“SMEs should give foremost priority for the investment in technology”-Kishor B Rathi, MASSIA

Marathwada Association of Small Scale Industries and Agriculture (MASSIA) has been steadily advancing and consolidating its activities. It has been focused to take entrepreneurs to the next level.  In a candid interview with SME Venture, Mr. Kishor B.Rathi , President of MASSIA explained about his industry and association. Let’s have a glance on it.

• When did you elect as a President of the Marathwada Association of Small Scale Industries & Agriculture (MASSIA) and how was your journey?

Elected 30 Executive Committee Members nominated me as the President for the year 2018-19 in the AGM held on 24^th April 2018.

Journey : Elected as Executive Committee member in the Year 2011-2012. Thereafter hold a post as Honorable Treasurer of the Association for Two consecutive years 2012-2013 & 2013-2014 as elected for both the years as EC member. Hold a Post as Honorable Secretary of the Assocation for the Year 2014-2015. Then was Vice President for consecutive three years for the period 2015-2016, 2016-2017 & 2017-2018.

• What are the activities you have been undertaken in the association?

• Follow up with DIC for speedy disposal of pending Eligibility certificates & IPS Claims of our member MSMEs.
• Representaton on various issues such as Grampanchayat Tax, Drainage Cess, etc.
• Formation of MASSIA Innovation Facilitation Cell for MSMEs in association with German organization, Deutsche Gesellschaft für Internationale
  Zusammenarbeit (GIZ) GmbH.
• Industry-Academia Students Projects jointly with GIZ. Total 607 Students of 13 Engineering Colleges are working on 212 Projects given by 92 SMEs.
• Implementing Skill Development Unit with GIZ-IGVET Project to support the Skill India Mission of GOI.
• Empanelment of MASSIA as Third Party Agency for implementation of National Apprenticeship Promotion Scheme launched by the Central Government.
• Tie up with World Resources Institute, Mumbai for Implementing the project – GHG Emission Mapping.

• Being the President of association what are the schemes for SMEs you prefer to undertake in future?

Credit Linked Capital Subsidy Scheme ( CLCSS ) : Presently the scheme has been made dormant by the government since last two years. Actually the scheme was very popular and beneficial for MSME. Most of the claims are pending for process. Through our association we follow rigorously to the government to live up the scheme again.

Marketing Assistance Scheme: Promotion of Marketing Assistance scheme among the members of association for giving support to member MSME for participation in International Trade fairs.

Building Awareness in Intellectual Property Rights ( IPR) : Purpose of the scheme is to enhance awareness among the MSME’s about intellectual Property Rights, to take measures for protecting their ideas and business strategies. It is very clear that Effective utilization of IPR tools by MSME’s would also assist them in technology upgradation and enhancement of competitiveness.

• Is there any larger issue that you are trying to address?

Allotment of Plot to Tenant Entrepreneurs

This year we had insisted state government to have a policy for Tenant Entrepreneurs incorporated in Industrial Policy. These are genuine entrepreneurs who are deprived of having their plot on name, incentives of state government. Whereas contributing in a large to government treasury by way of taxes and creating job opportunities.

Grampanchayat Tax

The burden of tax imposed on Industrial area where owners are leasehold owner of Industries and paying of taxes for which no services are rendered to industries from gram panchayat. It is a tax which is abolishing industries in Maharashtra state.

Drainage Cess

MIDC started collecting drainage cess from Industries based at Waluj MIDC from last year from SME members even though without being providing drainage line. Mostly MSME of our member unit is in green category require and consumes water for drinking and sanitation purpose, so no question of effluent. The association is rigorously followed up for elimination of cess. So the department had agreed conceptually so accepting bill without drainage cess. But levy of drainage cess is still continued on water bill till date.

Change of formula of calculation of Power Factor in MSEDCL Bills

MSEDCL had issued bills for and from October 2018 with considering a change in formula of Power Factor resulting into levy of penalty for Power factor. This had created very unrest among MSME as their power bills had increased very sharply, where already Power cost is more in Maharashtra state as compared to other adjoining states. MSME falls under L T Connections category and for L T consumers to maintain a power factor so accurately is the biggest challenge.

• What are the key challenges you have faced as an entrepreneur in the initial days of your business? 

Actually, I had completed my academics from commerce stream and completed Bachelor of Commerce (B. Com) and Chartered Accountants (C A). Our business started by my father and I being the second generation entrepreneur, joined the business in the year 2010.

As from commerce stream, challenges were manufacturing activities, stages of manufacturing, marketing of products, labor management, basics of the production process, terminologies of manufacturing set up etc.

• How did the idea for your business come about?

As already mentioned that I had joined the business. Our business is of Manufacturing of Rotomoulded Plastic Products such as Plastic Pallets, Water Storage Tanks, Chemical Tanks, Debris Chute Hopper Connector, Crates and Solid waste Management Products like Composters, Agro waste Shredders and Garbage Bins.

I was very passionate to join the business as I like the City, Aurangabad very much and From last one decade, the City is growing and developing as Industrial City.

• What according to you, are the top three priorities SMEs should focus in the coming financial year?

1. Access to Finance: Under the MSME outreach programs our Hon Prime Minister had announced and launched PSBloansin59minutes where concession of 2% interest rate offered for MSME is a good opportunity for SME. Other areas of tapping finance indirectly by doing diversification in Textile sector and opportunities in agriculture sector.
2. Digitalisation : Today is the era of digitalization and digitally presence across globe. Digital infrastructure adds value to the business, increases the market value with business volumes and profit margins. It creates new innovative ways of reaching and engaging with customers.
3. Investment in Technology : In order to ensure continued growth, small and medium sized business should always give top priority for investment in technology. Investment in technology takes care of Productivity, Power saving, Cost, globally competitiveness, throughput, profitability etc.