Disruptive thinking - the new norm for SMEs: expert panel view on International MSME day
Edelweiss SME Lending and BSE co-host panel discussion on International MSME Day
Mumbai, 27 June 2018: “MSMEs need to adopt disruptive thinking to take better advantage of the growth dividend opportunity,” opined an expert panel at the Edelweiss SME Lending –BSE MSME Day. The theme this year “Limited to Unlimited – Celebrating Entrepreneurship, Unlocking Value”, was an initiative to salute the spirit of the Indian entrepreneurs and acknowledge their immense contribution in driving India’s growth story on India’s first International Micro, Small and Medium-sized Enterprises (MSME) day 27th June.
The event inauguration was done with the ceremonial “Ringing of the bell” by Rashesh Shah, Chairman and CEO, Edelweiss Group and Ashishkumar Chauhan, MD & CEO, BSE. Shri Suresh Prabhu, Hon’ble Minister of Commerce & Industry and Civil Aviation, Government of India and Shri Sudhir Mungantiwar, Hon’ble Minister of Finance & Planning, Forests, Government of Maharashtra, supported the celebrations with video messages for the audience comprising India’s leading MSMEs and SMEs, many of which are listed on the exchange.
Shri Suresh Prabhu said, “MSMEs are the backbone of the Indian economy, are the largest contributors to employment in India, provide significant output and also help exports. Most importantly, they enable development of the Indian society inclusively. Small Industries are key to many large scale Industries as they provide support in terms of components and other allied services essential for these industries to survive. I wish to congratulate you and wish you all the best for the future.”
Shri Sudhir Mungantiwar said, “Our society is growing rapidly. MSMEs are very big chunk of our GDP growth. We need to support these businesses in their growth journey. On this International SME day, as the Finance Minister of Maharashtra, I assure our SME players that we will stand alongside them and make sure they get the required support for their businesses.”
Rashesh Shah said, “Edelweiss has always supported the BeUnlimited spirit of the Indian entrepreneur, fueling his/her self-confidence, grit, determination and attitude. Through this special event, we wish to acknowledge all our MSME partners for their immense contribution to the economy. With the MSME sector emerging as a big growth area in recent years, we believe that it is important to empower these enterprises to become the engines that sustain growth for long-term development.”
Ashishkumar Chauhan said, “The Indian SME sector has emerged as a highly vibrant and dynamic sector of the economy over the past few years. For enabling equity resource mobilization through market participation, BSE launched “BSE SME” platform in March 2012, enabling SME’s to list and grow as on today more than 250 SME’s are listed on BSE SME platform. It has fast emerged as the preferred platform for SME's to raise capital and engage investors. The platform provides immense opportunity to entrepreneurs to raise equity capital for growth and expansion, and for investors to identify and invest in SMEs at an early stage. The BSE SME Platform enjoys market leader position in terms of amount raised by SME’s and number of SMEs listed.”
The panel discussion was moderated by seasoned media professional, Vivek Law. Panelists included: Shalinee Mimani – Chief Risk Officer, Edelweiss Retail Finance; Ajay Thakur – Head, BSE SME; L Venkateswaran – Vice President, Citibank; S Swaminathan – Founder and CEO, IRIS Business Services Limited and Nitesh Vaghasiya, Chairman and Managing Director, Ultracab India Ltd.
Key points that were debated and discussed at the panel discussion organised on the theme “Financing and enhancing the value system for SME”, included - Challenges faced by MSMEs at different stages of their lifecycle, the role of credit in improving ease of financing, relevance of different lenders to different entrepreneurial needs, avenues of credit, Importance of GST in the overall credit system, and more.
Key takeaways from the Edelweiss SME Lending –BSE MSME Day panel discussion
Regulatory Changes, Technological Disruptions Driving Formalization of the SME sector in India
In the past few year, the Indian economy is witnessing structural disruptions leading to a greater formalization and transparency of the SME Eco-system. Interventions like GST, digitalization and more are spurring greater compliance with business models becoming more structured and robust. New age lenders are therefore, willing to appraise borrowers, on the robustness of their business model and willingness to grow, beyond the traditional financial assessment models.
Crafting a Solid Data Footprint is Critical to Future Business Sustainability for SMEs
SMEs need to actively participate in the emerging data ecosystem both as recipient and contributor. On one hand, there is need to establish a high quality, credible data footprint about the SME entity; and on the other there is opportunity for SMEs to embed and leverage data across their business value chain. Additionally, by listing on SME exchanges and demonstrating sustainable grow will help SMEs access high quality growth capital in order to scale up.
New Age Credit Providers Focused on Maximizing Value for SMEs by Offering Swift and Customized Credit Solutions
New age credit businesses like NBFCs, Fintech, etc. are moving away from cookie cutter solutions to tailored solutions catering to specific life cycle of SMEs. Convenience, speed, non-traditional ways of risk underwriting and product innovation are maximizing value for SMEs by increasingly improving access to variety of credit.
About Edelweiss SME Lending:
Edelweiss SME Lending is part of the Edelweiss Group and offers a bouquet of customized lending solutions ranging from Rs 1 Lac to Rs 25 Crore to the MSME business segments. The company currently services over 14,000 MSME clients across 100 locations in India. It is one of the few Non-Banking Financial Companies offering a complete range of financing solutions consisting of Unsecured Business Loans, Equipment Finance and Secured Loans (against property collateral) for the MSME segment.
The core value proposition is to offer the right product suited to the client’s borrowing need around working capital, capital expenditure or expansion funding. Their services are backed with superior technology enabled quicker decision to credit applications and easy documentation. They service client segments with minimum annual turnover of Rs 25 Lac and above, enabling them to engage with a large part of the underserved MSME segments. Notably over 30% of its client count is in the annual turnover range of less than Rs 2 Cr. It has significantly scaled distribution from 17 locations (April 2017) to 100 locations (June 2018) across India especially focussing on expansion around Tier II / III cities on the back of huge credit demand and servicing opportunities that exists in these markets.
For more details please visit https://www.edelweissretailfin.com/Home
About BSE
BSE (formerly Bombay Stock Exchange) established in 1875, is Asia’s first & now the world’s fastest Stock Exchange with a speed of 6 microseconds. BSE is India’s leading exchange group and has played a prominent role in developing the Indian capital market. BSE is a corporatized and demutualised entity, with a broad shareholder base that includes the leading global exchange- Deutsche Bourse, as a strategic partner. BSE provides an efficient and transparent market for trading in equity, debt instruments, equity derivatives, currency derivatives, interest rate derivatives, mutual funds and stock lending and borrowing.
BSE also has a dedicated platform for trading in equities of small and medium enterprises (SMEs) that has been highly successful. BSE provides a host of other services to capital market participants including risk management, clearing, settlement, market data services and education. It has a global reach with customers around the world and a nation-wide presence. BSE’s systems and processes are designed to safeguard market integrity, drive the growth of the Indian capital market and stimulate innovation and competition across all market segments.
Indian Clearing Corporation Limited, a wholly owned subsidiary of BSE, acts as the central counterparty to all trades executed on the BSE trading platform and provides full novation, guaranteeing the settlement of all bonafide trades executed. BSE Institute Ltd, another fully owned subsidiary of BSE runs one of the most respected capital market educational institutes in the country. Central Depository Services Ltd. (CDSL), associate company of BSE, is one of the two Depositories in India.
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