The summits are a series of on-ground events held across India to bring together local MSMEs, policymakers, enablers and industry stakeholders. These summits aim to unravel opportunities, tackle challenges and foster knowledge-sharing and networking to propel the next phase of growth for Indian MSMEs.
The event started with a fireside chat that saw Rakesh Singh, MD & CEO, Aditya Birla Finance Limited (ABFL), speak on the credit gap in the MSME segment becoming huge. “Access to credit in this segment is around 50%,” he said.
He added that the sector will be well served once it comes within the formal ambit of the economy. Talking about how a lending approach of one size fits all isn’t able to cater to the varied needs of MSMEs, Singh stated that it is important to deal with them like a consumer. “The needs of the small business owners are very retail, very consumer-like because these are micro in nature,” he said.
Next up was a detailed presentation by Rishi Agrawal, CEO, TeamLease Regtech, on India’s regulatory cholesterol and how compliances shackle MSMEs. “The number of compliances that MSMEs deal with is disproportionate to the revenue they generate,” he stated.
Elaborating further, Agrawal presented some shocking revelations. “India’s 69,233 compliances have 26,134 items that have jail terms and many of them may put entrepreneurs in jail for 10 years,” he said. He noted how the regulatory compliances increase for a firm as it grows in size. “As a result, many enterprises choose to stay small in order to avoid the costs associated with formalisation,” he added. This was followed by a special address from Jaideep Malaviya, Secretary General, Solar Thermal Federation of India. He spoke on the potential of a circular economy in the solar industry. “By 2030, 300 GW of solar panels and 10,000 tonnes of silver and 17 million tonnes of glass will be recovered,” he said.
Malaviya stated that there is a difference between recycling and circular economy. “Recycling means you can repurpose the material for some other purpose but sometimes it will be landfilled. A circular economy states that nothing goes to the landfill and it is reused.”
After his insights, industry leaders and association heads came together for an engaging panel discussion on “Scaling MSMEs in Pune: Unlocking Growth Through Services and Manufacturing Synergy”.
Industry leaders and association heads came together for an engaging panel discussion on “Scaling MSMEs in Pune: Unlocking Growth Through Services and Manufacturing Synergy”.
Rujuta Jagtap, Member, EC, Mahratta Chamber of Commerce, Industries and Agriculture (MCCIA); ED, Saj Test Plant, spoke about how OEMs are now looking at vendors who are adopting sustainable practices in the sectors concerned. “They get a preference over the other vendors. A lot of incentives are being given on that front. So that is one area which MSMEs should focus more on,” she said.
Affirming her views, Ramesh Prasad, Founder & MD, Econovus Packaging, stated that the general conception about sustainability being expensive is a complete myth. “For MSMEs, my only advice would be to focus on three things which can be a game changer for them in the long run — innovation, sustainability and digitisation,” he stated.
Prasad mentioned that their inherent focus as a firm has been on sustainable practices. “We have devised and developed solutions that help to reduce carbon footprint and cost for the customer. A lot of big automobile giants are working with us,” he added.
Moving on to incentives available for the MSME sector, Ravindra Sonwane, All India Vice President, Laghu Udyog Bharati, said that these should be given in a limited way and not beyond a limit. “Otherwise it hurts the self-reliance goals of any firm. Challenges are part of MSMEs’ growth,” he said.
Sonawane further highlighted that only MSMEs can push import substitution goals of the country.
Echoing similar sentiments, Hari P Srivastava, Founder Director & Vice Chairman, Deccan Chamber of Commerce Industries & Agriculture (DCCIA), said that MSMEs need to collaborate and hold each other’s hand to grow together in this journey.
Next up, Shirish Mathur, Head SME Products & Digital Platforms, ABFL, gave a presentation that showcased their platform for SME owners. “We realised that finance is just one aspect of what you manage, what also matters is how you run and grow your business. With that thought we have created a one-stop shop for SME owners. We not only have financial products for the entity but have catered to all employees and the ecosystem of the entity,” he stated.
Mathur’s session was followed by Santanu Basu, Head SME Products & Digital Platforms, ABFL, who delved on ABFL’s journey with India’s thriving SMEs. “In the last 2 years, our branch presence location has grown from 91 to about 403. In the same period, non-bank credit for MSMEs grew at a CAGR of 14%,” he said.
Basu added that they are quite excited to partner with MSMEs in India and ET through the regional MSME forums.
This concluded the SME summit in Pune, serving as a key platform that offered networking opportunities to a range of small businesses and industry stalwarts.