Friday, May 23, 2014

BUSINESS OPPERTUNITIES


In the event of establishment of the bifurcated state of Andhra Pradesh there will be a good scope for services related to construction and infrastructure development sectors.The services include the fields of Civil,Mechanical,Electrical, ITES related fields.

There will be great demand for Building materials also.hence the building material industry will grow. Similarly Food processing sector, automobile sector also equally will have good scope.

Entrepreneurs may utilize this opportunity to set up new Ventures in the State
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Thursday, May 16, 2013

INTELLECTUAL PROPERTY RIGHTS & MSME SECTOR



INTELLECTUAL PROPERTY RIGHTS & MSME SECTOR

Introduction

The term Intellectual property (IP) refers to a number of distinct types of creations of the mind or the intellect in the industrial, scientific, literary, and artistic fields, exclusive rights for which are protected by legal instruments and in some cases granted by the Government. The legal instruments and exclusive rights provided by the Government differ in their subject matter, extent of protection, and field of application, reflecting society’s objective to balance the interests of creators and consumers for different types of intellectual works. Common types of intellectual property rights are industrial property and copy rights and  include patents, trademarks, industrial designs, geographical indications, copyrights and trade secrets/traditional knowledge.

Patents are legal titles granting the owner the exclusive right to make commercial use of an invention.  To qualify for patent protection, inventions must be new, non-obvious, and commercially applicable.  The term of protection is usually limited to 20 years, after which the invention moves into public domain.  The patent system is one of the oldest and most traditional forms of IPRs protection. Some countries have introduced utility models (or petty patents).  The novelty criteria for utility models are less stringent and are typically granted for small, incremental innovations.  Their term of protection is far shorter than for “regular” invention patents (typically four to seven years). This type of practice is not in practice in India. Similarly, industrial designs protect the ornamental features of consumer goods such as electronics, textiles, footwear, cars, etc.  To be eligible for protection, designs must be original or new.  They are generally conferred for a period of five to fifteen years and 10 years in India.

Trademarks are words, signs, or symbols that identify a certain product or company.  They seek to offer consumers the assurance of purchasing what they intend to purchase.  Trademarks are indefinite, provided they remain in use.  Use of trademarks is of high significance in certain consumer goods industries, such as electronics, FMCG and clothing.
Grant of Trade Mark is given for 10 years with renewals after every five years.  Similar to trademarks, geographical indications identify a product either Agricultural or Industrial. (e.g., Pochampalli Sarees, Banginapally mangoes or Kondapalli dolls,Coimbatore Wet grinders) with a certain city or region.

Copyright protects original works of authorship. Copyright protection differs from patent protection in that copyright only protects the expression of an intellectual creation, whereas the ideas or methods advanced in the title can be freely copied.  Copyright protection typically lasts for the life of the author plus 50 to 60 years.  It is applicable to literary, artistic, and scientific works.  During the past decade, copyright protection has also developed as the main form of protection for computer software.  Rights related to copyright—often referred to as neighboring rights—are accorded to phonogram producers, performers, and broadcasting organizations.  Limits to exclusive copyrights and neighboring rights exist in certain “fair use” exemptions, such as educational or library use or for purposes of criticism and scholarship.

Besides these traditional forms of IPRs, ongoing technological change and the unique characteristics of certain industries and products have led to additional, so-called sui generis forms of protection.  Layout designs for integrated circuits protect producers of semiconductors.  Protection is limited to the design of an integrated circuit and does not restrict reverse engineering of a semiconductor.  In this regard, protection of layout designs is similar to copyright.  However, the term of protection is shorter than under copyright—typically ten years.  Title holders have the right to prevent unauthorized reproduction, importation, sale or other distribution of the layout design for commercial purposes.  Exclusive rights to test data submitted to regulatory agencies have been granted in the pharmaceutical and chemical industries.  Companies that first submit these data can prevent competing firms from using the same data to obtain own marketing approval. Plant breeders’ rights (PBRs) protect new plant varieties that are distinct from existing varieties, uniform, and stable.

Finally, the protection of trade secrets is part of many countries’ IPRs systems.  Trade-secret protection differs from other forms of protection in that it does not grant an explicit title to the creator of an original work.  Instead, it protects businesses from the unauthorized disclosure or use of confidential information.  Such confidential information includes inventions not yet at the patenting stage, ways of organizing business, client lists, purchasing specifications, and so on.

Intellectual Property Rights Protection System in India

The Indian IPR system is governed by the following legislations:
·         Indian Patent Act, 1970 as amended in 1999, 2002 and 2005
·         The Design Act, 2000
·         The Trade Marks Act: 1999,2010
·         The Geographical Indications of Goods (Registration & Protection) Act, 1999
·         Copy Rights Act 1957, as amended in 1999,2012
·         Semi-Conductor IC Layout Design Act, 2000
·         Protection of Plant Varieties and Farmers’ Rights Act, 2001

The Office of the Controller General of Patents, Designs& Trade Marks (CGPDTM), located at Mumbai is responsible for coordination and guidance to the Entrepreneurs in the areas of Industrial Property. The Head Office of the Patent office is at Kolkata with its Branch offices located at Chennai, New Delhi and Mumbai. The Trade Marks Registry is located at Mumbai and its Branches are in Kolkata, Chennai, Ahmedabad and New Delhi. The Design Office is at Kolkata, in the Patent Office. The Offices of The Patent Information System (PIS) and National Institute of Intellectual Property Management (NIIPM) are  established at Nagpur.

