Know All About Micro, Small, and Medium Enterprises (MSME)

MSME OUTLINE

In any developing country, including India, economic growth is vital. Through MSME, we are promoting economic growth, creating opportunities, and reducing global poverty.

The MSME sector represents 45% of the overall industrial employment in India, 50% of the overall exports in India, and 95%, with more than 6000 products manufactured in these fields (As per msme.gov.in). The whole economy of the country develops and thrives as these industries increase. These industries are often known as tiny industries (SSIs).

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Finding the right startup business is one of the most popular subjects today. Starting a business is no easy endeavor, but the time, effort, and challenges can be worth it if you succeed. To give yourself the best chance to be successful, take your time to carefully find the right business for you.

Visit the site for sorting out the questions arising in your mind before starting any business and know which start-up you can plan for at https://www.entrepreneurindia.co/project-identification.

We, at NPCS, endeavor to make business selection a simple and convenient step for any entrepreneur/startup. Our expert team, by capitalizing on its dexterity and decade's long experience in the field, has created a list of profitable ventures for entrepreneurs who wish to diversify or venture. The list so mentioned is updated regularly to give you a regular dose of new emerging opportunities.

MSME CATEGORIES

Micro, small, and medium companies are the two categories of firms.

1. Manufacturing Companies- An industrial firm that uses a finished product using parts, components, or primary resources. Such final items should be directly given for the production of a single-species package to clients or other production firms. Only a few examples of manufacturing companies are printing, ayurvedic goods, beedi/cigarette making, and other tobacco items.

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2. Service Enterprises – Companies who provide, or perform services and are distinguished by equipment investment. Many items are classified as service companies, such as printing, hospitals, restaurants, hotels, schools, training, and software services.

MSME in INDIA and GOVERNMENT SCHEMES

There are now over 6.3 crore MSMEs in India. Registered MSMEs expanded 18.5% to 25.13 lakh (2.5 million) in 2020 compared to 21.21 lakh (2.1 million) in 2019. The Maharashtra, Tamil Nadu, Bihar, and Madhya Pradesh states account for 60% of all registered MSMEs in India, among the top five. The Union Ministry MSME has successfully registered >1.1 million MSMEs till November 2020. New online system MSME/Udyam Registration, i.e.f. July 01, 2020. For 45 MSMEs participating in the event, Aero India 2021 resulted in Rs 203 crore (USD 27.76 million).

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The Ministries of SMEs have several loans and financial support schemes such as

· Employment Generation Program of the Prime Minister,

· credit linked capital grants system,

· Credit Linked capital subsidy system and the Skills Development and Skill Development Scheme,

· Prime Minister’s Employment Generation Programme,

· Credit Linked Capital Subsidy Scheme,

· Credit Linked Capital Subsidy Scheme;

· Skill development and training schemes such as A Scheme for Promotion of Innovation, Rural Industry & Entrepreneurship (ASPIRE), Entrepreneurship and Skill Development Programmes (ESDP);

· Infrastructure development schemes such as Scheme of Fund for Regeneration of Traditional Industries (SFURTI),

· Scheme for Micro & Small Enterprises Cluster Development Programme (MSE–CDP).

The government has provided in the Union Budget 2021 Rs. 10,000 (US$ 1,36bn) funding to the qualifying MSME borrowers to provide 'Guarantee Emergency Credit Line' (GECL), offering a huge boost to the industry.

The state offered automatic collateral-free loans for enterprises to Rs. 3 lakh crore (USD 40,85 billion).

MSME's BENEFITS

Since the Indian administration has long supported providing MSME advantages, working with an MSME provides various perks. You are entitled to a subsidy for economic development to help you encourage investment in your new enterprise.

· It gives up to 50% of the aid for patent registration, but you must apply your application to the right ministry to take benefit of this arrangement. You can receive a discount on your charges. You will also obtain banks' collateral-free loans, which lead to micro and small enterprise campaign money.

· You can do this, but you can still be compensated for ISO-certified fees. This is where all expenditures for ISO certification may be broken down.

· In conjunction with MSME, the overdraft interest rates will be reduced by 1%.

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Final Thoughts

Due to numerous supports through schemes and initiatives by the government, India’s MSME sector has hiked up with a CAGR value of 18% from 2019 to 2020. In just one year, this stride is enough to analyze the future of MSMEs in India. Taken advantage of this, an entrepreneur can establish a good business and with the required skills at the right place, this will surely give you great profits.

