SIDO Small Industries Development Organisation India General information Good practice s name Registry Information SIDO Small Industries Development Organisation Type of institution It is an attached office of the Department that assists the Ministry of Small Scale Industries (SME). SIDO was established on the basis of the recommendations of the Ford Foundation Members and governance Structure SIDO, known as the Office of the Development Commissioner (Small Scale Industries), operates under Ministry of Small Scale Industries as the nodal development agency for SMEs (please note that SIDO operates on behalf of Small Scale Industries only) Small Scale Industry Board (part of Small Scale Industry Ministry) The SME Board, which is part of the Small Scale Industry Ministry, is the main advisory body of SIDO. Small Scale Industry Board was last constituted on 13 th October, 2000 with 90 members besides the Chairman The Board provides a forum for interactions among its members in order to facilitate coordination and inter-institutional linkages and to render advice to the Government on various policy matters and other related issues concerning SME. The term of the Small Scale Industry Board is two years. Year of establishment Established in 1954 Address Development Commissioner (Small Scale Industries), A-Wing, 7th Floor, Nirman Bhavan, New Delhi 110011 - India Phone: 91-11-23016176 Fax: 91-11-23018315 Web site www.smallindustryindia.com E-mail dcssi@laghu-udyog.com 1
Contact person Mr. Suresh Chandra Development Commissioner Phone: 91-11-23016176 Fax: 91-11-23018315 Additional Development Commissioners Dr C S Prasad Phone:91-11-23017611 csp@nb.nic.in Mr. K S Ludu Phone:91-11-23018847 ksludu@nb.nic.in Objectives, Mission and Development: SIDO s major SME-related activities include assisting the Ministry in evolving policies and programmes and coordinating policies and programmes of State Governments. SIDO also provides a comprehensive range of extension services through its field offices and allied institutions and monitors or implements a large number of Government-sponsored programmes. As a consequence of the increased globalisation of the Indian economy, small industries are required to face new challenges. SIDO has recognised the changed environment and is currently focusing on providing support in the fields of credit, marketing, technology and infrastructure to SMEs. Global trends and national developments have further stressed SIDO s role as a catalyst of growth of small enterprises in the country. Budget / financial allocation The small-scale sector contributes significantly to industrial production, employment generation and dispersal of activities in backward and rural areas. The SMEs sector accounts for about 40% of the gross value of output of the entire manufacturing sector of the country and 35% of total exports from the country. Facts and figures The Government has raised the investment limit for SMEs in some sectors from US$ 220 thousand to US$ 1100 thousand (2001); and in general, for micro units from US$ 11 thousand to US$ 55 thousand (1997). The small-scale sector has grown rapidly over the years. The growth rates during the various plan periods have been very impressive. The number of small-scale units has increased from an estimated 0.87 million units in the year 1980-81 to over 3.4 million units in the year 2000. 2
Organisational structure Since it is an attached office of the Ministry of Small Scale Industries, it does not have Business Units within its structure. However, The Ministry is supported by a number of support agencies and some providers of specialised services in the following areas: Finance, Technology Up gradation, Technical Training, Industrial Infrastructure, Entrepreneurship Development, and Marketing From SIDO depend several companies/ Business Units. National Presence SIDO s main office is located in New Delhi and is organise as follows: 30 Small Industries Service Institutes (SISIs), set up in State capitals and other industrial cities all over the country 28 Branch Small Industries Service Institutes (Br. SISIs), set up in State capitals and other industrial cities all over the country 4 Regional Testing Centres (RTCs) located in Mumbai, Chennai, Calcutta, and in New Delhi 7 Field Testing Stations (FTSs) located in Jaipur, Bhopal, Kolhapur, Hyderabad, Pondicherry, Chenganacherry, and in Bangalore. 21 Autonomous bodies which include: 11 Tool Rooms (TRs) and Tool Design Institutes (TDI) located in Indore, Ahmedabad, Ludhiana, Hyderabad, Bhubaneshwar, Jamshedpur, Calcutta, Jallandhar, Guwahati and Nagaur. State Govt. run tool rooms are located in Lucknow, Delhi, Bangalore, Mysore and Goa 4 Product-cum-Process Development Centres (PPDCs) located in Kannauj Firozabad, Ramnagar, Meerut and Agrai 2 Central Footwear Training Institutes (CFTIs) located in Agra & Chennai 1 Electronics Service & Training Centre (ESTC) in Ram Nagar 1 Institute for Design of Electrical Measuring Instruments (IDEMI), located in Mumbai 2 National Level Training Institutes, and 1 Departmental Training Institute located in New Delhi, Hyderabad, and Guwahati Production Centre in Tiruvalla International presence SIDO provides specialised consultancy to various countries as well as with the assistance of International Agencies, such as UNIDO. Opinions and views are being exchanged continuously with International Organisations like APO-Japan and UNCTAD-Geneva. The countries, which have already received the services, are: Senegal, Cameroon, Benin, and Vanuatu. Countries like Zimbabwe, Trinidad and Tobago are in the process of negotiating the specialised consultancy. Further, many countries, like South Africa, Venezuela, Malawi, Mauritius, Zambia, Brunei Darussalam and Kazakhstan are in touch with India through contact points ensuring cooperation among Denmark and Germany, for the set up of specialised Tool Rooms (training centres equipped with latest imported machines/equipment developed with the help of SIDO) 3