The Controller General supervises the working of the Patents Act, 1970, as amended; the Designs Act, 2000 and the Trade Marks Act, 1999 and also renders advice to the Government of India on matters relating to these subjects. In order to protect the Geographical Indications of goods a Geographical Indications Registry has been established in Chennai to administer the Geographical Indications of Goods (Registration and Protection) Act, 1999 under the CGPDTM.

The Indian Copy Rights are governed by Copy Right Act, 1957 as amended in1983, 1984, 1992, 1994 and 1999; the Copy Right Rules, 1958, 1995 &2012 and International Copy Rights Order 1999 as amended in 2000. The Copyright Office is under the immediate control of a Registrar of Copyrights who acts under the superintendence and directions of the Central Government. The Copyright Office is currently located in New Delhi.




Intellectual Property Rights – International Organizations, Treaties & Conventions

WIPO: The World Intellectual Property Organization (WIPO) is a specialized agency of the United Nations dedicated to developing a balanced and accessible international Intellectual Property System (IP) system, which rewards creativity, stimulates innovation and contributes to economic development while safeguarding the public interest. WIPO was established by the WIPO Convention in 1967 with a mandate from its Member States to promote the protection of IP throughout the world through cooperation among states and in collaboration with other international organizations. Its headquarters are in Geneva, Switzerland. The Organization is headed by the Director General.

Treaties and Conventions: The IPRs are governed by various International Treaties and Conventions to be followed by all WTO member countries. They are as follows:

·         The Paris Convention for the Protection of Industrial Property.
·         The Berne Convention for the Protection of Literary and Artistic Works.
·         The WIPO Copyright Treaty (WCT).
·         The Patent Cooperation Treaty (PCT).
·         Budapest Treaty on the International Recognition of the Deposit of Microorganisms for the Purposes of Patent Procedure.
·         The Madrid Agreement Concerning the International Registration of Marks and the Protocol Relating to the Madrid Agreement.
·         The Hague Agreement Concerning the International Deposit of Industrial Designs.
·         The Trademark Law Treaty (TLT).
·         The Patent Law Treaty (PLT).
·         Treaties on Classification.
·         Special Conventions in the Field of Related Rights: The International Convention for the Protection of Performers, Producers of Phonograms and Broadcasting.
·         Organizations (“the Rome Convention”).

Other Special Conventions
·         The WIPO Performances and Phonograms Treaty (WPPT).
·         The International Convention for the Protection of New Varieties of Plants.
·         The Agreement on Trade-Related Aspects of Intellectual Property Rights (“TRIPS”) and WIPO-WTO Cooperation.
·         Progressive Development of International Intellectual Property Law.

Among the above, the TRIPS Agreement is the most important international agreement for the protection of intellectual property. It is binding on all members of the WTO and enforceable through the WTO’s dispute settlement system.  It sets minimum standards of protection for all IPRs instruments, but also leaves governments important flexibilities to design IPRs regimes to suit domestic needs.

IPRs and MSMEs
It is a well known fact that over ninety percent of enterprises in India are in the MSME sector and they are among the major driving forces for innovations. MSMEs which are continuously creating new products, brands, and ideas stand to reap greater benefits from innovation if they consider the full range of intellectual property (IP) issues in new product development.

Intellectual property protection helps MSMEs to:
·         prevent competitors from copying or imitating their products or services;
·         create market identity through trademarks;
·         increasing market value of the business;
·         avoid waste expenditure in R&D and marketing;
·         increase access to finance and venture capital;
·         minimize litigations through avoidable infringements of rights;
·         negotiate IP-based licensing, franchising or other contracts; and
·         expand markets.

However MSMEs are not always successful in fully utilizing the potential of their IPRs. Most of them are face the following challenges in acquiring IP protection:
·         no adequate knowledge of the IPR system and procedures for protection of rights;
·         no proper manpower to undertake necessary groundwork needed for IP acquisition, like searches and filing procedures;
·         high costs of IP protection, including consultant fees; and
·         resource constraints to challenge bigger firms with competing claims.

The Govt. of India and State Governments are encouraging IPRs with various incentive schemes. There is a need for serious consideration of IPR value also as an asset for financing enterprises to modernize and encourage R&D and innovations.

