Tag: SIDBI

News

Celebrating 34 Years of Empowering Entrepreneurs: SIDBI Marks Another Milestone

Apr 3, 2024 by Sujata Muguda 0 Comments #Empowering Entrepreneur, #GST SAHAY, #Mumbai, #Shri. Prakash Kumar, #SIDBI

Apr 03, 2024 Mumbai, India Small Industries Development Bank of India (SIDBI) proudly commemorates 34 years of fostering entrepreneurship, innovation, and economic growth in India. Since its inception in 1990, SIDBI has been instrumental in transforming the landscape of MSME financing and development in the country.

sidbi

SIDBI – Celebrating 34 Years of Empowering Entrepreneurs

Established under the SIDBI Act of 1989, SIDBI has continuously evolved to meet the dynamic needs of the MSME sector, playing a pivotal role in driving economic growth, generating employment opportunities, and fostering inclusive development across India.

Over the past three decades, SIDBI has successfully implemented various initiatives and schemes aimed at providing financial assistance, capacity building, and technological support to MSMEs. These initiatives have not only facilitated access to credit but have also enhanced the competitiveness and sustainability of MSMEs, thereby contributing significantly to the country’s socio-economic progress. In celebrating 34 years of unwavering commitment, SIDBI acknowledges the invaluable support and collaboration of its stakeholders, including the Government of India, state governments, partner financial institutions, industry associations, and, most importantly, the MSME community.

To mark the occasion, a celebration was held on 2nd April 2024, marking the virtual assembly of SIDBI officials from pan India. During the event, Shri S. Ramann, CMD, SIDBI, expressed his gratitude, emphasizing the institution’s dedication to fostering the growth of MSMEs as a crucial driver of India’s economic prosperity. Mr. Ramann stated, “As we commemorate this significant milestone, we renew our pledge to empower MSMEs and champion entrepreneurship for India’s economic advancement.” He highlighted the importance of formalizing informal entities and announced increased resources allocated to initiatives such as PRAAYAS and the innovative digital platform, GST SAHAY.

Furthermore, Shri. Ramann underscored SIDBI’s successful engagement with FinTech companies and reiterated the institution’s unwavering support for smaller entities grappling with high interest rates. In addition to CMD’s remarks, Shri Sudatta Mandal, DMD, celebrated SIDBI’s achievement of surpassing a balance sheet milestone of Rs. 5.2 lakh crore. He emphasized the institution’s commitment to streamlining credit delivery processes for exponential growth.

Shri. Prakash Kumar, DMD, elaborated on SIDBI’s evolving role under the Development Financial Institution (DFI) banner, praising visionary leadership for guiding its transformation. The event featured insightful presentations from department heads of various verticals, including Digital Initiatives, NBFC, Partner Lending, Green Climate Finance, and Programmes for Development and Impact.

Looking ahead, SIDBI remains resolute in its mission to catalyze MSME growth, nurture entrepreneurship, and contribute to building a robust and resilient Indian economy.

Business

Greening Ayodhya through EV Access Sweetening Ayodhya through GI Tag Laddus

Jan 16, 2024 by Sujata Muguda 0 Comments #Ayodhya, #Electric Mobility as a Service (eMaaS), #Government of Uttar Pradesh e-mobility drive at Ayodhya, #SIDBI, #Sivasubramanian Ramann, #Small Industries Development Bank of India (SIDBI)

January 16, 2024: Small Industries Development Bank of India (SIDBI) joins Government of Uttar Pradesh e-mobility drive at Ayodhya, Uttar Pradesh.

In order to Green Ayodhya and Empower hunar-mand (skilling the unskilled) especially women, SIDBI supported ETO Motors, launched its EV services in Ayodhya. Hon’ble CM flagged off E mobility initiatives including E-autos of ETO at an event held in Ayodhya Dham. The event was joined by team Lucknow RO & team green led by Dr R K Singh, CGM . This initiative aims to ease commuting in pious city of Ayodhya with reducing pollution.

Ayodhya

Govt of UP has provided charging infra and parking station where as SIDBI assisted ETO shall manage the seamless access to EV autos to common people. Its important to mention that UBER with whom we have MoU to support its aggregators deepen e mobility shall power this initiative through its matchmaking platform. Witnessing the spark in the eyes of trained drivers pool starting their livelihood journey was a matter of pride. This move is expected to enhance environment responsiveness among lakhs of people who are expected to be in Ayodhya.

