
n SHARE IN EXPORTS: 34%
n TOTAL NUMBER OF ITEMS PRODUCED Over 8000
n NUMBER OF RESERVED ITEMS 749
n GROWTH RATE
n INDUSTRIAL GROWTH RATE : 2.7%
n SSI GROWTH RATE : 6.08%
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 SMEs & EMPLOYMENT

n Incubator of entrepreneurial talent

n 130,000 new businesses each year

n 660,000 new jobs each year

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THE SMALL INDUSTRIES
DEVELOPMENT
ORGANISATION
ORIGIN & HISTORY OF SIDO

n SMEDA

n 1954
n Extension Services
n Train Entrepreneurs
n Protection, Promotion & Co-ordination

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MISSION

Coordination
Formulation and implementation of
policies and programmes 7
 ORGANISATIONAL CHART
MINISTER
SMALL SCALE INDUSTRIES

SECRETARY (SSI)

AS&DC (SSI)
HEAD OF SIDO
CMD (NSIC)
SIDBI, TBSE Educational/Research Instts.
Credit Guarantee
Member RBI, CSO, PFC
BIS, EAN India, NPC
ITPO, FIEO Governing Body Working Group Biotech Consortium…

Directing Staff Directing Staff Directing Staff Field Office Directors

(Economic) (Technical) (General Admn.) Directors (Autonomous Bodies)

Deputy Directors

Asstt. Directors
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 MARKET PERSPECTIVE

n Customers

n 3.4 million Small & Micro Units

n Potential entrepreneurs

n Medium & Large

n State Governments
n Other SME Intermediaries

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KEY CONCERNS

n Credit
n Marketing
n Technology
n Infrastructure
n Regulatory bottlenecks
n Impact of globalization

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 SIDO - ACTIVITIES
♦ Policy Facilitation
♦ Definition and Interpretation, Single Legislation,
Simplification of Procedures, Reservation, Credit Flow
Interventions

♦ Technology Services
♦ Technology Upgradation Schemes, Technology
Resource Centres

♦ Special Interventions
♦ ISO 9000, National Programmes on Locks, Machine
Tools, Stone and Toys, Marketing Development
Assistance , Participation in International Fairs,
Credit Guarantee Scheme
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 SIDO - ACTIVITIES

♦ Entrepreneurship Development
♦ Entrepreneurial Development Institutes
- State EDIs, EDPs, MDPs

♦ Technical Skills Development

♦ Process & Product Training programmes

♦ Infrastructure Support
♦ Tool Rooms, Testing Centers, Industrial Estates

♦ Economic and Statistical Investigation

♦ Registration modalities, Census, Data Bank

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 SIDO - ACTIVITIES

♦ Consultancy
♦ Project Profiles, Energy audit, Pollution audit,
International Cooperation

♦ Forum for Interaction Among SSIs

♦ SME Board, Stakeholders dialogue

♦ Networking & Continuing Education

♦ Knowledge Portal, Sectoral Studies, Sensitization
Programmes on Bar Coding, WTO, IPR, Anti
Dumping, Networking with other service providers

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 NATIONAL PARTNERS
n NSIC (Marketing) n Ministries
n TBSE (Technology) n State Governments
n SIDBI (Finance) n SME Associations
n RBI (Central Bank) n Trade Associations
n IBA (Banks) n Educational/Research
n Credit Guarantee Institutes
n BIS (Standards) n Training Institutions
n EAN India (Bar Coding) n CSO (Statistics)
n ITPO (Trade) n PFC (IPRs)
n FIEO (Export) n NPC (Productivity)
n Biotech Consortium...

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INTERNATIONAL PARTNERS

n UNIDO n WIPO
n UNDP n APO
n ILO n JICA
n GTZ n CFTC
n DANIDA n INSME

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REACHING OUT

n Field Offices
n Exhibitions
n Print Medium
n CD ROMs
n Web

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SIDO - FIELD OFFICES

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 SIDO - FIELD OFFICES
n Small Industries Service Institutes
(30 SISIs, 28 Branches)

n Training Institutes (2 SEPTI)

n Testing Centres (4 RTCs, 7 FTSs)

n Autonomous Institutions (21)

n Tool Rooms (11)
n NLTI (3)
n PPDCs (6)
n CFTIs (2)
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PRINT MEDIUM

n Guide Books
n Journals - HQ & Field
n Project profiles
n State/ District profiles
n Industry Status Reports

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WEB

www.smallindustryindia.com
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 TOOL ROOMS
SUCCESS STORY
n Design, development and production of high precision
tools, moulds, dies and components

n State of art equipment – CAD/CAM, CNC (upto 5 axis),

Rapid Prototyping and Vacuum Heat Treatment.

n Design, prototyping and development of new products

n Training - regular and customised (full time or part

time)

n Special technical consultancy assistance to SMEs

n Technology demonstration & technology transfer

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 REVENUE MODEL
n Annual Budget USD 80 million

THEN (100% public funds)

n Free services
n Scholarship linked education

NOW (60-65% public funds)

n Paid services
n Variable Cost plus services

FUTURE (50:50)
n Core activities – public funding
n Self sustaining model – 75% recovery
n Phase out of public funding over 3 to 5 years
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 FACTORS CRITICAL FOR MARKET
SUCCESS

n Part of Government
n Advocacy
n Access
n Public Funds
n Credibility
n Technical, Economic & Admn. Manpower
n Field Offices
n Alliances
n Exposure
n Constant unlearning & relearning
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 WHAT WE OFFER

n International Training Centres on SMEs

n Customized Training Solutions
n Setting up Tool Rooms
n Industrial Potential Studies
n Establishing SMEDA
n Technology Transfer & Matchmaking
n Facilitating transborder outsourcing
n SME friendly Credit Regime
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THE FUTURE

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 NEXT FIVE YEARS

n Target – 12% annual growth as

compared to 9% during last five years

n Employment growth @ 4% per annum

similar to the last five years – 4.4 million
jobs in 5 years

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 SHAPE OF THINGS TO COME
n Focus on key concerns to continue
n Introducing the concept of SME
n Legislative support to factoring services, limited
partnership act, single law for SMEs
n Promotion of linkages between large and small
enterprises
n FDI window
n Emphasis on the service sector
n Priority to sunrise industries
n Leveraging on consulting strengths
n Sustaining growth for employment
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