General information related to technology area (product/market) Industrial sector/s of reference - Food Products - Metal Industries - Electrical & Machinery - Chemical - Rubber and plastic products Framework of the main activities Industrial technologies of reference: By means of its State of the Art Tool Rooms and Training/testing Centres, SIDO has developed very important advances in the following technologies: - Hand Tool Technology/Manufacturing/Design - Tool Engineering - Technology in CNC, - CAD/CAM Systems, - Precision Engineering - Robotics - Heat Treatment - Electronics - Agro-technology - Chemical technology - Energy and New Technologies - Mechatronics - Mould and Die Making Technology 4
Framework of the main activities Type of services provided Through its Technical Centres, Tool Rooms, Testing Centres, Product/Process Centres, and Institutions located nationwide, SIDO provides the following services: Formative - Training for managers & supervisors to upgrade their knowledge and skill - IPR workshop - Training in technology, inspection, quality control testing - Training and manpower development Informative - Databases and Reports on Technology trends and Trade reports - Formulation of industrial development policies to facilitate accelerated growth of SMEs based upon local resources and markets - Identification technology and equipments for setting of identified industries based upon local/export market requirements of volume, quality, etc - Several publications available on line Consulting - Advising the Government in policy formulation for the promotion and development of SMEs - Providing techno-economic and managerial consultancy, common facilities, and extension services to SMEs - General consultancy, covering all aspects of industrial development Research - Marketing Research outsourcing and collaborative projects - Strategy driven basic and applied research Others SIDO also provides extended support through: - Relevant funding for roundtrip airfares for participation by SME Entrepreneurs in overseas fairs/trade delegations. The scheme also provide for funding for producing publicity material (up to 25% of costs) for individual SMEs & Associations - Project Sub-contracting Promotion policy. - Vendor Development Programme. For linkages between small, medium, large industry - Comprehensive policy for investment marketing brand promotion and overseas market access. - Organise WTO sensitisation programmes for small-scale industries. - Comprehensive plan for promotion of rural entrepreneurship - Master Website on Small Industries comprising information on policies and procedures, technology, products, with hyperlinks to states and countries. - Comprehensive plan for preparing Small Scale Industries for e-commerce, with appropriate electronic infrastructure support - Preference will be given to the Micro Sector while organising Buyer-Seller Meets, Vendor Development Programmes and Exhibitions - Environmental Services - Technical Assistance - Marketing Services - International Cooperation - Export Promotion 5
Services on line - SIDO has its own web portal (www.smallindustryindia.com) where it is possible to obtain all kinds of information regarding the network and it also provides on-line access to some database contacting a number of important publications. - SENET (Small Enterprise Information & Research Centre Network). Launched in April 1997, SENET began as an Intranet project launched by the Office DC (SME). It provides Intranet services to create a network and database for Small Enterprises and to promote a network alliance among the information service providers (such as, SMEs/Private/Public sectors). This network provides a series of technical publications: project profiles, directories, cluster study reports, and other data Technological partnerships - CMC Web Tech - APCTT (Asian and Pacific Centre for Transfer of Technology) - TANSTIA (TamilNadu Small and Micro Industries Association) - CGTSI - ITC - SEPTI - IIE Guwahati Training Institute Relationships/integration's with developers of technology SIDO operates in active interaction and co-operation with universities, employment and business centres, technology centres, different kinds of centres of expertise, and other regional actors. Among the most relevant relationships can be mentioned: The Technology Bureau for Small Enterprises (TBSE): Its mission is to render value added services for technology transfer and collaboration opportunities in order to enhance market competitiveness of Indian small-scale industries and promote sustainable development TBSE provides a platform in which enterprises can tap opportunities at the global level for acquisition of technology or establish business. The National Small Industries Corporation Ltd. (NSIC): Since its establishment, NSIC has been providing support to start ups; small scale industries and micro enterprises (SMEs) through its various innovative schemes such as, stimulation and support by developing new enterprises through financial, marketing, and technology support. Moreover, in order to promote Indian technologies in international markets, NSIC is launching a dedicated website for SMEs where they can display their technologies or technology requests. National Institute of Small Industry Extension Training (NISIET): a Premier Institute belonging to the Ministry of SME, Government of India, always in forefront providing vital support, training & extension services to Small and Medium Enterprises (SMEs) in India and overseas, is offering Unlimited Opportunities for Two Way Transfer of Technologies established international industries partnerships. Other relationships with Danish and German Centres for the establishment of Tool Rooms 6
