MACCIA facilitates progress in all sectors of sustainable prosperity through collaborative efforts, knowledge-based skills, modern technology, and ethical means. It works closely with Maharashtra State Government for chalking out growth-oriented policies and suggests Policy directions to the State Government on various issues and concerns related to SMEs.In a candid interview with SME Venture, Mr. Santhosh Mandlecha, President of MACCIA explained about association and current issues of SMEs. Let’s have a glance at it.
When did you elect as a president of MACCIA and how was your journey?
I was elected as the President of MACCIA, in the 90th AGM of Maharashtra Chamber, on 14th June 2017.
My almost two-year journey so far has witnessed change and development of MACCIA, and also for the development of Maharashtra state. My journey was a challenging one with growth. I had chosen the path as the leadership of MACCIA and have committed to it, and it has been quite a success.
There were lessons learned and many twists and turns which has prepared me for the long term to adapt and to confront challenges and to seize opportunities. My team, my colleagues and friends have supported me in my journey. It has also been continuous learning, and I would like to show my deep appreciation for the same.
It has been a continuous experience and the ability to sustain what we have got and learned. My journey as the president of MACCIA has enabled me to cope with the responsibilities which are fulfilling and persistent learning which has nurtured and illuminated my journey.
Thus, on this stage of leadership position, I have created a modern impact in MACCIA. It also requires the strength to overcome setbacks, and the obstacles faced, and to never give up on your dreams.
Could you deliberate, what are the activities you have been undertaken in the association?
- We have worked on issues of MSMEs for the state of Maharashtra, through meetings with the authorities of MSME, and also by conducting awareness and training programs.
- Address the issues of Foreign Trade- Meetings with Dr. Sonia Sethi, IAS, Additional Director General of Foreign Trade.
- Conduct exhibitions for the development of SMEs and benefit of small entrepreneurs like PRERNA Exhibition, Western Maharashtra Convergence in Kolhapur, Maha Agro in Aurangabad. Maharashtra Sammelan
- Interaction with Hon. The chief minister of Maharashtra and Mantralaya, for various issues like GST, Plastic Ban, Trade apprentices act, formulation of Industrial policy etc.
- Have made MOUs with Management Colleges in Maharashtra for giving training to students on various aspects.
- Delegations to Foreign Countries like Athens, Greece, Istanbul, China, etc. and meetings with Consul generals of foreign countries
- Entrepreneurship Development Programs
Being the president of association what are the schemes for SMEs you prefer to undertake in 2019?
- MAHA AGRO 2019
- Business delegation to Taiwan & Thailand
- Water conference for World Water day 2019
Key challenges faced by SMEs in Maharashtra and what you have been took solution for it.
- Adequate credit for the expansion of business activities
- Lack of working capital sources
- Product in the international market
- Lack up to date information and are often unaware of the latest technologies
- Lack of availability of requisite level of skills
- Lack of critical infrastructure and poor supporting facilities and inadequate access to important services like water, power supply, and road & rail connectivity have increased operational costs
- Access to credit, development of adequate infrastructure (power, electricity), supply to raw materials and training
- To ensure competitiveness, it is essential that the availability of infrastructure, technology, and skilled manpower are in tune with the global trends, SMEs are either located in industrial estates set up decades ago or are functioning within urban areas or have come up in an unorganized manner in rural areas. The state of infrastructure, including power, water, roads, etc. in such areas is poor and unreliable
- Updated new technology and taxation issues
The government of India and Government of Maharashtra, have been taken very good initiatives for the SMEs. In spite of all these SMEs in Maharashtra facing so many difficulties as they are unaware to utilize these schemes. There are many schemes have been designed and developed by the government for the welfare of entrepreneurs.B ut it is not so beneficial for SMEs. So its Need to work on that. Regarding funding to the SMEs, there are many issues are there, which is frequently raised by Maharashtra chamber of commerce through an MSME empowerment committee which is constituted by RBI and in which MACCIa is representative of that committee. Another challenge had been faced by the SMEs is related to the restructuring of MSMES which has been suggested by MACCIA. After 4 years, on 2nd January restructuring of MSMEs came into existence by the Government as per the demand of MACCIA.
What according to you, are the top three priorities SMEs should focus on the coming financial year?
- SMEs should give foremost priority for the investment in technology
- Entrepreneurship Financing
- Communication and Marketing strategies
What are the key challenges you have faced as an entrepreneur in the initial days of your business?
- The key challenges you have faced as an entrepreneur in the initial days of your business was to have that commitment to build my startup and make it into an operating business. The uncertainties and risks involved in running the business and to learn to work outside your comfort zone, you learn to acknowledge failure.
- To build a much stronger product, and be accepted several months later was a challenge and today our company makes various Metal Detectors, Bomb Detector, Mine Detector, Vehicle search system.
- Maintaining the right standards for these products is a challenge as our clients are the Army, Paramilitary Forces, State Police, PSUs etc.
How does the Plastic ban in Maharashtra affecting on plastic manufacturing Industries?
During this issue we took all the plastic manufacturers to the concerned department, We could see that the purpose of banning plastic shouldn’t be hampered. At the same time manufacturers also not get affected due to this.
We have been also inquired about this with the concerned department, the steps what they have taken considering the environmental scenario. We gave some suggestions to some authorities and stakeholders. After that, some relief has been passed out. During this period, many positive changes have taken place to deal with the plastic ban issues. Such as 50 micron plastics can be used with some instructions which are recyclable and that should be printed on that. The government also have given some procedures that should be followed by manufacturers. In spite of all these, some issues yet to be resolved. Now the government has been presented AERC recycling solutions for determining the impact of the plastic ban.
What’s your opinion about the impact of the power tariff rise and what are your plans to resolve it?
Today the scenario of the industries in Maharashtra is very bad. Because so many industries are consuming electricity at a higher rate. For many days we can observe that MERC isn’t listening to the actual problem of the industry, whereas they are biased to give the judgment in favor of the government.
The power tariff hike has caused serious losses to industries and also to state government’s revenue. They panic that the higher the tariff, especially in the current economic slowdown, will further adversely impact the financial health of the industry. As Electricity is consumed on each segment of the SMEs such as food processing, Automobile, Electrical, and electronics industries, in that case, it might be a big loss for the SME sector. It’s also unbearable that due to this big decision of power tariff hike, power subsidy is also being stopped for SMEs.
In the intention of resolving this issue, we have discussed and gather the opinions and information regarding this power tariff issue and its impact on the manufacturing sector, as it is one of the major raw material for any industry. On the 20th of January, we are planning to arrange a meeting with the small scale industries associations and doing agitations on the same issues. We can expect all the possibilities of resolving it.
What are the future plans of your association for SMEs?
The market is not limited. I emphasize that SMEs must explore the opportunities in 2019. So that we are planning to provide them Training through some workshops, seminars. As we know SMEs are facing so many of funding issues. To resolve this major hindrance and strengthen them to involve in global trade we want to give proper pieces of advice through workshops and seminars.