Big opportunitiesawait aerospace
SMEs in Karnataka
Big opportunitiesawait aerospace
SMEs in Karnataka
I n d u s t r i a l
VOICE OF LAGHU UDYOG BHARATI - KARNATAKA Feb- 2011. Vol 1. Issue 2Single Copy ` 30
Laghu Udyog Bharati - Karnataka www.lubkarnataka.org
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Inflation hurting SMEsC
ON
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NT PAGE: 4
PAGE: 5-6 Summit report
PAGE: 7-9 Cover story
PAGE: 10-11 Entrepreneur of the month
PAGE: 12-13 Technology
PAGE: 14-15 Managing People
PAGE: 16-17
PAGE: 18 Read & Right
PAGE: 19-20 News
PAGE: 21 SME Event Calender
Obituary
Guru Mantra
Laghu Udyog Bharati - Karnataka, No. 114, 42nd Cross, 8th Block, Jayanagar, Bangalore - 560070, Phone: +91 80 2665 1234 email: [email protected] Website: www.lubkarnataka.org
Edited and Published by Yagnaesh M. N for Laghu Udyog Bharati- Karnataka.Designed by Linear Communications Pvt. Lltd. Ph: 080-2211 1641 Printed by A to Z Print Solution, No. 41, 23rd cross , 12th Main, 3rd Block East, Jayanagar Bangalore 560 011. Ph: +91 99844068250 / 080 26644111
Editorial committee
H.V.S Krishna
T. Srinivasan
C.N Bhojaraj
D.L Venkatesh
Yagnesh M.N
Manjunath K.N
s 2010 was coming to an end, Indians thought that T h e b i g e v e n t t o h a p p e n
was the end of a two year period of painful economic in February is the Aero India show, I expect better business for Aslowdown and that the Indian economy was going to the SMEs in the aerospace sector located in and around
rebound in 2011. While the overall economic mood is still Bangalore.
buoyant, the current inflation is hurting everyone, especially I have to end this on a sad note because of the demise of our the SMEs in a big way. Regular fuel price hikes, increase in enthusiastic executive committee member Sri Bhanu Tirumale. interest rates on advances by banks, increase in the cost of He left abode on 22.12.2010. His service to the organization material are hurting the SMEs. and the industrial sector cannot be valued. Join me in my prayer
While I expect the situation to get better, SMEs have to manage so that his soul can rest in peace.
their costs smartly and keep the spirits up. The Laghu Udyog
Bharati - Karnataka team participated in the Vibrant Gujarat
Summit held in January 2011. The team was impressed with the
way it was conducted and saw a lot of potential for SMEs in Yagnesh M.NIndia and for Karnataka as well. Editor
Another big event in January 2011 was IMTEX at the
Bangalore International Exhibition Centre. It attracted
entrepreneurs in big numbers from all over India. There was
overwhelming response from the visitors.
V. K. Dikshit
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Summit report
Mr. Modi's team, so
confident about their
success in business
development so far, said
they had stopped calling
the conference an
investment summit. Now
they describe it as a
gathering for knowledge
sharing.
Vibrant Gujarat Summit had sharp SME focus
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attract investment to India as a whole–not only to their own reference to Europe. With CBC representing business in 54
state In this vein, administrators from 12 other countries of the Commonwealth, and with EICC playing a
states–including Karnataka and Andhra Pradesh–are in major role in the EU-India trade relations, the event is
attendance, aiming to lure business to their own states, said expected to contribute to bringing the SMEs of Europe and
S.A. Dula, adviser to the Industrial Extension Bureau of Commonwealth countries closer.
Gujarat, the state arm that organized the summit.
Mr. Modi's team, so confident about their success in
business development so far, said they had stopped calling
the conference an investment summit. Now they describe it
as a gathering for knowledge sharing.
SMEs heart of EICC-CBC-CII
strategyFocus on developing business collaboration and
entrepreneurship of the SMEs in the development of
emerging economies was at the heart of the strategy during
the Vibrant Gujarat 2011. The Europe India Chamber of
Commerce (EICC) joined Commonwealth Business
Council (CBC) and Confederation of Indian Industry (CII)
to organize a high level Seminar to discuss ways to improve
the investment and business climate and specific national
measures and regulatory reform to improve business
condition.
