Welcome Guest

Businessex.Com
Home News Indian SMEs now have to compete with global players: Andhra Bank CMD

Indian SMEs now have to compete with global players: Andhra Bank CMD

Tags: sme, andhra bank, cvr rajendran, sme exchanges, sebi, msme

March 06, 2014 | COMMENTS ( 0 )

Indian SMEs now have to compete with global players: Andhra Bank CMD

Andhra Bank Chairman and Managing Director CVR Rajendran said that small and medium enterprises (SMEs) were overleveraging debt.



“Debt and equity are complementary to each other. The availability of equity capital is more significant in the present globalised  world, as the Indian SMEs have to compete with global players and they are in need of capital at low cost,” he said while addressing a seminar on listing opportunities available for the SME sector.



According to him, the current working capital requirement of MSME is Rs 22 lakh crore. As they need huge funding for their greenfield and brownfield expansion, this will likely trigger higher listing on SME exchanges.



Debt funding has always been the preferred source of financing for the SMEs whereas the capital market offers an alternative long-term financing source. Though banks are dealing with the problem of stressed assets in corporate and SME sectors, the latter still offers room for further lending, according to him.



Listing of a company on a stock exchange gives better valuation and this would assist in fulfilling their financial requirements to execute their expansion plans, he said.



SMEs in India are characterised by low capitalisation and limited assets, geographical diversity and high mortality, and poor financial disclosure among other problems, according to him.

 

Last year, Securities and Exchange Board of India (Sebi) had issued detailed guidelines permitting listing of start-ups and SMEs on the institutional trading platform (ITP) of SME exchange. Through this new route, SMEs and start-up companies will not require to make a public offer of securities for getting listed on the stock markets. 



The MSME segment contributes 8% to the country's GDP and its share in the country's manufacturing output is 45%. According to industry estimates, MSME employment can grow at 12% over the next decade to reach nearly 140 million workforce by 2020, contributing around 20% of the country's GDP by then.

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

Other NEWS

Delhi based startup i2e1 raises $5,00,000

Delhi based startup i2e1 raises $5,...

December 10, 2015

Delhi-based i2e1, a smart network player platform which aims to provide low-cost and free internet to consumers and actionable ana....

Cab aggregators collaborate with state governments to boost entrepreneurship

Cab aggregators collaborate with st...

November 06, 2015

Ola and Uber, cab aggregators have signed agreements with Rajasthan government for skill development and creation of entrepreneuri....

Phase II of startup incubator T-Hub to be operational soon

Phase II of startup incubator T-Hub...

November 04, 2015

Telangana government is planning to expand T-Hub, its ambitious incubator programme, in its second phase with about Rs 150 crore i....

Sabse Technologies receives investment from Ratan Tata

Sabse Technologies receives investm...

November 04, 2015

Global telecom carrier, Sabse Technologies Inc, started by Hotmail Founder Sabeer Bhatia today announced that Tata Sons' Chairman ....

Mobile startup BlackNGreen seeks international expansion

Mobile startup BlackNGreen seeks in...

November 02, 2015

Buoyed by a strong demand for value added services, mobile startup BlackNGreen is eyeing revenue of Rs 350 crore in the next one y....

Startups seek better future under Hay Group's programme

Startups seek better future under H...

October 30, 2015

Global management consultancy, Hay Group will help 100 selected entrepreneurs transform their startups into successful companies o....

Quintype raises USD 3.25 million for product enhancement

Quintype raises USD 3.25 million fo...

October 27, 2015

Quintype, a data-driven publishing company raised USD 3.25 million to enhance product and business development. ....

Hospitality aggregator startup Qik Stay raises $250K

Hospitality aggregator startup Qik ...

October 27, 2015

Delhi-based Qik Stay, a hotel branding and aggregator startup, has raised $250K in seed round of funding from venture capital firm....

Milk Mantra targets a turnover of Rs 150 crore this fiscal

Milk Mantra targets a turnover of R...

October 26, 2015

Odisha-based startup dairy firm, Milk Mantra is targeting a turnover of Rs 150 crore this fiscal.....

Vista Rooms creates app on Instagram, targets tier II & III cities

Vista Rooms creates app on Instagra...

October 23, 2015

Mumbai-based online budget accommodation aggregator, Vista Rooms has created an app-like experience on Instagram where travellers ....

Jiyo Natural receives funding from Indian Angel Network

Jiyo Natural receives funding from ...

October 23, 2015

Indian Angel Network (IAN) has invested an undisclosed amount in Bengaluru-based consumer health food startup, Jiyo Natural.....

​​Vodoo raises USD 1 million from SAIF Partners

​​Vodoo raises USD 1 mi...

October 15, 2015

Deals and price comparison application, Vodoo has raised USD 1 million (around Rs 65 lakh) from SAIF Partners in a seed funding ro....

IBM launches public data centre in Chennai, partners with Nasscom to boost start ups

IBM launches public data centre in ...

October 15, 2015

Technology giant, IBM today launched public data centre in Chennai to tap into growing demand from financial services and governme....

For Nasscom, PPP will boost startups in India

For Nasscom, PPP will boost startup...

October 14, 2015

In the wake of some reservations over the central government creating startup funds, Nasscom's "10,000 startups" Vice President, R....

WalmartLabs to seek partnership with Indian startups

WalmartLabs to seek partnership wit...

October 14, 2015

WalmartLabs, the digital arm of US-based retailing major Walmart Stores, is scouting for startups in India for partnership and wor....