Main information on Key Projects 1. National Programme on development of Indian Toy Industry - The aim of this project is to implement an establishment of a Toy Design and Development Institute with facility of tooling, training and testing of International standard in Greater Noida, U.P.; to provide assistance to a group of selected toy units in order to help them develop technologically; and to develop the Indian Toy Market - Partnerships: ICAMT / UNIDO, Toy Association of India, Toy Association of India, State Governments of Uttar Pradesh, Maharashtra and Delhi, Small Industries Development Bank of India (SIDBI) 2. National Programme for Development of Stone Industry in India (NPDSI) - The Centre for Development of Stones is the Common Facilities Centre for the entire Indian Stone Industry was set up as an autonomous organisation by Government of Rajasthan and Rajasthan State Industrial Development & Investment Corporation Ltd. (RIICO) with a mission to develop, promote & support the dimensional stone sector and related industries in India. - Partnerships: NPDSI is a joint effort of Government of India, through its Ministry of Small Scale Industries; and United Nations Industrial Development Organisation (UNIDO) through its International Centre for Advanced Manufacturing Technologies (ICAMT) Projects 3. Indo-German Tool Programme - This programme s goal is to assist small-scale enterprises, particularly metal and plastic groups in different fields such as, design and manufacture of precision dies and tools, moulds, jigs and fixtures, gauges, etc. It assists SMEs in using and maintaining the above mentioned tools and equipment properly. Therefore, under this project s scheme, well-equipped modern production facilities with state of the art equipment have been built to provide SMEs with full-fledged training workshops, an up-to-date design department, a versatile heat-treatment shop, testing and quality control equipment, consultancy, and marketing assistance - Partnerships: Government of Germany, and Respective Indian State Governments 4. Indo-Danish Tool Rooms (IDTRs) - Under this programme, the Government of India has established 6 Tool Rooms and Training Centres in some important locations in India. Today these 6 centres have acquired mastery in mould and die making technology, and gained an excellent level in terms of precision and quality in the development and manufacture of sophisticated moulds, dies, and tools. Furthermore, training courses, both regular and tailor-made; and special technical consultancy are just some of the services these TRs provide to SMEs in India - Partnerships: Government of Denmark under the Bilateral Development Co-operation Agreement, and Respective Indian State/Central Government Main information related to the "level of market orientation" 7
Plans for strategic development - Focus on credit, marketing, technology, infrastructure, regulatory regime and impact of globalisation - Legislative support to factoring services, limited partnership act, single law for SMEs - Promotion of linkages between large and small enterprise - Emphasis on the service sector - FDI window - Priority to sunrise industries SIDO target for the next five years: Target 12% annual growth as compared to 9% during last five years Employment growth at 4% per annum, similar to the last five years Strategy Market Partnerships - Ministry of SME and ARI (Ministry of Small Scales Industries and Agro Rural Industries) - KVIC (Khadi and Village Industries Commission) - Coir Board - RBI (Reserve Bank of India) - UNIDO (United Nations Industrial development Organisation) - EAN India - IIP - SIA (Secretariat for Industrial Assistance) - WIPO (World Intellectual Property Organisation) - NPC (National Productivity Council of India) - SIDBI (Small Industries Development Bank of India) - CEDOK (Centre for Entrepreneurship Development of Karnataka) - CSIR India (Counsel of Specific Industrial Research) - Anti-Dumping Directorate - APO-Japan - UNCTAD Geneva Revenue Model Private / public role SIDO s revenue model is composed of public funding and fees. That is, 60%of financing comes from the government and the rest (40%)comes from the private industries. Main information related to the "network system" Participation with other networks Despite it has developed an extended activity also at international level, SIDO has so far established limited relationships with international networks. It must be clarified that SIDO is boosting market development at international level through networks. This because the Country objective is to promote internationalisation of local SMEs and networks might be a tool to reduce the go to market costs. 8