The event's focus was on creating the framework for
building capabilities of SME sector to meet stringent trade
and business criteria of developed countries with special
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· Almost 8,000 MoUs worth $462 billion signed in VibrantGujarat’
· 30 MNCs, 16 countries - Gujarat gears up for investor summit
· Integrated mining cities mooted in Gujarat
· SMEs drew the maximum interest of corporate, who signed 4,286 MoUs worth Rs. 18,448 crore. Together, they could pocket 2% of the 21 lakh crore committed during the two day summit. Most companies investing abroad were smaller companies
Summit report
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angalore has been India's aerospace capital for the because of ancillary production opportunities. Keeping
last 60 years and is likely to continue to be so for these prospects in mind, the Karnataka Government Bmany decades to come. The decision to hold has initiated various measures to promote the aerospace
AeroIndia in Bangalore is a testimony to this. industryin the State.
The question today is not how important Bangalore is or What makes the prospects bright is the availability
Karnataka is to the Indian aerospace industry but how can it of highly skilled manpower, presence institutions
be made even bigger in the next few years. With like Hindustan Aeronautics Ltd (HAL), National Aerospace
future defence and civil aviation growth coming Laboratories (NAL), Indian Institute of Science,
from this region, India is in a better position to negotiate ISRO, R&D labs of international aerospace giants
higher offset production arrangements with global such as Airbus, British Aerospace and others.
aerospace companies. This is good news for the high-tech Already, dozens of SMEs supply components SMEs in and around Bangalore. to top aerospace companies globally. The technical
The other good news is Indian businesses are getting and business capabi l i ty of aerospace SMEs
into civil aviation manufacturing and are making has definitely reached a critical mass where the future
Bangalore as their hub. The latest in the news is an can get only better. investment of $54 million by the Mahindras in a
turboprop aircraft manufacturing plant near Bangalore. MNCs and a slew of SMEs, has stimulated a thriving This development is good news for SMEs here business in outsourcing, with SMEs playing an active role.
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Bright prospects for SMEs in aerospace
Prospects for SMEs in the aerospace sector is bright, yet the challenges are
productivity, high raw material cost and the ability to scale from small to
medium scale enterprises. -By Javid Hassan
Bright prospects for SMEs in aerospace
Cover story
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Anand Mahindra announcing launch of Mahindra and Mahindra into civil aviation recently
Cover story
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acres of land at Devanahalli near the hardware and software way in India achieving the target of becoming a major
parks, of which 1,000 acres had been allocated for the player in aircraft manufacturing globally.''
aerospace park. However, a major area of concern is the According to him, a government technical institute can also escalating cost of raw material used in the industry.serve as an outsourcing hub for major organizations if it has
the requisite skills and facilities to handle the job. In this
Challenges context, GT&TC and other technical institutes have proved
Noted scientist Kota Harinarayana articulated his concerns that they can meet the requirements of the market. At
in this context and said the great challenge before the another level, the MSME Development Institute has also
country was pruning the cost of aircraft production in view been playing a pivotal role by organizing technical seminars
of the high cost of raw materials procured from the des igned to make them innovat ive in thei r
international market. He made his observation during a one- conceptualization of projects.
day symposium on 'India Defence and Aerospace, A case in point was a seminar arranged in November 2010 in organised by the National Instruments India in New Delhi collaboration with the National Institute of Design, recently. “The cost of operation has to be brought down. It is Ahmedabad. Its thrust was on innovation in designs to make a challenge for designers and manufacturers involved in SMEs competitive in the market. While challenges remain aircraft manufacturing to meet the challenges,'' he added.the prospects augur well for the future of SMEs operating in
He also said, ''We are at a crossroads and India has emerged the aerospace sector.
as proven destination. The aircraft market is shifting
towards Asia from North America and Europe, but what is
needed is the ability to deliver at quicker time as well as at
cheaper rate. Finance is not a problem, since the Public
Private Partnership (PPP) model has eased pressure on
Government to bear the cost of production. “So quick
delivery, cost reduction and best technology could go a long
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The technical and business capability
of aerospace SMEs has definitely
reached a critical mass where the
future can get only better. Quick
delivery, cost reduction and best
technology could go a long way in
India achieving the target of
becoming a major player in aircraft
manufacturing globally
- Kota Harinarayana, noted scientist
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Question: Your company is among a very few which has
a track record of working on different aerospace
vehicles? What process have you put in place for
working on different brands? How complex is it to work
on European/Russian and Indian designs?
