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PHD Chamber Innovation Summit 2016
The Innovation Summit 2016 witnessed the presence of
renowned dignitaries discuss on the role of MSMEs in
evolving India as an Innovator. It also highlighted the
path India needs to take in the coming years, the possible
outcomes and what needs to be done to make this
growth a sustainable one.
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EXECUTIVE SUMMARY
Micro, Small and Medium Enterprises are essential to achieving the targeted growth rate. This
sector nurtures promising entrepreneurs and incubates innovation at its most elementary level.
As the nation is moving towards a more inclusive growth agenda, a robust MSME sector can
hasten the growth rate. Although MSME sector has shown remarkable potential, it also faces a
number of challenges. Major challenges faced by MSMES are:
• ACCESS TO FINANCE • ACCESS TO MARKETS • SKILLED MANPOWER
Finance is one of the critical areas for MSME sector. This sector needs credit support for running the
enterprise as well as for diversification, modernization of facilities and capacity expansion. To ensure
that the credit repayment is manifested periodically they should be equipped with marketing and
business development skills. Apart from extending credit, mentoring and hand holding of MSMEs by the
Banks, Financial Institutions and Training Providers is a necessity. Enhancing innovative capabilities and
capacity building through training and development is the key to surmount these challenges. In this
direction, various central and state government schemes supported by banks and financial institutions
are rolled out, a dire need to converge them for uleashing their potential is the need of the hour.
OBJECTIVES OF THE SUMMIT:
• Deliberations on roles of Banks, Financial Institutions and Training providers for enhancing
the innovative capacities of MSME sector
• Bringing all relevant stakeholders – Banks, Financial Institutions, business development
professionals and mentors to a common platform
• Understanding product offering of the banks and financial institutions for meeting the long
and short term growth and development goals of MSMEs
PARTICIPANTS
Around 120 delegates participated in the Summit that comprised of:
• Micro, Small and Medium Enterprises representatives
• Policymakers
• Financial Institutions & Banks
• Technology solutions providers
• Corporate Leaders & Investors
• Business Development Services Providers
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From L-R Dr. Jatinder Singh, Mr. Anil Khaitan, Mr. Arun Kumar Jha, Mr. Satya Prakash Singh ,
Mr. Deepak Pahwa
Session 1: Keynote Session
Speakers:
• Mr. Anil Khaitan, Vice President, PHD Chamber
• Mr. Deepak Pahwa, Chairman, Innovation Committee, PHD Chamber; Group
Chairman, Pahwa Group
• Mr. Satya Prakash Singh, General Manager, SIDBI
• Mr. Arun Kumar Jha, IES, CEO, Khadi & Village Industries Commission(KVIC),
Ministry of MSME, Govt. of India
• Dr. Jatinder Singh, Sr. Secretary, PHD Chamber
Keynote session was very insightful and informative, as distinguished speakers came on the
stage to discuss MSMEs role in India’s growth and potential.
India is now placed on global map as an innovation hub. Bengaluru has emerged as the fifth
most preferred location for housing innovation centers, overtook Tokyo, Shanghai, Berlin, Tel
Aviv, Munich and Chicago. The panel discussed that Innovation and creativity are the key
ingredients for SMEs sustainable growth. It is equally relevant to understand that finance is
paramount for entrepreneurs. There are various funds and policies which Government is
initiating such as Atal Incubation Center, IPR policy for this sector; to fuel the growth in this
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sector. More than 10,000 Cr have been allocated by the government for innovation. There is a
need to create awareness amongst people that there is suitable infrastructure and financial
assistance to support the ideas. In this era of institutional decay, there is a need to create
incubation centers to foster innovation.
One of the biggest challenges discussed was how to capture innovative ideas and how to find a
way to secure people at the bottom of pyramid in order to make innovation happen. Solar
Charkha developed by KVIC is a great example of rural innovation in India and so is the Khadi
sector; but a need for Incubators are much seen as a need of the hour to build an innovative
ecosystem.
Key Takeaways:
• Indian system of “jugaad” (Indian entrepreneurial trade) is important and needs to be
given shape and direction.
• Govt. needs to facilitate interface between MSME & R&D institutions to nurture
innovation.
• Grants are veiled as soft loans; this is hurting the entrepreneurs. Government need to
step in and provide suitable grants, so that they can be utilized more effectively.
• There is a need to move towards “Reverse Innovation”
• For sustainable growth, a growth agenda and innovation eco system are much needed
to move towards innovation paradigm.
Quotable Quote: Let's move in the direction of "indovation" rather than just innovation!
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(L-R) Mr. Rajive Chawla, Mr. Munish Sabharwal, Mr. V K Mishra, Mr. Paritosh Sharma,
Mr. Satish Kataria
Session 2: Panel Discussion Innovative Strategies for Sustainable MSME
Financing
Panelist:
• Mr. V K Mishra, Director, Lakshmi Energy and Foods Ltd.
• Mr. Paritosh Sharma, AGM, Digital Business, Hero MINDMINE
• Mr. Satish Kataria, Founder, Catapooolt
• Mr. Munish Sabharwal, Vice President, Times of India Group
• Mr. Rajive Chawla, Chairman, Integrated Association of Micro Small Medium Enterprises
of India; Director (Independent) National Small Industries Corporation Ltd.
Every growing SME is on a look out for an answer for the burning question: "How to approach &
raise money for the business they aspire?" Relevant do’s and don’ts of financing were
discussed at the Panel discussion.
The panel suggested that for MSMEs and start ups who are looking for funds, need to ensure
that they are well versed with the contents of their financial plan and ensure that a level of
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transparency is maintained in the financial reports. Entrepreneurs should look up to
associations for loans and do sufficient research about the grants which are available.
