1st IIEF lauds innovations in 5 categories
Industrial Products Finder (IPF), India’s largest circulated industrial magazine in its 49th year, virtually hosted First IPF Industrial Excellence Forum (IIEF) which comprised of two major segments— Conference and 5th IPF Industrial Excellence Awards, on January 15, 2021. During the event, 26 awards were presented, from five categories in various segments, in recognition to their achievements during the year.
IPF Industrial Excellence Forum 2021 was held in the grand presence of Devendra Kumar Singh, Additional Secretary & Development Commissioner (MSME) Ministry of Micro, Small, Medium 1stIIEF lauds innovations in 5 categories The first IPF Industrial Excellence Forum (IIEF) hosted conferences for discussing relevant topics like strategies to move ahead in the new normal and deliberated on SME readiness as manufacturing is growing in India due to the global move from China to India. While during the IPF Awards,the IIEF recognised new product innovations to upholding ‘Make In India’.
The IIEF was hosted virtually and received favourable industry response.
Enterprises, Government of India and Dr Ravi P Singh, Secretary General, Quality Council of India and Madan Sabnavis, Chief Economist, CARE Ratings Ltd.
In his address, Guest of Honour, Devendra Kumar Singh speaking about technology adoption and assuring support to the MSME sector, he informed, “Today adoption of technology is inevitable for companies in the fields like product design and compliance. Ministry of MSME is also empowering MSME sector with Udyam Registration after the adoption of the new criteria of classification of MSMEs. MSME sector can seek benefits from theschemes such as Incubation & Design Schemes, Schemes to support Capital Subsidy in Investment & Interest Subvention Scheme. Further, according to the newly announced schemes under AatmaNirbhar Bharat, schemes like Emergency Credit Line Guarantee Scheme (ECLGS), Fund of Funds and Subordinate Debt scheme.”
The second Guest of Honour, Dr Ravi P Singh, Secretary General, Quality Council of India deliberated on significance of quality of products and currentquality trends. Enlightening everyone on the quality,
he said, “It is evident that the countries in Europe, the US and Japan have helped their industries to invest on quality. They are today known for quality globally. Industries have not realised completely that quality helps you build trust and sustain in the market.
In India, quality consciousness is changing and consumers are embracing the quality products.”
Dialogue for future 2020 was certainly an unusual year for industries across the world (including India). There is no question that these unusual times will carry over into 2021.
Unusual does not necessarily mean bad; it just means different. Often hidden within those differences are opportunities. IPF hosted an engaging Panel Discussion themed at “Board room Strategies to Face New Normal”.
The panel discussion was moderated by Subodh Jindal, Global CEO, STEER Engineering. The panelists – comprising S Sunil Kumar, Country President, Henkel India; Dr Babu Padmanabhan, Founder & MD, STEER Engineering; Indradev Babu, MD, UCAM Pvt Ltd & President, IMTMA(Indian Machine Tools Manufacturers Association) and Biswajyoti Mandal, VP & Head- Technology, Schaeffler India.
In his opening remarks, Jindal expressed, “While the economy is showing signs of revival in Q3 and Q4 of 2020, we continue to have issues like uncertainty in demand, supply side tantrums, labour availability, financial constraints to name a few. It all depends on how the top managements of the companies deal with the same.”
Kumar shared the new way of approach that Henkel India experienced during the last 8 months.
He stated, “Our whole process and operations changed. 8 months earlier, we were a company, primarily believed on face-to-face meetings with our clients.
Moving completely to the online platform was difficult.
We have managed to move to the new normal of online communication.” He also informed that the Henkel India heavily invested on training it employees.
Indradev opined that companies applied all that they have learned in the first 6 months after the first lockdown. He stated, “There is a huge consumption of materials like steel, copper, aluminium and is
believed that it majorly accounts to China. While it is also leading to global cost increase. Further, it is also putting spanner in the works of the companies who want to supply and make up for their previous losses.”
Dr Padmanabhan observed that the companies are moving from effort-based performance management to outcome(result)-based performance management.
Talking on the automation scenario being a threat to low-cost skilled labour in India, Dr Babu Padmanabhan, believes, “Upskilling and training of workforce by industry-government partnerships
will help to hasten human resources to be more ready for automation. Government policy framework to help capital investment needed for automation will have a far-reaching effect over the industry.”
Mandal deliberated on having automation plan as a long term process and not a short-term process.
He stated, “The pandemic has pushed automation as a matter of top priority in the business plans.
While you look at bringing automation into business processes and factory operations, every company should evaluate socio-economic impact of job losses and unemployability of unskilled labour and also should consider cost of installation. Upgrading systems can be managed in a phased manner, addressing the low-hanging fruit first and then move towards the journey. This comprises of a 5-10-year plan for any company.”