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NPCS sets the standard for integrated Consultancy services. Our belief in open communication and partnership, which is at the heart of everything we do, helps us in providing our clients with the best of the knowledge and business insights that can help them attain their individual business goals.

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ABOUT NPCS

NIIR PROJECT CONSULTANCY SERVICES (NPCS) is a reliable name in the industrial world for offering integrated technical consultancy services. NPCS is manned by engineers, planners, specialists, financial experts, economic analysts and design specialists with extensive experience in the related industries.

Our various services are: Detailed Project Report, Business Plan for Manufacturing Plant, Start-up Ideas, Business Ideas for Entrepreneurs, Start up Business Opportunities, entrepreneurship projects, Successful Business Plan, Industry Trends, Market Research, Manufacturing Process, Machinery, Raw Materials, project report, Cost and Revenue, Pre-feasibility study for Profitable Manufacturing Business, Project Identification, Project Feasibility and Market Study, Identification of Profitable Industrial Project Opportunities, Business Opportunities, Investment Opportunities for Most Profitable Business in India, Manufacturing Business Ideas, Preparation of Project Profile, Pre-Investment and Pre-Feasibility Study, Market Research Study, Preparation of Techno-Economic Feasibility Report, Identification and Section of Plant, Process, Equipment, General Guidance, Startup Help, Technical and Commercial Counseling for setting up new industrial project and Most Profitable Small Scale Business.

NPCS also publishes varies process technology, technical, reference, self employment and startup books, directory, business and industry database, bankable detailed project report, market research report on various industries, small scale industry and profit making business. Besides being used by manufacturers, industrialists and entrepreneurs, our publications are also used by professionals including project engineers, information services bureau, consultants and project consultancy firms as one of the input in their research.

Our Detailed Project report aims at providing all the critical data required by any entrepreneur vying to venture into Project. While expanding a current business or while venturing into new business, entrepreneurs are often faced with the dilemma of zeroing in on a suitable product/line.

And before diversifying/venturing into any product, wish to study the following aspects of the identified product:

Good Present/Future Demand
Export-Import Market Potential
Raw Material & Manpower Availability
Project Costs and Payback Period

We at NPCS, through our reliable expertise in the project consultancy and market research field, Provides exhaustive information about the project, which satisfies all the above mentioned requirements and has high growth potential in the markets. And through our report we aim to help you make sound and informed business decision.

Reasons for buying the report:

This report helps you to identify a profitable project for investing or diversifying into by throwing light to crucial areas like industry size, demand of the product and reasons for investing in the product.
This report provides vital information on the product like its definition, characteristics and segmentation.
This report helps you market and place the product correctly by identifying the target customer group of the product.
This report helps you understand the viability of the project by disclosing details like raw materials required, manufacturing process, project costs and snapshot of other project financials.
The report provides forecasts of key parameters which helps to anticipate the industry performance and make sound business decision.

The report contains all the data which will help an entrepreneur find answers to questions like:

Why I should invest in this project?
What will drive the growth of the product?
What are the costs involved?
What will be the market potential?

The report first focuses on enhancing the basic knowledge of the entrepreneur about the main product, by elucidating details like product definition, its uses and applications, industry segmentation as well as an overall overview of the industry sector in India. The report then helps an entrepreneur identify the target customer group of its product. It further helps in making sound investment decision by listing and then elaborating on factors that will contribute to the growth of product consumption in India and also talks about the foreign trade of the product along with the list of top importing and top exporting countries. Report includes graphical representation and forecasts of key data discussed in the above mentioned segment. It further explicates the growth potential of the product. The report includes other market data like key players in the Industry segment along with their contact information and recent developments. It includes crucial information like raw material requirements, list of machinery and manufacturing process for the plant. Core project financials like plant capacity, costs involved in setting up of project, working capital requirements, projected revenue and profit are further listed in the report.

Our Approach:

Our research reports broadly cover Indian markets, present analysis, outlook and forecast.
The market forecasts are developed on the basis of secondary research and are cross-validated through interactions with the industry players.
We use reliable sources of information and databases. And information from such sources is processed by us and included in the report.

