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Uttarakhand Leads with Double-Digit Growth in Home, Kitchen, and Outdoor Sales on Amazon.in

May 30, 2024 by Sujata Muguda 0 Comments #Amazon India, #Amazon.in, #D Dehradun, #EV portfolio, #Growing demand for sustainable solutions, #K N Srikanth, #MSMEs, #Uttarakhand, #YOY growth across Home

Dehradun, 30 May 2024: Amazon.in announced double-digit YOY growth across Home, Kitchen, and Outdoors business with Havells, Bajaj, Agaro, Milton and Prestige being the most preferred brands in Dehradun. Furthermore, a 10% YOY increase in new customers was witnessed on Amazon.in from Dehradun and Uttarakhand. In these regions, customers have shown an inclination towards healthier, convenient, and smarter lifestyles that have led to increased demand for products such as robotic vacuums, gym fitness accessories, metallic cookware and much more. As one of India’s leading camping destinations, Uttarakhand also witnessed more than 50% increase in demand for sleeping bags YOY. Owing to all time love for cricket nationwide, Amazon.in saw more than 100% and 130% YOY increase in demand for cricket bats and kits from Uttarakhand and Dehradun, respectively.

K.N Srikanth, Director, Home, Kitchen and Outdoors, Amazon India at an event in Dehradun

After successful editions of the Home and Kitchen Xperience Arena in Lucknow and Chandigarh, Amazon.in received an overwhelming response to the daylong event in Dehradun as well that featured products across Furniture, Home Essentials, Kitchen & Appliances, Home Décor & Lighting, Sports & Fitness, Electric Vehicles, Auto Accessories, Outdoor & Gardening categories and much more. This one-of-a-kind showcase offered media and partners an opportunity to experience their favorite brands and products while interacting with Amazon India’s leadership.

Commenting on the occasion, K N Srikanth, Director, Home, Kitchen and Outdoors, Amazon India said, ‘As a customer backward marketplace, we at Amazon India are committed to delivering ‘har muskaan ki apni dukaan’. With a significant surge of 30% YOY growth across Home, Kitchen and Outdoor products in Uttarakhand, we are thrilled to witness continued trust from our valued customers. Overwhelmed with the great response, we remain dedicated to delivering exceptional customer service along with providing a wide selection of products from top brands, ensuring convenience and satisfaction for all’.

Here are some shopping trends that have been witnessed in Uttarakhand and Dehradun:

Customers are upgrading to premium and smart living: Products such as sofas and beds witnessed an increase in demand of over 65% while wardrobes and dining furniture saw an increase of more than 80% and 45%, respectively. In 2024, Amazon.in saw a 1.25x YOY increase in the adoption of installation services, with approximately 11,000 customers availing these services. Also, waterproofing products and paints grew more than 150% across the region. Furthermore, customers in Dehradun are prioritizing home safety and smart living products such as digital door locks and video doorbells resulting in over 65% YOY increase. Also, robotic vacuums saw close to 100% increase across Uttarakhand.

Growing demand for sustainable solutions: Customers across Uttarakhand are increasingly choosing sustainable solutions. In 2024, solar power products saw a 175% increase on Amazon.in. Encouraged by the great response received for eco-friendly transportation options, the EV portfolio was expanded with the inclusion of Green and Komaki electric vehicles alongside established brands like Hero Vida, Chetak, and Okaya Ampere.

Getting fit at Home and adopting better lifestyle choices: The demand for home workout and gym fitness accessories surged by over 50% reflecting a growing interest in health and fitness amongst customers across Uttarakhand and Dehradun.

Culinary interest is driving product selection: Dehradun witnessed a surge in culinary interest, resulting in over 40% growth for Coffee Machine and more than 50% increase for Mixer Grinder. Additionally, there’s an increase in demand for Metallic Cookware sets by 95%, and a 40% for Baking & Pastry tools. This trend showcases a strong emphasis on quality and functionality in cooking, baking, and serving, reflecting evolving consumers preferences towards enhanced kitchen experiences Uttarakhand is an important market driving Amazon.in’s growth. India’s most loved marketplace will continue to work with local stores and MSMEs across the state and country bringing new tools, technologies, innovations, and initiatives that will unleash the entrepreneurial spirit of Indian businesses. Amazon.in has more than 20 owned and partner delivery stations along with over 100 ‘I Have Space’ partners in the state.

