What SME's Should Learn From Copenhagen

What Small And Medium Businesses Should Learn From Copenhagen

21/12/09

By Sofia Sadiq, Businesslink.gov.uk

Small and medium sized businesses need to work more closely with big business to help develop a global low carbon economy - this was the messages coming out of the Business Day Summit in Copenhagen. It was run in parallel to the UN Copenhagen Climate Change Conference on 11 December 2009 and organised by the World Business Council for Sustainable Development and the International Chamber of Commerce, together with the Confederation of Danish Industry.

In the packed headquarters of the Confederation of Danish Industry, businesses from all over Europe, Asia and Africa identified the need for a collaborative approach to creating a low carbon future - a future in which business helps government to build a framework for change, without excessive legislation.

Many businesses called for government to set low-carbon economy goals for the business community. Government was seen as important in shaping public policy and creating the right financial incentives for businesses to invest in cleaner technologies.

Business Day featured over 40 speakers and more than 400 participants and those present had a range of demands, from the overarching to the extremely niche. But the key issue for most was agreeing a global carbon trading policy, which President Obama is trying to push through the Senate, but developing countries have so far resisted.

While establishing a CO2 pricing regulation was a key aim of the discussions, there was also recognition of the immediate need for businesses to be more progressive and start thinking about low-carbon ways of doing businesses. One suggestion was that multinationals need to be working with SMEs more at a local level, and there needs to be greater dialogue with the public and private sectors to create new public private partnerships.

Business people present also agreed that the key to tackling ...global warming is having global commitment to solve it, and business should be at the forefront of this education. Similarly, they agreed that consumers are key in forging a greener world and that industry needs to adapt and innovate to bring greener goods to market faster and at competitive prices.

"Ultimately, Business Day agreed that all businesses, whether large or small, should be working together with government to help drive change. Businesses can take the initiative by building on their expertise to become hubs of new technology, activity and knowledge," said Sofia Sadiq, Environment & Efficiency Theme Leader at businesslink.gov.uk.

The Business Link website is supporting the Government's Act on Co2penhagen promotion, and has information and links to material at www.businesslink.gov.uk/climatechange. There is a wealth of information, advice and guidance available at www.businesslink.gov.uk/environment, including developing an environmental strategy and plan, managing waste and preventing pollution, using resources efficiently, and it there is environmental guidance per business sector. The site also has a new top ten tips section to help businesses save money and increase efficiency.

MSME Expo 2009 - India Launches the Year of the Natural Fibre

17 November 2009 

The MSME Expo-2009 organized by the Development Commissioner (MSME) at the 29th India International Trade Fair, was inaugurated by Shri Dinsha Patel, Minister of State (Independent Charge) for MSME at Pragati Maidan here today. Shri Dinesh Rai, Secretary, Ministry of Micro, Small and Medium Enterprises was also present on the occasion.

Shri Dinsha Patel also inaugurated the Coir Board pavilion in-keeping with the International Year for Natural Fibre, the Coir Board is displaying geo textiles in its seven stalls, in addition to various other coir products.

Going around the Pavillion the Minister praised the exhibits and the work done by the clusters. He said that the need is to make special efforts to publicize the activities and schemes to create greater awareness and to reach out to the villages and bring economic prosperity and social upliftment of the rural masses.

The MSME Expo-2009 will help the SMEs to showcase their achievements in the global market. This Expo will also provide opportunities and fora for those SMEs who want to build up business linkages. The SME exhibitors gathered in New Delhi from different parts of the country have built up more than 85 stalls. The products range includes consumer electrical & electronic goods, engineering products, readymade & embroidery items, soft toys, health care, cosmetic and health products, food and allied products, carpets, shawls, home furnishings and made ups, handicrafts and decorative items, gems and jewellery, cotton and silk sarees, plastic household items, handbook printing, jute products, pressure cooker and aluminum utensils, leather bag, fancy bag, Jaipuri rajai, Kashmiri craft.

Around 100 MSME entrepreneurs displayed their products in the areas of innovation, quality and R & D. At the Expo Stalls are earmarked for women, SC/ST and entrepreneurs from North Eastern Region. The entrepreneurs are provided stall space and other facilities at subsidized rates.

Participation was invited from across the country. This year, the representation is largely from Andhra Pradesh, Uttar Pradesh, Delhi, Bihar, Rajasthan, Gujarat, West Bengal, Jammu & Kashmir, Haryana and Punjab.

The objective of the exhibition is the recognition of micro and small-scale units by showcasing the technology adopted by them in manufacturing items and also MSME EXPO is to provide a suitable platform/place at reasonable cost to micro and small scale entrepreneurs to showcase their products and technology and according generate business including export orders. The MSMEs display their innovated and qualitative products, which are widely appreciated by the visitors and buyers. They get every year million of rupees business from local as well as from overseas business houses/units. This exhibition has been widely appreciated by associations, MSMEs, NGOs and other similar organization.