Conclusion

Registering an IP and creating value out of it gives businesses an incentive to invest in further research and development and fostering more innovation in products and processes. The time has also come now for financial institutions to consider IPR assets in the valuation of businesses as is the practice in Western Countries. This will give the IP owners/ holders the confidence to share new technologies through collaborations, joint ventures and licensing agreements, thus exposing them to a wide spectrum of business opportunities. Governments at Central and State may also conduct more awareness meets and financial incentives to MSMEs for IPRs.






Thursday, February 23, 2012


ANDHRA PRADESH-AN IDEAL  DESTINATION  FOR INVESTMENTS                


The Micro & small Enterprise Sector occupied a vital position in a developing economy in the world over. It played a prominent role as far as the contribution to the economic development of our country is considers. The Micro and Small enterprises sector is considered to be the most vibrant sector in the Indian economy and often the sector is termed as engine for growth. The micro and small enterprises played a dominant role in contributing to the GDP by way of its share in employment generation, exports and industrial output. The sector is wide spread across the country and producing a wide range of products and offering a variety of services. There are more than 8000 products manufactured in the Micro & small Scale Sector.
AP is the largest state in the southern peninsular region of India, with an area of 2,75,100 sq kms and a coast line of 974 kms. Based on the physical features, the state is divided into three regions - Eastern hills, the coastal plains and peninsular plateau. Vamsadhara, Nagavali, Godavari, Krishna and Pennar and  are the major rivers flowing through the state. The state has 23 districts, with 9 districts in the coastal area, 10 districts in the Telangana area, and 4 districts in the Rayalseema region. Hyderabad is the State capital. Total population of Andhra Pradesh as per 2011 census is 84,665,533 of which male and female are 42,509,881 and 42,155,652 respectively. In 2001, total population was 76,210,007 in which males were 38,527,413 while females were 37,682,594. The literacy rate is 67.66 compared to 60.47 of 2001 census.

RESOURCES

Andhra Pradesh is endowed with many natural resources, good human resources, and a climate congenial for agriculture and industrial production. The state is a leading producer of paddy and other crops like tobacco, cotton, sugarcane, pulses and horticulture produce. The state is the second largest producer of Horticulture products in the country. Major fruits produced in the state are Mangoes, grapes, pineapple, banana and guava. Coconut is another major capital crop in the state. Apart from these, the state is a major contributor in the production of spices like chilies, turmeric, ginger, coriander, etc.

The state shares about 14.5% in rice production of the country. AP is the largest maize producer, with 19.09% share of the country’s production as per the data of 2007-08. The state ranks 3rd in the country in pulses production with 11.52% share, 5th in total oilseeds production with11.39% share(second in sunflower seeds production) with 30.14 share and 3rdin cotton production after Gujarat and Maharashtra, with 13.49%share. AP ranks 1st in oil palm cultivation with 80.5% share. The state has a share of 36% in total tobacco production in the country, and ranks first. AP also enjoys a share of 60% in turmeric production. Andhra Pradesh is the leading producer of chilies. It also ranks amongst the top few states in production of fruits like mango, grapes, pineapple, cucumber etc. Floriculture is also an upcoming industry that offers immense scope, especially in the export market.

Andhra Pradesh is the leading producer of barites, mica, coal, bauxite, lime, granite etc. The state produces about 10 million tones of industrial minerals. Vast reserves of natural gas are found in the Krishna-Godavari basin with 62 million standard cubic meters per day being exploited already. This has opened up a plethora of industrial opportunities.

The state has a total forest cover of 23% of the geographical area. Around 45% of the cover falls in the Telangana region, while around 30% falls in the coastal region and 25% in Rayalaseema region. The major forest produces in the State are Timber, fire wood & charcoal and Minor forest produce include bamboo, Tendu/Beedi leaves, soap nuts, red sanders wood, seeds, medicinal plants etc. Plantation products like cashew, teak, coffee and pepper are also grown.

As far as live stock is concerned the state has 20.56% of the country’s poultry population. It is also the leading producer of poultry and eggs. It contributes to around 33% of eggs and 18 % of broiler meat to the country. AP has a rich livestock population, and is a major producer of hides and skins (10% of the country’s total production). Having a long coastline, AP is also a leading producer of marine food products.

Every year, the state produces more than 85,000 engineers, post graduates in computers and other fields, and management disciplines. These young professionals have made their good presence in the global IT industry. The state houses a number of Engineering colleges and B-schools. However these graduates need industry oriented trainings to make them suitable for the  local industrial sector.


INDUSTRIAL SENERIO

Micro, Small and Medium Enterprises have been recognized as one of the key sector for employment generation and overall economic development of our country. The Micro, Small and Medium Enterprises development Act, 2006, was enacted to expand focus to the entire gamut of micro, small and medium enterprises (MSMEs) both in manufacturing and service sectors. This sector now provides employment to nearly 60 million persons and accounts for nearly 45 % of India’s manufacturing output.

