1 ROLE OF NSIC IN DEVELOPING THE MICRO, SMALL & MEDIUM SCALE INDUSTRIES OF INDIA ACKNOWLEDGEMENT I express my sincere gratitude to Mr. Deboprasad Ghatak (Sr. Branch Manager of NSIC, Guwahati) and Mr. Jayanta saha (Business Development Manager of NSIC, Guwahati) for providing me an opportunity to work on this project. I am very grateful for their constant support and guidance throughout the duration of the entire project. Acknowledgements are also due to all the other staff in NSIC, Guwahati, Branch for providing information at various point of the project, especially the discussions on the market. I also express my sincere thanks to Miss Abha Grover (Faculty Mentor) for his sincere cooperation, guidance and support. Lastly,
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ROLE OF NSIC IN DEVELOPING THE MICRO, SMALL & MEDIUM SCALE INDUSTRIES OF INDIA
ACKNOWLEDGEMENT
I express my sincere gratitude to Mr. Deboprasad Ghatak (Sr. Branch Manager
of NSIC, Guwahati) and Mr. Jayanta saha (Business Development Manager of
NSIC, Guwahati) for providing me an opportunity to work on this project. I am
very grateful for their constant support and guidance throughout the duration of the
entire project. Acknowledgements are also due to all the other staff in NSIC,
Guwahati, Branch for providing information at various point of the project,
especially the discussions on the market. I also express my sincere thanks to Miss
Abha Grover (Faculty Mentor) for his sincere cooperation, guidance and support.
Lastly, I thank my parents, family members and friends for their constant support
in my endeavor.
ABHISHEK KAR
ROLL NO.- E-1
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DECLARATION
I Abhishek Kar student of New Delhi Institution of Management Batch – July -
2010-2012 declare that every part of the Project Report detailed ROLE OF NSIC
IN DEVELOPING THE MICRO, SMALL & MEDIUM SCALE INDUSTRIES
OF INDIA that I have submitted is original. I was in regular contact with the
nominated guide and contacted regularly for discussing the project.
Date of project submission :
Faculty’s Comments :
………………………………………………………………………………………
………………………………………………………………………………………
………………………………………………………………………………………
Signature of Faculty guide - …………………….
Name -
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TABLE OF CONTENTS
Ch Title Page No.
1. Executive Summary 6
2. Introduction 7 -8
3. Objectives of NSIC 9-10
4. Board Of Directors 11
5. Marketing strategies of NSIC 12-20
6. Performance and achivement 20-23
7. NSIC short term financing schemes
a. Raw materials assistance scheme 23-43
b. Bill discounting scheme 43 - 45
8. Details of work done 45-46
9. SWOT analysis 47-48
10. Research Methodology 48-50
11. Questionnaires 51 - 53
12. Data Analysis 54-63
13. Key findings 64
14.Suggestions 65
15. Bibliography 67
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Executive Summary
During the course of two months the project- detailed study of Role of NSIC in
promoting the micro, small and medium scale industries of India was carried
out in Guwahati city for determining the goodwill of NSIC and also to determine
the potential and efficiency of NSIC registration schemes for development of small
industries of Guwahati. The mode of sample methodology is random. The sample
unit is small industries whether registered or not registered under NSIC. Research
approaches observation and survey. The research instrument used is questionnaire.
The geographical condition of Guwahati favors a lot in the field of industrial
finance as being a hub of north east and the capital of ASSAM. It provides great
immense for the small scale industrial sector. The final conclusion after the
analysis done on the data acquired during the survey is that Guwahati is a fast
developing city with a great future for business units. All that needs to be done by
the NSIC is that create an awareness about the prevailing schemes and also
introduce new schemes prevailing to the market trend of Guwahati and they should
even keep a keen watch over the activities and schemes of other players in the city.
There are various steps that are being done to improve their marketing strategies as
being the leader in Raw materials and government purchase in the region to make
it customer friendly. NSIC is also giving its best effort to create awreness by
conducting programmes like Entrepreneurship Development Programme
(EDP)
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INTRODUCTION
National Small Industries Corporation Ltd. (NSIC), is an ISO 9001-2008 certified
Government of India Enterprise under Ministry of Micro, Small and Medium
Enterprises (MSME). The strategic objectives, for which the Corporation was
established, included “to aid, counsel, assist, finance, protect and promote the
interest of small industries in India.” With enactment of the Micro, Small and
Medium Enterprises Development (MSME) Act, 2006, medium enterprises also
came into ambit.