Coconut makes a stylish doormat

Portland, Maine, designer Angela Adams is known for beautiful midcentury-style wool rugs and custom-tufted carpets with naturalistic floral, animal and landscape motifs. Her expensive New Zealand wool rugs are easy to clean but are unsuitable for the outdoors.

Her solution? Affordable coir doormats. Coir is a centuries-old fiber derived from the husk of coconuts that is immersed for seasoning in South Indian lagoons and sun-dried later to a rich reddish-brown color.

"Coir has a vintage quality," Adams says, recalling the ubiquitous large mats outside dime stores of yesteryear. Those thick, earthy mats of woven coir handled a lot of foot traffic and were tough enough for sun, rain, snow and mud.

While Adams admires coir's virtues, she also likes to mitigate its organic rawness with stylized beach rock and flower patterns called Munjoy and Lulu.

"It is nice to liven a natural material like this with a modern graphic stenciled-on with a water-based nonacrylic ink," Adams says. "Of course, because it is natural, the dye on my mats will fade over time, but not quickly."

"This ensures that fibers won't fall off as easily as they did in old-fashioned mats," Adams says, pointing to another practical advantage of the thinner, stronger design. "When you try to open doors, they won't get stuck on the mat."

At a glance

Expert opinion: Natural coconut husk coir fits garden settings better than plastic mats, Angela Adams says. "We are trying to find a non-PVC backing to make it fully compostable."

Pros: Because coir is a natural material, it has variations in color and texture that make each doormat seem unique. Coir is long lasting and with the backing, the factory-made mats shed fewer fibers. To clean them, all it takes is a good shaking.

Cons: The mats soak up a lot of water when they get wet and might take a day or two to dry out.

Manitoba, Canada Trade Offices Open Throughout India

September 22, 2009

Manitoba Trade Offices Open Throughout India

 

The Province of Manitoba in Canada now has an extended arm in India, centered in the entrepreneurship city of Ahmedabad! 

 

Manitoba Trade and Investment, Department of Competitiveness, Training and Trade, is pleased to announce that Global Network International has been appointed as Manitoba's Representative of Trade and Investment in India.

 

Global Network is an international trade consulting firm with head office in Ahmedabad, Gujarat and branch offices in Delhi, Mumbai, Hyderabad, Bangalore, Jamshedpur, Alleppey, Ichalkaranji, Surat & Rajkot. The firm has an extensive trade background, including projects for UNIDO, USAID, GTZ, The Commonwealth Secretariat, the U.S. Government, Government of Oman, Government of Brunei and several Ministries of the Government of India. Global Network's experience has involved leading 79 trade missions, hosting 34 international trade delegations and conducting 245 international trade related conferences & seminars. 

 

Manitoba Trade has worked with Global Network on numerous projects since 2005.  In this new capacity as Representative for the Province of Manitoba, Global Network now has a continual working relationship to assist Manitoba companies with key intelligence on doing business with India, market research to aid entering Indian markets, facilitating business meetings for Manitoba trade delegations to India and taking Indian trade delegations to Manitoba. They will advise Indian companies on various aspects of Manitoba, Canada - investing, trade information, business opportunities, trade agreements with Canada, development cooperation and science & technology resources in Manitoba.

 

 

Ford Motor Studies Kenaf and Coir for Plastics Reinforcement

September 11, 2009

You don't often think of glass reinforcement as an issue when it comes green engineering. But engineers at Ford Motor Company are taking a different tack.

Dr. Deborah Mielewski, who heads plastics research at Ford, is studying several different plant materials as a substitute for glass as reinforcement in plastics. One of the big payoffs is a 30 percent weight reduction. The other issue, she says, is that glass fiber is a very energy-intensive process. Mielewski's six-woman engineering group is taking a close look at kenaf, hemp, coconut fibre ( COIR ), and wheat straw.

 

 

Science council in Kerala to establish patent information centre

The Kerala State Council for Science, Technology and Environment (KSCSTE) is preparing to establish a patent information centre for small industries as part of plans to help them improve the marketability of their products and boost brand value.

The centre for micro, small and medium enterprises will guide industrial units in protecting their intellectual properties and facilitate filing of applications for patents and copyrights and registration of designs, trademarks and geographical indications.

The project, funded by the Ministry of Micro, Small and Medium Enterprises (MSME), will identify MSME clusters and assess their intellectual property (IP) needs.

KSCSTE executive vice president E.P. Yesodharan said the project was designed to help the largely unorganised small industries sector overcome the marketing problems.

