Monday, December 30, 2013
This Fee Is 70 Per Cent Paid By EDI And The Remaining Paid B True Religion Outlet UK
Sidbi's support brings better visibility for small leather units Everybody hears
of the success stories of large companies that are listed in the stock
market.But the micro, small and medium enterprises(Msmes)That don't attract as
much media glare sometimes manage to grow faster, actually far faster, than the
listed industrial sector. Do you know that msmes contribute almost 39 per cent
of india's total manufacturing output and 33 per cent of the country's total
exports?The the small industries development bank of india has been a nodal
organisation in creating a supportive environment for msmes. Aided by world bank
and other multinational agencies, sidbi's msme programme is an effort to improve
the growth of the micro, small and medium enterprises by giving them funding
support and introducing them to technological advancements in the field. The
chennai leather cluster that makes about 60 per cent of the indian leather
industry's output is one among the 18 clusters that is receiving sidbi's
support.The chennai leather cluster has developed from being an export hub for
hides and skins in the 1900s to a hub for manufactured leather goods. Following
our recent interaction with dr b.Krishnama naidu, cluster manager(Chennai),
Entrepreneurship Development Institute of India(Edi), that is implementing the
development programme at the Chennai Leather Cluster, we profile the key
initiatives of SIDBI and how entrepreneurs are making the best out of it. The
chennai leather cluster has 170 tanneries and 300 finished product manufacturing
units giving work to about 40, 000 people.All efforts and development programmes
initiated by sidbi through the entrepreneurship development institute of india
is extended to these units.The programme is extended to not just tanners who
process raw hides but also those making leather garments such as jackets and
sportswear, footwear manufacturers and makers of belts, gloves, hand bags,
wallets and travel goods. Currently, the effort is wholly from edi's side.Edi
members are reaching out to entrepreneurs in the cluster individually and
introducing the various benefit schemes.Entrepreneurs are also welcome to
approach this
you may like edi for any support they require. The project desk at edi
offers services that improve productivity and competitiveness of the business
units in the cluster.From arranging for energy audits(That help conservation of
power in the factory), and technology up-Gradation at the factory, it/mis
training for employees, web site creation to give better visibility for
enterprises in the global export market to arranging for collateral free loans
from sidbi is done by edi.All these services of edi, however, require an expert
advisor and a team of competent people.This is where business development
service(Bds)Providers come into picture. Bds providers offer advisory support to
entrepreneurs, be that in any area-Raw material sourcing, production
technologies, raising finance, training and skill development.These players are
established in the market but msmes lack awareness about them and can't pay for
the cost of the service of these providers. Sidbi steps in here to help
msmes.Through its project team sidbi introduces business development service
providers to enterprises that need support and also shares a part of the cost of
the service.For instance, edi shared 70 per cent of the fee cost of a programme
on design training it organised for leather garment makers last month. While
this training programme(On basic designing)Conducted by the central leather
research institute originally cost rs 10, 000 an individual, the participants
had to spend only rs 3, 000.The cost sharing proportion differs from project to
project, in some cases 50:50 or even 30:70. One of the flagship initiatives of
edi in recent months has been mooting the idea for formation of a special
purpose vehicle by tanners for procuring chemicals from ahemdabad(A source of
quality dyes). The tanneries in chennai's suburbs tended to procure chemicals
from intermediaries at a significantly marked-Up price.A study by the edi's
project team showed that even if the tanners get a reduction of rs 2/kg in raw
material cost, it will help them in the cluster as a total save up to rs 7 crore
a year.On factual evidence that tanners could make a 25-30 per cent savings in
cost Dr Krishnama Naidu and his team at EDI suggested the tanners form a special
purpose vehicle and procure chemicals directly from Ahmedabad.With the idea
appealing to them, 22 entrepreneurs joined hands and formed the spv.The spv is
functional now and the first order has been placed. Dr naidu notes that the
benefits of this initiative may be lasting, even after this particular project
of edi comes to an end.A total of 350 business units in the leather cluster in
chennai have benefited from the initiatives of sidbi's project till date since
the project work kicked off in september 2009. The credit guarantee fund
trust(Set up by sidbi in association with the government of india)For micro and
small enterprises has tied with several public sector banks to offer
collateral-Free credit up to rs 1 crore for msmes. Though many entrepreneurs
have a viable project, they lack awareness about the credit guarantee fund and
some find it difficult to do to the paperwork that is required for True Religion
Outlet UK the loan.To address this issue, the entrepreneur development
institute of india connects msmes to business development service providers who,
in turn, connect entrepreneurs to banks. The work of a bds provider here is to
meet the beneficiary, study the financial viability of the project, prepare the
project report, do all the other required paper work and then approach the bank,
present the case and get the loan approved for the beneficiary.For his service
the bds provider charges a fee.This fee is 70 per cent paid by edi and the
remaining paid by the beneficiary. Keywords:Micro, small and medium enterprises,
chennai leather cluster, sidbi, entrepreneur development institute of india,
business development service providers, entrepreneurship development institute
of india, edi
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