Welcome Guest

Businessex.Com

Strict Standards: Only variables should be passed by reference in /home/franchis/public_html/entrepreneur/entrepreneur/templates/InterviewDetail_tpl.php on line 7
Home Interviews Think Tanks  Supporting Organisations  Excerpts of the Interview of Dr. H.P Kumar

Excerpts of the Interview of Dr. H.P Kumar

National Small Industries Corporation Ltd. (NSIC), an ISO 9001 certified company, since its establishment in 1955, has been working to fulfill its mission of promoting, aiding and fostering the growth of small scale industries and industry related small s

Tags: NSIC

BY Taslima Khan | September 01, 2010 | COMMENTS ( 0 ) |

Excerpts of the Interview of Dr. H.P Kumar
Dr. H.P Kumar Chairman-cum-Managing Director National Small Industries Corporation, New Delhi

National Small Industries Corporation Ltd. (NSIC), an ISO 9001 certified company, since its establishment in 1955, has been working to fulfill its mission of promoting, aiding and fostering the growth of small scale industries and industry related small scale services/business enterprises in the country. 

Taslima Khan (TK): What motivates you to work for MSMEs?

 

 HP Kumar (HPK): NSIC’s mandate, since its inception, has been to aid, counsel, assist, finance, protect and promote the interest of micro and small enterprises in India. As, we all know that in any economy, the greatest need is to create employment opportunities at local level for initiating overall growth of the region. After India’s independence in 1947, the prime objective of India’s development strategy has been towards achieving economic growth with self-reliance, social justice and alleviation of poverty. Accordingly, the industrial policy laid emphasis on achieving a high growth rate, national self-reliance, building up of indigenous capacity, encouraging SMEs, bringing about balanced regional development and reduction of income inequalities.

 

Micro and Small enterprises (MSEs) are the engines of local economies and are the best way of achieving the above objectives. They drive innovation, spur equitable growth, create jobs, and supply poor communities with better products and services thus complimenting the social responsibility. This motivates us to work for promotion of MSMEs in the country.

 

TK: What are the major areas on which NSIC offers assistance to MSMEs?

 

HPK: NSIC has been operating various schemes of assistance for providing help in marketing, technology, credit and Infomediary support to MSMEs. These schemes are designed keeping in view the needs of the micro and small enterprises operating in various clusters or elsewhere. The schemes are user friendly with least  paper work. The aim is to render assistance well in time when it is needed.

 

With the changing needs of SMEs’ sector due to globalization, NSIC has also re-oriented its various schemes for rendering assistance to the sector. The schemes of Hire Purchase and Leasing of machinery and equipments which were the prime focus of NSIC’s assistance in past 40 years have now been replaced by other innovative products which are more relevant in today’s scenario.

 

Quality certification of products manufactured by SMEs, rating of performance and credit worthiness of micro and small enterprises, management and skill development, training, information support, marketing facilitation through Marketing Intelligence Cell,  B2B Portals and international exposure are some of the new schemes which have been implemented by NSIC to enhance the competitiveness of micro and small enterprises sector in India. This is in addition to various schemes of assistance, operated by NSIC, for providing help in marketing, technology, credit and Infomediary support.

 

We function like a professional organisation in order to market our products and make them acceptable to the customers in order to be a self sustaining organization. The success of company’s schemes can be gauged from the fact that demand of our products is rising day by day and we are opening more and more branches to disseminate our services to a larger number of small enterprises.

 

TK: How far have the recommendations of the Task Force been implemented (as against the dead line of 6 months)?

 

HPK: The Task Force had envisaged a greater role of NSIC in extending Marketing Support to the MSME sector and envisaged following specific areas of intervention by NSIC:

  • Setting up of a Marketing Intelligence Cell for MSME sector  to collect and disseminate both domestic and international marketing intelligence.
  • Enhancing the operations under Consortia formation and  Brand building to 4-5 times,
  •  Enhancing Raw material assistance,
  •  organizing sector specific international trade fairs in metropolitan cities 
  • Organizing exhibitions of NER products in major state capitals

We, at NSIC, have taken these tasks for implementation on top priority and have drawn our business plan accordingly. We have drawn a time bound action plan  for the implementation of each one of these recommendations.

