Big cos lend helping hand to smes

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Posted on 27th August 2007 at 14:55:00

Mr. Divya Aggarwal
Senior Copy Editor
Money Management Consultants Ltd
New Delhi, India
Free Member
Joined :05/11/2007
No of Topics Posted : 113
Reply/Comments : 18

TOPIC : Big cos lend helping hand to SMEs

Small or a mid-sized export-based enterprises, who usually face difficulties in meeting the escalating real estate costs while setting up a new unit, will now get help from giant corporates.

Recently Reliance Industries had a meeting on chalking a strategy to market the company’s SEZs and the long-term growth plan in the new business. The presentation during the meeting was how India’s biggest private sector firm was acknowledging that it was impossible to grow without the support of small companies. One of the suggestions during the discussion that ensued was that if a Small and Medium Enterprises (SMEs) was unable to pay the upfront costs towards setting up a unit (in the SEZ), Reliance could work out flexible conditions.

Reliance Industries and DLF, the two big names among umpteen SEZ developers in the country, are working on dedicated strategies to attract the interest of SMEs. So much so, that in cases where an SME may find it difficult to pay the upfront costs towards setting up a unit, these developers have models where space could be let out to their smaller partners on flexible conditions.

Moreover a group of SEZ developers is believed to be now lobbying with the government for SME-friendly policies. Any other day, the big sharks would prey on these small companies. Now, they are protecting as well as nurturing them. Because in the latter’s well being, lies the mantra to their own success.

Some other developers are also tying up with small exporters on a revenue sharing model, where the SME does not have to bother about the upfront cost for setting up a unit.

Meanwhile, as far as SMEs are concerned, it’s not just the real estate factor that’s been attracting them to SEZs. There is a plentiful of bounty on offer. For instance, in both its Navi Mumbai and Jhajjar SEZs, RIL is working on a single window clearance system for the SME units. The company is also in talks with some leading financial institutions for setting up SME lending counters within the premises of its SEZs.

Posted on 6th September 2007 at 04:43:00 [Message #663 ]

Mr. Renga Nathan Iyenhgar
Director
PMI ENGG EXPORTS
Chennai, India
Free Member
Joined :10/29/2005
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Reply/Comments : 1

Re: Big cos lend helping hand to SMEs

All kinds of words flow in categorising the sme / big player etc and sympathy / empathy etc follow. But what is needed is a decency on the part of large cos - especially in making payments. Truly , a simple word for payments in India is this - it sucks at all times.

Making the smes to fall in their feet and beg and beg and beg for their payments is practiced as an art by the big firms. This kind of statements bring smiles in the face of people sitting in some departments - but do they realise that they are starving another person and his / her family.

It is always the sme who gives. Even with reliance you will find, though the ambanis will give, their people in their companies will put so much conditions and at the end the sme will starve. More starvation , makes the sme go away from any large firm.

Also pl note - many of the large companies, are corrupt. We are always saying the govt is corrupt, but the large business house is totally corrupt. It very difficult to get an order without greasing the people in the departments. Small gifts are for clerks / officers etc, but hotel rooms with necessary enjoyments facilities are for the top management.

You can ask this to anybody, just verify around. Now, if your sme is honestly supplying only the goods against the order from a big brother company, your company will fold. As an sme you will be treated with politeness but the big brother will make you starve with price reduction every year, make you spend on ISO but at the end, in an sme you just feel that it is not worth it, but you continue to serve all - including the big companies.

What is said here is not an emotional word, but a practical reality. May be things like factoring etc will help. But it is always the big company which is right. Courts add pain to the wound and rub the salt after the pain to keep it there.

May be as usual, ambanis will help India, by helping the smes. Let the talks stop, let the humans come out and help the SMEs.

Posted on 6th September 2007 at 15:55:00 [Message #667 is a comment on message #663 ]

Mrs. Rashmi Roy Choudhury
JAIVIKI BIOTECH
Lucknow, India
Free Member
Joined :05/02/2006
No of Topics Posted : 0
Reply/Comments : 3

Re: Re: Big cos lend helping hand to SMEs

I am new to business and am trying to start with a micro enterprise. I was encouraged by a big corporate having supermarkets in the rural areas all over India. My agricultural product was field tested, praised by the company officials, I was given to understand that I would be given a big order, but now I am drawing a blank. Is the situation as what Mr Renga Nathan Iyenghar has said in his comment? I don't know. I am still hopeful. Rashmi Roychoudhury

Posted on 8th September 2007 at 07:27:00 [Message #676 ]

Julia Liu
Jin Yee Industrial Co., Ltd.
Dongguan, China
Free Member
Joined :07/06/2007
No of Topics Posted : 0
Reply/Comments : 1

Re: Big cos lend helping hand to SMEs

I do not know more thing about trade! I have been in exporting company for nearly two years!Now I am in a furniture company as a shipping official. I am not a salesman! But I have been to the exhibition with the salesmen, know how they sell in China! I do not know you do in India! Maybe the same!

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