News

SMEStreet Celebrates 10 Years of Serving Indian MSMEs

Apr 30, 2024 by Sujata Muguda 0 Comments #Faiz Askari, #MSMEs, #SMEStreet

30th April 2024, New Delhi: As SMEStreet marks its 10th-year milestone, we reflect on a journey filled with remarkable achievements, unwavering dedication, and countless moments of inspiration. What began as a vision a decade ago has blossomed into a thriving community, serving as a beacon of empowerment for small and medium enterprises across the globe.

Over the past ten years, the platform witnessed the transformative power of entrepreneurship, small businesses’ resilience, and innovation’s impact on economic growth. “Through our platform, we’ve championed the voices of SMEs, providing them with invaluable insights, resources, and networking opportunities to navigate challenges and seize opportunities in an ever-evolving business landscape,” commented Faiz Askari, Founder of SMEStreet.

“As we commemorate this significant milestone, we extend our heartfelt gratitude to our loyal readers, partners, contributors, and supporters who have been instrumental in our journey,” he says, “At this juncture, we at SMEStreet are set to focus on resolving real Business challenges like Access to capital, access to technology, business development and business impact.”

Over these last 10 years, SMEStreet have also transformed into a stronger MSME ecosystem from being born as a simple media interface. Recently, we started SMEStreet Membership Offerings and have established collaborations with experts and service providers who are working in their respective streams of enabling the MSME ecosystem.

Top Milestones of SMEStreet’s MSME Engagement

Total Unique MSMEs Connects – 1.2 Million (12 Lakhs Plus)
Monthly Unique Readers – Over 3 Lakhs
Weekly Active Readers – 1,00,000 (Approx)
SMEStreet Newsletter Subscribers – 4.6 Lakhs
Social Media Followers (including Facebook /Instagram/ Linkedln /Youtube ) – 1,64,155
Ek Nayi Udaan – SMEStreet-DealPlexus Collaboration
A few months ago, SMEStreet announced a strategic collaboration with DealPlexus to deliver services that are designed to solve MSME needs for growth such as access to finance, management of finance, Business insurance and several other services that can ensure ease of doing business for any entrepreneur. “We are thrilled to formulate this groundbreaking collaboration between SMEStreet and DealPlexus, which is designed to help MSME/SME entrepreneurs to continue their chase for business growth and profitability. This collaboration shows our commitment of empowering businesses and fostering growth opportunities,” said CA Deepak Maheshwari, Co-Founder of DealPlexus. This collaboration is announced as ‘Ek Nayi Udaan’ where SMEs can explore a wide array of strategic partnerships, investment opportunities, and business synergies.

“This collaboration is aimed to create a dynamic MSME ecosystem with diverse capabilities to serve the MSME sector. We at SMEStreet are working towards completing a comprehensive coverage of business-oriented services. Our collaboration with DealPlexus is clear evidence of creating a comprehensive MSME ecosystem. From just content sharing, we have evolved as a Pro -MSME Ecosystem- committed to enhancing the MSMEs’ growth,” says Faiz Askari of SMEStreet.

On the occasion of the 10-year milestone, SMEStreet is excited to announce the expansion of SMEStreet’s engagement and services for the MSME sector.

The 2024 & Beyond Journey
From 2024 onwards the platform is shaping up as a more dynamic, more engaging services provider for MSMEs who wishes to grow to the next level.

Last 15 years in India have witnessed a great upsurge of MSMEs. This sector have taken a strong and visible space in the policymaking. This phenomenon of Indian economic growth is leading towards a global success story, and SMEStreet would like to contribute in the form of catalyzing MSMEs’ contribution in India’s development story.

Looking ahead, while entering into the next decade of innovation, growth, and success, “SMEStreet will remain committed to the mission of empowering SMEs, fostering collaboration, and driving sustainable growth. Your unwavering support and trust have fueled our passion to continuously strive for excellence and drive positive change in the MSME ecosystem,” Mr Askari said.

Upcoming Events & Activities on 10th Year Anniversary

SMEStreet Team is working on organizing events and forums both in online and offline formats on various business-sensitive issues related to MSMEs.