He said it would be discussed with officials of the Industries Department and District Industrial Centres next month. The MSME clusters would be identified at the meeting and a steering committee constituted for the supervision of the IP facilitation centre. A sum of Rs. 42 lakh was earmarked for the project.

The centre would conduct training programmes on the significance of protecting IP and help the clusters obtain rights on their products. It would also provide legal, technical, legal and financial assistance to small industries.

In the initial phase of the project, the KSCSTE would identify five different industrial clusters from various sectors and organise sensitisation programmes for the groups to create better awareness about IPR. Government departments, universities and industries would be roped in for the sensitisation programme.

The centre would collaborate with the Technology Information, Forecasting and Assessment Council (TIFAC) under the Department of Science and Technology to process the applications filed by the clusters for patents, designs, trademarks and geographical indications.

Principal Scientific Officer of KSCSTE Ajith Prabhu said the proposed IPR centre would offer support to the industrial sector in the crucial area of IPR and improve the marketability of their products.

"Many of the products manufactured in Kerala, such as chips and toys to the Beypore dhow and Aranmula mirror, lack brand value. Helping the manufacturers obtain rights for their products will enable the small industries sector to overcome this problem".

The council already has a Patent Information Centre (PIC) functioning under it. It provides technical, legal and financial support for students, research scholars, scientist, technocrats, professionals, industrialists and grass root innovators in searching patent databases and filing patents.

 

News for MSME's

Blow for small enterprises as reservation goes

In a blow to micro and small enterprises (MSEs), the government on Friday permitted big companies to foray into the remaining 21 items reserved for the exclusive manufacture by the small and micro industries.

The only conditions slapped on the industrial houses for manufacturing these items -- including pickles and aluminium utensils -- are that they will have to obtain the industrial licence and export a minimum of half of the annual production within maximum three years.

A notification (Press Note No 6 of 2009) issued by a Joint Secretary of the Department of Industrial Policy and Promotion says the licensing for the manufacture of the items reserved for micro and small enterprises will be mandatory, with or without foreign direct investment.

The industrial undertaking will have to also secure prior approval of Foreign Investment Permission Board if the foreign investment is more than 24 per cent in the equity capital.

These industries will now be guided like other large enterprises as far as FDI is concerned.

"The present policy on FDI in MSE permits FDI subject only to the sectoral equity caps, entry routes and other relevant regulations," according to Press Note 6 issued by the Department of Industrial Policy and Promotion.

However, if non-medium and small enterprises manufacture any of the 21 items, including pickles, aluminium utensils, reserved for MSEs, any FDI above 24 per cent will require the Foreign Investment Promotion Board's approval.

The new note replaces press note 18 of 1997 which stipulated that for foreign collaboration, maximum equity participation for small scale units was 24 per cent.

There are about 2.61 crore (26.1 million) ) units in the MSME sector employing 5.97 crore (59.7 million) people.

The micro and small entrepreneurs earlier used to enjoy reservation of 114 items that the bigger enterprises cannot manufacture, but the enactment of the Act saw their number falling to 21 and even that little reservation gets wiped out with the latest notification.

The official reason to the phased deletion of products from the list of items reserved for the exclusive manufacture by the micro and small enterprise is that it will facilitate investments for technological upgradation and higher productivity.

The enterprises having plant and machinery of less than Rs 25 lakh (Rs 2.5 million) are treated as micro enterprises and those with investment up to Rs 5 crore (Rs 50 billion) are small enterprises.

 

Make export-oriented coir industry competitive: Chairman

Make export-oriented coir industry competitive: Chairman

PTI

Tuesday, August 04th, 2009 AT 1:08 PM

 

KOCHI: Coir Board Chairman V S Vijayaraghavan has called upon the export-oriented coir industry to make use of the financial and technological support being extended by the Union Ministry of MSME to remain competitive in the global market.

He was speaking after inaugurating the third Business Development Services (BDS) training programme of Alappuzha Coir cluster here.

The World Bank DFID aided four-year project, 2007-11, being implemented by the Small Industries Development Bank of India (SIDBI) was aimed at enhancing the competitiveness and business development of the Micro, Small and Medium Enterprises (MSME) of the industry in areas including management, development, training, domestic marketing and ISO certification, he said.

The BDS project implemented by Cluster Pulse, a non-profit NGO, has so far conducted 50 awareness seminars and workshops for MSMEs on ISO certification, e-marketing, export management development and Intellectual Property Rights.

Utilise Central aid, coir industry told in BDS program

Utilise Central aid, coir industry told

Express News Service

First Published : 04 Aug 2009 02:05:00 AM IST

Last Updated : 04 Aug 2009 11:24:34 AM IST

 

ALAPPUZHA: COIR Board chairman and ex-MP V S Vijayaraghavan has called upon the exportoriented coir industry to make use of the financial and technological support being extended to them by the Union Ministry of Micro, Small and Medium enterprises (MSME) to remain competitive in the global market.