 

I am happy to mention that in accordance with the Task Force recommendations, NSIC has very recently established a Marketing Intelligence Cell which was inaugurated by the Principle Secretary to the Hon’ble Prime Minister of India. This Marketing Intelligence  Cell  will serve MSMEs in many ways. The objective is to make MSMEs more competitive in today’s environment  and empower them to be ready to meet future challenges. This Cell will assist lakhs of MSMEs all over the country in giving them information and intelligence to help them grow in their businesses. This cell  will not only  provide  information about domestic & International business, suppliers of goods, technologies & services  but will also assist them in Marketing Research, Planning for Marketing, Business environment analysis, Scenario Planning, Win-Loss analysis in near future.  Other informations like: domestic & international tenders, exporters and  importers, technology suppliers, equipment & raw material suppliers,  information about the latest trends, designs and customer demands & Customer Support services, are available through this Cell.

 

We have also initiated simultaneous actions on other tasks assigned by the Task Force and I am sure all these tasks will be accomplished in accordance with the assigned time schedule.

 

TK: What is NSIC’s role in assisting the Government in meeting the objectives suggested by the Task Force?

 

HPK: NSIC’s main role in assisting the Government in meeting the objectives suggested by the Task Force is to expeditiously and effectively implement the suggestions of the Task Force assigned to NSIC so that MSMEs can reap the benefit of their recommendations and become globally competitive.

 

TK: Please tell us about the incubation facilities at NSIC?

 

HPK: Creation of self employment opportunities to tackle unemployment in the country has been a big challenge. In this regard,  NSIC has started a new programme by providing integrated support through incubation of unemployed people in order to empower them with knowledge & infrastructure and other support services for setting up of new small enterprises in manufacturing and services sectors. We have developed a package of training programmes which provide complete hand holding right from start i.e. from practical on the job training to preparation of project reports, market survey, raw material assistance, identification and procurement of plant & machinery, credit support, testing and handing over of the project.

 

Through this programme, our objective is to equip unemployed people with adequate technical and supervisory skills so that they can either support their own businesses or become employable to earn their livelihood. This is a very useful programme considering the need of creating more and more employment opportunities in the country. The programme facilitates incubation in low cost projects like Bricks Manufacturing, Wax Candle Manufacturing, Socks, Ice Cream Cone, Paper Napkin, Soya Milk, Ginger/Garlic Paste, Tomato Ketchup, Steel Cutlery, Pet Bottles , Chalk Crayons and many more such low cost & small projects. The idea is to create self-employment through providing low cost machinery/projects which could create employment for 2 to 5 persons per project with an investment between Rs.2 lac to 10 lac. Total duration of the Incubation programme is 3 months with 4 weeks practical on-the-job training and remaining period being utilized for sourcing of technology, arranging finance and completion of other documentation etc. Any one aspiring to become an entrepreneur can apply and take part in the Incubation programme.

 

In order to impart such skills to large number of unemployed people, NSIC is setting-up a number of Technical and Incubation Centres (NSIC-TICs) at various locations across the country under Public-Private Partnership (PPP) mode.  52 such incubator centres have already been established in different parts of the country. Our aim is to establish such centres in every district of the country. These model of Incubation have also been quiet appreciated by various countries who have shown their interest to replicate such models in their countries.   Our preference is to make these TICs self sustaining and successful model in public-private mode.

 

TK: At present, there are over 26 million enterprises employing about 60 million people. How far has NSIC been able to reach out to this segment.

 

HPK: NSIC has assisted hundreds of thousands of first generation entrepreneurs in setting up their small enterprises and assisting them in their growth. A significant number of medium and large enterprises of today had started their businesses with the help of NSIC and have now become multi-national conglomerates.

 

Increasing the reach of NSIC to a larger number of micro and small enterprises & providing them the integrated  support services is the main focus. We have plans for expansion of NSIC’s reach from 40 offices four years back to 200 offices over next three years with the aim to provide services to MSMEs at their door steps. We have also signed MOUs with various Industry Associations in order to work with their members closely and synergise our products with their requirements. Inspite of being a promotional organization, NSIC has achieved self sustainability in its operations and has become a dividend paying company. Our endeavour is to strengthen our financial results while continuing to extend promotional services to this sector. This would enable us to serve wide spectrum of Micro and Small Enterprises (MSEs) in the country and also enhance our business volumes thus making each product of NSIC a self sustaining module. It will be NSIC’s endeavour to strengthen small enterprises to meet the demand of global competitiveness, which is the key to the future of small enterprises in the present context. 

