SME Digital World

Tag: India

Recordent Announces 100+ Meets to Connect 10,000 Indian SMEs Nationwide

Recordent Announces 100+ Meets to Connect 10,000 Indian SMEs Nationwide

HYDERABAD: Fintech firm Recordent announced on Thursday its plan to host over 100 Knowledge Meets, engaging with more than 10,000 SMEs across India. These events aim to analyze and streamline payment collection practices for the SME sector, addressing challenges in cash flow management and credit awareness. The initiative will kick off with inaugural events in Mumbai, Hyderabad, and Delhi.
Recordent highlighted that over 90% of SMEs face significant payment delays, affecting business operations and continuity. By collaborating with industry associations, startups, enterprise unions, and SME executives, Recordent seeks to tackle collection issues within the industry. Discussions will focus on adopting new industry practices to improve accounts receivable collections and manage credit exposure and risk using payment data.
These events will also serve as valuable networking platforms, allowing participants to gain insights and build connections within the industry.
Winny Patro, CEO of Recordent, stated, “Over 90% of Indian SMEs face cash flow challenges due to extending credit to buyers, hindering growth and increasing failure rates. Our SME outreach strategically addresses this challenge head-on. By providing a comprehensive suite of solutions, from checking buyers’ credit history to managing defaults, we are committed to empowering SMEs to navigate cash flow challenges and seize growth opportunities.”
Recordent offers a comprehensive suite of accounts receivable collections and credit risk management solutions. This includes payment reminder automation, invoice management, CIBIL-like credit registry reporting of defaults, cautionary and legal notices for recovery, collections analytics for informed decision-making, and credit bureau reports for credit assessment.

May 30, 2024
Display Manufacturing Needs Special Focus, Says ICEA

Display Manufacturing Needs Special Focus, Says ICEA

The government is providing 50% fiscal support under the Rs 76,000-crore semiconductor incentive scheme for display fabrication.
The India Cellular and Electronics Association (ICEA) emphasized on Tuesday the need for special attention to display manufacturing in India, which is currently the third-largest consumer of display products globally.
Despite the government offering 50% fiscal support under the Rs 76,000-crore semiconductor incentive scheme for setting up display fabrication units, none of the three applications received for display fabs have been approved so far.
“We have not made significant progress beyond display assembly. Displays constitute a major 15% to 20% of the Bill of Material, comparable to logic, memory, and semiconductors. This is a significant concern,” said Pankaj Mohindroo, chairman of ICEA.
The association, which includes companies like Apple, Foxconn, Lava, and other Chinese handset and electronics companies, stresses the importance of focusing on this sector to establish India as a robust display manufacturing hub.
Mohindroo added, “This sector needs special attention, and we are determined to make India a strong display manufacturing nation.”
Experts believe that display manufacturing in India offers a unique opportunity to attract international companies looking to diversify their supply chains. This would not only meet domestic demand but also enhance exports from India.
According to ICEA, the demand for displays in India is primarily driven by mobile phones, among other devices such as televisions, notebooks, tablets, and desktops.
The total demand for displays in the country increased to 338.4 million units in 2023, up from 303.7 million units in 2022, with mobile phones accounting for 310 million display units in 2023. The overall display demand in India is expected to reach 383.5 million units by 2026.

May 30, 2024
Indian PE-VC Investment Declines in 2023; Manufacturing Sector Shows 20% CAGR Growth Over Two Years

Indian PE-VC Investment Declines in 2023; Manufacturing Sector Shows 20% CAGR Growth Over Two Years, Says Report