Digitalization is the first step towards innovation. Businesses can use digital as a medium to
reach out to the right people. Trend shows that digitalization is disrupting traditional banking
and finance. Crowd funding has emerged as a great option to fund business. Crowd funding;
itself will be a $30 billion industry by 2017, contributing significantly to the financing industry.
In the midst of digitalization, where non-traditional funding has come up to finance startups; it
is still maintained that traditional conventions still need to be followed, as startup funding
market is drying up and venture capitalists have become more careful as to where they invest.
Key Takeaways
• Social enterprises looking for funding need to move to a "milestone driven" model to
raise money.
• Digital is the way forward to financial inclusion
• Crowd funding is under utilized in India and has a great potential in the coming years.
However, conventional finance is equally important in this disruptive world.
Quotable Quotes: "Solve a Billion person problems- will make you a billionaire"
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(L-R) Mr. Raunak Raheja, Mr. Naveen Asrani, Mr. Sirish Kumar, Ms. Shinjini Kumar, Mr. Rajiv Gupta,
Dr. Sujit Ghosh, Mr. Ritesh Mehta
Session 3: Technology Adaptation in MSMEs for Innovation
• ENABLER • INFORMATION VISIBILITY • BUSINESS INTELLIGENCE
Panelist:
• Mr. Rajiv Gupta, President, Hero MINDMINE and BPO
• Ms Shinjini Kumar, CEO, Paytm Bank
• Dr. Sujit Ghosh, Director Innovations, Dalmia Cement
• Mr. Ritesh Mehta, Head of Economic Growth Initiatives, India & South Asia, Facebook
• Mr. Raunak Raheja, Sr. Director, Shopclues.com
• Mr. Sirish Kumar, CEO & Founder, Telr
• Mr. Naveen Asrani, Director – Startups, Microsoft
The panel discussion started with the thought that Technology is an Enabler and is essential for
innovation. Many examples were discussed of growing businesses that are using digital as a platform to
leap forward. Indeed, studies have shown that this is the era of digitalization; people now spend more
time with digital and mobile. Thus, digital is a great platform for businesses to reach out to the world.
Social media has enabled many businesses to reach out to the masses, to promote their businesses, to
build their own networks at a low cost. Access to customers and capital has become easy and that’s the
Power of digital. Businesses cannot afford not to have a digital identity in this digital world. Technology
has become an enabler, enabling businesses to get Skill, Speed and Scale which are required for growth.
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Key Takeaways:
• In the era of digitalization; markets have moved to the people; digital money is
important to understand, as it is an innovation.
• Be loyal to the problem you are solving otherwise you'll get disrupted.
Quotable Quotes: “You build for India; you build for the world”
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Session 4: Special workshop on Customer Experience in the Digital Forward
World for SMEs
Speaker:
Mr. Paritosh Sharma, AGM, Digital Business, Hero MINDMINE
The workshop was designed to introduce SMEs and Startups who were participants to why customer
experience is the ultimate battlefield that they must win.
The workshop was a high-powered 45-minute session that introduced participants to how to create a
consistent customer experience across product, marketing and customer support. The workshop
included examples of large businesses and startups and how they are establishing a phenomenal
customer experience and winning without burning through the all essential cash.
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PRESS RELEASE
Khadi & Village Industries Commission (KVIC) is gearing up to channelize all its energies for
suitable appropriation of all its utterly underutilized assets, spread across the country with an
estimated amount of Rs.50,000 crores for setting up of innovation and incubation centre for
start ups and stand ups to realize the Prime Minister ambition for enhancing innovations in
multiple sectors of Indian economy for its overall growth, capital creation and additional
employment generation.
Disclosing the above at an Innovation Summit-2016 Enhancing Innovative Capacities of MSMEs
under aegis of PHD Chamber of Commerce and Industry here today, CEO, KVIC, Mr. Arun Kumar
Jha also observed that one of the key policy making institutions in India – the NITI Aayog and
the leading financing institution SIDBI – are collectively on the job.
“KVIC has been grappling with the problem to seek a solution as to how the it could explore
ways and means to suitably turn its dead assets located at different parts of the country in
turning them into profit making centres. However, recently the NITI Aayog as also SIDBI have
come into the rescue of KVIC by proposing to it various schemes and financial assistance so that
such assets could be converted into yielding centres”, said Mr. Jha.
According to him, innovation and incubation centres would be ideal to be set up in such places
for necessary impartment of training to emerging entrepreneurs, largely in MSMEs segment for
various sector of Indian economy so that their hidden potential is realized for growth, capital
creation and additional employment generation in the country.
The CEO KVIC also admitted that his institution was toying with the idea of engaging celebrities
to promote KVIC and its products but with Prime Minister agreeing to endorse the two, not only
the sales of KVIC went up by 30% but also its brand image underwent a massive transformation
in the recent past.
Speaking on the occasion General Manager, SIDBI, Mr. Satya Prakash Singh expressed a concern
saying that not many genuine entrepreneurs including start-ups and stand-ups have been
approaching SIDBI for financing and therefore, asserted that crores of rupees grant and
assistance already earmarked for such entrepreneurs in the Budget would be allocated through
a high level of due diligence.
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According to him, entrepreneurs and start-ups should first complete their home work in a
meticulous manner and subsequently approach the SIDBI to support their venture that are
found to be economically viable as the institutions will entertain only such requests.
Among others who were present at the summit comprised Vice President, PHD Chamber, Mr.
Anil Khaitan; Chairman, Innovation Committee, PHD Chamber, Mr. Deepak Pahwa and its Sr.
Secretary, Dr. Jatinder Singh.
The Summit was sponsored by SIDBI.