The micro and small scale sector in Andhra Pradesh has seen a phenomenal growth during the last four decades. The number of units in AP in this sector, during 1956 was just 6195, while the corresponding figures in 2009  the total number of MSEs in the State stands at 1, 58,173, according to Commissioner of Industries, GoAP data. The number of small scale industries has grown 20 fold during the 40 years from 1956. A corresponding increase in investment made and employment provided by the sector is also seen. However, an interesting trend in the investment and employment by the sector is that the average investment per unit in this sector has been rising, whereas, the average employment provided by the sector has been coming down. The major reason that can be attributed to this trend is the advent of new technologies and consequent increase in production.

Andhra Pradesh has a prominent role in the industrial sector. The major concentrations of industrial and business activities are Hyderabad, Medak, Ranga Raddy, Krishna, West Godavary and Visakhapatnem districts. There are 600 large scale industries in the state spread across the length and breadth. Major  public sector undertakings are however concentrated in and around Hyderabad and Visakhapatnam , thus making the major agglomeration of industries. The micro, small and medium enterprises are also more or less confined to these areas as ancillaries to the public sector enterprises. In addition resource based enterprises grown in clusters at various locations based on local raw materials and skills. The DC (MSME) did some interventions in 20 clusters in the state.
The Drugs & Pharmaceutical sector is another area which made this state as the Pharma Hub of the country. The sector has its concentration in Hyderabad, Madak, Ranga Reddy and srikakulam distts. The recent addition being an industrial park at Visakhapatnam

The gross State domestic product (GSDP) is Rs. 1, 17,434 crores with a contribution of Rs.16, 350 crores from manufacturing sector which comes to 13%. The per capita income is Rs.13, 135
Andhra Pradesh has the largest number (73) of Notified SEZs. These include IT & ES SEZs in and around Hyderabad.

FURTHER PROSPECTS
           
The state Govt. identified the following growth sectors for setting up of Manufacturing and service enterprises.
  • Automobiles and Auto Components
  • Biotechnology
  • Bulk Drugs and Pharmaceuticals
  • Food and Agro based
  • Information Technology
  • Mines and Minerals
  • Textiles and Leather
  • Tourism
Industrial growth in the state is not widespread compared to the states like Tamil Nadu, Gujarath and Maharashtra. It has confined to market oriented growth in the areas where PSU are established as there is market assurance. The others are like clusters based on the local raw materials and skills. This trend has to be changed by creating industrial corridors at various places within the state where agglomerations of Large, Medium, Small and Micro enterprises are promoted with their due representations.

It is a known fact that Andhra Pradesh is rich with natural resources and is not fully exploited, to add value by establishing enterprises. This may be due to some of the reasons like inadequate specialized training facilities, lack of skilled management, lack of market information including export markets, lack of awareness in IPRs and low exposure to ICT. The MSEs can not afford to have these facilities due to financial resource crunch. Hence there is need for awareness programs to attract entrepreneurs. Merely giving generalized Entrepreneurs Development Trainings organized by various Institutions will not meet this goal. The focus of all trainings should be towards nurturing the Entrepreneur in the specialized fields, based on the resources available in the identified regions. To achieve these goals there is need for establishing industry facilitation centers which can practically guide and assist the entrepreneurs in these areas.

In order to achieve these, following measures at all levels may have to be taken both by entrepreneurs and development agencies including financial institutions.


ENTREPRENUERS

  • Entrepreneurs should try to utilize full of resources and installed capacity by strategic planning and look for innovative processes.
  • Conduct market research in their related business for exact demand forecasting.
  • Understand export procedures for export of their products in international markets.
  • Get exposure to the applicability and use of ICT and equipment's for setting of identified industries based upon local and export markets.
  • Upgrade managerial skills and knowledge on prospective markets.
  • Get IPR awareness through WEB or through development institutions
  • Improve ICT skills and Quality management practices through such trainings

PROMOTION & DEVELOPENT AGENCIES:

The promotion and sustained growth of  MSME Sector is achieved well by coordinated efforts of the following agencies.

a)      Central Government
b)      State Government
c)      Technology Providing Agencies including IPRs
d)      Training & Consultancy Organizations
e)      Financial Institutions  
f)       Industry Associations        and
g)      Engineering & Management education Institutions/ Universities


The Tasks are to be taken by different organizations are broadly identified below

  • The Ministry of SMEs should provide more comprehensive marketing support for India's SMEs. The Govt. procurements should be made mandatory to the the prescribes limit as per the MSMED Act2006.

  • State Government should establish Industrial estates/parks specially for MSE Sector at a suitable location in each districts and provide adequate Infrastructure Facilities .

  • Organize vendor development programs at different locations in the state to establish linkages between micro, small, medium and large industry.

  • Encourage MSME  promotion through public-private partnerships in the areas of creation of training facilities, technology upgrading centers, research and testing labs, IPRs, etc.

  • Identify of new technologies suitable for MSEs and facilitate acquisition of such technologies.

  • Organize SME Product Exhibitions at different locations preferably on permanent display modes.

  • Facilitate flow of credit to MSE sector from institutional sources at par with agriculture loans.