The manufacturing sector in India has emerged as a strong investment opportunity, with around $2 billion in investments growing at a 20 percent CAGR over the last two years (2021–23).
Indian private equity and venture capital (PE-VC) investments softened to approximately $39 billion in 2023, reflecting a global trend, according to a report by Bain & Company. Traditional sectors such as manufacturing, healthcare, and energy demonstrated resilience, accounting for about 75 percent of investments in 2023, up from 60 percent in 2022.
The growth in the manufacturing sector, driven by supply chain diversification, government incentives, and the availability of scale assets, was highlighted in Bain & Company’s annual ‘India Private Equity Report 2024’, created in collaboration with the Indian Venture and Alternate Capital Association (IVCA).
With electric vehicle (EV) penetration in India expected to reach 40 percent by 2030, original equipment manufacturers (OEMs) dominated more than 70 percent of deal value in the past year. Significant investments (over $100 million) were made in companies such as Ola Electric, Ather Energy, Mahindra EV, and TI Clean Mobility. Additionally, packaging saw substantial deals in globally competitive companies with strong export performance, including Polyplex and Tufropes, both generating over 70 percent of sales from exports.
Gustaf Ericson, Associate Partner at Bain & Company, stated, “Advanced manufacturing is expected to see increased deal activity in the near to mid-term, driven by China+1 tailwinds, government incentives like PLI, and the emergence of scaled assets across multiple segments. We expect electronic manufacturing services, packaging, and EV players to benefit significantly from this favorable environment in the coming years.”
Despite a temperate outlook for India PE-VC dealmaking in 2024 due to global macroeconomic stabilization, traditional sectors such as advanced manufacturing are poised to attract substantial investments. This is attributed to positive fundamentals, supportive policies (like production-linked incentives and tax incentives), and the growth of scale assets across various sub-segments.
The EV market is anticipated to experience robust deal activity, especially in OEMs with scale assets planning capacity expansions or new product launches, as well as in charging infrastructure and battery-swapping players looking to expand geographically or into new EV segments.
Key investment drivers are expected in plastics, secondary paper, and glass, propelled by the F&B industry’s demand for premium, lightweight, cost-effective plastics, and the e-commerce sector’s shift towards sustainable packaging. Revenues for India-based packaging companies are projected to grow at around 10 percent CAGR between 2023-27.
Electronics production in India is forecasted to grow at a 25 percent CAGR over 2023-27, with mobile phones, IT hardware, and consumer electronics being the most attractive sub-segments for deal activity. This growth is driven by increased smartphone and consumer durable penetration, faster replacement cycles, significant export uptake by leading players, increased backward integration (e.g., into components), and a favorable duty structure for import substitution.
Additionally, global supply chain diversification is likely to benefit Indian manufacturers in export-oriented sectors like electronics, pharmaceuticals (especially APIs and CDMOs), and chemicals (specialty chemicals and agrochemicals), given their globally competitive scale and robust government support.
The Bain & Company report also noted that India-focused funds are increasingly diversifying across various sectors. Leading funds entered new sectors from 2021–23, with manufacturing, healthcare, new-age tech, and SaaS attracting the most new investments.
In 2023, India saw $29.6 billion in PE investments during a subdued year for private equity globally, marking an 18 percent drop from 2022’s peak value of $36 billion. PE accounted for around 75 percent of total PE-VC deal value, driven by large-scale deals for high-quality assets. VC investments dropped significantly to $9.6 billion in 2023 from $25.7 billion in 2022, as investors prioritized unit economics over growth and recalibrated strategies amid macroeconomic challenges.

May 29, 2024
IIT-Madras to Fund Sports-Tech Startups

IIT-Madras to Fund Sports-Tech Startups

IIT-Madras is set to provide up to Rs 5 crore in funding to support innovative sports-tech startups in India, aiming to bridge technology and the sporting industry to enhance athletic excellence. These startups will focus on AI and IoT-based products incorporating sensors, networks, actuators, and controllers, leading to the creation of a sports tech incubator fund at IIT Madras. The funding will be provided by the IIT-Madras Pravartak Technologies Foundation and the IIT Madras Centre of Excellence in Sports Science and Analytics (CESSA).
Identified areas for sports tech innovation include media and entertainment, fan/player engagement, athlete performance measurement and enhancement, team and coach success, esports, sports education, data analytics, and sports commerce and communities.
Shortlisted submissions will present their business plans at the ‘IIT Madras Sports Technology Start-up Conclave’ on June 14-15 at the IIT Madras Research Park, the first event of its kind in India. After evaluation by a distinguished panel and final review by IIT Madras CESSA and Pravartak Technologies, the selected startups and their funding amounts will be finalized.
Ramesh Kumar, CEO of CESSA and former global head of ESPNCricinfo, emphasized the goal of creating a deeper connection between technology and sports, aiming to foster an ecosystem for developing products that enhance sports performance. Prof Mahesh Panchagnula, Dean of Alumni and Corporate Relations at IIT Madras and head of CESSA highlighted the conclave as a significant step in India’s sports tech innovation as the country prepares to bid for the Olympics.
Funding for each startup, based on business potential, will range from Rs 10 lakh to Rs 50 lakh, with IITM Pravartak Technologies Foundation taking an equity stake and IITM CESSA providing support during the incubation process. Startups can be at the idea or initial stage but must have incorporated their company and intellectual property rights.
IITM CESSA will offer startups access to high-tech sports infrastructure, technical support, a comprehensive startup ecosystem, and a data center for research. Shankar Raman of IIT-Madras Pravartak Technologies Foundation expressed confidence in fostering entrepreneurs who use technology to enhance athletes’ performance globally.
As of May 2024, the IIT-Madras Incubation Cell has incubated 351 startups, attracting Rs 10,425 crore in investment and achieving a combined valuation of Rs 45,000 crore. These startups generated Rs 3,600 crore in revenue for the financial year 2022-23 and created over 10,000 jobs, filing more than 210 patents in the process.