News

Klub teams up with U GRO Capital to aid INR 150 crores funding to bridge the MSME credit gap in India

Apr 17, 2024 by Sujata Muguda 0 Comments #Klub, #MSMEs, #Tanya Chadha, #U GRO Capital

Klub, Asia’s leading Revenue based Financing platform, today announced that it has partnered with U GRO Capital, a leading DataTech NBFC focused on MSME lending, to disburse INR 150 crores aimed at bridging the credit gap for Micro, Small, and Medium Enterprises (MSMEs) in India. This collaboration marks a significant step towards providing fast, founder-friendly, and flexible debt financing solutions to digital businesses nationwide.

Through this partnership, Klub and U GRO Capital will extend credit to support digital SMEs across different growth stages. The allocated fund of INR 150 crores will facilitate lending activities across India, offering scalable debt financing of up to INR 30 crores in a single tranche through Klub’s platform. Klub’s innovative investment platform combines financial product innovation, deep data-driven analytics, high-frequency collections, and community engagement, providing tailored funding solutions to SMEs and startups.

U GRO Capital, with its Billion Dollar AUM (INR 8,364 Cr) as of December 2023, has established itself as a leader in MSME lending. Leveraging its proprietary underwriting model and innovative product suite, U GRO Capital offers a digital platform, minimal documentation, and expedited approvals, ensuring a seamless borrowing experience for businesses. Their loans, ranging from INR 1 lakh to INR 5 crores, support various needs such as business expansion, working capital, equipment upgrades, and sustainable initiatives like Rooftop Solar installation and EV Financing, with competitive interest rates and flexible repayment terms.

Sudharsan Venkatkrishnan, Senior Vice President at Klub, emphasised the importance of addressing the current credit gap in India, stating, “Given the pivotal role MSMEs play in India’s economy and job market, addressing their credit requirement gap is a critical opportunity. Partnering with a digitally savvy lender like U GRO Capital not only amplifies our reach, but also aligns with the value we deliver to SMEs through our product selection and superior customer experience. We look forward to building on the mutual capabilities in the partnership to empower small Indian businesses and founders.”

Tanya Chadha, Head – Partnership & Alliances at U GRO Capital, highlighted the significance of the partnership, stating, “U GRO Capital is deeply committed to serving the credit needs of last-mile MSMEs, and our collaboration with Klub exemplifies this dedication. Together, we aim to provide flexible working capital solutions to SMEs, bolstering their growth. This partnership not only expands our market reach but also enhances our digital offerings, reinforcing our shared commitment to supporting and scaling businesses.”

The MSME sector plays a crucial role in India’s economic landscape, contributing to about 30% of the country’s GDP. However, accessing credit remains a significant challenge for these enterprises, hindering their growth potential. The partnership between Klub and U GRO Capital aims to address this gap by providing accessible and flexible financing options tailored to the diverse needs of MSMEs.

Founded in 2020, Klub has invested in over 600 businesses and continues to lead the equity-free funding space, helping businesses in diversified sectors including D2C, EV, eCommerce, health tech, cleantech, edtech and more. Meanwhile, UGRO Capital has an AUM of INR 83,638 million as of December 2023. Over the last 5 years, it has raised a total of INR 91,378 million Equity and Debt from diverse institutional sources.

Business World, News

Budget 2021: Quote by Mr. Pradip Dave, President, PMFAI

Feb 4, 2021 by Rekha Nair 0 Comments #agrochemical sector, #MSMEs

“The focus of the budget this year was on strengthening the healthcare system of India, which stemmed as a critical lesson of the pandemic. However, on the industry side, we do not have much for the agrochemical sector. The only upside is that the proposed increase of agriculture credit is likely to increase the purchasing power of the farmers, which will, in turn, become a factor of growth for the agrochemical sector. The MSMEs may benefit from the increase in customs duty and withdrawal of exemption on certain imports. But largely, this budget does not have much for us”, said Mr. Pradip Dave, President, PMFAI.

Add to support Atmanirbhar, PMFAI suggested an increase in customs duty on import 10 to 30 % on import of ready-made pesticides formulation government has failed to protect & support Indian Pesticides industries. PMFAI appel to reduce GST to 5 % from 18 to help farmers also ignored, he further added.