He was inaugurating the third Business Development Services (BDS) training programme of the Alappuzha Coir Cluster here on Monday. "World Bank-DFID aided four-year project(2007-2011) being implemented by the Small Industries Development Bank of India (SIDBI) was aimed at enhancing the competitiveness and business development of the Micro, Small and Medium enterprises (MSMEs) in areas like management development training, domestic marketing and ISO certification," he said.

He promised all support of the board for technology upgrading and product diversification of the labour intensive coir industry for market expansion, both in domestic and overseas sectors, as well as for employment generation.

The three-year-old BDS project implemented by Cluster Pulse, a non-profit NGO, has so far provided 50 awareness seminars and workshops for MSMEs in ISO certification, e-marketing, export management development and Intellectual Property Rights besides extending short term courses on computer education and management development for small scale societies jointly with the Alleppey Coir Cluster Development Society (ACCDS).

Its activities also include generating greater awareness and stimulating demand for natural fibre during the International Year of Natural Fibre- 2009. It has worked in 78 clusters spread over various countries like India, South Africa, Switzerland, Sweden, Canada, USA and UK in association with global funding agencies like the World Bank, UNIDO, USAID and ILO.

Cluster Pulse general manager Mignesh Parekh spoke on the scope and opportunities as a BDS provider. The training programme, attended by 36 BDS providers, also included brainstorming on Coir Domestic marketing, and business audit and group discussion on various topics.

 

 

Going green with natural fibres

The possibilities for natural fibres have expanded beyond traditional fabrics into applications no one ever imagined.

And the United Nations has 'caught the wave. Following on last year's worldwide celebration of the potato, the international body declared 2009 as International Year of Natural Fibres.

It has given a boost to research efforts which include work now being done at the Agriculture and Agri-Food Canada (AAFC) station in Morden.

Rising oil costs, greater awareness of the environment and advances in science and technology have combined to create an exploding market for enviro-friendly fibres.

Natural Fibres Year will help promote the sustainability, desirability and utility of natural fibres and encourage international partnerships for research and trade among natural fibres interest groups.

This spring, AAFC announced more than $9.6 million in funding for creation of the Natural Fibres for the Green Economy Network (NAFGEN) under the Agricultural Bioproducts Innovation Program.

NAFGEN is a multidisciplinary network developing value-added markets for flax and hemp fibres. It brings together Canada's top researchers, industry and producers to breed better varieties and solve problems with harvesting, processing, storage, transportation and grading.

The network will also develop technologies to convert fibre and associated residue into a range of new industrial products and chemicals. The end result will be new markets for farmers growing these crops.

Along with Natural Resources Canada and the National Research Council, AAFC will work in support of the network. NAFGEN is led by Flax Canada 2015, which represents the flax industry's interests here, and includes several other academia and industry partners.

 

AAFC scientists are playing key roles on the flax research side.

Dr. Scott Duguid and his team from the Morden research station will identify and characterize genes and genetic mechanisms involved in the production of fibre yield in flax.

"The new information we glean will translate into flax bred with higher fibre yield and seed yield," said Duguid.

He is also spearheading the development of crop management practices to enhance flax fibre production.

"Our team will be looking at the effects of seeding date, seeding rate, nitrogen application and fungicide use on fibre yield," explained Duguid.

Meanwhile, Mark Stumborg from the Semiarid Prairie Agricultural Research Centre in Swift Current, Saskatchewan, is leading the evaluation and development of systems and equipment for harvesting and curing flax.

"Our study will improve the quality, quantity and value of natural fibres and co-products in flax production," said Stumborg.

And in Summerland, British Columbia, Dr. Joe Mazza and his team from the Pacific Agri-Food Research Centre will investigate and develop new conversion technologies used in natural fibre-based biorefineries.

"We're working on cost-competitive green technologies that will extract and convert flax straw and shives into two streams – distinctive materials and compounds for further processing," explained Mazza.

Flax shives are the woody residue left after fibres are removed from straw. They yield 2.5 tonnes per tonne of fibre produced. The massive amounts of flax shives available worldwide could turn an effective processing method for this material into economic gold.

Except for a few niche markets, flax and hemp are currently underutilized in the natural fibres industry. However, the possibilities for end use are virtually limitless: from plastic composites (replacing fibreglass in car panels and sewage pipes) to geotextiles for use in horticulture (serving as a mulch or weed barrier) and in construction (reducing levels of dust and erosion).

Can patent really protect - SMEs still not aware

 

Indian SMEs (Small and Medium Enterprises) are still not aware about the dos and don'ts of Intellectual Property Rights (IPR) & Patent. SMEs must know that how imperative is IPR and Patent are for their business health.