Answer: We are manufacturing parts to various aircraft to
their high quality requirements only on the basis that ours is a
systems driven management, where the process is drawn
meticulously and the responsibilities are distributed to the
individuals and the results are monitored daily. This system of
process control improves quality of output.
How were you able to attain such high production
standards? Please narrate the journey to attaining it?
The world is moving towards high quality–low cost and on-
time delivery. What we manufacture today at some price will
become cheaper and cheaper every year.
Entrepreneur of the month
I want to be a` 100 crore company
V. K. Dikshit
V. K. Dikshit
- Managing Director
Mr. V K Dikshit is a brave and hard-working entrepreneur for 45 years. Brave
because he had got into very high precision sector where there is no margin for
error. Here he shares his ideas and vision.
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The company also manufactures
components for SU Aircraft, A320
aircraft door parts, Kaveri engine
blades, fuel line parts for LCA and
various other aircraft parts.
12
MEs can really make the web work for their
business and create a significant revenue impact Sand also be available to your customers round the
clock. Read howA small and medium business owner often would have
limited budgets for marketing and operations which means
limited manpower for field calls, advertising, market reach,
supply chain management and customer care – however,
given the advent of new age media and online marketing and
CRM technology and tools, there are several opportunities
to reach out to customers and target affinity groups.
#1 – Retain / Interact with existing
customersExisting customers often provide leads and references even
if they are not active customers. An effective way of using
technology is to stay connected with customers is to create a
customer space / portal /microsites with a range of web
services like blogs, videos, chats, user community forums,
an online marketplace for parts and accessories, online
customer assistance through a helpline and share
continuous useful information around the product / service
sold. The customer keeps coming back for support,
maintenance, tips or just interacting with other users. This is
a good and cost effective way to build brand recall through
service orientation. Examples are marutisuzuki.com,
Nokia's Nokia care site, swimmingpoolhub.com, etc.
#2 – Market online to new and
existing customersMost products and services today can be showcased online
as technology has matured to allow for product showcases,
digital walkthroughs, assisted demos, do-it-yourself
download packages and a well equipped back office that
interacts with customers through marketing campaigns on
email, phone, sms and other low cost channels. Today a lot
of complementary sites allow for product / service
advertising swaps for space as well as commercial models
for revenue share. Examples are Rediff.com, Times of
India, Hotels and Software sites.
#3 – Pay and use technology
servicesIf you are looking to improve office productivity, several
tools and services are available on demand and through 'pay
Leveraging online Technology
By Ranganath Iyengar
Earn more from less
Technology
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as you to' models. Good examples include sites offering The SME's business challenge is how to optimize / stretch
office automation packages, hosted ERP, CRM and SCM, budgets and online media, marketing and other services
communication and conference facilitation, product design offer a perfect financial and business leverage to SMEs to
packages, managed IT services etc. These services offer pay on demand or usage. Additionally, by co-existing on
great value for money to SMEs who do not have to invest in such portals, there is also a brand / image building leverage
sunk costs. Examples are Webex, Zoho, Microsoft, Busyetc. as well. The best way to get started is to include such spends
in the business plan and experiment with small packages
before committing more continuous effort and time. So, #4 – Share documents and there you go – you can really make the web work for your
business and create a significant revenue impact and also be workflows with your supply chainavailable to your customers round the clock !
If you have a large supply chain base, moving documents
and information can be a challenge – today technologies
like Web EDI and standards like 3DXML allow you to share
documents, drawings and designs online in a secure manner
without compromising on your intellectual property.
Examples are Worldfashionexchange, Webedi etc.
#5 – B2B and B2C marketplacesMarketplaces are also interesting value propositions for
SMEs as they offer ready services to buy and sell products
and since these are mostly industry specific, they are fairly
effective for small organizations to quickly find global
markets. Examples are Amazon, Metalmarketplace.com,
Foodline.com, FlipKart.com, eBay, Overstock.com,
Oodle.com, Bonanzle.com etc.