NSIC has been working to fulfill its mission of promoting, aiding and fostering the
growth of small industries and industry related micro, small and medium
enterprises in the country. Over a period of five decades of transition, growth and
development, NSIC has proved its strength within the country and abroad by
promoting modernization, upgradation of technology, quality consciousness,
strengthening linkages with large medium enterprises and enhancing exports -
projects and products from small enterprises.
NSIC operates through countrywide network of offices and Technical Centres in
the Country. To manage operations in African countries, NSIC operates from its
office in Johannesburg, South Africa. In addition, NSIC has set up Training cum
Incubation Centre & with a large professional manpower, NSIC provides a
package of services as per the needs of MSME sector.
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NSIC carries forward its mission to assist small enterprises with a set of specially
tailored schemes designed to put them in a competitive and advantageous position.
The schemes comprise of facilitating marketing support, credit support, technology
support and other support services.
NSIC has embarked upon creating self-employment opportunities by imparting
training in entrepreneurship, building and skill development to unemployed
persons who intend to set up their small enterprises or seek employment
opportunities . for this purpose, NSIC is operating through its Technical Service
Centers at various locations across the country. NSIC has established innovative
low cost technology incubators for rapid incubation for small enterprise
establishment at its Technical Centers in india.
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OBJECTIVES OF NSIC FOR REGISTERED
INDUSTRIES
We shall endeavor to provide effective and prompt service so as to achieve
total customer satisfaction at all times. We shall continuously upgrade our
service quality, Communication facilities and the skill sets to meet customer
requirements efficiently.
We shall constantly adapt, innovate and refine our processes in line with
global business trends to maintain credibility and leadership in our field.
We commit ourselves for fair play, transparency and sincere endeavor for
the promotion and growth of Micro, small & Medium Enterprises.
We shall strive to achieve operational efficiency by attaining better
productivity and profitability. We shall abide by statutory and legal
regulations while carrying out our activities.
OBJECTIVES OF NSIC AS AN ORGANISATION (SELF OBJECTIVES)
Enhance reach of the Corporation resulting in growth in its business.
To achieve operational efficiency and self-sustenance by attaining better
productivity and profitability.
To upgrade the professional skills of all employees keeping in pace with
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business needs.
To provide safe, clean, hygienic & congenial work environment for effective
contribution by every employee.
Additional NTSC/NTSECs Objectives are as below:
To provide training for skill upgradation of trainees leading to
opportunities for their employment/self employment.
To provide common facility services to industries for enhancing their
competitiveness and quality.
ORGANISATIONAL SET-UP
The Policy guidelines to the Corporation are provided by the Board of Directors
consisting of a full time Chairman-cumManaging Director; two Functional
Directors; two Government Nominee Directors, one SIDBI Nominee Director and
six Nonofficial Part -time Directors. The Corporation has a dedicated team of
professionals at all levels and operates through 123 offices located all over India
and one office located at Johannesburg (South Africa).
In these areas I have met the possible sources which usually generates business for the organization and as a marketing guy this was a perfect first teaching for me that how to deal with these business generating sources and a perfect corporate interaction with these peoples. These units are various industries dealing in steels, cloths, candle manufacturer, plastic industries, furniture ,etc . I got a good response from these sources about NSIC ,as goodwill of NSIC helped me a lot in handling different situations that surrounds me at the time of surveys. During my survey I found that at least 80 percent of the above mentioned sources is keen to provide work to NSIC because of its goodwill in the market in terms of good service, good employee behavior, least days are taken for sanction as compared to others, etc.
NSIC provided me a great opportunity to meet various guys from various industry in Guwahati by giving me a chance to visit their project sites as NSIC management trainee. These site already has a tie-up with NSIC and some more up - coming builder’s project also shows keen interest in dealing with us through their clients who are interested in registration of business units. These project name with the names of the concerned company’s are as follows-
The survey in the end of the internship period shows us the role of NSIC in promoting the small industries in guwahati region. How strong is the NSIC tactics in holding emerging market like Guwahati in terms of small industrial finance. Almost 90% of the raw material assistance scheme is done by NSIC in Guwahati. Strong policies provides greater customer satisfaction and a good
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official environment make it easy for employees to conduct proceedings. I was able to make following leads during this 2 months period.
1. Maa industries. Manufacturers of carton, steel and furnitures.2. Foods and beverages. Manufaturers of food items.3. Vlenda David. Manufacturers of garments and fashionable ornaments.