Business World, News

Budget 2021 quotes from Vayana Network leadership

Feb 3, 2021 by Rekha Nair 0 Comments #MSMEs, #vehicle scrappage policy

Auto scrap policy quote : Parthasarathi Patnaik – Chief Risk Officer, Vayana Network

“While the vehicle scrappage policy seems voluntary at this stage, I think this may be the first of many bold steps the government is likely to take to aggressively curb use of polluting vehicles and usher an era of electric vehicles in line with global trends. This measure portends well for the auto sector in the medium term as it is likely that a large number of older commercial and private vehicles will be replaced by newer fuel efficient vehicles, thus requiring large additional investments by auto and auto parts manufacturers.

Further, with the FM’s budget proposing to make large outlays for capital investments in infrastructure and on improving public transport, the auto sector is likely to see a surge in investments and employment opportunities in the near to mid-term’.

What’s in the budget for MSMEs: Sanjay Phadke EVP – Platform & FI Business Head, Vayana Network

MSMEs generally depend upon big businesses in the supply chain and the overall buoyancy in the economy for those that deal with retail. The budget is definitely a Big Bang with far more focus on enhancing macro spending across healthcare, infrastructure and large scale manufacturing. The resultant virtuous cycle will provide a significant tailwind to MSMEs too. There are many specific measures on changes in duties, easier compliances etc that would provide support to MSMEs that are ravaged by Coronavirus crisis. There is also a strong underlying theme of digitisation and improving access to capital for those that are compliant and digital which will help MSMEs contribute in a big way towards the target of 5 Trillion Dollars economy.

News

5 companies that have helped MSMEs/SMEs to thrive in the year 2020

Dec 17, 2020 by Rekha Nair 0 Comments #Crediwatch, #Lendingkart, #MSMEs, #SmartCoin, #TradeIndia, #Udaan

India’s Micro, Small, and Medium Enterprises (MSMEs) is the second largest in the world and are considered as the backbone of the Indian economy. The pandemic hit the economy and caused liquidity crunch in the market. MSME sector faced the most challenging time due to lack of funds and labour as a result of which a lot of MSMEs had to pause or discontinue their business. The government had taken necessary decisions and addressed these solvency issues by announcing stimulus package and loan moratorium, which has helped the MSMEs to stay afloat in the otherwise difficult times. Apart from this, there are companies that are also lending a helping hand to support the MSMEs and bridging the market gaps.

Crediwatch

Crediwatch is a ‘Data Insights-as-a-service’ company that provides lenders, businesses with actionable credit intelligence on private entities they need to improve trust and increase their lending and trading activity. Crediwatch does this with no human intervention by deploying the latest practical AI and technology tools that provide the most reliable comprehensive real-time inputs.A bank only looks up 200 of data points while considering the decision for a loan. On the other hand, Crediwatch picks up data from 25,000 different points which is the highest in the industry from already existing information in the regulatory framework. The intelligence can further be deployed for risk management and analysis, due diligence and in future can be used for providing ‘TrustScore’ for MSMEs who are new to credit.

Smartcoin

SmartCoin Financials is India’s first fully-automated next-gen Fintech company aiming to address the credit requirements of self-employed micro-entrepreneurs, micro-merchants and middle/lower-income salaried individuals by leveraging advanced data science and Machine Language algorithms. The platform intends to serve the hitherto under-served customers through a comprehensive digital interface across India. SmartCoin aspires to bridge the gap of financial inclusion of ‘Bharat’ by optimizing its state-of-the-art tech-platform and enable credit access for emerging India by arranging “digital collateral” on the basis of user-generated phone data that can effectively reflect user behavior. Its proprietary digital platform adeptly harnesses this alternate source of data to provide instant credit possibilities to the underserved segments of the nation. This newly-found access to formal credit will benefit over 300 million people from the lower end of the socio-economic spectrum by providing them with a slew of empowering prospects that can enhance their lives via financial inclusion.

Lendingkart

LENDINGKART is a fin-tech startup in the working capital space. The Company has developed technology tools based on big data analysis which facilitates lenders to evaluate borrower’s credit worthiness and provides other related services.LENDINGKART Finance Limited (formerly Aadri Infin Limited), is a non-deposit taking NBFC, providing SME lending in India. The Company aims to transform small business lending by making it convenient for SMEs to access credit easily. The Company uses technology and analytics tools, analyzing thousands of data points from various data sources to assess the creditworthiness of small businesses rapidly and accurately.