 

Our services are also being acknowledged all over the world. Many developing countries are seeking our assistance in development of small enterprise sector in their countries and replicating the Indian success story. NSIC has been providing assistance to various developing countries in formulation of their policies for development of SMEs’ sector and implementing various programmes of assistance which have already succeeded in our country.

 

TK: You recently got into a tie up with credit rating agencies? Please explain the modalities of how you are going to offer crediting facilities through them?

 

HPK: Performance & Credit Rating Scheme is a very unique way of empowering the small enterprises to face internal and global competition. NSIC has identified and empanelled various national and international agencies for rating of MSMEs. The enterprises are free to choose any of the empanelled rating agencies.  NSIC provides financial assistance to the extent of 75% of the cost of rating (maximum of Rs. 40,000/-) to all the rated units. This rating benefits the units in many ways like establishing their creditworthiness which helps them in accessing credit from the bank quicker and cheaper and thus economizing the cost of credit. It also certifies their performance ability which would help procuring orders from foreign and other bulk buyers and analyzing the strengths and weaknesses of units. It also prompts the owner in bringing changes to improve upon their operating performance. The rating serves as a trusted third party opinion on the unit’s capabilities and credit worthiness. A good rating enhances the acceptability of the rated unit in the market.  

 

TK: A huge section of SMEs do not have information about the various support schemes of NSIC and of the government. How do you reach out to Masses?

 

HPK: To reach out to masses, NSIC has opened MSME Info-Call Centre in its premises. This centre serves Micro, Small & Medium Enterprises by way of various services and provides information about the schemes and programmes relevant to them. The Centre undertakes the following operations:

  • Telemarketing of SME services
  • Creating awareness amongst SMEs
  • Customer Support services
  • Business Development
  • Infomediary Services
  • E-Newsletter.

This Info-Call Centre  not only promotes information exchange with MSME’s pan India & abroad but also enhance NSIC’s reach to large number of MSMEs all over the country besides improving its service delivery.

Besides the above, NSIC also organizes various meets and campaigns in association with relevant industry associations all over India to promote its services. We have also signed MOUs with various industry associations in order to understand needs of MSMEs better and suitably synergizing our products with their requirements. This has enabled us to  reach at the door steps of MSMEs and serve wide spectrum of Micro and Small Enterprises (MSEs) in the country.

 

 

Please add your comment

Rating  
Not readable? Change text.

Enter the characters as seen on the image (case insensitive)
  Notify me of followup comments via e-mail   Subscribe for daily newsletter

Related Interviews

We have been able to attract potential MSMEs under CGTMSE: RK Gupta, Bank of Maharashtra

RK Gupta, Executive Director,Bank of Maharashtra

How is BoM meeting the credit requirement of the MSME sector? We are using different schemes, which are helping the bank in meeting...

Gujarat set to emerge as the next Silicon Valley of India: Kaushal Chokshi of Scaale Group

Kaushal Chokshi, Founder & Chairman, Scaale Group

Hailing from a simple family in Baroda, Kaushal Chokshi always dreamt of becoming an entrepreneur right from a very young age. It is this...

Joining start-ups is becoming more attractive: Dr Ajay Kela, President & CEO, Wadhwani Foundation

Dr Ajay Kela, President and CEO, Wadhwani Foundation

Wadhwani Foundation has pledged $100 million to help create and fulfil 25 million jobs by 2020  with assistance from government and...

SMEs need to have an efficient financial management systems: Saru Kaushal, American Express

Saru Kaushal, Country Business Head (Global Corporate Payments), American Express

One of the key challenges that mid-sized corporations face is managing expenses effectively. Financial discipline can help companies...

Ratings are a significant step towards empowering SMEs: V. Srinivasan, CRISIL

V. Srinivasan, Business Head, CRISIL Ratings- SME

CRISIL is a global analytical company providing ratings, research, and risk and policy advisory services. CRISIL is majorly owned by...

Simplification of tax structure is the need of the hour: Manguirish Pai Raiker, Co-chairman, ASSOCHAM

Manguirish Pai Raiker, Co-chairman, ASSOCHAM

 Tax reforms are essential for the growth of overall economy and especially the MSME sector. Manguirish Pai Raiker, Co-chairman,...

Need to ink FTAs with EU to boost apparel exports: Virendra Uppal, Chairman, AEPC

Virendra Uppal, Chairman, AEPC

Although India’s apparel industry is expecting a growth in the current financial year, the euro zone’s crisis along with the...