The only way to really protect your product or idea, other than keeping it a secret, is to obtain a patent. There really isn't any other way to do it. None of the other IP rights, copyright and trademark, protect the underlying ideas, only expressions of the idea (in the case of copyright) or only that part used to identify a product or service in commerce (trademark).

"From SMEs' point of view, patent is still a gray area and so SMEs are needed to be sensitized," said NN Prasad, Joint Secretary, Department of Industrial Policy and Promotion, Ministry of Commerce and industry, during a seminar on IPR in New Delhi.

"As we all know that, necessity is the mother of invention. Mother is the invention of need. Media reports that invention intensely is much larger in SMEs than the big companies. So, no matter whether a company is big or small, good ideas are needed to be protected," said Madhav Lal, Additional Secretory and Development Commissioner of MSME.

"SMEs are not using patent as an IP tool because of lack of resources and reliability," he added.

If an organization or individual does not get the patent rights over his product/ services and introduces his product/ process based on his invention in the market, anybody can copy his invention and exploit it commercially. To debar others from using, selling or working out his product/ services (invention), the inventor must go for getting a patent.

A patent is an exclusive monopoly granted by the government to an inventor over his invention for limited period of time. An inventor or any other person/ company assigned by the inventor can obtain the patent over his invention. A patent is obtained by the inventor or his assignee by filing an application with the patent office in the stipulated forms as required by the patent act of that country.

A patent is valid for 20 years from the filing date of the patent (or earliest effective filing date if the particular patent is a continuation or CIP or divisional patent).

"IPR gives SMEs the essential lifeline," said Gopi Kumar Bulusu, CEO, Sankhya Technologies Private Limited.

"Piracy of software is also a big issue before the Indian IT industry and IP laws can play a vital role in the protection of these software but still SMEs don't care due to the major factor of nonavailability of liquidity. There are almost 34,000 IT companies in India and 80 percent of these IT companies are SMEs," said Keshav Dhakad, Chairman, BSA India Committee.

"Another way to protect your product is by making the recipe, formula, practice, process, design, instrument, pattern of your product a trade secret. SMEs should look at trade secret method," said T.R. Rao, Director, Sustainable Technologies & Environmental Projects Pvt. Ltd.

One can divulge a secret to a company under a nondisclosure agreement, but this doesn't protect the idea, it can still be stolen, it just creates a contractual remedy if the idea is stolen. And it certainly doesn't protect you if someone else comes up with the same idea (or nearly the same idea) on their own, only a patent can do that.

A secret can be kept secret forever, as long as it can be kept secret. In case if somebody get the same idea or formula of your product/ services and make it patent then he will get more protection from the law. Although the patent law is not uniform globally, Indian IP law is the strictest in the world.

According to the Patents (Amendment) Act 2005, which was passed by the Parliament and came into force on April 20, 1972 along with Patent Rules 1972, patent system in India is administered under the superintendence of the Controller General of Patents, Designs, Trademarks and Geographical Indications.

Infringement of a patent is the violation of the exclusive rights of the patentee. Determination of infringement depends on the scope of exclusive rights of the patentee, whether the infringer's acts amount to making, using, selling or distributing a product or using a method and if in fact the acts amount to an infringement. The burden of proof is on the patent owner for proving infringement.

"Copying is stealing. It's important that companies are educated about the advantages of patenting their technology," Dominic Keating, secretary for intellectual property (IP) told to a news agency.

"This is a very good time for Indian companies to apply for patents," he said.

Small and medium enterprises (SMEs) should also come forward to protect their inventions and technologies through the patent system. "It gives them a competitive edge and it's the way to the future," Keating said.

Arpinder Singh, executive director of global consulting firm KPMG, shared similar views: "Awareness needs to be created about the patenting advantages. Companies, especially SMEs, should monetise this opportunity."

He added that the government should step in and create an IP (intellectual property) section to help the SME sector, as small enterprises may find its difficult to raise enough funds to apply for patents.

According to Deepak Maheshwari, Microsoft director (legal and corporate affairs), patent ensures more transparency and healthy competition.

"Patent brings in efficiency, consistency and self-check. It encourages healthy competition and overall growth," Maheshwari said.

File a patent application before any disclosure to anyone else. This provides the best protections (longest patent term, etc.), but requires that the patent application be drafted and filed up front, before you learn if anyone is interested in your idea.

"The Patents Act 2005 is very big to explain but to beat these challenges SMEs need to be more IPR savvy and need to invest more in R&D. SMEs are required to set aside their budget for IP protection. We can also encourage inventions among the employees by rewarding them," said Dhakad.

