MSME

INSIDE
 Introduction
 Sectors
 Guidelines
 Significance
 Challenges
 Government assistance
 Top SMEs
 Source- SME Chamber of India

About SMEs
Medium
50<Emp<300
US$3 mn<TA<US$ 15mn
US$ 3mn<TAS<US$ 15mn

Small
10<Emp<50
US$100000<TA<US$3 mn
US$100000<TAS<US$3 mn

TA- total assets Micro

TAS-total annual sales Employees < 10
T.A < US$100000
T.A.S <US$100000
3
SECTORS
 Chemicals / Pharmaceuticals – (MH , GJ)
 Textile / Garments – (North/South India)
 Auto ancillary – (MH, GJ, PB)
 Engineering –(all across India)

 Others- Manufacturing, IT & Agro & Service

sector, Food processing.

Source- SME World Enterprise

4
 TEXTILE:
-Acc. To ARRPEEC, energy costs account for around 17%
Of total manufacturing costs of the Indian textile industry.

-Energy consumption cut short by adopting energy efficient

Manufacturing processes or implement suitable energy
Conservation technologies.

Source- The Economic Times 5

 RETAIL:
- SMEs lag behind big players due to lack
of funds, awareness, competitive impetus.
- Unsuccessful in creating image. Lag
behind in product appeal,quality.
- Monetary resources not enough to create
brands.
- No optimum level of market exposure.
 Source- The Economic Times

GUIDELINES
SEBI-
(1) SME stock exchanges
(2) Introduction of Indian Depository
Receipts.

 RBI-
(1)Separate policies for monetary
assistance.
(2)Transparent rating system.
(3)Notification to banks reg.loans.
(4)Check / Review credit flow to SME
 SME loan
factory

Central Sales

(credit division) (Sales division)

SIGNIFICANCE

 Engine of growth

 Competitive & Efficient market

 Poverty Reduction

9
CONFRONTING CHALLENGES
 Lack of IT support
 Lack of IT literacy
 Lack of formal procedure and
discipline.
 Uneven IT awareness and
management skill.
 Lack of financial / human
resources
 Lack of experience to use
consultants
Sources- SME chamber of India
SME World Enterprise
Govt Assistance
- SME HELPLINE to offer assistance on taxation,
finance, laws, marketing etc.

- Govt to encourage single window clearance concept,

reduce red tapism.

- SME business through Web.

- Campaign to promote the products at state level

(eg. Khadi gram udyog mela)

Sources- SME Chamber of India

www.sme.in 11
SME Speaks
 50% SMEs affected by recession.
 58% SMEs confident of improvements
 92% believe revenue growth will be 6-15%
 Growth rate 12.32%.
 64% not yet in exports:-
-limited production
-financial capacities
-lack of proper Govt support
 Wide reach to customers through networking

Source- www.sme.in
TOP 5 SMEs
 24Frames Digital (media), Mumbai
 24x7Corporate solutions India
Pvt.ltd (HR), Chennai
 360Studio Red (advert /event),
Kolkata.
 3A Associates Incorporated(Elect),
Mumbai.
 3A Capital services(Fin), Mumbai.