Tradeindia

Tradeindia is India’s largest online B2B marketplace, connecting buyers and suppliers. Their mission is to help SMEs go Digital. Now more than ever, company is committed to provide SMEs with the resources they need to take their businesses online. As the shift from offline to online accelerates, during these times companies are being asked to do more with less. Tradeindia client Relations team helps SMEs with tools to digitize their business operations and make your business future-ready.

Udaan

Udaan is a Business-to-Business (B2B) ecommerce platform, designed to solve core trade problems for small, medium and large businesses across India. It is the largest such national distribution platform of its kind enabling retailers and businesses to source merchandise from manufacturers, brands, white labels, importers etc. on a single platform. udaan brings to users the power of technology to grow their business.The easy-to-use app gives them the power to BUY & SELL on their terms with secure payments and hassle-free logistics,GROW their network through access to new regions and customers for brands, manufacturers and marketing & sales support for retailers and businesses,DISCOVER customers, suppliers and products across multiple categories, CONNECT directly with sellers and interested buyers to discuss trade.

Business World

FDI India enabled business growth for MSMEs and Manufacturing companies in the year 2020 via access to foreign debt

Dec 11, 2020 by Neel Achary 0 Comments #and Founder, #CEO, #FDI India, #Mr. Vishal Yadav, #MSMEs, #startup consultancy

New Delhi: FDI India, a one-of-its-kind startup consultancy connecting Indian businesses with foreign investors through its interactive platform, has enabled numerous MSMEs and manufacturing companies to survive and grow in the year 2020 by providing ease of access to foreign debt through the formal approval route. With MSME being positioned as the backbone of the Indian economy and accounting for 30 percent of the national GDP, it has higher stakes in building a stronger and self-reliant India.

The Government of India has been ardently pushing the MSME and Manufacturing sector through its various schemes and initiatives such as the “Atmanirbhar Bharat” with a vision to generate 110 million employment solely from the sector. Aiming to increase MSME export from 48% to 60%, the Government is merging the global with the local, generating manufacturing investment, and becoming the new global nerve center of multinational supply chains in the post-COVID world.

Commenting on the same, Mr. Vishal Yadav, CEO, and Founder, said, “ There are evident signs of economic recovery with the way the manufacturing sector is rebounding and chances are higher for MSME sector to start riding on this economic revival. Initiatives from the government’s side have induced such businesses to come forward. FDI India is further propelling the “Atmanirbhar Bharat” vision by hand-holding these businesses and connecting them to the right kind of investor at the right time. With our global network across 15 countries, we are aiming to strengthen the financial capabilities of business and accelerate their business growth.”

FDI India is dedicatedly working towards simplifying the investment life cycle for business by taking care from Pre-investment to aftercare. With an array of services including Financial Planning & assistance, connecting them to the right foreign investors, and project planning, FDI India has enabled more than 150 businesses to accelerate their business growth. The company is ambitiously providing Indian businesses with soft loans of minimum ticket size of INR 50 Cr at 3.25% per annum on reducing balance.

Business World

COVID push: Indian small-town retailers going digital with business activity back to normal levels – reveals OkCredit data

Nov 5, 2020 by Gouri Achary 0 Comments #digital, #Harsh Pokharna, #MSMEs, #OkCredit, #small-town retailers

Business activity among the micro, small and medium enterprise sector which are regarded as the backbone of the Indian economy is fast reaching near-normal levels and they are rapidly adopting digital business tools to drive efficiency and growth, reveals data gathered by OkCredit, the pioneers in digital bookkeeping apps which are fast becoming a new rage among hereto unorganized retailers and traders in India.

According to data gathered by OkCredit basis the behaviour of the users, the micro-retail players are increasingly taking up digital bookkeeping solutions, as it makes their book-keeping task simpler, digitized and secure and there is stronger demand coming from small towns and hinterlands.

In the unlock phase of Covid pandemic, OkCredit has witnessed a strong recovery in demand for its app from tier 3 cities followed by tier 2 and tier 1 cities. OkCredit’s business from tier 3 cities witnessed 33% growth in the period of February – September 2020 while Tier 2 and Tier 1 cities registered 30% and 28% growth respectively during the same time. This is after a dip of 26%, 31% and 38% in business from tier 3, tier 2 and tier 1 cities respectively in April this year.