On this occasion Shri Sivasubramanian Ramann, CMD, SIDBI messaged that “The decarbonization of the transport sector is need of the hour and SIDBI launched multiple initiatives to promote electric mobility adoption in India. These are aimed at providing affordable capital to the EV ecosystem, Shell foundation supported risk sharing facilities to safeguard the EV lending and supporting the women’s entrepreneurship journey in smaller towns/rural India. SIDBI endeavours to reach the last mile with affordable access to EVs. The initiative is witnessing traction from across India. The beneficiaries include enterprises active in last-mile deliveries and connectivity, renting to users, battery swapping stations, charging point operators and dedicated e mobility centric NBFCs.”

Green Ayodhya

In line with Panchamrit mission, SIDBI has prioritised digitisation of credit access and greening of enterprise ecosystem through its Panch-Tatva Missions, viz. Electric Vehicles, Energy Efficiency, Solar, Nurture t Nature ( t being technology) and Waste to Environment taste. Aligned to national mission of EV30@30 SIDBI runs 50KEV4ECO for strengthening the e-mobility eco system. SIDBI has supported several models, pan India. It has attempted to reduce last mile acquisition cost by providing affordable funds to NBFCs. ETO is one of the beneficiary enterprise whose dream to deepen its presence in Mathura, Varanasi (besides being in Delhi) is getting a fillip.

ETO Motors is leading Electric Mobility as a Service (eMaaS) and Energy as a Service (EaaS) company focusing on providing environmentally friendly electric mobility & related Energy / Charging solutions. ETO Motors is endeavouring to bring positive changes in society- ecologically, socially, and sustainably. SIDBI support to ETO Motors will not only save carbon emissions but also empower women by providing them with livelihood opportunities.

It is pertinent to mention that recently SIDBI support enabled Ayodhya laddus to get GI Tag. This earns laddus international recognition as also gives value for money to artisans engaged in this value chain.

Business

BILITI Electric gets financing approval from SIDBI for its GMW Taskman Electric 3 Wheelers Autos

Jun 13, 2022 by Agency 0 Comments #BILITI Electric, #GMW Taskman Electric 3 Wheelers Autos, #SIDBI

California-based BILITI Electric Inc announced that Small Industries Development Bank of India (SIDBI), the principal financial institution engaged in the promotion, financing and development of MSMEs, has approved to sanction loans to those who are interested in purchasing GMW Taskman Electric 3W Autos, through its ‘Digital Prayaas’ program.

‘Digital Prayaas’ is an App-based end to end digital lending platform to facilitate access to low-cost borrowings for micro-entrepreneurs/micro enterprises. Further, to cater to the aspiring youths in the urban area, SIDBI has also tied up with a major aggregato r viz., BigBasket, to on board its delivery partners across the country and provide loans at an affordable interest rate for purchase of environment friendly electric vehicles suitable for deliveries.

The development enables BigBasket delivery partners to purchase GMW Taskman 3W vehicles at 8-10% interest rate and provide a regular stream of revenue, allowing them to lead a sustainable livelihood. BILITI’s Taskman vehicle is first in the e-van segment to get financing approval as part of the program.

Department of Financial Services Secretary Mr. Debasish Panda while launching the initiative, appreciated the role played by SIDBI in meeting the financial requirements of the people at the bottom of the pyramid by offering loans at an affordable rate through its Digital Prayaas programme.

SIDBI Chairman and Managing Director (CMD) Sivasubramanian Ramann said “the App facilitates speedy onboarding of loan applicants in a digital and integrated process which has made the entire programme scalable with better risk management and would further improve customer satisfaction.”

Speaking on this occasion, BigBasket CEO Hari Menon said that they are delighted about this partnership. “The initiative to offer loans will have a positive impact on the livelihood of hundreds of our delivery associates and also fulfills its social objectives,” said Hari Menon.

