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Industry Specific Initiatives

AIMA 3rd GLOBAL MSME Convention

 AIMA’s 3rd National Convention on Micro, Small and Medium Enterprises calls for building Global Competitiveness through entrepreneurship

Chennai, April 28, 2012: All India Management Association (AIMA), the apex body for management professionals in the country, organized its 3rd National Convention on Micro, Small and Medium Enterprises on the theme – Building Globally Competitive MSMES: The Way Forward, here in Chennai today. Through this effort AIMA provided a unique platform to bring together the MSMEs from across the country to foster collaborative learning and facilitate global competitiveness. The event was organized in association with the Madras Management Association. 
 
On the occasion, the Chief Guest, Mr. M. Narendra, Convention Chairman & Chairman & Managing Director, Indian Overseas Bank said, “MSMEs today should work towards incorporating all aspects of best international practices in their way of work. Individuals and not just institutions should have a passion for excellence. Good Corporate governance is essential to achieve this and enterprises should have patience and wait to create economical value. Our endeavour should be to encourage transparent communication between the bankers and the SMEs. Also, mid and large enterprises should invest their capital and knowledge into smaller enterprises. It is extremely important for the smaller enterprises to have collaborative and partnership efforts between them. He lauded the efforts of AIMA for bringing forth this sector of the economy and deliberate on issues and challenges they face.”
 
Mr. Rajiv Vastupal, President, AIMA & Chairman & MD – Rajiv Petrochemicals Pvt. Ltd. welcoming the participants in the convention said, “MSMEs growth is an area of prime concern to AIMA and we have continuously engaged in research and training for this all important sector. MSMEs contribute nearly half of the industrial output of the country and employ nearly two-thirds of the working age population. This year the Convention is designed to take the deliberations towards making Indian MSME’s globally competitive. The idea is to inject dynamism and change in the mindset of the sector and sync it with the new reality of global competition and minimal protection.”
 
Dr. H P Kumar, Chairman, MSME Committee, AIMA, Chairman & Managing Director, NSIC Ltd advocated that “MSME is a vibrant sector which contributes to 45% of the total manufacturing output of the country. The sector has grown more than the large enterprises with a growth rate of 11-12% for the last few decades. It is imperative to strengthen this sector by helping them overcome the various challenges faced by them. There should be a resolution for making finance readily available to these enterprises or providing alternatives like venture or private equity funding.  Market capitalization for SME’s is limited and is a hurdle for achieving global competitiveness. Also, there has to be an improvement in the implementation of labour laws”
 
He further added, “The vital aspects for starting and enterprise, namely – Land, capital, labour, entrepreneurship and management have to be concentrated on for resolution of the issues facing MSMEs. Entrepreneurship as a career choice should be encouraged amongst the youth and students who can contribute to creating job opportunities.”
 
Dr. J S Juneja, Chairman, Task Force MSME, AIMA, said, “MSMEs play a crucial role in the economy and through this convention AIMA has identified some core issues and tried to address those. For these enterprises to be globally competitive, various aspects have to be catered to. There is a need for innovative finance options and sensitizing the banker to the needs of MSME’s. Innovation in technology is absolutely essential. It plays a major role in business improvement which is not just limited to R &D and product design but extends to the entire value chain like supply chain management, branding, financial management etc. It is thus imperative for systems to evolve and facilitate consistent flow of new products and design which adapt to changing environment and are low cost. SMEs must resort to newer IT tools to facilitate their growth. Government and Institutions must also do their bit towards MSME development.”
 
Earlier, introducing the theme, Mr. Kamal Singh, Director, AIMA said the long term growth of the country depends on strengthening the MSME’s and creating the culture of entrepreneurship.  He added, “If India has to move ahead of China, we need to make MSME as the game changer towards becoming one of the top economies of the world”
 
The first session saw eminent speakers share their thoughts on the tools to achieve globally competitive MSMEs . Mr. K Subrahmanyam, General Manager SME, Indian Overseas Bank talked about the best practices in finance from which SMEs can gain and the benefits the financial institutions can bring for the growth of these small and medium enterprises. Mr. Jayanta Chatterjee, Senior Group Vice President, ICRA Ltd. emphasized on the need for effective MSME rating. The usage of IT tools for the growth of SMEs was brought to light in the session by Mr. V. S.  Sundara Raman, Vice President, On Demand Solutions, Ramco Systems Ltd. 

The session on “Achieving Growth” for SMEs focused on innovative marketing methods, gaining from emerging opportunities and benefits for mandatory procurement from SME’s. Mr. Suneet Singh Tuli, Chief Executive Officer, Data Wind Ltd; Mr. C Siva Kumar, Chief Executive Officer, Prabha Engineers and Mr. V Arumugam, Zonal General Manager, NSIC Ltd. were the distinguished speakers. 
Focussing on the need of innovative marketing, Mr. Suneet Singh Tuli, Chief Executive Officer, Data Wind Ltd shared his experience of launching and marketing the recently launched low-cost tablet “Aakash”. He said, “Innovative marketing is all about creating something that creates excitement. It should be able to inspire customers to want your product. Innovative marketing also involves making your product newsworthy and have a differentiator to make it stand out. “Aakash” is one such example of innovative marketing. The fact that it was linked to national pride and was “Made in India” helped to market the product effectively and garnered enhanced media presence and visibility with a huge impact.” 
Mr. C Siva Kumar emphasized on the opportunities that have merged for new products and services and the opportunity for SMEs to tie-up with large companies. 
 
The AIMA- Dr. J S Juneja Award for Creativity and Innovation in Micro-Small and Medium Enterprises was awarded to Mr. N K Chaudhary, Chairman & Managing Director, Jaipur Rugs Company Pvt. Ltd. Mr. Suresh Srinivasan, Head Southern Region, Organic India Pvt. Ltd., the other shortlisted company for the award also shared his growth story with the audience. Mr. Srinivasan K Swamy, Chairman, R K Swamy Hansa Group chaired this session.
 
The final session on cost competitiveness saw eminent speakers – Mr. Ram Kumar Shankar, Executive Director, Sanmar; Mr. V Sridharan, General Manager, SIDBI talk on Cost Competitiveness and the management tools for cutting through supply chain management.  Mr. P K Gupta, Chairman & Managing Director, Café Buddy’s Food Pvt. Ltd. shared his success story with the audience.
 
The national convention was attended by senior management executives, bankers, investors, venture capitalists, consultants and students. The conference was a platform to expose participants to the latest developments in MSME banking, marketing, formulating management policies and using innovative technology and value added service to support the growing needs of markets. The conference also focused on Benchmarking against experienced and renowned regional and international Enterprises through successful case studies and interactive panel discussions. Over 250 entrepreneurs from all over India attended this first ever MSME event in Chennai.