The information about leads are as followings-
The final conclusion is that NSIC has a strong hold in Guwahati region regarding small industrial finance and is much ahead of other players of field. NSIC also facilitate its reginestere business units to participate in the trade fair and Expo with a very little money of just 5% of the installation cost
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SWOT Analysis Of NSIC
STRENGTH –
Right schemes for various business units.
NSIC is a government undertaking company.
Has got tendering partners like NABARD, SIDBI, SBI, IOC, INDIAN
RAILWAYS
Superior customer service than competitors.
Great brand image.
High degree of customer satisfaction.
Good place to work.
Dedicated work force.
Efficient and effective services.
Knowledge of Indian market.
Support of various promoters.
WEAKNESS –
Some gaps in range for certain sectors.
Customers service staff needs training.
Process time is too long and lengthy.
Too much of paper formalities.
OPPORTUNITIES –
Growing Indian financial sector.
People are becoming more service oriented.
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Operative in the global market.
THREATS –
From various competitors, foreign banks, Government Banks.
Future market trends.
Research Methodology
Objective Of The Survey
The general purpose of the survey was to find out the potential and efficiency of NSIC in GUWAHATI for promoting the small scale industries of INDIA and also determine what is the goodwill of NSIC in the emerging market like GUWAHATI. More specifically, the NSIC provides following types of imformation to the micro, small & medium scale industries of GUWAHATI.
To access the awareness of the small industries of GUWAHATI about the services provided by NSIC.
To analyze the overall satisfaction of the small scale industries from financial schemes.
Analysis of the various services provided by NSIC in GUWAHATI. To analyze the growth prospects of the number of the industries registered
under NSIC. To know what percentage people thinks NSIC is the frontier player in
promoting small industries. Which type of the financial schemes does the registered business units have?
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To know existing customers will refer NSIC registered schemes to their relatives and frinds.
Research Design
This is a descriptive type of research, studies are longitudinal or cross sectional. In this descriptive type of research we will use cross sectional research design. Cross sectional research is a one short research study at a given point of time and consists of a sample of the population of interest. Its advantage is that it gives a good overall picture of the position at a given time. It can cover many variables of interest and is not affected by the movement of elements in the sample, other elements can be substituted for them it is also a flexible in nature and can take care of simple analysis as well as complex statistical methods.
In the research the following methods of collection data was followed :
Data source - Primary and Secondary
Research approaches – Observation and Survey.
Research Instruments – Questionnaire.
Contact Method – Personal
.
Project Scheduling
The total time available for the completion of the project was sixty days, thus keeping the time constraint in mind a project schedule was designed so that the set objective were met.
Defining the objective of the project.
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Preparing the research plan and schedule.
Preparing the questionnaires.
Analysis of the findings.
Presentation of the findings.
Sample Methodology:
Sample Methodology used is random - Random sampling refer to taking a number of independent observations from the same probability distribution.
The sample unit used is the survey of micro, small and medium scale industries of Guwahati.
Sample size :
The total of 100 people was asked to fill the questionnaires.
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Questionnaire
Set – A – For current customer’s of NSIC
Date………………… questionnaire
Dear Sir/Madame,
We are conducting a brief survey on financial services and want to include your opinion. kindly answer the questions given below to help us complete our survey.
Q.1. Is your Business unit registered under NSIC financial schemes ?
(a) Yes (b) No
Q.2. Are you satisfied with the financial services that NSIC provide you?
(a) Yes (b) No
Q.3. Do you find the staff of NSIC friendly and co – operative in nature?
(a) Yes (b) No (c) Can’t say
Q.4. In future will you again would like to take services of NSIC?
(a) Yes (b) No (c) Can’t Say
Q.5. Will you refer your realtives to register under NSIC financial schemes?
(a) Yes (b) No
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Set – B – For Non – NSIC Customer’s
Q.6. Have you ever heard of NISC?
(a) Yes (b) No
Q.7. Do you want your business unit to register under NSIC?
(a)Yes (b)No
Q.8. Are you familiar with NSIC financial schemes ?
(a) Yes (b) No
Q.9.From which bank you have taken loan for Business expansion?
……………………………………………………………………………….
Q.10. What was the rate of interest that the bank charged?
Bank Name……………………………….Interest Rate…………………………
Q.11. Suggestions ( if any ) for further improvement in the NSIC financial schemes.
