Sh. M.V.

Somasekhar Manager(Tech) NSIC-TSC-Hyd

1. DECIDING TO GO INTO BUSINESS

This is the most crucial decision a prospective entrepreneur has to take. The person should decide whether to take salary based employment or opting for self-employment or entrepreneurship

2. ANALYZING STRENGTHS/WEAKNESSES

Having decided to become an entrepreneur, one has to analyze his/her strengths/weaknesses. This will enable him/her to know what type of and size of business would be most suitable. This will vary from person to person

3. TRAINING

Quite possibly the above analysis may reveal glaring deficiencies which are required to be made up through training. Such training could be: I. Developing skills and change attitudesEntrepreneurship and Business Management Training skills II. Developing Technical /work skills for proposed product/project

4. ENVIRONMENTAL SCANNING

It is essential to study the environment in which you shall operate to ensure enterprise success. Get to know the business opportunities and threats in the environment. This will assist proper project identification and selection.

5. PRODUCT SELECTION

The next step is deciding what business to venture into. The range of products shall be taken up for manufacture and in what quantity. The level of activity will help in deciding size of business and form of ownership . One could generate number of project ideas through environmental scanning, Short list a few items, closely examine each of them and zero in to a final product(s).

6. MARKET SURVEY

It is easy to manufacture an item but difficult to sell. So it is prudent to survey the market before embarking upon production and ensure the product chosen is in sufficient demand Ascertain changes in product design required; determine demand supply lag, extent of competition, potential share of the market, possible pricing and distribution policy etc. The principle is to produce what people demand in a form and quantity that can be easily sold.

7. FORM OF OWNERSHIP

A firm can be constituted as sole proprietorship, partnership; limited company (Public/Private) cooperative society etc.

This will depend upon the type, purpose and size of your business.
One may also decide on the form of ownership based on resources on hand.

8. LOCATION
The next step will be to decide on the place where the business is to be located. Will it be hired or owned, the size of plot covered and open area and the suitability of site will have to be decided. The enterprise can be located based on the availability of skills, resources, market etc

9. TECHNOLOGY

To manufacture a product requires various processes. The information on various types of technology should be collected.

This will be very useful in determining the type of machinery and equipment to be used.

10. MACHINERY AND EQUIPMENT

Having chosen the technology, the machinery and equipment required for manufacturing has to be decided, suppliers identified and their cost estimated

11. BUSINESS REGISTRATION

Having known various opportunities, the prospective entrepreneur will have to register his/her business entity by way of filing a memorandum in duplicate with the designated office for this purpose.

12. PROJECT/BUSINESS REPORT

After deciding on the form of ownership, location, technology for manufacturing, machinery and equipment one is ready to prepare a feasibility report or one's project report. The economic and technical viability of the project has to be selected as to be established through project report. This will be useful to obtain financial support from financial institutions/Banks.

13. FINANCE

An entrepreneur has to follow specified procedures to obtain finance from Financial Institutions/Banks.

14. TECHNICAL KNOW HOW

In quite few cases technical know how of the envisaged project/business may be required or arranged. This can be arranged through Technology supporting institutions and private consultants

15. POWER CONNECTION

The site chosen should have adequate power connection. One can calculate the total power requirement, voltage, [phase- single or three], determine the nearest pole from which power will be given to you as it can materially determine installation cost

16. INSTALLATION OF MACHINERY

Having arranged for finance, work-shed, power etc., the next step is to procure the machinery and begin its installation. This should be preferably as per plant layout.

17. RECRUITMENT OF MANPOWER

Once machines are installed manpower will be required to run them. So the quantum and type (skilled, semi skilled, unskilled, administrative) of the labour has to be determined, source of getting desired labour has to be identified and recruited.

18. RAW MATERIALS

The labour requires raw materials to work upon the installed machines. The raw material required maybe available locally or outside. Systematic arrangement must be done to ensure constant supply of raw materials to the enterprise.