 

Source : http://smetimes.tradeindia.com/smetimes/news/top-stories/2009/May/01/can-patent-really-protect-smes-still-not-aware6078.html

Coir exports surge despite slowdown, Re appreciation

Coir products export from India touched an all-time high in quantity and exports during 2008-09 despite rupee appreciation during early part of the year and the economic slowdown.

The provisional figures of the Coir Board for the year show coir product export at 1,89,858 tonnes valued at Rs 623.80 crore. The coir exports crossed Rs 600 crore mark for the first time in 2006-07 reaching Rs 605 crore. But it fell to Rs 592.88 crore in the subsequent year.

According to Coir Board export promotion advisor A.V.Ramanathan, though rupee devaluation in the last few months had a hand in boosting the exports, the overall performance was good with penetration into several new countries in South America and Asia.

As a result of the economic downturn, the share of the US in Indian coir exports slid to 31 % from almost 40 %. The other major buyer Europe, however, remained more or less stable at 38 %, Ramanathan said.

The products that recorded maximum growth were coir pith, rubberized coir and coir fibre. The bread and butter item coir mats registered a 4 % rise in value at 69,261 tonnes valued at Rs 458.59 crore.

Interestingly, almost half the quantity of coir products export during the year came from coir pith, which has been showing a consistent rise in the last few years.

Coir pith at 93,479 tonnes valued at Rs 80.93 crore recorded a 12% rise in quantity and 27% rise in value.

Despite efforts of Coir Board, there was only marginal improvement in the performance of coir geotextiles. Around 3241 tonnes of geotextiles worth Rs 15.57 crore was exported with just 8 % increase in value. Several other products like coir yarn, mats, curled coir, rugs and carpets etc saw negative growth.

Role of BDS providers in the current crisis !

Role of BDS providers in the current crisis

BDS = Business development services

 

This article deals with the contributions that BDS providers can make in the current economic crisis.

 

1.      The Global Crisis

The current economic crisis is not just the crisis of one national economy, like that of Japan in the 1990. Nor is it only that of a particular religion, such as the Asian currency crisis of 1997. This is a global crisis. However, there are different levels of severity in the crisis. Some national and regional economies are more affected than others. There are three conceptual terms to describe these.

 

i.         The US is in the deepest crisis. Some fear it may be a Depression, like that of the 1930s, which could last for several years.

ii.       Europe and Japan are experiencing a Recession, which could end in about two years.

iii.      China, India and other Emerging Market economies are in a Downturn.  They are still growing, but at a lower rate than in the

       last few years. India's growth which had reached a peak of 9% may be 7% in FY 09 and 6% in FY 10.

 

2.      The Indian Downturn

A fall of 2 to 3 % in GDP growth is still a serious problem for a populous, developing economy like India.

 

a.      Within the GDP, industrial growth has been particularly hit. The IIP which had been as high as 12% has come down to 3%. Many factories are closing; suspending operations; reducing shifts etc.

b.      5 lacs jobs have been lost so far. The number could go up to 5 millions (50 lacs).

c.      Export industries like IT, Textiles, Gems etc. have been hit hard.

 

3.      Government Stimulus

Most governments in the world are taking steps to cope with the crisis, reverse the economic decline; and resume growth. The attention is shifting temporarily from the monetarist economics of Milton Friedman to the welfare economics of J M Keynes. Both the central banks and finance Ministries are taking steps in their respective areas, monetary and fiscal. In India, the RBI has been using its two main weapons.

 

i.         Reducing the interest rate.

ii.       Increasing liquidity.

The MoF of the GoI has provided two fiscal stimulus packages, including cuts in some excise duties, and increased spending on infrastructure and social needs of health; education; relief etc. A recovery is expected in late 09 or early 2010. However, India may not return to high growth path until the US recovers.

4.      Corporate Survival

Since the reforms of 1990, especially Liberalisation and Globalisation, the very survival and continuity has become a relevant corporate objective. In the earlier license-permit raj, survival was almost guaranteed, unless a corrupt or incompetent promoter or management deliberately ran into the ground. After ensuring survival, one can pursue the other objective of growth; profitability; and image. There is no permanent, or universal, ranking of these four corporate objectives. But, in the downturn, they may be ranked, as follows :

 

i.         Survival

ii.       Growth

iii.      Image

iv.    Profitability

 

5.      Using BDS providers for Survival

BDS providers can help firms survive through the following kinds of services & advise :

a.      Focus on cash flow. Within prudent limits, increase and accelerate the inflow; and reduce and defer the outflow.

b.      Cut costs, in the entire value chain, wherever possible, without eroding value for customer, for a given price Materials; Personnel; overheads.

c.      Postpone, but not necessarily cancel, capital expenditure and discretionary spending such as on some of the advertising; research; training etc.

d.      Conserve cash.