“We are extremely happy to collaborate with SIDBI-BigBasket on this unique financing option for BILITI Taskman 3-wheeler electric vehicles. SIDBI has been at the forefront of assisting and developing MSMEs, since its inception. We are one of the early EV partners for BigBasket. Thanks to BigBasket for being an early adopter of our EVs, and for creating EV friendly warehouses by providing charging and parking facilities across the country” said Rahul Gayam, CEO, BILITI Electric.

BILITI Electric currently operates through an exclusive manufacturing partnership with Hyderabad- based Gayam Motor Works (GMW) for manufacturing its three-wheelers. Biliti’s TaskmanTM is a popular last-mile delivery vehicle that is deployed in 15 countries across the globe including Japan, the USA, the UK, France, Portugal, Germany, Lebanon, Uganda, Kenya, Senegal, Nepal, Bangladesh, Dubai, and India and has covered over 20 million miles. TaskmanTM is being used by Amazon, IKEA, Wasoko (Sokowatch), BigBasket (Tata), Zomato, Flipkart (Walmart), and JioMart (Reliance) among others. The TaskmanTM has already made more than 12 million deliveries worldwide with many more to come. Its batteries and drivetrain are compact and modular in design, allowing them to have wider applications in auto, marine, warehousing, and backup power sectors enabling the buildout of an EV ecosystem.

News

SIDBI participates in flagging-off event of National MSME Expedition Team at Lucknow

Dec 8, 2021 by Gouri Achary 0 Comments #Azadi ka Amrit Mahotsav, #National MSME Expedition Team, #Shri V. Satya Venkata Rao, #SIDBI, #V. Satya Venkata Rao

Small Industries Development Bank of India (SIDBI), the principal financial institution engaged in the promotion, financing and development of Micro, Small and Medium Enterprises (MSMEs) has participated in the flagging-off event of the National Micro, Small & Medium Enterprise (MSME) Expedition Team at its head office situated at Lucknow, Uttar Pradesh on its journey across 5 states (Delhi, Haryana, Uttar Pradesh, Madhya Pradesh & Bihar) for about 3500 Kms to make people aware about various Government Schemes devised for MSMEs. This campaign has started as part of the “Azadi ka Amrit Mahotsav” (AKAM) campaign of the Department of Financial Services (DFS) which is organizing 50 MSME meetings in rural areas and 25 such meetings in rural areas encouraging thousands of people towards perusing self-employment.

The National MSME Expedition team of the Ministry of MSME under AKAM Campaign is on a journey by road across states to make people aware of various schemes of Central and State Government for MSMEs. The team reached Lucknow after travelling from Delhi to Faridabad, Ballabhgarh, Palwal, Agra, Firozabad, Fatehpur, Kanpur, Prayagraj, Banaras in Uttar Pradesh, Rewa in Madhya Pradesh, Buxar, Arra, Patna, Chhapra, Champaran in Bihar. It also visited Gorakhpur, Sant Kabir Nagar, Sultanpur, Kannauj in Uttar Pradesh.

Shri V. Satya Venkata Rao, Deputy Managing Director, SIDBI along with other senior officials of SIDBI attended the event at Lucknow which was flagged off by Shri Siddharth Nath Singh, Minister for MSME, Uttar Pradesh.

Addressing the participants of the expedition team, Shri Siddharth Nath Singh, Minister for MSME said, “MSME has a special place among all the economic development-related departments of the government. He suggested bringing all industry-related issues under the purview of MSME.”

Shri V. Satya Venkata Rao, Deputy Managing Director, SIDBI, on this occasion told the expedition team the need to spread awareness about the various schemes of Central and State Governments for the MSMEs amongst the youth of the country through such programmes. Shri Rao also addressed the participants highlighting various initiatives taken by the Government of India (GoI) and SIDBI towards the upliftment of the MSME Sector during the Covid-19 pandemic across the globe under the Atmanirbhar Abhiyan of the GoI.

So far, this expedition team has travelled and participated in a number of meetings and has encouraged thousands of people to become entrepreneurs and in the process generate employment opportunities.