  • The government should give all possible help to encourage SMEs to focus on innovation and technology development.

  • Level playing at par with the organized sector, in all aspects like preferential treatment for land, finance and other facilities.

  • Education institutions/ Universities should introduce specialized tailor made programs, both short and long duration to produce manpower according to the needs of the Industry.

 CONCLISION

Promotion and development of Enterprises need sincere efforts by all concerned. The Entrepreneur should develop close liaison with all development agencies and should possess good leadership qualities. It is the Entrepreneur and the team will have the ultimate responsibility as he/she only enjoys the fruits of the enterprise. As a leader he/she  has to lead the  team in a coordinated manner to achieve the desired goal.

Wednesday, January 5, 2011

CRISIS MANAGEMENT

CRISIS MANAGEMENT

Crisis management is the process by which a person and/or an organization deals with an unpredictable event that threatens to harm an individual, an organization, its stakeholders, or the general public. There are three elements involved, namely, (a) a threat (b) the element of surprise, and (c) a short decision making time. Crisis management involves dealing with threats after they have occurred. It is a discipline within the broader context of management consisting of skills and techniques required to identify, assess, understand, and deal with a serious situation, especially from the moment it first occurs to the point that recovery starts.

It is said that there are seven types of crises

1. Natural disaster
2. Technological crisis
3. Confrontation
4. Malevolence
5. Crises of skewed management value
6. Crises of deception
7. Crises of management misconduct

Natural crises

Natural crises, typically natural disasters considered as 'Acts of God' are such environmental happenings such as earthquakes, volcanic eruptions, tornadoes and hurricanes, floods, landslides, tidal waves, storms, and droughts that threaten life, property, and the environment itself.
Technological crises

Technological crises are caused by human application of science and technology. Technological accidents inevitably occur when technology becomes complex and coupled and something goes wrong in the system as a whole (Technological breakdowns). Some technological crises occur when human error causes disruptions (Human breakdowns). People tend to assign blame for a technological disaster because technology is subject to human manipulation whereas they do not hold anyone responsible for natural disaster. When an accident creates significant environmental damage, the crisis is categorized as mega-damage. Samples include software failures, industrial accidents, and oil spills.
Confrontation crises

Confrontation crisis occur when discontented individuals and/or groups fight businesses, government, and various interest groups to win acceptance of their demands and expectations. The common type of confrontation crises are boycotts, agitations, picketing, sit-ins, ultimatums to those in authority, blockade or occupation of buildings, and resisting or disobeying law & order.
Crises of malevolence

An organization faces a crisis of malevolence when opponents/ competitors or miscreant individuals with in the organization use criminal means or other extreme tactics for the purpose of expressing hostility or anger toward, or seeking gain from, a company, country, or economic system, perhaps with the aim of destabilizing or destroying it. This is a sort of interpersonal competition for self gains. Sample crises include product tampering, kidnapping, malicious rumors, terrorism, and espionage.
Crises of organizational misdeeds

Crises occur when management takes actions it knows will harm or place stakeholders at risk for harm without adequate precautions. They include crises of organizational misdeeds, crises of skewed management values, crises of deception, and crises of management misconduct.
Workplace violence
Crises occur when an employee or former employee commits violence against other employees on organizational grounds.
Rumors

False information about an organization or its products creates crises hurting the organization’s reputation. Sample is linking the organization to radical groups or stories that their products are contaminated, etc.

Management of Crisis

In any crisis, whether personal or organizational, there are principles that a Leader should place into action. When dealing with a crisis worry can be a major mental block at the first instance. Understanding the crisis is the major task involved in the crisis management.. A Leader should maintain calm and show positive approach to the situation. Assess the depth of the crisis and then prepare mentally to accept that. Once the problem is understood we have to fragment the problem into various tasks.

A serious challenge looks overwhelming, but seen by step by step approach a solution comes at every step-solving a problem part by part like a crossword puzzle. An action plan has to be prepared once we get an understanding on the crisis. It includes the in-depth study of the crisis, steps to make the situation better, the quickest time-frame to solve the problem, search for getting help, implementation of the action plan at very short intervals, review through measurement of the effectiveness of the steps taken and implement corrective action, in case needed.. In making an action plans a focus on the past experience, if any, helps in solving.

In dealing with crisis a Leader will be exposed to a sense of isolation as far as the responsibility sharing is concerned. Leaders take responsibility themselves by virtue of their nature. It is always advantageous to take support from others not only for making quick decisions but also to ease out emotional stress. It is also advisable to keep a trustworthy team who can take decisions.

I have placed a collection from various sources and from my own experiences as the Head of an Institution. I would welcome my network friends to put their views.

Sunday, December 26, 2010

INTELLECTUAL PROPERTY RIGHTS

The term Intellectual Property (IP) reflects the idea that its subject matter is the product of the mind or the intellect. These could be in the form of Patents, Trademarks, Geographical Indications, Industrial Designs, Layout-Designs (Topographies) of Integrated Circuits, Plant Variety Protection and Copyrights.