On a pan India basis, data among the digital bookkeeping users point to a sharp recovery with smaller businesses in tier 3 and tier 2 towns growing faster than tier 1 cities. Sixteen of thirty-six states and union territories have recovered to business activity levels that are higher than pre-Covid times. Bihar, Haryana, Assam, Rajasthan, and Himachal are the states where business activity is 10+% higher. Uttar Pradesh, Madhya Pradesh, Chhattishgarh, Odisha, Jharkhand, Uttarakhand, and Punjab are the others that are already exhibiting higher business activity. Out of the 19 states that are yet to recover, Karnataka, Maharashtra, Gujarat, Andhra Pradesh, Tamilnadu & Delhi are trending at 90–95% of their pre-Covid activity levels.

At a business category level, different magnitude and pace of recovery was observed by OkCredit since February 2020. The company witnessed double-digit growth in business from medical and Kirana stores at 21% and 15% respectively in September 2020. This was after a dip of 12% in business from medical stores and 22% from Kirana stores in April this year. Both mobile recharge and electronics category registered a modest growth of 5% in September 2020 after a dip in April this year.

According to Harsh Pokharna, Co-founder and CEO, OkCredit, “The best part for us today is that we are able to get a pulse of the business situation among the trader segment which has traditionally been off the radar for all other retail tracking studies, as they largely belong to the unorganized cash economy segment of the country. It is interesting to note that amid the Covid pandemic, remote towns are emerging as the torchbearers for the digitization of the MSME segment. And they are showing exciting activity and growth as the economy pushes hard for a V-curve recovery”

“We have solid proof coming from remote regions of the country where OkCredit app is being adopted like never before and is recording strong growth in transactions. These trends point to a sharp recovery from pandemic induced slowdown among businesses in tier 2 and tier 3 cities as compared to the tier 1 cities,” he added.

What has been helping OkCredit in its growth journey is its differentiated strategy which has also allowed the pioneer to maintain a lead over its follower competitors. Unlike its competitors, who are burning investors cash on marketing spends to primarily acquire downloads, OkCredit has focused on building a robust, feature-rich product that improves the transparency in business transactions and facilitates a higher degree of trust among the participating individuals.

This has helped, OkCredit to not only deliver better customer retention but also generate positive word of mouth through merchants who have found the platform to be simpler and easy to use leading to a strong referral triggered growth pattern. As a result of best-in-class user experience, merchants/retailers today see OkCredit as an integral part of their business. This is further validated by the fact that post-Covid recovery of OkCredit usage has mostly been organic.

Positive word of mouth by the migrant population who have experienced digital tools is driving the adoption of digital bookkeeping tools among small businesses in remote towns of India. This bodes well for India’s digitally connected future and presents a big opportunity to technology service providers to further capitalize on the digital bookkeeping opportunity presented by the MSME segment.

MSMEs are essential to the economy because of their huge commitment to GDP and business, and a solid and productive MSME base which can extend territorially and globally will support broader national economic stability and growth. Empowering micro and small businesses are crucial for the next stage of social and economic growth. Given the current scenario due to COVID-19, more and more consumers are looking online, it provides the potential for MSMEs to transform and build on the digitisation of their businesses. This presents a strong market opportunity for pioneers like OkCredit to continue its consistent and sticky growth journey.

Business World

Informa Markets in India and KDCL Unveil INFRACONEX

Sep 16, 2020 by Neel Achary 0 Comments #Atmanirbhar Bharat, #Informa Markets in India, #Managing Director, #MSMEs, #Yogesh Mudras

Gandhinagar, September 16th, 2020: Informa Markets in India, (formerly UBM India), India’s leading B2B exhibition organiser, and K and D Communication Ltd. ( KDCL ) in a Joint Venture, today unveiled a brand new Exhibition ‘ INFRACONEX’ that will cater to the Indian construction equipment sector. The three day Expo slated for 6th-8th August 2021 at Gandhinagar, Gujarat, will focus on new launches, automation technology in construction, provide solutions to the industry drivers, and forecast the challenges of the India construction equipment market through high content-driven conference, seminar & product presentation. The announcement was virtually marked by the presence of Shri Satin Sachdeva-Founder President- Construction Equipment Rental Association (CERA); Shri Arvind Patel Chairman Gujarat Contractors Association (GCA); Shri Sanket Shah- Hon. Secretary, GIHED CREDAI, Shri Yogesh Mudras, Managing Director, Informa Markets in India, and Shri Samir Kapoor- Head Projects – KDCL at the Virtual Press Conference.

