Improving Competitiveness of

SME’s
The 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
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 India’s exports directly and
around 8% to India’s 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 SME’s include:
Strategy and operations: Most SME’s 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 firm’s 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.
All of these factors restrict the SME’s ability to Day & Date :- Friday & Saturday,
increase the capacities and potential benefits that Time :- 09:30 am to 5:30 pm.
could be derived from possible expansion. Therefore Venue :- Hall No 06 & 07, ‘ A ‘ Wing, MCCIA Trade Tower ICC Complex, Senapati
almost Two-thirds of SME’s have to rely on informal Bapat Road, Pune 411 016
sources to meet their financial requirements. Seminar programme
Day – 1: Friday, 19th February 2010
Why Should You Attend? Duration Topic Speaker
As a result of globalization and liberalization, coupled
9:30 to 10:00 Inauguration and Mr. Hemant Joshi (Deloitte)
with WTO regime, Indian SMEs have been passing ICICI Mr. Anant Sardeshmukh (ADG MCCIA)
through a transitional period. With slowing down of Presentation Mr. Harshil Mehta (National Head,
economy in India and abroad, particularly USA and ICICI PSG)
European Union and enhanced competition from China 10:00 to 11:30 Getting the K. Kumar (Deloitte)
strategy right Mr. Ranjit Jakkli (Powercon)
and a few low cost centers of production from abroad
Mr. Vikram Puri (CEO & MD Natasha Consultants)
many units have been facing a tough time. Those SMEs
11:30 to 12:00 - Tea Break
who have strong technological base, international
12:00 to Setting up Lean Mr. Yogesh Vaghani (CEO & MD, Milton)
business outlook, competitive spirit and willingness 13:30 Mr. Arvind Navdikar (MCCIA Faculty)
to restructure themselves shall withstand the present Operations
13:30 to 14:30 - Lunch Break
challenges and come out with shining colors’ to make
14:30 to Direct and Mr. Pramod Joshi (Deloitte)
their own contribution to the Indian economy. This
15:30 Indirect Mr. Anant Awasare (Deloitte)
seminar will address and help you overcome these new Taxation
challenges faced by your organisation. Those SMEs who 15:30 to 16:00 - Tea Break
have strong technological base, international business 16:00 to Managing Talent Dr. Sayali Gankar (Director MIT School of Mgmt)
outlook, competitive spirit and willingness to restructure 17:30 Dr. Shekhar Chitale (Dean Pune University)
Dr. Sonia Yadwadkar
themselves shall withstand the present challenges
Mr. Anant Sardeshmukh (ADG, MCCIA)
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.
Day – 2: Saturday, 20th February 2010
Duration Topic Speaker

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

10:30 to Understanding Mr. Abhay Gupte (Deloitte)

11:30 Risk
11:30 to 12:00 - Tea Break

12:00 to Corporate Mr. Hemant Joshi (Deloitte)

12:30 Governance

12:30 to Raising Finance Mr. Viren Malhotra (Deloitte)

13:30
13:30 to 14:30 - Lunch Break

14:30 to Panel Discussion Mr. Hemant Joshii (Deloitte)

16:00 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 (Bankers To be Confirmed)

17:30 discussions with
Financial
Advisors and
Bankers