India is a member of two major Treaties, namely,

→Paris Convention for the Protection of Industrial Property (relating to Patents, Trademarks, Designs, etc.)

→The Berne Convention for the Protection of Literary and Artistic Works (relating to copyright)

Apart from these, India is also a member of the Patent Cooperation Treaty (PCT) which facilitates obtaining of Patents in several countries by filing a single application.

Intellectual Property is divided into two categories:

Industrial Property – Patents, Trademarks including service marks, Industrial Designs, Layout Designs of ICs, Undisclosed Information including Trade Secrets and Geographic indications of source.


Copyrights – Literary and artistic work such as novels, poems, plays, films and musical works, etc.

India is a member of the World Trade Organization (WTO). The WTO agreement, inter-alias, contains an agreement on IP, namely, the Agreement on Trade Related Aspects of Intellectual Property (TRIPS). This Agreement made protection of Intellectual Property an enforceable obligation of the Member States. TRIPS Agreement sets out minimum standards of intellectual property protection for Member States. India has complied with the obligations contained in the TRIPS Agreement and amended/enacted IP laws.

THE INDIAN ACTS

The Patents Act, 1970, as amended, in 2005

The Designs Act, 2000

The Trade Marks Act, 1999

The Geographical Indications of Goods (Registration and Protection) Act, 1999

Copy Rights Act 1957, as amended in 1999

Semi-conductor IC Layout Design Act,2000

Protection of Plant Varieties and Farmers’ Rights act,2001

TRIPS AGREEMENTS

According to the TRIPS Agreements, the intellectual property has been classified into:

Patents

Industrial Designs

Trade Marks

Copyrights

Geographical Indications

Layout Designs of Integrated Circuits

Protection of Undisclosed Information/ Trade Secrets

IPR is a part of Enterprise Development. In the production department many enterprises introduce innovative processes and develop new products. We, do not give much importance to IPRs. These processes/ Products can be protected through Patents. Similarly Every Enterprise can have its own BRAND. This brand can be protected through Trade Mark Registration.

Thursday, December 23, 2010

ENTERPRISE DEVELOPMENT

STEPS TO START AN ENTERPRISE – Part VI

MARKETING OF MSME PRODUCTS

I do not want to go here on the fundamentals of Marketing Management as it is a vast subject to discuss here. The strategy of Marketing depends up on the type of products manufactured or the type of Services provided. What I mean to say is the strategy for FMCG is different to the strategy for marketing Industrial Products. It is pertinent to mention here that the rural demand has emerged as a vital market. Even the corporate giants are now focusing on Rural Markets. The consumer behavior has totally changed in Rural India and the people’s expectations have shown a sea change when compared to late nineties or early 2K.

There is a need to go for a detailed Market Research before introducing a product in to a particular Market Segment. The Demographics, Demand and supply Gap, Competition, Product Pricing, Distribution Channels, Publicity requirements etc., have to be thoroughly analyzed.

GOVT.SCHEMES

The following are some of the Central Govt. schemes.

Purchase Preference Policy is administered through the Single Point Registration Scheme of NSIC. Under this, 358 items are reserved for exclusive purchase from MSME by Central Government including Public Sector Undertakings. Other facilities include providing tender documents free of cost, exemption from earnest money and security deposit and 15% price preference in Central Government purchases - for individual MSMEs

MSME-MDA Scheme

The scheme offers funding up to 90% in respect of to and fro air fare for participation by MSME Entrepreneurs in overseas fairs/trade delegations. The scheme also provide for funding for producing publicity material (up to 25% of costs) Sector specific studies (upto Rs. 2 lakhs) and for contesting anti-dumping cases (50% up to Rs. 1 lakh) - for individual MSMEs & Associations.

Bar Coding

In order to enhance the marketing competitiveness of MSEs in domestic as well as international market, Office of Development Commissioner (MSME), Ministry of MSME, provides the financial assistance for reimbursement of 75% of one-time registration fee w.e.f. 1st January,2002 and 75% of annual recurring fee (for first three years) w.e.f. 1st June,2007 paid by MSEs to GS1 India for using of Bar Coding.The work of reimbursement has been decentralized and transferred to field offices i.e. MSME-Development Institutes located in each state w.e.f. 1st April, 2009 with a view to ensure speedy & timely and extensive implementation of the scheme.

Similarly every state Govt. has their purchase policies for the benefit of MSME Sector


With this I am concluding my blog posts on this subject.

I would be happy to answer any querries on Enterprise Development.

My Mail ID -krishnaar8@gmail.com
cell.9849392925

Monday, December 13, 2010

ENTERPRISE DEVELOPMENT

STEPS TO START AN ENTERPRISE – Part V

INCENTIVES & PROMOTIONAL SCHEMES

Government accords the highest preference for the Promotion & Development of MSMEs by framing and implementing suitable policies and promotional Programs/schemes. Besides providing developed land and sheds to the entrepreneurs on actual cost basis with appropriate infrastructure, special schemes have been designed for specific purposes like quality up gradation, common facilities, entrepreneurship development and consultancy services.

