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HR Heuristics
Mistakes you must avoid when recruiting
 This is a balancing act start-ups have to wrestle with sooner or later - hiring more employees and keeping customers happy versus increasing their cash flow. So just when is the time right to expand your workforce?
Finance Fundamentals
Milaap provides low-cost loans to the working poor
 Most of us look at increasing our materialistic assets, but there's a group of people who are trying to increase the world's goodness quotient. To that end, three men have got together and formed Milaap, a peer-to-peer micro-lending platform.
Marketing Mantras
How small businesses can take advantage of online services?
 Are you making the most of internet resources? The below article explains how small businesses can use the opportunities available to them.
A free-spirited tech guru
 The first thing that strikes you about Sridhar Vembu, CEO of software products company Zoho Corporation, is basic honesty and zero hyperbole.
Policy Polemic
FDI in Retail: What it entails?
More than two decades after the first wave of reforms were introduced in the year1991; the country’s socio-economic health has by no means become better.
Appreciating people and assets of manufacturing companies
By Arun Maira, member, Planning Commission
 Economists are debating whether or not enough jobs were created in India in the last 10 years. However, they all agree that the pattern of growth in the next decade must provide jobs to a large number of young job-seekers — the source of India's so-called demographic dividend.
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Stockpile
Budget 2013: Little time for FM to sort out mess, boost growth: Experts
The Budget-making exercise is always tough, but finance minister (FM), P Chidambaram has a particularly difficult task ahead of him this year. He has got to stay true to his stated commitment of fiscal consolidation and prudence, but he must also be sensitive to political compulsions.
India’s Foreign Trade: January, 2013
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Quotable Quotes
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Appreciate everything your associates do for the business. Nothing else can quite substitute for a few well-chosen, well-timed, sincere words of praise. They're absolutely free and worth a fortune.
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-Sam Walton, founder of Walmart
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Directory of Testing Laboratories in India
Buy our one-of-a-kind guide to all industrial testing laboratories in India. Find the one most convenient for getting your products tested and certified. An invaluable compendium for all industrial units and exporters.
PP: 894, Hard Cover.
Price: Rs 900.
50% discount for members.
Handbook for Managing Export Payment Risks
If you are an exporter you simply cannot do without this unique publication which tells you how to manage payment and other risks arising from exports.
PP: 78.
Price: Rs 300.
50% discount for members.
Free Publications
Fertilizer quality control in India: Need for change
This monograph argues for a systemic change in fertiliser quality control. Essential reading for those in policy-making positions.
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FISME regularly receives monthly reports on the economies of various countries from their missions in India. These reports provide information on key economic parameters, trade related information and all news relevant for importers and exporters. In this edition you can take a look at reports on:
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Activities
Business Banter: Lessons from Entrepreneurs
Writing On The Wall
Macro Metre
Domestic Digest
State Scan
World Watch
Knowledge Store
...And A Lot More
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 The mismatch between the cost of keeping decrepit and inflexible Lobour Laws on the one hand and the needs of the industry to withstand continuously changing globally competitive business environment at the other, is becoming a serious handicap for Indian Industry, particularly MSMEs.
In order to provide inputs to the National Manufacturing Competitiveness Council (NMCC) on Labour Laws that require reforms from the perspective of MSMEs, FISME held a discussion on the issue at FISME secretariat on Feb 2, 2013 in New Delhi.
 PRECA Solutions India Pvt. Ltd., has been awarded the Best in Class Manufacturing – Green Manufacturing Award in National Quality Excellence Awards 2013 presented by Stars of the Industry Group, USA & World CSR Day Group on February 14, 2013 in Mumbai. Mr Satish Gottipati, Managing Director of PRECA, CEC & Head of FISME, Andhra Pradesh received the award.
“Such globally proven modern construction technologies are the need of the hour for India, which is endeavouring to implement infrastructure and housing development programs extensively,” said, Mr Gottipati on receiving the award.
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Do you think Union Budget 2013-14 will be Growth oriented or Populist?