The country’s economy and the construction industry both have faced adversity following the COVID-19 enforced lockdown. This unprecedented scale of events had forced the industry to come to a halt forcing the migrant labour to return to their hometowns as private businesses had pessimistic views and reduced spending. The timing of the expo is in sync with the movements in the market especially in the current pandemic scenario where industries are looking forward to revival. According to a recent research report by GLEEDS, general sentiments in the market show the business to be slowly picking up, however, Q4 2020 shows a poor to moderate returns and a sense of normalcy would be expected to return only in Q2 2021, provided the vaccine is found and distributed in India by year-end 2020.

With the Government’s mission of ATMANIRBHAR BHARAT and vision to increase MSMEs’ contribution to India’s GDP to over 50% from the current 29%, the event will also facilitate the MSME companies with special pricing at the MSME Pavilion and will allow meeting the policymakers & buyers. Apart from providing ease of doing online business, the expo will act as a catalyst for global networking with foreign manufactures.

Speaking at the virtual Press Meet of the unveiling of INFRACONEX 2021, Mr. Yogesh Mudras, Managing Director, Informa Markets in India said, “The Indian road infrastructure and highways construction industry, including the equipment and materials, are the biggest component in driving the economy and the second-largest employer after agriculture. With the government’s projection of ₹111 trillion investments for 2020-25 to develop social and economic infrastructure to boost economic growth, allied industries such as the construction equipment market will be augmented. InfraConex aims to create a business /experience for all the industry stakeholders such as construction equipment companies, distributors, policy makers, government, financial institutions, associations, organizations, forums, and alliances related to the construction equipment market. The expo will also help the MSME companies from the construction sector to connect with the financial institutions to better understand the government policies of funding MSME. This would be especially useful given that 30 % of equipment manufacturers in India comprise Gujarat based MSMEs. Special products zone will be created to display the innovative products manufactured by the MSMEs.”

“We are extremely proud to partner with KDCL for InfraConex that will support us with their worldwide networking, pre-emptive planning, and execution. With a strong base in the western region, our collaboration with KDCL will raise the platform for the construction equipment sector. We look forward to a prolific partnership with them.” He further added.

The expo will be a catalyst in the growth of the construction equipment market by creating meaningful interaction between various stakeholders of the industry such as manufacturers, suppliers, distributors, policymakers, investors, nodal agencies, and associations. It will provide a platform to showcase the path-breaking technologies, automation, and solutions for the industry to ascend to the next level. It will help industry stakeholders explore the latest products and technologies and thereby help them in CAPEX related decision making. The expo will also host a knowledge forum by key influencers of the industry through conferences and seminars and will facilitate mind-stimulating discussion on challenges and way forward for the industry.

Infraconex is well received by associations such as Indian Construction Equipment Manufacturers Association-I-CEMA; Construction Equipment Rental Association- CERA; Crane Owners Association Of India- (COAOI); Builders Association Of India- BAI; Maharashtra Chamber Of Housing Industry- CREDAI- MCHI; Confederation of Real Estate Developers’ Associations of India (CREDAI); CREDAI Gujarat; National Real Estate Development Council- NAREDCO; Tunneling Association OF India- TAI; Gujarat Contractors Association; Ready Mix Concrete Manufacturers Association -RMCMA and Fluid Power Society Of India.

Exhibitors at the event will be from various industries related to construction such as Earthmoving, Demolition & Transport Equipment; Roads, Ports & Foundation Equipment, Building & Concrete Sector; Lifting, Handling & Hydraulic; Automation & IT; and Safety Equipment. The first physical expo of the construction industry after the COVID pandemic is likely to attract Architects, Builders / Developers, Consultants, Contractors, Distributors /Retailers, Large EPCs, Financial/Leasing Companies, Government Officials, Industry Associations, Mining Companies, OEM Manufacturers, Oil Refineries, Port Companies, Power Plants, Public-Sector Decision Makers, Rental Companies, Safety Companies, and Spare Parts & Component Manufacturers.