 

6.      Using BDS providers for Growth

The Indian economy is expected to grow at 6% plus, in FY 2009-10. Industrial growth will, naturally be higher at, say, 8% or more. Some sectors could grow even faster, such as FMCG, Telecoms, Pharma, Banking etc. BDS providers may advise clients, as follows :

 

a.      Avoid price increases in current products, even if some input costs rise.

b.      Absorb part or all of the cost increases through innovations for productivity and cost reduction.

c.       Go for lower unit margin, higher volume strategy.

d.      Adopt marginal cost-based, contribution pricing. On that basis, consider reducing prices on current products.

e.      For a mass market, introduce products with fever, but essential features, at proportionately lower prices. 

f.        For a smaller class segment, introduce better products, with a modest increase in price.

 

7.      Using BDS providers for Image

Maintaining, and even improving the comapny image of the firm, can pay dividends, when the economic recovery comes.

 

i.        Continue to give priority to customer satisfaction. Don't dilute the product quality and service.

ii.       Minimise any abrupt retrenchment of employees.

iii.      Go for selective removal of chronic under-performers and misfits, due to attitudes and behaviours.

iv.     Similarly, avoid abruptly stopping all CSR activities. Continue to do as much as possible. Focus on those, with quicker benefits

      and more beneficiaries.

v.       Continue with legal and regulatory compliance and good corporate governance.

 

8.      Using BDS providers for Profitability

      Profits are, of course, important. But, go for relative profitability, taking into account the inevitable impact of the downturn on the sector and competition.

 

a.      In case of severe impact, try to ensure breakeven.

b.      Even in case of losses, prepare and implement a plan for quick turnaround.

c.      If making profits, try to aim for Rol in the top or third quartile of the firms in the sector.

d.      Raise Rol, by controlling investments and costs; and better utilization of all existing resources.

e.      Go for a longer term average high, relative profitability, taking the good and bad years together.

 

9.      Conclusion

The above all illustrative suggestions on how BDS providers can contribute. Obviously, they can not all be applied in each situation. The BDS provider has to work with the client on a joint diagnosis of the specific context, and apply the relevant interventions.  We at SIDBI alappuzha BDS project have developed a panel of such BDS providers as well as business audit tools. 

Friends in the coir sector, if you are interested in any of these services, kindly write an mail " interested " to : info@alappuzabds.com & we shall contact you for next steps.

regards & best wishes for happy Vishu,

 

Jagat Shah & team

www.alappuzhabds.com  

BDS = Business development services

 

 

Custom Entrance Mats That Are Environmentally Friendly

PRLog (Press Release) – Feb 14, 2009 –

Custom Entrance mats made of coco fiber are back. In today's world where more people are looking at products that will save our planet all the synthetic mats in front of stores are having a negative impact on the environmentally conscious consumer.

 

Coco mats were really popular back when I was a kid growing up in San Francisco.  You would see it everywhere from your front door to the floor mats used in all the luxury cars.  It lost some popularity with the advent of synthetic material like nylon and polypropylene.  But have you ever wondered what happens to all those custom entrance mats that you see in front of all those stores and hotels that you visit.  It sure looks pretty but after they get worn out by foot traffic these mats are replaced with new ones every year and the old mats end up in a landfill.  

 

In 2008, 20 million tons of these polymers were discarded to landfills.  Efforts to ban polymers from landfills has become a losing cause.  The only way to reduce the amount of waste is if we as consumers educate these establishments that are purchasing and then discarding these products without any idea of the impact.  These establishments need to switch to environmentally friendly mats made of coir fiber that are 100% natural and bio-degradable.  

 

Coir is a type of fiber that is extracted from the husk of the coconut.  The fibrous husks are beaten to separate out the long fibres and then spun into yarn.  The yarn is then woven or bonded to a recycled rubber backing to produce coir mats or coco mats.  The advantage of using coir in doormats is that it is extremely functional.  It scrapes the dirt of your shoe soles like no other product out there and requires very little maintenance.  If it gets dirty, simply lift it up and beat it down or hose it off and you are back in business.

 

Doing a little bit of research online (searched for the words 'coco mats' and 'custom logo coco doormats'), I was able to find several online stores that provided a variety of custom doormats made of coir fiber - http://www.cocomatsnmore.com and http://www.customlogodoormats.com seemed to be the most popular and had the lowest prices. These two sites had a variety of plain and pre-designed coco mats in all shapes and sizes. Some of their coco mats were as large as 40 ft long!  They even had the ability to create custom doormats by dyeing your artwork onto the coir mats in almost any size that you wanted.  

 

I have always been a big fan of the plain, old fashioned coco mat and I hope they come back in style for the sake of our planet.  For all those people considering custom doormats for your storefront - take a look at the coco mat and avoid those synthetic mats.  You might even save yourself some money by doing so!

