Need to link small and large business – Business line 13/7.

1. Very informative article and good points like gross value added, where India lacks and 55.3% of total factories in operation produce output less than 5 Crore and 3% 2% of factories produce output in range of 5 – 50 crore.

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But this 86.5% contribute to 40% in employment and output 14.4% Big factories having output more than 500 crore annually just account for 1.89% but have 22% share in employment and generate 54% of total output.

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In terms of capital invested, it is found 66% of factories have a capital investment less than 0.25 Crore and they contribute to 13.5% of output only 11% of factories have a capital of more than 10 Crore and share in output is 73.5%.

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In manufacturing eco system, MSMEs have crucial linkages with large firms through sub- contracting arrangement and provision of Input.

Till this I agree

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But I want to draw your attention for following.

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1.?????MSME sector assets, from the time of nationalization of banks in 1969, will be in range of 300-400 lac crore.

2.?????We have to improve operational efficiency of these assets.?If we improve by 5% year on year for 3 years will create 3 to 4 crore low skill jobs, without large capex and can contribute 1.5% to GDP at 3 Trillion dollar economy.

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Our Solutions:

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1.?????We have developed a software tool known as BABAGIS (Business Analytics Business Augmentation growth information system) for analyzing balance sheet and Profit & Loss to give 52 ratios FREE OF COST out of which 30 to 40 will be on operational ratios.?If taken for two years and more, it will make entrepreneurs to ask “Why” and thus optimizing their available resources.?And by this he will need more people.

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Our idea is to create Z Score for MSMEs which will give enough time for entrepreneurs to take corrective action 3 to 4 years in advance.?Thus it will reduce growth of NPA in bank.

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2. Any factory having more than 20 workers, measuring hard skill and soft skill, every quarter, will lead to

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·????????Better Team formation

·????????Innovation

·????????Quality Improvement

·????????Inter Personal Relation

·????????Reduction in Production jerks.

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We provide this services as “EMPULSE”.

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The way in Japan in 1950, it has happened, after world war.

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3. Digital Transformation: After Covid, it has necessitated to adopt digital transformation at faster rate but it is found that top down approach does not give optimal results while organization has to adopt so in many MSMEs, we will have to adopt strategies in such a way that they derive optimum results.

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Now, with such large asset base, because of not having reliable data, what can be done by all state holders, to bring awareness to MSMEs.?

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Our achievements are :

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1.?????Have signed MOU with government of Telangana.

2.?????Awarded as one of top 10 Hottest Startup by HYSEA.

3.?????Part of Microsoft founders hub program.

4.?????Bankable Business Summit as speaker.

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What we expect.

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More interaction with all stake holder to more interventions.

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One suggestion, as many MSMEs are ancillaries to large manufacturing companies we can tie up with them to help their ancillaries to grow with them. ?

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regards,

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Nilesh Desai,

Director,

SMEA Analytics Pvt Ltd

Mail us?????????????????: [email protected]

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