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Presentation on

SIDBI & SIDC


Presented by:Nageshwar Mishra Monlisha acharya

SIDBI stands for Small Industries Development Bank of India An independent financial institution aimed to aid the growth and development of micro, small and medium scale enterprises in India Set up in 1990 through an act of parliament, it was incorporated initially as a wholly owned subsidiary of Industrial Development Bank of India

SIDBI retained its position in the top 30 Development Banks of the World in the latest ranking of The Banker, London. As per the May 2001 issue of The Banker, London, SIDBI ranked 25th both in terms of Capital and Assets .

Mission: To empower the Micro, Small and Medium Enterprises (MSME) sector with a view to contributing to the process of economic growth, employment generation and balanced regional development. Vision: To emerge as a single window for meeting the financial and developmental needs of the small scale sector to make it strong, vibrant and globally competitive, to position SIDBI Brand as the preferred and customer friendly institution and for enhancement of share - holder wealth and highest corporate values through modern technology platform.

Financing Promotion Development Co-ordination

The entire issued capital of Rs.450 Crore has been divided into 45 Crore shares of Rs.10 each. Of the total Rs.450 Crore subscribed by IDBI, while setting up of SIDBI, 19.21% has been retained by it and balance 80.79% has been transferred / divested in favour of banks / institutions / insurance companies owned and controlled by the Central Government.

Shri B. Manivannan (Nominee of Life Insurance Corporation of India) Shri Vikas Raj (Nominated by Government of India) Shri Prakash Bakliwal (Nominated by Government of India) Shri M. Balachandran (Co-opted Director) Shri Janki Ballabh (Co-opted Director) Shri S.K. Tuteja (Co-opted Director) Shri P.A. Sethi (Co-opted Director)

Shri Vikas Raj

(Nominated by Government of India) Shri Prakash Bakliwal (Nominated by Government of India) Shri M. Balachandran (Co-opted Director) Shri Janki Ballabh (Co-opted Director) Shri S.K. Tuteja (Co-opted Director) Shri P.A. Sethi (Co-opted Director)

Expansion of small scale sector and increase its share in industrial output. Development of rural areas where more than 70% of the population resides. Increase the efficiency of SSIs. Increase the contribution of SSIs in export. More employment generation in rural areas of rural India.

The business domain of SIDBI consists of small scale industrial units, which contribute significantly to the national economy in terms of production, employment and exports. Small scale industries are the industrial units in which the investment in plant and machinery does not exceed Rs.10 million . About 3.1 million such units, employing 17.2 million persons account for a share of 36 per cent of India's exports and 40 per cent of industrial manufacture. In addition, SIDBI's assistance flows to the transport, health care and tourism sectors and also to the professional and self-employed persons setting up small-sized professional ventures.

SIDBI's financial assistance to small scale sector have three major dimensions: Indirect assistance to primary lending institutions (PLIs); Direct assistance to small units; and Development and Support Services

Small industries contributes more than 45% share in industrial production. Share in services is more than 65%.

80% share in employment generation.


More than 35% share in Indias export

Industrial sickness specially in small-scale Industry has been always a demerit for the Indian economy, because more and more industries like cotton, Jute, Sugar, Textile small steel and engineering industries are being affected by this sickness problem. As per an estimate 300 units in the medium and large scale sector were either closed or were on the stage of closing in the year 1976. About 10% of 4 lakhs unit were also reported to be ailing. And this position also remain same in the next decades. At the end of year 1986, the member of sick units in the portfolio of scheduled commercial banks stood at 1.47,740 involving an out standing bank credit of Rs. 4874 crores

Lack of Finance Bad Production Policies Marketing and Sickness Ineffective Corporate Management

Personnel Constraint Marketing Constraints Production Constraints Finance Constraints

Direct Financial Assistances Venture capital/development scheme Equipment Finance Scheme Integrated Infrastructural Development Scheme Project Finance Scheme Schemes related to Marketing of SSI's Product ISO 9000 Scheme Short term & long term loan schemes Direct Discounting of bill Pre & Post shipment financial assistance scheme Export bill financing scheme & so on

Refinance Assistance a) Composite loan scheme for cottage, Village & tiny Industries b) Scheme for women entrepreneurs Mahila Udyam Nidhi c) Scheme for ST/SC & Physically Challenged Other support through various institutions a) SFC's, SIDC, SSIDC, Bank to Intermediacies b) To leasing / hire purchase companies. c) To factoring companies d) To special corporate entities and institutions which are engaged in the business of development of SSIs

In conclusion we can say that the SIDBI, by the mode of refinancing, discounting and rediscounting as well as financial assistance through indirect functions regarding lending to primary institutions, through its direct assistance to small units and through its various developmental and supporting services, encouraging small scale sector in Rural India.

www.sidbi.com www.google.com

Thank You