We aim to encourage entrepreneurs: Ashwani Kumar, Dena Bank

Ashwani Kumar, Chairman & MD, Dena Bank

With an aim to encourage entrepreneurs, Dena Bank is giving a thrust to the growth of SMEs. In an exclusive chat with Entrepreneur,...

All you need to know about brand building for small businesses

Willem Woudenberg, CEO, Brand Dialogue

Brand building has become the catalyst for a company to be a long-term player in this competitive world. As companies try to win more...

Current definition does not encourage MSMEs to move up the value chain: Yaduvendra Mathur, CMD, EXIM Bank

Yaduvendra Mathur, CMD, EXIM Bank

The small and medium entrepreneurs (SMEs) are facing hurdles in accessing bank finance under the existing MSME definition. Yaduvendra...

How Mahindra Samriddhi is making farmers a self-reliant entrepreneur

Ashok Sharma, CEO - Agri & Allied Businesses, M&M

In an interaction with EntrepreneurIndia.com, Ashok Sharma, CEO - Agri & Allied Businesses, Mahindra and Mahindra, talks about...

Education has no role in entrepreneurship: Murali Bukkapatnam, President, TiE Hyderabad

Murali Bukkapatnam, President, TiE Hyderabad

In an interaction with EntrepreneurIndia.com, Murali Bukkapatnam, President, TiE Hyderabad, shares his thoughts about fostering...

MSME sector can be looked at as 'maximum skillers major employers': Sarbananda Sonowal

Sarbananda Sonowal, Minister of State for Skill Development

The mandate of the Modi government to make India a highly skilled economy and an entrepreneurial powerhouse, led to the creation of a new...

Indian entrepreneurs more open to challenges: Kalantri

Vijay Kalantri, President, All India Association of Industries (AIAI)

There are many hurdles that deprive Indian start-ups and SMEs to sustain in today’s competitive world. In an interaction with...

"SMEs need reliable power"

Montek Singh Ahluwalia, Deputy Chairman Planning Commission

The enormous variety of entrepreneurs in the country presents a tremendous challenge before the government to devise support strategies...

Dinesh Rai: The challenge of implementation

Dinesh Rai, Secretary, Ministry of MSME, GoI

The union budget and the Prime Minister’s Task Force has outlined several policy recommendations for the development of the MSME...

Entrepreneurial Training

Mr. Ajay Dixit, Head, The Centre for Social Entrepreneurship & CSR, EDI.

A recognised national resource institution, EDI is committed to entrepreneurship education, training and research. EDI has been...

Emerging sector important for developing nations

Michael Spence, 2001 Nobel Prize winner for economic sciences

Michael Spence, 2001 Nobel Prize winner for economic sciences, who did pioneering work on dynamics of information flow and market...

Learn to go the business way

Radha Iyer, Faculty Entrepreneurship & Human Resource Development, K.J. Somaiya Institute of Management Studies and Research

With entrepreneurship becoming the most sought after career option these days, academic institutions have also taken it up as a subject...

Govt boost to MSMEs

Madhav Lal, Addl Secy & Development Commissioner, Ministry of MSME, Government of India

In an interview with Taslima Khan, Madhav Lal, Additional Secretary and Development Commissioner, Ministry of MSME, Government of India...

Social Enterpreneurs

Ms Samapti Guha, Dean, Centre for Social Entrepreneurship, TISS

Tata Institute of Social Sciences (TISS) has always strived for excellence in higher education that continually responds to the changing...

Fostering Technical Entrepreneurship

Sushanto Mitra, Chief Executive Officer (CEO), Society for Innovation & Entrepreneurship (SINE), IIT Bombay

Society for Innovation and Entrepreneurship, at IIT Bombay, is an umbrella for promotion of technical entrepreneurship. SINE aims at...

Purposeful Entrepreneurship

Dr Krishna Tanuku, Executive Director, Wadhwani Centre for Entrepreneurship Development, ISB

Wadhwani Centre for Entrepreneurship Development at ISB (India School of Business) began last year with the view to empower and encourage...

Incubating Innovation

Mr. Pranay Gupta, Jt CEO, Centre for innovation, Incubation & Entrepreneurship (CIIE), IIM-A

IIM Ahmedabad has always fulfilled its responsibilities of being the premier management institute and so in the field of innovation and...