Data Analysis based upon the Data Obtained from the Questionnaires
Set – A
Current Customers of NSIC
1. The following pie chart, tells us the number of small industries which has registered their business unit under NSIC financial schemes.
55
45YesNo
Result : The Conclusion draw from the above analysis is that only about 55% of the number of persons who has registered their business unit under NSIC financial schemes.
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2. The following pie chart, let us know about the existing customer of NSIC financial schemes who are satisfied with the services and are very much interested in taking services in future again.
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35
SatisfiedNot Satisfied
Result :
The Conclusion draw from the above analysis is that the existing Customers of NSIC financial schemes are satisfied with the services and are interested in taking services in future again.
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3. The following Pie chart depict the percentage of customers who find the staff of NSIC financial schemes friendly and cooperative.
79
18
3
YesNoCan't Say
Results :
The Conclusion drawn from the above analysis is that about only 79% of the customers were satisfied ,18% were not satisfied while ,3% refused to comment upon the nature of the staff of NSIC financial schemes.
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4. The following Pie Chart depicts the number of small industries which would again like to take the services of NSIC financial schemes.
67
27
6
Yes NOCan't Say
Result :
The Conclusion drawn from the above analysis is that about 67% of the small industries are interested to take the services of NSIC financial schemes in Future, if it needs.
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5. The following pie chart shows the customer’s who are interested in referring NSIC financial schemes if their business unit have a sister concern.
78
22
YesNo
Result :
The Conclusion drawn from the above analysis is that about 78% of the small industries are interested in referring NSIC financial schemes if their business unit have a sister concern.
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Set – B
Non-NSIC Customers
6. The Following is the pie chart which tells that the number of owners of small industries in guwahati who have heard about NSIC’s financial schemes.
55
45
YesNo
Result :
The conclusion drawn from the above analysis is that only 55% of the owners of small industries in Guwahati who have heard about NSIC financial schemes.
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7. The following pie chart shows us ,the number of persons who want their business unit to register under NSIC but don’t know the procedure to registered their business unit.
4555
YesNo
Result :
The Conclusion drawn from the analysis is that only 45% of the persons who wanted to registered their business unit under NSIC financial schemes.
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8. The following chart shows us the owners of small industries in guwahati who are familiar with NSIC financial schemes.
64
36
YesNo
Result :
The Conclusion drawn from the above analysis that only about 64% of the owners of small industries are familiar with NSIC financial schemes.
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9. The following chart shows the bank from which the small industries usually take loan for business expansion other than NSIC.
30%
60%
10%
Rate of interest15-16%16-18%<18%
Result :
The Conclusion drawn from the above analysis shows the bank from which the small industries usually take loan for business expansion other than NSIC.
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10. The following chart shows the rate of interest that the bank usually charge while lending money to the small industries of north east.
30%
60%
10%
Banks15-16% 16-18% <18%
Result :
The Conclusion drawn from the above analysis shows the rate of interest that the bank usually charge while lending money to the small industries of north east.
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Key Findings from the Analysis
Result
The final conclusion after the analysis done on the data acquired during the survey is that -
Guwahati is a fast developing city with a great future for small industries registered under NSIC. All that is being done by NSIC is that it is creating an awareness about the prevailing schemes and also introducing new schemes prevailing in the market trend of Guwahati to make a city hub for small industries.
NSIC is giving the best effort to promote Entrepreneurship Development Programme (EDP) to make more awareness & create entrepreneurs and to motivate them to become the owner of micro, small and medium scale industries.
NSIC should keep a keen watch over the activities and schemes of other competitors in the city.
Steps is being taken to make the financial schemes customer friendly so that more and more development of small industries take place in Guwahati.
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Suggestions-
This are the suggestions for NSIC which can create more platform for small scale industries in North- East.
NSIC must do more propaganda of their products especially to show benefit of their products as compared to rival firms. Organize events, support causes and advertise and make awareness for their financial schemes in the suburban area of Guwahati.
Must highlight their advantage over nationalized banks for industrial loans.
Although NSIC is the number one in Government purchase and raw material Assistance in Guwahati but still face tough competition from SBI. NSIC must develop strategies to seek more attention from the new potential micro, small & medium scale industries.
NSIC should try to promote and motivate in the rural areas of ASSAM like Nagaon, Tinsukia, Dibrugarh, Jorhat. NSIC should also try to promote and motivate other north eastern states.
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Bibliography
www. nsic.co.inwww.google.comwww.economictimes.comFinancial Manual of NSIC