May 28, 2024
Public Procurement: Government Purchase of MSME Goods Reaches Record High in FY24

Government Purchase of MSME Goods Reaches Record High in FY24

In the financial year 2023-24, central public sector enterprises (CPSEs) set a new record in the procurement of goods and services from micro and small enterprises (MSEs). According to the MSME Ministry’s public procurement monitoring portal, MSME Sambandh, CPSEs procured goods worth Rs 75,253 crore from MSEs in FY24, marking a 16.2 percent increase from Rs 64,721 crore in FY23.
Under the procurement policy, CPSEs are required to source at least 25 percent of their total procurement value from MSEs each year, with specific allocations: 4 percent from MSEs owned by SC/ST entrepreneurs and 3 percent from those owned by women entrepreneurs.
The updated data on the portal, as of April 11, showed FY24 procurement at Rs 58,744 crore, indicating a significant update in the government’s figures. Earlier reports had shown a decline based on the available data at that time.
In FY24, purchases from MSEs accounted for 35.6 percent of the total procurement, benefiting 2.18 lakh enterprises, compared to 37.1 percent in FY23, which involved 2.36 lakh enterprises.
Procurement from SC/ST and women entrepreneurs amounted to Rs 1,406 crore (0.67 percent) and Rs 2,609 crore (1.24 percent) respectively, within the 25 percent minimum procurement share from MSEs. Comparatively, FY23 saw slightly higher procurement from SC/ST entrepreneurs at Rs 1,546 crore but lower from women-led MSEs at Rs 2,318 crore.
Additionally, the Government eMarketplace (GeM), the commerce ministry’s e-commerce portal, reported over Rs 4 lakh crore in gross merchandise value (GMV) for FY24, doubling the Rs 2 lakh crore GMV of FY23. The order volume for FY24 was 62.79 lakh.
The success of GeM has drawn interest from other countries in Asia and Africa, looking to emulate the model. As reported earlier, GeM is the third-largest public procurement platform globally, following South Korea’s KONEPS and Singapore’s GeBIZ.

May 28, 2024
India’s Chemical Market Set to Reach $29.7 Billion by 2024 with Steady Expansion Ahead

India’s Chemical Market Set to Reach $29.7 Billion by 2024 with Steady Expansion Ahead

The chemical sector’s growth is projected to create 1 million jobs in 2024, playing a crucial role in India’s economic landscape.
India’s chemical market, valued at $220 billion in 2023, is poised to grow to $383 billion by 2030, with an estimated compound annual growth rate (CAGR) of 8 percent. Globally, the industry’s growth rate is projected at 1 percent from 2021 to 2030. India ranks as the sixth-largest country in the global chemical industry by sales and has attracted substantial foreign direct investment (FDI), receiving $21.7 billion from April 2000 to September 2023.
The sector is fully open to foreign investors with automatic approval, enhancing investor confidence. Investments are expected to increase by $420 billion through Petroleum, Chemical, and Petrochemical Investment Regions (PCPIRs). Additionally, initiatives by the Central Institutes of Petrochemicals Engineering & Technology (CIPET) and the Institute of Pesticide Formulation Technology (IPFT) will boost skill development.
Specialty chemicals are anticipated to grow at a 12 percent CAGR from 2020 to 2025, driven by innovation and rising demand. The market is expected to expand by $29.7 billion by 2024, with a CAGR of 3.26 percent from 2024 to 2029.
Over the next five years, the market is expected to grow at a CAGR of 2.71 percent, reaching $143.3 billion. The number of businesses is predicted to rise to 15,730 by 2024, with employment in the industry expected to reach 1 million people.
New policies, improved infrastructure, and affordable labor resources are set to boost this sector further. Specialty chemicals, agricultural chemicals, and petrochemicals are identified as the most promising areas for growth.