Our Market Survey cum Detailed Techno Economic Feasibility Report Contains following information:

Introduction

Project Introduction
Project Objective and Strategy
Concise History of the Product
Properties
BIS (Bureau of Indian Standards) Provision & Specification
Uses & Applications

Market Study and Assessment

Current Indian Market Scenario
Present Market Demand and Supply
Estimated Future Market Demand and Forecast
Statistics of Import & Export
Names & Addresses of Existing Units (Present Players)
Market Opportunity

Raw Material

List of Raw Materials
Properties of Raw Materials
Prescribed Quality of Raw Materials
List of Suppliers and Manufacturers

Personnel (Manpower) Requirements

Requirement of Staff & Labor (Skilled and Unskilled) Managerial, Technical, Office Staff and Marketing Personnel

Plant and Machinery

List of Plant & Machinery
Miscellaneous Items
Appliances & Equipments
Laboratory Equipments & Accessories
Electrification
Electric Load & Water
Maintenance Cost
Sources of Plant & Machinery (Suppliers and Manufacturers)

Manufacturing Process and Formulations

Detailed Process of Manufacture with Formulation
Packaging Required
Process Flow Sheet Diagram

Infrastructure and Utilities

Project Location
Requirement of Land Area
Rates of the Land
Built Up Area
Construction Schedule
Plant Layout and Requirement of Utilities

Project at a Glance

Assumptions for Profitability workings	Plant Economics
Production Schedule
Land & Building Factory Land & Building Site Development Expenses
Plant & Machinery Indigenous Machineries Other Machineries (Miscellaneous, Laboratory etc.)
Other Fixed Assets Furniture & Fixtures Pre-operative and Preliminary Expenses Technical Knowhow Provision of Contingencies
Working Capital Requirement Per Month Raw Material Packing Material Lab & ETP Chemical Cost Consumable Store
Overheads Required Per Month And Per Annum Utilities & Overheads (Power, Water and Fuel Expenses etc.) Royalty and Other Charges Selling and Distribution Expenses
Salary and Wages	Turnover Per Annum
Share Capital Equity Capital Preference Share Capital
Annexure 1:: Cost of Project and Means of Finance
Annexure 2:: Profitability and Net Cash Accruals Revenue/Income/Realisation Expenses/Cost of Products/Services/Items Gross Profit Financial Charges Total Cost of Sales Net Profit After Taxes Net Cash Accruals
Annexure 3 :: Assessment of Working Capital requirements Current Assets Gross Working. Capital Current Liabilities Net Working Capital Working Note for Calculation of Work-in-process
Annexure 4 :: Sources and Disposition of Funds
Annexure 5 :: Projected Balance Sheets ROI (Average of Fixed Assets) RONW (Average of Share Capital) ROI (Average of Total Assets)
Annexure 6 :: Profitability ratios D.S.C.R Earnings Per Share (EPS) Debt Equity Ratio
Annexure 7 :: Break-Even Analysis Variable Cost & Expenses Semi-Var./Semi-Fixed Exp. Profit Volume Ratio (PVR) Fixed Expenses / Cost B.E.P
Annexure 8 to 11:: Sensitivity Analysis-Price/Volume Resultant N.P.B.T Resultant D.S.C.R Resultant PV Ratio Resultant DER Resultant ROI Resultant BEP
Annexure 12 :: Shareholding Pattern and Stake Status Equity Capital Preference Share Capital
Annexure 13 :: Quantitative Details-Output/Sales/Stocks Determined Capacity P.A of Products/Services Achievable Efficiency/Yield % of Products/Services/Items Net Usable Load/Capacity of Products/Services/Items Expected Sales/ Revenue/ Income of Products/ Services/ Items
Annexure 14 :: Product wise domestic Sales Realisation	Annexure 15 :: Total Raw Material Cost
Annexure 16 :: Raw Material Cost per unit	Annexure 17 :: Total Lab & ETP Chemical Cost
Annexure 18 :: Consumables, Store etc.,	Annexure 19 :: Packing Material Cost
Annexure 20 :: Packing Material Cost Per Unit	Annexure 21 :: Employees Expenses
Annexure 22 :: Fuel Expenses	Annexure 23 :: Power/Electricity Expenses
Annexure 24 :: Royalty & Other Charges	Annexure 25 :: Repairs & Maintenance Exp.
Annexure 26 :: Other Mfg. Expenses	Annexure 27 :: Administration Expenses
Annexure 28 :: Selling Expenses	Annexure 29 :: Depreciation Charges – as per Books (Total)
Annexure 30 :: Depreciation Charges – as per Books (P & M)	Annexure 31 :: Depreciation Charges - As per IT Act WDV (Total)
Annexure 32 :: Depreciation Charges - As per IT Act WDV (P & M)	Annexure 33 :: Interest and Repayment - Term Loans
Annexure 34 :: Tax on Profits	Annexure 35 ::Projected Pay-Back Period And IRR