POTENTIAL

FOR

MSMEs

In

DEFENCE SECTOR

NATIONAL SMALL INDUSTRIES CORPORATION(NSIC)

NSIC

ISO 9001:2008

VISION

To be a premier organization

fostering the promotion & growth

of Micro, Small & Medium

Enterprises in the country.

MISSION

To enhance the competitiveness of micro,

small & medium enterprises by providing integrated support services encompassing, marketing, finance, technology and other services.

NSIC established in 1955 :

AIM

To Aid, counsel, assist, finance, protect and promote the interests of

small industries* in India.

*Since 2007 Micro, Small and Medium Enterprises

NSIC

ISO 9001:2008

Branch/Sub-

Offices

(121)

Head Office

Technical Centres

(8) Foreign

Office(1)

Zonal

Offices

(10)

Software

Technology

Parks(2)

NSIC OFFICES NSIC

ISO 9001:2008

-Total 143 Offices

NSIC’S ACTIVITIES

Technology

Marketing

Credit

Support

Services

NSIC

ISO 9001:2008

NSIC’s SCHEMES

MARKETING

• Raw Material Distribution

• Registration for Government

Purchase

• Tender & Consortia Marketing,

• Marketing Events

• Marketing Intelligence

TECHNOLOGY

• Training

• Material Testing

• Job-work

• Energy and Environment Audit

SUPPORT SERVICES

• Performance and Credit Rating

• B2B Portal

• Training – cum –Incubation

• Software Technology Parks

• International Cooperation

CREDIT

• Credit for Raw Materials &

Marketing

• Credit facilitation through 15 Banks.

NSIC

ISO 9001:2008

THREE PRONGED STRATEGY :-

•Indigenization in the Armed Forces

•Revenue procurement( Systems and Supplies)

•Capital procurement

– Buy Indian; graduate thereafter to B&M Indian and Make category as well

– Offsets participation with OEMs for “Buy Global” and “Buy and Make” category

NSIC’s APPROACH in DEFENCE SECTOR NSIC

ISO 9001:2008

NSIC

ISO 9001:2008

• Large companies are able to liaison with government and put across their view point

• Who takes responsibilities for MSMEs ?

• NSIC to spearhead initiative for MSMEs

• Liaison with the government

• Ensure dispensations allowed under MSMED

• Help with Funding and Technology

NSIC to REPRESENT MSMEs NSIC

ISO 9001:2008

NSIC

ISO 9001:2008

• Compilation of Data Base

• Creation of clusters/consortia

• Lead the consortia in procurements

• Enable the consortia to lead the procurement

• Create a credible and strong information system.

• Credible dissemination of information

NSIC’s APPROACH TO INDUSTRY NSIC

ISO 9001:2008

NSIC

ISO 9001:2008

• MSME Development act 2006 stipulates NSIC as manufacturer ; status of OEM and IOP

• NSIC can directly receive and respond to RFPs from MoD

• NSIC will pass on RFI/RFP info to units registered

• Select competent units for the RFP and lead the procurement

• Similar will be role as IOP

NSIC as Manufacturer :: IOP NSIC

ISO 9001:2008

NSIC

ISO 9001:2008

• Compilation of policy imperatives

• Organizing workshops for MSMEs at various places in the country

• Bringing out the opportunity in Defence

• Explain the policy and regulatory issues

• Enable participation by credible advice

• Facilitate with the government agencies for clarifications and feed back

NSIC’s FACILITATION PROCESS :: IOP NSIC

ISO 9001:2008

NSIC

ISO 9001:2008

• ADVISORY policy and procedures

• Interpretation of DPP, DPM and regulatory

• Feasibility reports and approach papers

• Preparation of Due diligence reports on IOP

• Match the requirements of OEM for certifications and QA requirements

• Use of DGQA and other certified agencies as mandated by OEM or MoD for offsets.

NSIC’s FACILITATION PROCESS :: OEM NSIC

ISO 9001:2008

NSIC

ISO 9001:2008

• Identification of countries and OEMs with technology, with or w/o Offsets Obligations

• Lead delegations of MSMEs to these countries

• Participate in International exhibitions, with displays and stalls

• Interact with government officials and agencies for facilitation; Facilitate B-B meetings

• NSIC has MoU with more than 30 countries and offices worldwide

• Interact with DRDO for incubation and harnessing technology

NSIC’s INITIATIVES IN TECHNOLOGY NSIC

ISO 9001:2008

NSIC

ISO 9001:2008

• NSIC has MoU with more than 16 banks in the country for funding.