May 28, 2024
Red Sea Crisis: Government Must Support MSME Exporters

Red Sea Crisis: Government Must Support MSME Exporters

The deteriorating security situation in the Red Sea has led to increased insurance rates and longer travel times for exporters.
Logistics costs significantly impact the country’s manufacturing sector, export competitiveness, and global positioning. The Red Sea route, known for being shorter and faster, was the preferred choice for most shipping companies. Ships transporting goods from major Indian ports like Mumbai and JNPT used the Suez Canal to enter the Mediterranean Sea and reach various European ports based on their destinations.
India heavily relied on this route for trade and energy imports. However, due to disruptions, exporters now have to diversify their trade routes. The worsening security in the Red Sea has resulted in higher insurance rates and longer travel times for exporters. Major shipping companies like Equinor and Maersk have increased their costs, severely impacting Indian companies. Disruptions in freight services and nearly a 50 percent increase in air freight charges have affected the export of perishable goods like vegetables, flowers, fruits, and eggs to the UK, the US, and other parts of the world.
Exporters are anxious about the significant increase in freight costs, which will inevitably impact India’s exports. In the 2023-24 financial year, Indian exports saw substantial growth in both volume and value, totaling nearly $450 billion, with MSMEs playing a crucial role.
The Indian research and information systems estimate that higher container shipping rates and delayed shipments due to route changes could lead to a significant drop in Indian exports in the coming year. Global supply chains have suffered as vessels now take longer routes for exports and imports. The immediate effects are increased freight costs, with small and medium industries in India being the major victims.
The global credit crisis means the world may not be able to absorb this hit. Government agencies need to support the MSME sector to maintain growth and achieve a $5 trillion economy. New markets for perishable goods should be sourced in Asian and Far Eastern regions.
Controlling export container pricing with an incentive mechanism could help mitigate the impact. Since seasonal perishable goods are at the highest risk, an urgent solution from government economic experts is needed.

May 27, 2024
India Logs Robust Business Activity Growth in May

India Logs Robust Business Activity Growth in May

Driven by a sharp acceleration in the services sector, India’s business activity expanded at its third strongest rate in nearly 14 years. The HSBC Flash India Composite Output Index, or Flash PMI, rose to 61.7 in May from 61.5 in April, according to data released by S&P Global on Thursday.
Services firms recorded a significant increase in business activity, the steepest in four months, while factory production rose at its slowest pace since February, stated S&P Global. Despite this, manufacturing continued to grow at a stronger rate than services.
In May, the HSBC Flash India Services PMI Business Activity Index increased to 61.4 from 60.8 in April, whereas the HSBC Flash India Manufacturing PMI Output Index decreased to 62.4 from 63.0.
The latest data highlights robust growth in new export orders across both the manufacturing and services sectors. At the composite level, international sales expanded at the fastest rate since the series began in September 2014, said S&P Global. “Respondents noted gains from many parts of the world, including Africa, Asia, Australia, the Americas, Europe, and West Asia.”
Pranjul Bhandari, chief India economist at HSBC, noted that although manufacturing sector growth slowed slightly in May due to a decrease in new orders and production, “the rise in output in the manufacturing industry continued to surpass that in the services economy.”
Meanwhile, reports of higher labor and material costs led to input prices across the private sector rising at the fastest pace in nine months. Increases were noted in prices for chemicals, food, plastics, electronic components, and electrical items.
Aggregate selling prices also rose more significantly in May. The manufacturing industry saw a faster increase in charges, contrasting with the trend seen for input prices, noted S&P Global.
Looking ahead, Bhandari mentioned that optimism for the year ahead reached its highest level in over 11 years, prompting firms to increase staffing levels. “However, higher input costs in both sectors led to further margin squeezes, particularly for service providers,” she said.
The Flash India composite PMI is a seasonally adjusted index measuring the month-on-month change in combined output from India’s manufacturing and services sectors. Flash data, derived from 80-90% of total survey responses, aim to provide an early indication of the final data, released during the first week of the month.
The index is compiled from surveys sent to panels of around 400 manufacturers and 400 service firms. Survey responses, collected in the second half of each month, indicate the direction of change compared to the previous month. A reading above 50 indicates expansion, while a reading below 50 indicates contraction.

