NATIONAL RESS RELEASE

Sub: Launch of SIDBI led , Business development services ( BDS ) program under SME financing & development project ( SMEFDP ) in Alappuzha Coir Floor covering cluster.

Ref : Date- July 6 , 2007 ;Time- 10 AM ;Venue: Hotel Taj Residency, Marine drive , Ernakulam

Dear Editor,

Seasons Greetings !

SMEs form the bedrock of Kerala’s Coir industry & the Indian economy. As the economy moves from low- to mid-income status, the economic relevance of SMEs will also grow further, with SMEs accounting for an increasing share of both gross national income and employment. Ensuring that SMEs in Kerala have access to high quality business development services (BDS) is central to supporting their growth, and by extension, the growth of the whole economy of Kerala & India. Therefore, the Small Industries Development Bank of India (SIDBI) is leading the implementation of a multi-donor project – Govt. of India , World Bank , DFID , KFW & GTZ to increase the flow of credit and related support services to SMEs in Kerala’s Coir cluster , with BDS serving as a key component.

SIDBI has awarded the implementation of this 4 year duration project in Alappuzha Coir Floor covering cluster to the team of Cluster Pulse,  a NGO working in 66 clusters in 9 countries , including India & OTF Group , reputable consulting firm from USA. Implementation will focus on developing new and innovative models of BDS market support.     

In advanced economies, BDS is a business-to-business service provided by private firms. Government BDS delivery is commonly focused on disadvantaged groups or groups that are underserved by the market, such as businesses in low-income neighborhoods or businesses on the verge of bankruptcy. In developing economies, the market for BDS is generally less mature, with a limited number of providers serving the private sector. Where there is supply, it is usually focused on larger corporations, leaving the SME and micro-enterprises with limited options. In response, governments and public agencies have often stepped in to fill the supply gap.

However, growing consensus points towards BDS being most effectively delivered by private providers. Spurred by profit incentives, private providers will be motivated to actively pursue new clients and expand their reach; challenged by competition, they will be forced to offer a high quality product and continuously innovate to maintain market share. Therefore, BDS interventions focus less on the direct delivery of BDS to SMEs, but more on supporting the development of a self-sustaining private market for BDS.

The project implementation in Alappuzha Coir Floor covering cluster will be done in 3 phases :

Phase I   : Cluster Mapping and Business Plan Development
Phase II  : Project Implementation
Phase III: Learning and Close-out

The project is being launched  by SIDBI as follows :

      Date     : July 6 , 2007 
      Time    : 10 AM 
      Venue  : The Anchor Hall , Hotel Taj Residency , Marine drive , Ernakulam

Keynote address & launch of the website will be done by the Chief guest Mr. Satyananda Mishra,  Secretary – Department of personnel & training , Govt. of India. Important & high level dignitaries who will speak in the function are Mr. Rakesh Rewari , DMD – SIDI , Mr. A C Jose , Chairman – Coir Board , Mr. T O Sooraj , IAS – Director of industries & commerce , Govt. of Kerala & a representative from the industry.

A presentation on the roadmap of implementation of the project will be done by Cluster Pulse & OTF Group , USA.

We request your presence in this important event. Your invitation card is attached.

A line in reply will be highly appreciated.
 
With best wishes,

Jagat Shah
Mentor – Cluster Pulse

Mobile : 99471-33779