 

India likely to get more coir export orders from US

14 Feb 2009, 1918 hrs IST, PTI

India likely to get more coir export orders from US

 

KOCHI: India's participation at the ongoing International Erosion Control Association (IECA) conference and its connected exhibition at Reno 

Navada, US, is likely to attract more export orders from US and IECA member countries, according to Coir Board Chairman V S Vijayaraghavan.

 

The growing global awareness on the need to use natural fibre products was bound to find increasing demand for environment-friendly products like coir geotextiles for various applications especially in erosion control, storm water management, natural resource protection, ground and roof cover, cycle path and for restoration of vegetation in arid and rocky lands, a board release quoting Vijayaraghavan, who is attending the conference, said.

 

Field trials conducted in India had established the durablity of geotextiles in various end uses like road and embankment protection in rural areas. Its low cost applications also made coir products more popular, he said.

 

Being held in the context of the International Year of Natural Fibre, the IECA conference assumed importance as India was aiming at increasing its geotextile product exports from the existing two per cent to 5-10 per cent at the prevailing 1,400 million square metre US market in the coming years.

 

The IECA is represented by about 3,500 members, including its Indian chapter. India's competitiors in this field included Sri Lanka, Philippines, Vietnam, Korea and China.

 

Coir Research Institute Director, Dr U S Sarma, accompanying Vijayaraghavan, made a technical presentation on 'Coir based Soil Less Natural Grass Instant lawn.

 

The chairman would also be participating in the four-day CAFLEX 2009 fair in Moscow from Feb. 09 

 

2009 : International Year of Natural Fibres

Report appeared in Mathrubhumi daily dt.13.1.09(Supplement Issue).

 

  

Year 2009 is declared as : International Year of Natural Fibres

 

 

Inter national Year of Natural Fibres

 

The year 2009 is also the year of Natural fibres. The United Nations aims the eradication of poverty by promoting this area which is the main earnings of the crores of agriculturists throughout the world. The natural fibre can be classified into three according to their origin.

a)      Plant origin:  Originated from the seeds like cotton, from the leaves like Egavi, from skin like plantain and soybeans, from nuts like coir and from stem like bamboo

b)      Animal origin: Originated from skin like sheep and from discharges like silk

c)      Mineral origin: Like asbestos (the only direct natural fibre of mineral origin), from ceramic fibres like glass and silicon carbide and from ores like aluminum.

 

 

Coir exports rise

Coir exports for the first nine-months in 2007/08 fiscal year rose by 6 percent in value and 1.25 percent in volume, according to the Coir Shippers Council.

Technology to separate coir fibre developed

THIRUVANANTHAPURAM:  In what could be termed as a blessing to the ailing coir sector of the state, the scientists at the National Institute for Interdisciplinary Sciences and Technology (NIIST) have developed an environment-friendly and pollution-free technology to separate coir fibre.

 The innovative technology, that has many advantages over the traditional retting methods, is awaiting an international patent. ``While all the current alternatives to coir retting affects the quality of the fibre and thus its spinnability, the new technology generates high-quality white fibre in a very short time,'' said V.B.Manilal, scientist at the environment technology division of NIIST. The other scientists in the team include Ajit Haridas and B.Krishnakumar.

 The pilot plant set up at the NIIST has a cleaner, a crusher, where the husks are given a slight mechanical crush, and an anaerobic reactor. Inside the reactor, the cementing materials between the fibres are degraded. The phenolic compounds in the husk, which are the sources of pollution in traditional retting, is converted to volatile fatty acids such as acetic acid. This is then converted to methane by a battery of bacteria.

 The novel bioprocess needs just about one month, as against the 6-12 months in traditional methods, and is free of pollution as the pollutants are converted to biogas. As much as 50 litres of biogas is generated for one kilogram of coconut husks, the production being much higher than using cow dung.

 ``The smooth surface property, as can be seen with the electron microscope, and the improved flexibility are the special qualities of these bioextracted fibres. This quality is essential for high-end applications in the international market,'' said Manilal. The bioextraction process is also applicable for separating fibres of pineapple, jute and even banana too, where the extraction time is much less. The jute fibre obtained by this clean method is better in terms of colour and bark residues too. In this method, the whole process is carried out within plantations and no water body is required for retting. This means that water bodies can be released for a number of other uses such as fisheries and tourism industry can heave a sigh of relief. The other advantages include zero discharge, no hazardous labour, no air pollution, reduction of process period to 30 days, and a clean pith as a by-product.

 Using this technology, the projected figure of white fibre production per year is 1.2 lakh tonne from 15 lakh tonne husks. Once this technology gains currency, you won't have to clutch your nose anymore when you travel by the coastal areas of Kollam and Alappuzha.