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‘The Best Advice I Got’
- Kushagra Nayan Bajaj, Vice Chairman, Bajaj Group
 “Keep it simple - that's the best advice I ever got, and the best I can give to others,” says Kushagra Nayan Bajaj, Vice Chairman, Bajaj Group. He further adds that the simpler the business and transaction, the cleaner it will be, making it easier to operate and prosper in today's highly volatile world.
Most big organisations in the world like Apple, Coca-Cola, IBM or Volkswagen have kept their business simple by focusing on their core ability. They have not only withstood the economic upheaval but also emerged stronger.
When the business becomes complex, it results into opaque balance sheet. Transparency raises comfort level within the organisation. But it is only in a turbulent atmosphere that people appreciate the value of keeping things simple.
[Adapted from the Best Advice I Ever Got, Business Today]
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The tax policies and lack of basic infrastructure are huge problems in India. Because of lack of prudent tax and stable policies, all big Indian companies are going abroad...The industry is not getting any support from the government. Instead, it is making doing business in India difficult. We are uncertain of the taxes or the policies that can be announced on any day of the year. In other countries, governments are more worried about their companies....The time has now come for us to say goodbye to India.
-Yusuf Hamied, Chairman, CIPLA Ltd.- India's leading pharma company, in interview with Business Standard, Feb 11, 2013
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Macro Metre
 Bad news on the macroeconomic front continued to pour in, with industrial output in December decreasing 0.6 percent on the heels of a 0.8 percent decline (revised from 0.1 percent) the month before. A CNBC-TV18 poll had estimated the index of industrial production (IIP) for December at 1.1 percent. To further add to the gloom, consumer price inflation climbed to 10.79 percent in January, up from 10.56 percent in December. Rural consumer inflation rose to 10.88 percent from 10.74 percent month-on-month and urban inflation climbed to 10.73 percent from 10.42 percent.
 Retail inflation came in at a higher-than-expected 10.79 per cent in January. This was higher than 10.56 per cent recorded in December last year. The Consumer Price Index (CPI) for rural areas increased 10.88 per cent (10.74 per cent). For urban areas, the CPI went up 10.73 per cent (10.42 per cent), official data released recently showed. A higher-than-expected CPI in January may constrain the Reserve Bank of India from looking at another policy rate cut in its upcoming March monetary policy review.
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 India's economy is likely to grow at 5.5 percent or slightly more in the current fiscal year ending next month, and the central statistical organisation is likely to revise figures in its final estimates, a finance ministry statement said recently. Citing GDP trend data for previous years, the statement said the advanced estimates were based on data till November or December, and did not capture the turnaround trend of the economy.
 Shri Madhav Lal- chief secretary in Jammu and Kashmir, has been appointed as the Secretary in the Ministry of Micro, Small and Medium Enterprises (MSME). He succeeds Shri Vivek Rae, who has become secretary in the Ministry of Petroleum and Natural Gas. Shri Madhav Lal has been Additional Secretary and Development Commissioner MSME earlier.
 MobMe Wireless, a telecom solutions start-up launched by college students at their campuses in Kerala's capital in 2006, is planning to become the first IT start-up to get listed on the SME Exchange of NSE. The Thiruvananthapuram-based company already filed the IPO papers with the NSE on February 8. "We plan to offload 705,600 equity shares with a face value of Rs 10 each to the public through the IPO. We have already filed the papers with the NSE and hope to become the first IT firm on the SME Exchange of the NSE," MobMe co-founder and chief executive Sanjay Vijayakumar said.
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 BSE Ltd, Asia’s oldest stock exchange, has begun betting big on its trading platform for small and medium enterprises (SMEs), and expects about 30 companies to be listed on the SME Platform by March 2013. In an exclusive interview to Entrepreneur magazine, BSE Managing Director and CEO Ashish Chauhan said the exchange already had 12 companies listed on the SME Platform, while six draft red herring prospectuses (DRHP) were already filed. Another 12 companies more were in the pipeline, he said, adding that he expected that by March there was a possibility that the total number of listings would go up to 30.