Two engines are not firing India has seen some hope of revival in the late 2020 but has a challenge to continue such stride to reach pre-Covid level. Manufacturing industry has been hit due to lower production and drop in demand.
Madan Sabnavis, Chief Economist, CARE Ratings, delivered a special address on the Indian economy and upcoming budget. He stated, “For the first time Indian economy is shrinking after a long time and has registered negative growth. Except agriculture, all other sectors have suffered in their production.
Two major engines of investment and consumption are not firing. This has fractured SMEs leading to rise in unemployment bringing down consumption impairing investments.”
The second Panel Discussion, with the theme of “Are Indian SMEs ready for the future?”, deliberatedon issues like challenges & opportunities before SMEs in the changed world, tips to be a part of global supply chain, benefits of government policies, etc.
The discussion was moderated by Saikat Roy, Director - West, CARE Ratings while having on board eminent panellists such as Anil Saboo, President, IEEMA (Indian Electrical & Electronics Manufacturers Association) and MD, Elektrolites Power Pvt Ltd; Ashita Gupta, Chairperson SME Chapter, MAIT, and COO, Smile Electronics Ltd; Mahesh Desai, Chairman, EEPC India (Engineering Export Promotion Council of India), and MD & CEO of Meera & Ceiko Pumps Pvt Ltd; Neeti Sharma, Senior Vice President, TeamLease Services.
According to Saikat Roy, before the pandemic, budget 2020 had a fiscal deficit 3.5 per cent of GDP.
Based on the first advance estimates, CARE Rating has suggested that the fiscal deficit will move to 7.8 perc cent of GDP. Further on adding 1.1 lakh crore that accounts to GST shortfall and borrowing on behalf of states, this number will look like 8.4 per cent of GDP.
He shared current status of key sectors:
Current status of production in India
(Till Dec 2020)
Cumulative cargo handled at ports -10.5
Bank Credit to Manufacturing
industry (Nov 19 to Nov 20) -0.7
Power Consumption (Dec 2020) 5
Ashita Gupta stated, “The 20 lakh crore package rolled out by the government, only 50 per cent of the SME sector availed that credit availability and benefited. Reason being 99 per cent of the industries
in India are micro industries These industries are ,not fighting for sustainability but for scale. NBFC cannot merely reach all such industries.”
Mahesh Desai, Chairman, EEPC India (Engineering Export Promotion Council of India), and MD & CEO of Meera & Ceiko Pumps Pvt Ltd, said, “The new mantra for SMEs is to produce quality
goods and services in quantity for local and also for global markets. They have to go Glocal (Global+Local).
We need more liberalisation with policies to attract FDI.”
Certification of Indian products by international agencies will help find better global markets for exports and will build better markets for Indian products, believes Desai.
Anil Saboo observed 2020 as a year of transformation and learning. “IEEMA is focussing on 5 pillars such as localised manufacturing, digitalisation and innovation, global penetration, enhancing capability by international collaboration and focus on quality and productivity. Globally the electrical market is worth US $ 500 billion while India’s share is just less than 2 per cent. By adopting the above practices, India can increase its share by 2.5 per cent.”
Neeti Sharma speaking about the labour migration, informed, “Labour shortage issue is on its verge of recovery. Industries have face challenges due to migration but remember Covid is not a passing shower rather a climate change. This change will bring structural reforms for productive and better paid jobs.”
Speaking about upgrading workforce, she shared,“69 per cent of the current jobs will not exist after automation and digitisation enters industries. Training workforce is necessary for the future. However,machines will not replace jobs but will create jobs in some other industries.”
Gagandeep Singh, Manager – SME, Western Regional Office, National Stock Exchange of India Limited in a Special address deliberated on’ Advantages of Listing for SMEs to raise funds’. Singh observes,
“Promoters of the SMEs are regarded as ‘one man army’ while with time Indian SMEs should consider decentralisation. Decentralised way of operations is a beautiful way which many listed SMEs haverealised and have become successful listing at NSE and BSE. SMEs should also leverage capital markets through listings. An SME can reach global investors and a small business located at remote locations can also source capital for their business. Around 500 companies have been listed on NSE and BSE and have raise Rs 5000 crore on both platforms.”
This was followed by welcome address by Pratap Padode, Editor of IPF and Founder & President, FIRST Construction Council, and Unveiling of IPF Annual 2021. “We are very pleased to inform that Industrial Products Finder has entered in its 50th year, since its establishment in 1972. India has close to 6.8 million Udyog Aadhar registered MSMEs and another 63 million MSMEs. This constitutes to almost 45 per cent of the manufacturing output, 94per cent of number of industrial units, 48 per cent of exports, 35 per cent of GDP and employ around 110 million people, making MSMEs largest source of employment after agriculture sector.