• Can leverage the strength for funding MSMEs

• NSIC exploring relationship with PE also

• Strategy is to create a pool of money for funding MSMEs in Defence Sector

• Exploring a Foreign Line of Credit as well

• SIDBI, Financial institutions and banks to evolve a competitive basis for funding

FUNDING OF MSMEs NSIC

ISO 9001:2008

NSIC

ISO 9001:2008

• Single point registration scheme :: NSIC

• Registration with quality compliances and certifications

• Working with DIPP for formal acceptance of NSIC registered companies for Defence Sector

• Working with MoD for acceptance of NSIC registered units as valid vendors

• Single tender nominations in accordance to MSMED Act 2006

• Work at Inter Ministerial level for solutions

REGISTRATIONS NSIC

ISO 9001:2008

NSIC

ISO 9001:2008

• Similar initiative in synergistic sectors

• MHA and Ministry of Civil Aviation

• Interaction with STC for civil offsets as well

• Homeland Security – huge budget provisions

• Vendor data base of MSMEs is critical

• Create offset projects in Internal Security and civil aerospace as well

• Enable MSME participation with Police, CISF, BSF, ITBP, AR, CRPF, SSB etc

DEFENCE AND SYNERGISTIC SECTORS NSIC

ISO 9001:2008

NSIC

ISO 9001:2008

1. Raw Material Distribution

Arrangement with bulk manufacturers for supply of

Iron & Steel, Aluminum, Copper, Paraffin Wax,

Zinc , Coal etc. IOCL’s Polymer products added

during 2011-12.

MSMEs get required qty of material at

manufacturers’ price with benefit of bulk quantity

purchases.

Timely availability of material even in situation of

scarcity.

MARKETING SUPPORT NSIC

ISO 9001:2008

2. Single Point Registration for Government Purchase (SPRS)

Scheme being implemented since 1976.

NSIC registers MSEs, fix their monetary limits and capacity for supplying to Government/CPSEs,

Ministry of MSME specified the following benefits for units

registered under SPRS:

Issue of tender sets free of cost,

Price matching option to the MSEs quoting price band of

L-1 plus 15%,

Exemption from payment of EMD.

NSIC

ISO 9001:2008

MARKETING SUPPORT

NSIC

ISO 9001:2008

3. Tender & Consortia Marketing

• Units manufacturing the same products brought together,

• Tenders participated on their behalf to secure the bulk orders

• Orders distributed according to members ’ capacity.

• Facilitation in raw material to execute orders,

• Bridge finance provided against the supplies made.

MARKETING SUPPORT

• Competencies of MSMEs showcased,

• Participation at concessional rates,

• Vendor Development enabled.

NSIC

ISO 9001:2008

4. Marketing Events

• Exhibitions / Buyer-Seller Meet /Campaigns

MARKETING SUPPORT

- Set up specialized cell at New Delhi to collect and disseminate both domestic & international marketing intelligence for the benefit of MSMEs.

- Special feature of the cell : Data base of Bulk-buyers in Government / Public &

Private Sector

Information on Exporters, International buyers

Data base of Technology Suppliers

Data base of units registered with NSIC under SPRS

Data base of DGS&D suppliers with prices of their products

5. Marketing Intelligence Cell

NSIC

ISO 9001:2008

MARKETING SUPPORT

• Credit support to MSMEs for Raw Materials

procurement at competitive rates.

• Financial assistance for Short Term against the bills

for supplies made to Government Departments /

PSUs.

• Credit facilitation to meet MSMEs requirement

through Tie-up arrangements with various

commercial banks (15 banks).

CREDIT SUPPORT NSIC

ISO 9001:2008

2008-09 2009-10 2010-11 2011-12

Total Credit Support

(Rs. Crore)

688 1056 2349 3257

• Nodal Agency to implement the scheme on behalf of Ministry of

MSME and provides subsidy to the extent of 75% of rating fee

(subject to ceiling of Rs. 40000/-),

• Rating is a trusted third party opinion on MSEs strength,

weaknesses, capabilities, credit worthiness,

• Rating helps MSEs in getting credit from banks on better terms,

• Infuse a sense of financial operational discipline among the

MSEs.

• Total 43,000 units rated since inception of the scheme in 2005.

NSIC

ISO 9001:2008

Performance and Credit Rating Scheme

• Training in conventional and high-tech courses.

• Material & equipment testing.

• Machines available to small units for job-work.

• Energy audit and environment services at Chennai & Rajkot.

TECHNOLOGY SUPPORT NSIC

ISO 9001:2008

SUPPORT SERVICES NSIC

ISO 9001:2008

1. NSIC’s B2B Portal having data base of 2.5 lac units

2. Marketing facilities to MSMEs for business to business

relationship.

3. Software Technology Parks

- NSIC signed MoU with 30 Countries

- Major areas of cooperation includes:

Feasibility studies

Policy & Institutional Framework

Entrepreneurship Development

Supply of small projects for SMEs

Setting up of Tool Room & Training Centres

International Cooperation NSIC

ISO 9001:2008

NSIC

ISO 9001:2008

Thanks