Business World

Indian Textiles and Apparels Industry availed credit of Rs.1.62 lakh crore as of December 2020, reveals a report by CRIF-SIDBI

Jun 9, 2021 by Neel Achary 0 Comments #Chairman and Managing Director, #Shri Sivasubramanian Ramann, #SIDBI

CRIF High Mark, a leading Indian credit bureau and Small Industries Development Bank of India (SIDBI), the country’s apex financial institution for Micro, Small and Medium Enterprises (MSMEs), today, launched its third edition of Industry Spotlight that analyses the ‘Indian Textile and Apparels’ industry.

Credit landscape in the Indian textile and apparels industry

According to the report, the total amount of credit availed by the sector as of December 2020 stood at Rs.1.62 lakh crore, which witnessed a Y-o-Y decline of nearly 20%. This is due to the suspension of manufacturing activities in the immediate aftermath of the COVID-19 lockdown in March 2020. The report also states that the number of active loans (volume), in the sector stood at 4.26 lakh, as of December 2020.

The industry observed a quarterly decline in NPAs (proportion of credit value delinquent by 90+ days) over the last 2 years, from 29.59% in September 2018 to 15.98% in September 2020. NPAs in December 2020 increased by 0.94% which is nearly 8% lower than NPAs in December 2019.

Export earnings from the sector dropped as of December 2020

Over the years, apparels have contributed to a majority share of exports, followed by home textiles and fabric. However, as per the third edition of the Industry Spotlight, export credit as of December 2020 stands 25% lower Y-o-Y, largely attributable to a decline in exports due to the pandemic.

MSME borrowers have a lion share of the overall credit by volume

With 95% of the overall credit by volume of the sector concentrated in micro, small and medium segment of borrowers, the industry has a presence of close to 5 lakh borrowers as of December 2020.

Geographical insights on top textile hubs

At the state level, Maharashtra has the largest share of the credit portfolio at 25% of the credit book to the sector.

The report emphasizes that the top thirteen regions rich in textiles and apparels manufacturing accounted for 80% of the credit portfolio of the sector as of December 2020. Nearly all states have districts manufacturing textiles and apparels, having several credit active units. Some districts such as Mumbai and Surat have >INR 10,000 crore credit portfolio as of Dec 2020.

Mr. Navin Chandani, MD & CEO, CRIF India, said, “Despite the pandemic, the top thirteen regions active in textiles and apparels manufacturing constituted 80% of the credit portfolio as of December 2020. In India, each state has a unique contribution to the apparels and textile sector. The Government of India announced a special economic package in May 2020 under the Atmanirbhar Bharat program that is set to benefit the large number of small-scale entities, including the weavers and artisans across the country. The right policy interventions, abundant availability and fair access to raw materials along with the surplus available labour can further boost the development of this crucial sector.”

Shri Sivasubramanian Ramann, Chairman and Managing Director, SIDBI said, “The Textiles and Apparels industry in India is one of the oldest and largest sectors of the Indian economy and critical to the country’s employment story. The sector is the fifth largest in exports, contributing to 12% of the country’s export earnings and 2% to GDP. India is a world leader in textiles and possesses the entire manufacturing value chain. The Union Budget 2021-22 has taken into consideration the needs of all sectors of the economy in the quest for the $5 trillion economy and accordingly, in order to enhance India’s textiles competitiveness globally, the scheme for Mega Integrated Textile Regions and Apparel Parks (MITRAs) was announced that will create world class infrastructure with plug n play facilities for the domestic market to showcase steep recovery.”

Lender profiles for the Indian textile and apparel sector

Public sector banks are dominant lenders in providing finance to the sector with a share of 62.61% in volume as of December 2020. The share of private banks, NBFCs and foreign banks were 23.49%, 8.66% and 1.41%, respectively. By value, private banks have the largest share at 40.54% followed by public sector banks with 36.59%, foreign banks comprising of 9.14% and NBFCs with 8.47% as of December 2020.

Industry Spotlight is a series of quarterly reports providing data and trends on industry sectors in each edition, introduced with an aim to help policymakers with the insightful data that can be useful to frame policies. It analyses the credit landscape of the sector, major lenders, sectoral composition and borrower segments along with its risk analysis. The report entails an analysis of credit flow at cluster level while factoring the state of MSMEs in the respective cluster. The first volume was launched in September 2020 with a focus on the Indian Drugs & Pharmaceutical Industry followed by Indian Auto & Auto Components Industry which was released in January 2021.