 Kotak Mahindra Bank recently acquired Barclays India's business loans portfolio or SME lending business worth about Rs 700 crore for an undisclosed amount. "The acquisition is in line with Kotak Bank's strategy to add value to its existing business lines as it strengthens its business loans portfolio. It is also part of the company's broader strategy of adopting inorganic growth routes," Kotak Mahindra Bank Group strategy head Paul Parambi said.
 Private sector general insurer L&T Insurance recently said it plans to launch 10 products in the small and medium enterprises (SME) and home space soon. "We have got regulatory approval for SME and home products," L&T Insurance Chief Executive Officer Joydeep Roy said. The company proposes to launch 6 home insurance products and 4 in the space of SME, he said, adding that they will be rolled out in due course of time.
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Andhra Pradesh
Centre to set up exclusive bank for women: AP CM
The Centre is contemplating an exclusive bank for women on the lines of Nabard, and reducing interest on loans to them, Andhra Pradesh Chief Minister N Kiran Kumar Reddy said recently. Addressing the State-Level Bankers' Committee meeting in Hyderabad, the Chief Minister said the Centre is considering a proposal to extend loans to women at 7 per cent interest, down from the current 14 per cent. "The exclusive bank for women will be set up in line with the Jaipur Declaration (of Congress). The Union Cabinet will take a decision soon on the interest reduction," the Chief Minister added. He said the Andhra Pradesh government would extend interest-free crop loans to farmers from the forthcoming Kharif season.
Assam
To develop small and medium enterprises in Assam, commercial banks have decided to augment credit to the sector by 50 per cent while the state government has agreed to review its land policy, Reserve Bank Governor D Subbarao said recently. Addressing the media after RBI's central board meeting in Guwahati, Subbarao said the request for credit enhancement was made by Chief Minister Tarun Gogoi during the State Level Bankers Committee (SLBC) meeting recently.
Gujarat
SIDBI opens branch in Gujarat
Small Industries Development Bank of India has opened a branch at Morbi in Gujarat state with an aim to promote micro, small and medium enterprises in the region. "With the opening of the new branch at Morbi, SIDBI has fulfilled the demand from Morbi-based entrepreneurs especially from 'Ceramic Tiles Cluster' to bring SIDBI's services a step closure to the cluster," the company said in a statement recently. SIDBI's portfolio in Gujarat was at Rs 12.91 billion as on March 31, 2012, and the company aims to cross Rs 15.50 by the end of March 31, 2013.
Karnataka
The trade and industry has termed the State Budget 2013-14 as one that does not promote any industrial growth, even as medium and small enterprises (MSEs) felt that it would weaken the sector. Federation of Karnataka Chambers of Commerce and Industry (FKCCI) president K. Shiva Shanmugam in a release said the budget was not favourable to trade and industry and there was no scope for their growth. The government should make amendments to the budget by increasing the outlay for tourism sector to at least Rs. 500 crore; reduce tax on diesel and reduce value added tax to the earlier levels of 5 and 14 per cent with immediate effect or at least by April 1, 2013 and not August 1, 2013.
Kerala
It may sound exciting that over 30 countries depend on the 170-odd pencil slot manufacturing units in Kerala for making pencils under different brand names. A close look at the problems being faced by these units would, however, kill it. The owners had shut most of these units on January 20, citing the financial crisis they face due to the neglect meted out at the hands of the pencil companies.
Maharashtra
 Maharashtra Chief Minister Prithviraj Chavan recently down played Gujarat’s projection as the most attractive state for investments. Instead, Chavan said Maharashtra, which has attracted 33% foreign direct investment (FDI) till date since the opening of economy in 1991, continues to be the most favoured investment destination. Chavan in his address at a seminar announced that the state government has taken a slew of decisions such as new industrial policy focusing on promotion of micro, small and medium industries, fast tracking of various clearances through e governance, reduction in interface between the government employees and investors and above all the abolition of contentious Octroi duty by replacing it through local body tax across the state.
Orissa
The Tata Steel and the Institute for Steel Development & Growth (INSDAG) have identified Odisha to conduct a pilot, comprehensive ‘Entrepreneurship and skill development programme’ for rural youth. The programme would encapsulate skill development on steel fabrication, enrolment of rural entrepreneurs into the PMEGP (Prime Minister Employment Generation Programme), handholding support to the rural youth from concept development to sustenance of the business.