Business World

TReDS a good alternate source of funding for MSMEs: Say experts at PHDCCI Video Conference

Aug 29, 2020 by Gouri Achary 0 Comments #Dr. H P Kumar, #Mr. Anil Khaitan, #Mr. Mohit Jain, #Mr. Raphael, #Mr. Sanjeev Chawla, #MSMEs, #PHD Chamber of Commerce, #Trade Receivables Discounting System, #TReDS

“TReDS a good alternate source of funding for MSMEs,” said experts while deliberating at a Video Conference on Trade Receivables Discounting System organized by PHD Chamber of Commerce and Industry (PHDCCI) here today. It was observed that TReDS allows MSMEs to receive money upfront which helps them to resolve their working capital problems, creating room for a more productive and financially sound business environment.

Welcoming the speakers and participants, Mr. Mohit Jain, Chairman, Haryana State Chapter, PHDCCI said that MSMEs are the backbone of Indian Economy and despite the important role played by them in country’s overall economic growth, they continue to face constraints in obtaining adequate finance, particularly in terms of their ability to convert their trade receivables into liquid funds. TReDS offers a promising platform for solving their working capital issues and in today’s program, experts shall highlight the benefits of this platform.

Presenting the Industry perspective Mr. Anil Khaitan, Former, President and Mentor, PHD-MSME Mentoring & Guidance Centre stated discounting receivables can be a good source of finance for the cash-starved MSMEs, particularly because it is off-balance sheet finance. He said that although the Government had mandated all big Corporates and Central Government PSUs to register on TReDS platform but very few of them have come on board on this platform.

Mr. Khaitan welcomed RBI’s step to classifying TReDS as a priority lending sector. He suggested that automation can be a solution for delayed payments on TReDS platform as the invoice seller will automatically receive the payment on time.

In his Key Note Address, Dr. H P Kumar, Former CMD, NSIC and Advisor, PHD Chamber said that although more than 1.3 crores enterprises are registered under GST the number of companies availing services of TReDS platforms is very low. The reason for this could be lack of awareness. He said that negligible number of PSUs and big corporate for registered as buyers on this platform because the registration fee is very high. The requirement of credit rating and a turnover of more than Rs. 500 corers to register on TReDS platform are also holding back many buyers.

Mr. Kumar mentioned that RBI has given licenses to only three entities to run TReDS platform which
inadequate considering the size of our country and gives access to very limited number of companies.

Mr. Kumar informed that MSMEs can take assistance from the Chamber’s PHD-Mentoring and Guidance Centre on various issues ranging from project conceptualization, training, funding resources etc.

Mr. Jacob Raphael, COO, M1xchange made a presentation on Registration and Benefits of TReDS Scheme. While explaining the process of discounting invoices, he informed that the Trade Receivables Discounting System (TReDS) is a digital platform that allows small businesses to get access to working capital by auctioning their trade receivables. On this electronic platform for auctioning of trade receivable, a financier (bank or NBFC) bids for a bill (trade receivable) from a seller (SME) before its due date or before the buyer makes the payment on the bill.

Mr. Raphael said that to ease the TReDS platform registration process, M1xchange has simplified the steps of onboarding. A user can simply fill a small form by clicking here and can register on the TReDS platform with one-time documentation.

Explaining the bidding process on M1xchange, Mr. Raphael informed that the Supplier raises the invoice and the Buyer verifies the same. This enables the financiers which are also the invoice factoring company to bid against the verified invoice. Once the supplier accepts the bid, the payment is processed and credited to the supplier’s account.

The financier offers credit to the seller at a discounted rate of interest which is generally 5% less than banks and other sources. In this process, the seller may get a steep discount on the rate of interest for working capital, without the need of any collateral security. He said M1xchange is gaining popularity and now many Indian and Foreign Banks are its active partners.

Sharing the Government of India Initiatives on TReDS, Mr. Sanjeev Chawla, Director, MSME-DI stated that TReDS is a good mechanism for MSMEs to fulfil their liquidity requirements. He informed that GOI is trying to disseminate information regarding this useful platform. He mentioned that the Government has launched a CHAMPION Portal to empower MSMEs and address their grievances. Besides this the MSME Samadhan Portal is also available for realizing the delayed payments of SMEs from both public and private buyers.

Mr. Chawla invited suggestions from the MSMEs for further improving the TReDS platform. Thanking the speakers and participants, Adv Lokesh Jain, Chairman, MSME Committee, Haryana State Chapter, PHDCCI assured Mr. Sanjeev Chawla that PHDCCI will collate and forward all the suggestions and grievances received from the participants to the Government for necessary action.

Tag: MSMEs