#5 – Social media networkingSocial media has generated a lot of interest and is good to
use especially if the customer target base are younger
consumers – such sites are useful as reference sites,
targeting affinity groups, getting reviews, publicizing
events, aggregating individual service providers etc.
Examples are Facebook, Twitter, Meraevents.com etc.
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The SME's business
challenge is how to
optimize / stretch budgets
and online media,
marketing and other
services offer a perfect
financial and business
leverage to SMEs to pay
on demand or usage.
The author is a technology and business
consultant for SMEs.
· Without management
commitment, any
attempt to standardize
technical processes is only
a theoretical exercise - it
will never show adequate
results.
· Employees frustrated with
inadequate technical
processes will not only
leave, but will also bad-
mouth the company to
others, making it difficult to
attract talent
· When technical processes
are in place , the company
has a high probability of
getting it right the first time
therefore efficiently using
scarce resources.
You can purchase Ajay Wahi's book 'and the award for Best SME of the Year goes to…' by mailing [email protected]
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Ten Commandmentselcome the year 2011
with a smile from Ww i t h i n a n d w i s h
eve ryone wi th a s anka lpa
(intention) for peace and prosperity
for all the people on the planet.
Make a resolution to do more good
to society, help the people who are in need and bring
solace to who are suffering. Let our life be useful to
one and all.
Today, most people are confused because there is no
direction in life. The difference between flood and a
normal river is that water flow is regulated in a river.
Similarly, the energy in our life needs some direction to
flow. If you don't give direction, it is all confusion. When
you attend to the spirit, life attains its highest and
becomes a celebration. Here's how you can
nurture the spirit.
Guru Mantra
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his long-awaited book was launched late 2010. The and Jackie Freiberg, along with Dain Dunston, take you behind the scenes and show you how, in the face of book, published by Westland, was authored by insurmountable odds, Tata Motors created one of the TChr is tabe l le Naronha , Ph i l l ip Chacko greatest innovations in the auto industry since the Model-T.
and Sujata Agarwal.
This is the story of how Team Nano pushed itself to find “A promise is a promise”, Ratan Tata had said at the launch elegant solutions to seemingly impossible problems. When of Tata Nano. The book may give an impression of a experts said the Rs.1 lakh car was impossible, they pressed business management book at first glance. But it is much
on. When budget constraints, design restrictions, the rising more than that. It is an inspirational account of how Tata Motors overcame the limitations imposed by conventional costs of materials and political agitation threatened to derail technology and traditional methods of manufacturing to the project, they dug deeper. And when the Nano was develop a car that has changed the automobile world.
revealed to an astonished world, they started a cultural
renaissance in business thinking.Normally, a car is made and then a price is put on that. But in
Nanovation explores the making of the Nano to show how this instance, they fixed on a price and then made the car. It was a wonder that the idea was brought to fruition. you can encourage employees to overcome adversity, to
Writer and chairperson of Infosys Foundation, Sudha take risks despite the fear of failure, and to innovate beyond Murty, who released the book, said that all the answers to customer expectations. If Team Nano could take 85 per cent questions that had occurred to her about the project were
of the cost out of a product as complex as a car, what can you available within the pages of Small Wonder. Ms. Murty is an automobile enthusiast. do to transform your price-to-performance paradigm and
deliver insanely great products and services at a fraction of “I was hoping my birthplace Dharwad would be considered for the plant when the Tatas had to move from Singur. It was their previous cost? Your future depends on creating a our loss. One can read about it all in this book, see how
culture of innovation. Nanovation shows you how to do it.failure is connected to success,” said Murty, recalling that her father had to wait 17 long years before getting a car.
Nanovation: How a Little Car Can Teach the World to Think BigAn impossible dream that came true—and what it means for your business. In Nanovation, best-selling authors Kevin
Read & Right
“A promise is a promise”, Ratan
Tata had said at the launch of
Tata Nano.
The book may give an impression
of a business management book at
first glance. But it is much more
than that.
Small Wonder: Making of the Nano
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