Tamil Nadu
 Representatives of more than two dozen micro, small and medium-scale enterprises (MSMEs) learnt more about the opportunities in public sector companies and Government departments at a vendor development programme organised by the MSME Development Institute and the Southern India Engineering Manufacturers’ Association (SIEMA) in Coimbatore recently. V. Krishna Kumar, vice-president of SIEMA, said the aim of the programme was to expose the MSMEs to new areas.
 “Being idle is a crime and injustice to the family and society. Find ways to progress in life but by placing honesty in the forefront,” said Justice T Sudanthiram of the Madras High Court, at the launch of a bilingual book on “Starting a small-scale industry”, authored by well-known industrial consultant T Jananayagam. The English version Ways to Start a Small-Scale Industry was received by M Hemalatha, Senior Customer Relations Manager of Higginbothams. The Tamil version Siru Thozil Thodangum Vazhi Muraigal was received by V Haridasan, Editor, Thozil Vaniga Mudhaleedu, Naveena Velanmai.
West Bengal
Small and medium enterprises (SME) associated with the printing and packing industry should look at assimilating new technology in order to enhance growth in the market. According to K. S. Khurana, President of IPAMA (Indian Printing Packaging and Allied Machinery Manufacturers’ Association), the printing industry in the country, valued at approximately $16 billion (Rs 86,400 crore at current exchange rates) has been growing at nearly 10-15 per cent on a year-on-year basis.
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Philippines 
With the possible exception of the banking system, many business enterprises in the country lack data-protection mechanisms, with data loss reported by 89 percent of companies surveyed recently by Symantec, a specialist in data security, data storage and systems management. Particularly at risk, according to Symantec data, are the country’s micro, small and medium enterprises (MSMEs) that on the whole have near total dominance of all registered businesses.
Thailand 
The Department of Industrial Promotion has budgeted Bt400 million to help small and medium-sized enterprises improve production capacity and cut costs in the wake of the increase in the national minimum wage. Deputy director-general Sirirat Jitseree said 3,000 SME operators were expected to participate in the projects. She acknowledged that some labour-intensive industries had experienced a rise in labour cost of 25 per cent. The department also plans to ask for a budget of Bt2 billion to promote similar projects next year, pending Industry Ministry and Cabinet approval.
United Arab Emirates 
 Four new laws pertaining to improving economic and investment opportunities in the UAE, are likely to be issued before the end of 2013, Sultan Al Mansouri, minister of economy, told Gulf News recently on the sidelines of the debate of the companies’ law at the Federal National Council (FNC). “In order to enhance its pivotal role and position as a major hub for international business activities and to improve the overall performance of the national economy, we seek to upgrade our laws to meet the future prospects. Therefore, the ministry has submitted 5 draft laws so far to meet the requirements of the new era. These laws are the companies’ law, the foreign investment law, consumer protection law, and Small and Medium Enterprises (SME)’s law,” said the minister.
United States 
Microsoft Corporation has launched an initiative to assist Africa to meet up with global competitiveness by putting about one million Small and Medium Enterprises (SMEs) on the World Wide Web by 2016. The initiative tagged 'Microsoft 4Afrika Initiative' according to the company is a new effort through which it will actively engage in Africa's economic development to improve its global competitiveness. Microsoft General Manager for 4Afrika Initiative, Fernando de Sousa said at the official unveiling of the scheme in Lagos that the company also plans to help place tens of millions of smart devices in the hands of African youths by 2016.
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Write and Win prize!
Write your comments on the FISME Factor. Share your views and suggestions on MSME issues. Win prize! The best mail will get a special book every fortnight.
send mail to: newsletter@fisme.org.in
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There are business opportunities available for Indian companies in Canada. The interested MSMEs can check details.
There are business opportunities available for Indian companies in Turkey. The interested MSMEs can check details.
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During the period February 1, 2013 to February 15, 2013 a total of 6 new MSMEs became member of FISME.
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