19. PRODUCTION

There should be not any wastage of manpower, materials or machine capacity installed. Production of the proposed items should be taken up in two stages: a) Trial Production b) Commercial Production Trial Production will help tackling of problems confronted in production and test marketing of products. This will reduce the chances of losses in the eventuality of mistakes in project/business conception. Commercial production should start after successful trial production.

20. MARKETING
Having produced the products/services, the stage comes to sell it. The entrepreneur should consider various aspects on how to reach: customers, distribution channels/commission structure, pricing advertising/publicity etc

21. MARKETING RESEARCH

Once the products/ have reached the market, the periodic market research should continuously be done to collect information from customers using the products, this may cause the firm to change the design, taste and make necessary diversification that appeal customers need and demand.

22. MONITORING

The prospective entrepreneur should make a periodic monitoring of all components of the business to ensure the growth and take immediate measures in case of any dwindling in sales, profitability for taking possible corrective measures.

Think Big, Start small, Scale Fast

Thank You

CHEMICAL INDUSTRY IN INDIA Chemical industry is one of the oldest industries in India. It is estimated that the size of Indian chemical industry is around US$ 30 billion. Volume of production in chemical industry positions India as third largest producer in Asia (next to China and Japan), and twelfth largest in the world.

The industry, comprising both small scale and large units (including MNCs) produces several thousands of products and bi-products, ranging from plastics and petro-chemicals to cosmetics and toiletries.
A significant share (around one-third) of production by chemical industry is consumed by itself. The chemical industry accounts for about 13% share in the manufacturing output and around 5% in total exports of the country.
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Manufacturing Enterprises* Micro Rs. 25 Lacs Small Rs. 5 Crores Medium Rs. 10 Crores

Services Enterprises** Micro Rs. 10 Lacs Small Rs. 2 Crores Medium Rs. 5 Crores
* Investment limit in plant and machinery. ** Investment limit in equipments.
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MSMEs IN INDIA
Over 26 million MSMEs
27

Employ 60 million People Give 45% of Industrial Production ^ Account for 40%+ of Exports ^^
NB: ^ 39% for MSEs / SSIs ^^ 33% for MSEs / SSIs

27

INDIAS YOUTHFUL POPULATION PROFILE By 2020, US will be short of 17 million people of working age, China by 10 million, Japan by 9 million and Russia by 6 million. India will have a surplus of 47 million working people. China, conversely, is aging faster than any other country in history Over 35% of our population is below the age of 20 By 2020 India will get 350 million as working age largest in the world

ROADMAP TO SETUP ANY BUSINESS ACTIVITIES

Actual implementation

Basic Steps

Undertaking Government formalities

Formulation of the project proposal

Identification of Project

MSMEs IN INDIA
Over 26 million MSMEs Employ 60 million People Give 45% of Industrial Production ^ Account for 40%+ of Exports ^^
NB: ^ 39% for MSEs / SSIs ^^ 33% for MSEs / SSIs

Institutional Support Structure for MSMEs in India

At Federal Level
1. Ministry of MSME 2. Development Commissioner (MSME-DI) 3. National Small Industries Corporation(NSIC) 4. IDBI 5. SIDBI 6. Khadi & Village Industries Commission(KVIC) 7. Coir Board 8. National Entrepreneurship Institutions

At State Level
1. Directorate of Industries 2. AP State Finance Corporation 3. AP Industrial Development Corporation 4. AP Industrial Infrastructure Corporation 5. Technical Consultancy Organisations 6. Entrepreneurship Development Institutions (EDIs)

MSMEs

Others
1. Industry Associations 2. NGOs 3. Banks/Financial Institutions

MSME MINISTRY

Ministry of MSME is the nodal agency to coordinate and oversee all Government interventions.

Medium establishment has for the first time been defined in terms of separate Act, governing promotion and development of Micro, Small and Medium Enterprises (MSME)

DEVELOPMENT COMMISSIONER MSME MSME DEVELOPMENT INSTITUTES

More than 30 MSME Development Institutes are there all over India.