Credit to micro, small and medium scale sector has been covered under priority sector lending by banks. Small Industries Development Bank of India (SIDBI) has been established as the apex institution for financing the MSMEs. Specific schemes have been designed for implementation through SIDBI, State Finance Corporations (SFC), Scheduled Banks, SIDCs and NSIC.

Under the Reserve Bank Guidelines loans up to Rs. 5 lakhs are made available by the Banks without insisting on collaterals.

Credit Guarantee Fund for micro, small and medium enterprises has been set up by Govt. of India to provide guarantee for loans to MSEs up to Rs.100 lakhs extended by Scheduled Commercial Banks and some Regional Rural Bank ( up to Rs.50 lakhs). Under CGTMSE Scheme collateral free loan will be provided where ever the Entrepreneur can not provide the necessary security. The Entrepreneur has to put a request to the Financial Institute at the time of submitting the Project Report. For details kindly visit www.cgtsi.org.in.

Under the National Equity Fund Scheme seed capital to the extent of 25% will be provided by Govt. of India with nominal service charges to meet the Equity (Promoter Contribution) in case the Entrepreneur can not raise the required funds. The Scheme is operated by SIDBI and is provided to under re-finance scheme to Financial Institutions.

Similarly Mahila Udyama Nidhi Scheme is avialbel under the above guidelines, exclusively for Women Enterprises. SIDBI and all the Nationalized Banks operate this scheme. An Enterprise with more than 51% of equity is designated as Women Enterprise.

Credit Linked Capital Subsidy scheme aims at facilitating technology up gradation by providing 15 per cent upfront capital subsidy to MSEs units, including tiny, khadi, village and coir industrial units, on institutional finance availed of by them for induction of well established and improved technologies in the specified sub-sectors / products approved under the scheme. The revised ceiling on loan amount for availing the benefit under this scheme is Rs. 100. You may please visit www.laghu-udyog.com and www.msme.gov.in

Under Prime Minister’s Employment Generation Program (PMEGP) covers loans up to Rs.25 Lakhs for manufacturing Sector and Rs.10 Lakhs for Service sector with a subsidy component. Khadi & Village Industries Commission is the implementing agency

Min. of Food Processing Scheme for Technology Up Gradation / Establishment /Modernization of Food Processing Industries. The scheme will provide 25% of cost of plant & Machinery and Technical Civil works subject to a maximum of Rs.50 lakhs. Web site: www. mofpi.nic.in

Government of India has been executing the incentive scheme for providing reimbursement of charges for acquiring ISO 9000/14000 accreditation to the extent of 75% of the cost subject to a maximum of Rs. 75,000/- in each case.

There are many more schemes operated by Min.of Agriculture, Science& Technology etc.

State Government provides technical and other support services to MSMEs through the Directorate of Industries and District Industries Centers. Although the details of the scheme vary from state to state, the following are the common areas of support.

• Development and management of industrial estates

• Suspension/deferment of Sales Tax

• Power subsidies

• Capital Investment subsidies for New Enterprises

• Seed Capital/Margin Money Assistance Scheme

• Priority in allotment of power connection, water connection.

• Consultancy and technical support

Note: These are the salient features of the schemes only.For more details kindly visit the respective web sites.

Monday, November 15, 2010

ENTERPRISE DEVELOPMENT

STEPS TO START AN ENTERPRISE – Part IV

FINANCIAL ASSISTANCE

l Financial assistance is available from institutions such as Nationalized Banks,Rural Banks, Small Industries Development Bank of India (SIDBI), NABARD, Regional Rural Banks, National Small Industries Corporation (NSIC), State Financial Corporations etc. depending upon the project requirement and promoters background.

2. Financial assistance has two components. Loan for fixed capital to acquire Plant and Machinery, Land and Building. Working capital loan is used to meet day to day operational cost of the production.

3. Financial Institutions provide composite loans covering Buildings,plant and machinery and working capital.

4. Any one of the financial institutions can be approached to get funds keeping in view their specific schemes.

5. Evaluate and compare the terms and conditions, including rate of interest and repayment period of loan offered by the different financial institutions.

6. Select the financial institution, which offers funds at minimum interest rate as per your repayment plan to suit the project.

7. Choose the Institution which is in close proximity to the project site if other terms and conditions are similar.

8. The major eligibility criteria are return on the investment and profitability of the project proposed to be set up.

9. Any financial institution will support the project if repayment is assured.

10. 20-25% of Total Investment has to be contributed as margin money by the promoter.

11. Care should be taken to have good cushion of Working capital. The Financial Institutions in most of the cases don’t finance full Working capital. One should keep back up for at least 6 months W.C and at times 12 Months

12. Financial Institutions insist margin money depending upon the category of the entrepreneur, risk factor and existing scheme under which the project will be financed.