May 24, 2024
GenAI Could Help Indian Workers Save 51 Million Hours Weekly by 2026: Pearson Study

GenAI Could Help Indian Workers Save 51 Million Hours Weekly by 2026: Pearson Study

Generative artificial intelligence (GenAI) has the potential to save Indian workers 51 million hours per week by 2026, according to a study by learning company Pearson.
GenAI can enhance workplace productivity by assisting workers with routine and repetitive tasks, which often dominate their day and contribute to burnout. This insight comes from Pearson’s Skills Outlook series report titled ‘Reclaim the Clock: How Generative AI Can Power People at Work’.
The study highlights the top 10 job tasks that will see the most time savings through GenAI across five countries—Australia, Brazil, India, the UK, and the US—by 2026.
In India, the top five tasks projected to benefit most from GenAI by 2026 are:
1. Promoting products, services, or programs (saving 4,386,799 hours)
2. Collecting data about consumer needs or opinions (saving 3,874,794 hours)
3. Developing marketing or promotional materials (saving 3,513,913 hours)
4. Identifying business or organizational opportunities (saving 3,219,578 hours)
5. Explaining technical details of products or services (saving 3,095,700 hours).
Other significant tasks where time can be saved using GenAI include maintaining current knowledge in areas of expertise, maintaining operational records, communicating operational plans or activities, examining materials or documentation for accuracy or compliance, and evaluating the quality or accuracy of data.
By automating basic tasks with GenAI, companies and their employees can reallocate time to higher-value work that humans excel at, such as strategic thinking, collaboration, decision-making, innovation, problem-solving, empathy, and leadership, the Pearson report stated.
“In nearly every workplace, people spend their day on common, time-consuming tasks that eat away at productivity or their work-life balance,” said Oliver Latham, vice president of strategy and growth for Pearson Workforce Skills. “If those tasks could be augmented with generative AI, employers and their workers could reallocate time to the things that need a more human touch and mean more to their customers,” he added.

May 23, 2024
NSE SME Indian Emulsifiers Makes a Blockbuster Debut

NSE SME Indian Emulsifiers Makes a Blockbuster Debut

Shares of Indian Emulsifiers surged to Rs 450 on the NSE, reflecting a remarkable premium of 240.91% over the issue price of Rs 132. The stock was listed at Rs 430, marking a 225.76% premium compared to its initial public offer (IPO) price. Currently, the stock is trading 4.65% higher than its listing price.
The trading volume was substantial, with the counter reaching a high of Rs 451.50 and a low of Rs 410, and approximately 18.21 lakh shares of the company exchanging hands.
Indian Emulsifiers’ IPO was a massive success, subscribed 306.66 times. The bidding for the issue was open from 13 May 2024 to 16 May 2024, with a price band set at Rs 125-132 per share. The IPO consisted of a fresh issue of 32,11,000 shares. The company plans to use the net proceeds for purchasing plant machinery, civil work, installation costs, funding working capital requirements, and general corporate purposes.
Prior to the IPO, Indian Emulsifiers raised Rs 12.01 crore on 10 May 2024, with the board allotting 9.10 lakh shares at Rs 132 per share to five anchor investors.
Indian Emulsifiers specializes in manufacturing and supplying specialty chemicals such as Esters, Amphoterics, Phosphate Esters, Imidazolines, Wax Emulsions, SMO & PIBSA Emulsifiers. As of 31 December 2023, the company employed 34 full-time staff.
For the period ending 31 December 2023, the company reported revenue from operations of Rs 48.67 crore and a net profit of Rs 6.75 crore.

May 23, 2024