Cluster Development Programme

Credit Linked Upgradation ISO 9000/ISO Scheme Capital Subsidy for Technology

Credit Guarantee Scheme for MSMEs

14001 certification Reimbursement

Mini Tool Rooms for Training

DEVELOPMENT COMMISSIONER MSME

Testing, tool-making, Training for EDP,

Project and product profiles,

Technical and managerial consultancy, Assistance for Exports, Pollution and Energy Audit Services Advises Government in policy formulation for the promotion and development of SSIs. The field offices also work as effective links between the Central and the State Governments.

INDUSTRIAL DEVELOPMENT BANK OF INDIA

(IDBI)

Apex institution for long term finance.

To coordinate the activities of institution working in this field. To provide technical & administrative support to the industries. To conduct R & D activities for the benefit of industrial sector.

SMALL INDUSTRIES DEVELOPMENT BANK OF INDIA

(SIDBI)
Direct & Indirect finance for small scale sector.

Timely credit to SSI units for Term loans and working capital.

Venture capital finance for SSIs.

Finances for Technology transfer & upgradation Quality improvement, exports, environmental care & rural industralization.

DISTRICT INDUSTRIES CENTRE

(DIC)
Single Window for Procedures and Formalities to start a venture.

Prepare Techno-Commercial Reports.

Guides Entrepreneurs in selection of Machinery, Equipment, Imports, Import Substitutes and Raw Materials. Conducting Industrial Potential Survey

AP STATE FINANCE CORPORATION

(APSFC)

TERM LOAN

Financial Assistance upto 5 Crores for land building &machinery. MSME - MTL Tie up with commercial banks for working capital upto 3 years.

AP STATE FINANCE CORPORATION

(APSFC)

OTHER SERVICES

Marketing of insurance products like LIC & GIC.

Fixed Deposit. Counselling of MBA students for projects.

Valuation of assets.
MOU with Institutions for EDP

AP INDUSTRIAL DEVELOPMENT CORPORATION

(APIDC)

Guidance and escort services to Entrepreneurs (Medium & Large Scale Entrepreneurs) Participation in Equity Capital Term Loan Bill Discounting Facility Providing Guarantees Venture Capital for IT Industries

CHEMICAL INDUSTRY IN INDIA

The Indian chemical industry is among the established traditional sectors of the country, playing an integral role in the countrys economic development. This sector, forming part of the basic goods industry, is a critical input for industrial and agricultural development. The industry has a weight of 14% in the Index of Industrial Production (Base year 1993-94 = 100), giving an indication of the importance the sector holds in the countrys industrial growth. A robust chemical industry is significant for economic and strategic benefits to the nation.

CHEMICAL INDUSTRY IN INDIA The chemical industry is among the most diversified industrial sectors, including basic chemicals and its products, petrochemicals, fertilisers, paints, gases, pharmaceuticals, dyes, etc.

The sector covers over 70,000 commercial products, and provides the building block for many downstream industries, such as finished drugs, dyestuffs, paper, synthetic rubber, plastics, polyester, paints, pesticides, fertilisers and detergents. The industry includes a wide variety of products, from basic chemicals to research-driven specialized products, at different levels across the industry supply chain.
The fundamental nature and diversity of the industry is best understood from the fact that the industry itself is the largest consumer of its products, accounting for around 33% of total consumption.

CHEMICAL INDUSTRY IN INDIA

CHEMICAL INDUSTRY IN INDIA

Chemical SEZs Approved in India

CHEMICAL INDUSTRY IN INDIA

Indias global competitiveness in the chemical industry has grown and will continue to grow in the medium term for the following reasons: High demand growth in the domestic and global market Localization of end-user industries. Some of the end-user industries are also growing rapidly and are emerging as outsourcing hubs for the global market, like textiles, pharmaceuticals. Low production costs in terms of labour, resources, etc

These factors have led to increasing investments, R&D spending as well as building up of a skill base.

CHEMICAL INDUSTRY IN INDIA

Big-push from the Pharmaceutical sector

Pesticides segment may witness further consolidation, however, domestic players may give stiff competition to MNCs

Dyes and dyestuff have good prospects based on economic growth

Chemical Clusters in India

SSI Reserved Products