13. The amount of loan can be used to cover all types of investments required in the project, such as machinery & equipment, working capital, land and buildings etc.

The general conditions for getting financial assistance are:

* Technical /Economic/Market viability

* Promoters contribution

* Capacity to repay loan

* Collateral Securities/Guarantee

Saturday, November 13, 2010

ENTERPRISE DEVELOPMENT-PartIII

STEPS TO START AN ENTERPRISE – Part III



PROJECT REPORT

The project report is a document, which gives an account of the project proposal to ascertain the prospects of the proposed plan/activity. The project report,(sometimes known as Bankable Project Report) should contain detailed information about:

a) Land & building required

b)Manufacturing/Production Capacity per annum

c)Manufacturing Process, Technology

d) Machinery & equipment along with their prices and specifications

e) Requirements of raw materials

f) Power & Water required.

g)Manpower needs

h)Marketing

i)Cost of the project and production.

j)Financial analysis & Techno-economic viability of the project.

* Model project profiles are available with the MSMEDIs (formerly SISIs) & DIC's for the guidance of entrepreneurs. However, these project profiles have to be recast in accordance with specific needs of the entrepreneurs and the current prices of inputs.

*MSMEDIs, National Small Industries Corpn., and State Govt. agencies viz. DICs, State Finance Corpn.,KVIC, etc., can help in preparing the Project Report. It can also be prepared by collecting detailed information on various inputs.

*Information in detail is required about the technical process, requirements of plant and machinery, raw materials, manpower requirement, market information and statutory obligations (like pollution control, Licenses, if needed, and public safety) etc. The details of power and water tariff, land/shed/building and selling prices etc. needs to be collected as prevalent in the market.

*Micro, Small & Medium Enterprises Development Institute’s (formerly Small Industries Service Institutes), Design and Development Centers like MSME Technology Development Center’s (formerly PPDC's) /Tool Room's, Research and Developmental agencies such as NRDC,CSIR Labs, Regional Research Laboratories etc., can help the entrepreneur in selecting the product, process technology, suitable equipments etc.

Filing of Entrepreneur Memorandum (EM)

l Filing of memorandum is optional for all Micro, Small & Service Sector Medium Enterprises. However to get incentives from Govt. it is mandatory

2 Filing of memorandum optional for Filing of memorandum mandatory for manufacturing sector Medium Enterprises.

3 EM has to be filed with General Manager, DIC, of the concerned district.

The EM is a document containing the details of the Enterprise to be set up.

The Entrepreneur has to fill up the EM in quadruplicate and submit to the concerned DIC in his/her district and obtain one copy duly signed by the competent authority at the District Industries Centre. The EM is required at all stages like Power connection, Tax Registration, etc.

Monday, June 28, 2010

ERTERPRISE DEVELOPMENT

STEPS TO START AN ENTERPRISE – Part II


e) IMPORTANT TASKS

*Identification of suitable project/product/enterprise and prepare bankable project report

*Creation of proprietorship/partnership firm/Company/Society/Self-Help Group (SHG), etc

*Filing of Memorandum (EM) with DIC

*Accessing to Bank Loans, Admissible capital subsidy/assistance under various schemes of the central/state Govt. and other agencies/organizations/FIs/Banks

*Establishment of Factory Buildings/Office

*Obtaining Sanction of Power connection

*Selection of Appropriate Technology, installation of Plant &Machinery/office equipment.

*Obtaining various registrations/ licenses/ clearances/ NOCs etc. from concerned regulatory agencies/Govt. Departments/Local Bodies/Municipal Authorities, etc.

*Allotment of PAN no. /Service Tax/Sales Tax/VAT Registration, etc.

*Sanction of Working Capital Loan from Bank

*Arranging tie-up with raw material suppliers

*Preparation and implementation of marketing strategy for the product/service and market development

*Establishment of linkage with a mentor(s) for providing guidance in future

*Creation of web page and e-mail

*Trial Production & Test marketing

*Regular Production & Marketing

*Loan repayment

f) Micro, Small& Medium Enterprises

Enterprises have been broadly classified into: As per MSME Act 2006

i) Enterprises engaged in the manufacture/production of goods pertaining

to any industry

ii) Enterprises engaged in providing/rendering of services

Manufacturing enterprises have been defined in terms of investment in plant & machinery (Excluding Land & Buildings) and further classified into :

Micro Enterprises - Investment upto Rs. 25 Lakhs

Small Enterprises - Investment above Rs.25 lakhs
& up to Rs.5 crores

Medium Enterprise - Investment above Rs.5 crores
& up to Rs. 10 crores

Service enterprises have been defined in terms of their investment in Equipment (Excluding Land & Buildings) and further classified into:

Micro Enterprises - Investment up to Rs. 10 Lakhs

Small Enterprises - Investment above Rs.10
Lakhs & up to Rs.2 crores

Medium Enterprise - Investment above Rs.2 crores
and up to Rs.5 Crores