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Mumbai – Micro, Small, and Medium Enterprises (MSMEs) are the backbone of India’s economy, comprising over 6 crore enterprises that contribute significantly to employment, innovation, and economic diversification. Despite their importance, MSMEs often face significant challenges in accessing adequate and timely finance, hindering their growth potential. The Bombay Chamber of Commerce & Industry hosted the 2024 MSME Conclave, focusing on the crucial theme of “Financing SME Growth.”
In her welcome address, Pinky Mehta, President of the Bombay Chamber, and Director, Aditya Birla Sun Life Insurance Ltd, highlighted the Chamber’s 188-year legacy in India’s development and its extensive representation of MSMEs. She underscored the Chamber’s commitment to supporting MSMEs in overcoming financial challenges and unlocking their growth potential.
Rajan Raje, Chairperson of the MSME Committee, Bombay Chamber and CEO of Nichem Solutions, set the theme for the Conclave. He emphasised that while the MSME sector is the largest employment generator, it often lacks professionalism and resources. He acknowledged the government’s initiatives, such as the New Credit Guarantee Scheme, increased Mudra Loan limits, and the expansion of the TReDS platform, which support the sector’s growth. “The SME sector must think big and explore the export market systematically,” Raje stated, adding that credit availability is largely determined by the “3 C’s” – Cash Flow, Character, and Collateral.
The keynote address was delivered by Nilesh Shah, Group President & MD of Kotak Mahindra AMC, who discussed the challenges and opportunities faced by MSMEs. He spoke about the need for resources in the form of equity, debt, and hybrid financing to enable faster growth. Shah highlighted three successful models that MSMEs could emulate: The Morbi Model: Post-flood rebuilding of Morbi into a ceramics hub, now accounting for 90% of India’s ceramics production with $2 billion in exports. The Tirupur Model: Textile manufacturers form a cooperative for efficient cost management and industry-scale benefits, including centralised purchasing, advertising, and pollution management and the Amul Model: The cooperative that transformed India into the world’s largest milk producer and aims to be the largest FMCG company by 2047. Shah also lauded the Reserve Bank of India’s new system for instant verification of SMEs and borrowers, which will significantly shorten the credit appraisal cycle.
The Conclave featured two insightful panel discussions. The first panel on “Export-Import Financing” for SMEs, moderated by Gopika Gopakumar, Senior Assistant Editor, Livemint, Mr. Sunil Kumar Sharma, General Manager & Zonal Head, Bank of Baroda, Shri Rudra Mishra, Assistant General Manager, SIDBI, N Srinivasan, General Manager Transaction Banking, IDBI Bank and Sheeba Chithajan, DGM (SME) SBI LHO Mumbai Metro. They discussed how their institutions are supporting SMEs in entering and thriving in the export market, including the range of financial products available for the MSME sector. They highlighted the hygiene factors that banks expect SMEs to meet before receiving export support. The panel also examined the challenges MSMEs face in accessing funding, especially for exports to developing countries, and shared success stories and their impacts on SME growth.
The second panel, titled “Financing Through NBFCs,” was moderated by Neil Borate, Deputy Editor at Livemint, and featured Shobha Iyer, Director Commercial at Olea; Shirish Mathur, Head of SME Products & Digital Platforms at Aditya Birla Finance Ltd.; Prakash Sankaran, Managing Director & CEO of Invoicemart; and Sandeep Varma, CEO of the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE). The discussion highlighted the crucial role of Non-Banking Financial Companies (NBFCs) in supporting SMEs through tailored financial products, flexible loan terms, and faster processing times compared to traditional banks. The panellists also explored potential solutions, including government subsidies, credit guarantees, and fostering a competitive lending environment to help reduce interest rates.
In a fireside chat titled “Catalysing SME Growth Through Innovative Financing Solutions,” Shri Deependra Singh Kushwah, I.A.S., Development Commissioner (Industries), Government of Maharashtra, discussed government initiatives to support MSMEs, including the MAITRI portal and the MIDC Plug and Play facility. He also requested members of the MSME sector to leverage these tools and initiatives and proactively approach the Government for any support or guidance.
The Conclave also featured a presentation by the Bank of Baroda on “Empowering MSME Growth: Leveraging Our Flagship Products & Trade Finance Offerings,” delivered by Sandeep Prakash, Assistant General Manager of MSME Sales, and Tania Das, Senior Manager of the Forex Department, Mumbai Zone. Additionally, Shirish Mathur presented the facilities and services available to MSMEs on the Aditya Birla Udyog Plus website.
Rajiv Anand, Senior Vice President of the Bombay Chamber and Deputy Managing Director of Axis Bank, delivered the Vote of Thanks . The event was supported by Bank of Baroda, Aditya Birla Finance Ltd., SIDBI, and SBI.
