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MSME

MSMEs` never-ending payment crisis

Ecostar Editor MagNovember 18, 20201970 Views0

PSUs must blacklist delinquents in MSMEs` payment Public Sector Units (PSU) must blacklist all contractors and sub-contractors who are delinquent in timely payment to MSMEs. Socially responsible PSUs should own up the responsibility of payment to MSMEs even if such MSMEs happened to work in their sites on indirect sub-contracts. While signing a contract with a large company, PSUs must also reserve a right to make direct payment to MSMEs, in case the direct contractor fails to make timely payment to their sub-contractors There are millions of small and medium enterprises operating in our country. One of the grievances most of them have is payment recovery of their dues from large players. Every government promise would only be superficial for most small companies if a stricter law fo...

Capsules

Textiles Industry: Bigger space for MSMEs

Ecostar Editor MagNovember 17, 20203158 Views0

The government will support small-scale manufacturers, who are meeting export compliances, meeting delivery schedules and support them with finance, legislation, certification, quality control programs and R&D to make them leaders in their respective sphere. The time has come to focus on the Micro Small and Medium Enterprises (MSMEs), says Smriti Zubin Irani, Union Minister of Textiles and WCD. “The Textiles Ministry will get in touch with small scale manufactures, who are meeting export compliance, meeting delivery schedules and support them with finance, legislation, certification, quality-control programs and R&D to make them leaders in their respective sphere,” said Smriti Zubin Irani, Union Textile Minister, while speaking at a symposium on Emerging Opportunities for I...

Cover Feature

Telangana Industrial Health Clinic: Clinical solutions for small business sickness

Ecostar Editor MagNovember 17, 20201979 Views0

The fin-tech non-banking institution, TIHCL, already an expert in diagnostic study and curative solutions for small business sickness, supports troubled units' revival through combined strategies, which include handholding, mentoring, counseling and restructuring. The virtual “clinic” is widening its scope of solutions so that larger number of sick manufacturing micro and small enterprises can be brought to the phase of revival, says TIHCL management. No institution is meaningful or considered worthy until it tangibly proves what it boasts of. In an era when showmanship, spontaneous propaganda and hosting events and receiving awards determine credibility of institutions, which are supposed to be serving MSMEs, meaningful efforts for rescuing troubled business units are not visible. The...

ExclusiveMSME

The payment crisis of MSMEs: Even PSUs flout payment rules

Ecostar Editor MagOctober 22, 20202397 Views0

Payment crisis faced by micro small and medium enterprises (MSME) is still a big concern. A large number of companies whom we met in the one and a half years as part of our survey said that one of the major reasons for their crisis was the payment default by large companies. The defaulters include mini-Ratna public sector institutions. Even those mid-sized companies which procured orders from cash-rich public sector institutions face different kinds of concerns. Once their multi-crore order is ready for delivery, the principal company which placed the order has to come for an inspection. This inspection is delayed for several months, keeping on hold the entire work, on which the company has spent a huge sum. It hampers the money flow, increases the cost of capital and other consequent ...

Special Report

Tears of employees: Crooks still rule the roost

Ecostar Editor MagOctober 21, 20201602 Views0

Companies that are able to pay employees deserving beneﬁts should be made to pay strictly. It is found, in our study, some companies with enough capacity refuse to pay even a rupee, set aside what they deserve, even in the case of those who superannuates after many years of service. Let not this ruthless action be a kind of ease of doing business. Mr. Babu had been working for 28 years with Mumbai based business group which is engaged in the media and entertainment business before superannuating in July last year. Over the years he was rolled through eight of the group companies, indeed for promoters' strategy of jumping the labor rules that most of the mid-sized company promoters habitually do. They want to avoid time-to-time liabilities on employees under the applicab...

MSME Special

MSME Survey: Reveals

Ecostar Editor MagOctober 21, 20202057 Views0

As per the existing definition, micro-enterprise investment in plant and machinery does not exceed Rs 25 lakhs, between 25 lakhs and Rs 5 crore, small enterprise and up to Rs 10 crore medium enterprises.For the survey, we visited hundreds of small units promoted by technocrats, units inherited by the second generation, units promoted by entrepreneurs who shed their job to take up the business, units that started as a self-employment initiative. The old economy business still gets only inadequate media attention and no deserving recognition, because of their media shy or not so savvier attitude. They are highly reserved and have no polished attitude. The second generation of small enterprises is yet to think broadly to take their business to the next level. They are found ...

MSME Special

MSME exports rise

Ecostar Editor MagOctober 20, 20201838 Views0

The last year saw MSME segment's combined export reaching all time high level in terms of value. According to the Directorate General of Commercial Intelligence and Statistics (DGCIS), India's Micro, Small and Medium Enterprise(MSME)sector recorded $147,390.08 million value of products exported in the financial year 2017-18. That was the best performance in the last six years. In the year 2016-17, the MSME's export value stood at $137038.8 million, as almost the same figure of the previous year. Year$ Million2017 - 18147390.082016 - 17137068.82015 - 16130768.72014 - 15138896.722013 - 14133313.282012 - 13127992.76 ...

MSME Special

Union Bank of India: Centurion with a modern face

Ecostar Editor MagOctober 20, 20202061 Views0

Specialised officers who are trained internally take care of MSME vertical to ensure that the ultimate connotation is achieved. The saral centres are working at various regional offices. Currently, Union Bank's MSME asset size stands around Rs69,000crore. Technology equipped operational system, App-based dealing comforts, quick response to the changes taking place in the market, simplification of processes and systems through platforms like Saral, etc make the bank a comfortable destination for MSME transactions including credits. The bank has been growing at the rate of close to 10 per cent in MSME business. Transparent and professionally-run MSMEs can always find timely credit supports from commercial banks in better terms to the extent they would require, though credit is not the so...