IT is the Bellwether MSMEs Are Looking For

Thane, Asia’s first industrial development center, is the third most industrialised district in Maharashtra. There are 1,548 large and medium scale and 18,480 small scale industries in the district. The district which is surrounded by lush greenery products has textiles, adhesives, plastics, rubber, steel, Pharmaceuticals, engineering, fertilizers, electronics, chemicals and iron & steel companies, and is now the up-coming hub for the IT and related services. One can note the importance of this upcoming hub from the fact that none other than TCS has invested in the region and has re-located its entire e-Passport Seva project here.

However, all’s not as rosy as the government would like us to believe. Manufacturing is moving to cheaper belts, and the flourishing of malls has made availability of labour difficult. The association therefore, is looking at other segments like telecom. Despite the problems, Ashish Sirsat, CEO, Naik Oven Manufacturing Company and Vice President, Thane Small Scale Industries Association (TSSIA) and Bhavesh Maru, CEO, Fit-Well Engineering Company, Treasurer, TSSIA, hope that the industrial belt of Thane will retain its lost glory. “Technology today is as instrumental in business transformation as a business strategy,” the duo echoes.

Little wonder than the burgeoning MSME industry is scouting solutions to expand both locally, and globally.

Business trends and challenges

According to Sirsat, the manufacturing segment is the key link to the growth of the MSMEs in the district. However, lack of basic infrastructure such as airport, port, road, transportation and warehousing are hampering the growth of the community. As Maru puts it, “Manufacturers are studying global trends and the supply-chain has become far more advanced because of technology. We will have to catch-up or miss the growth story.”

Additionally, the development is unplanned. Since the area now hosts many IT parks, the developers should have considered the middle-and-low income groups also while planning residences. Instead, they have built homes only for the nouveau riche. The third and the most baffling development Sirsat point out is the labour issue. The mushrooming of the malls in the neighbouring areas, better facilities and dignity of labour are attracting the regular factory labor toward these white-collared jobs.

IT awareness among Thane MSMEs

The challenges however, have also come with a boon! Many smaller units purchased computers and have started using Tally for basic accounting. A large many are also using PoS for sales and marketing, inventory, business communications, etc informs Sirsat. “At a macro level few people have suffered, especially those having mom and pop stores. But they too are setting up websites and seeing positive business outcomes. There are rare instances of smart phone wielding mom-and-pop store owners utilizing the technology to sell their wares and be competitive. But technology is certainly catching up,” he notes.

The business priorities

IT is the biggest touch point, asserts Maru. Automation is enabling the small businesses in a big way. Yet another enabler is the frequent workshop TSSIA conducts in order to train its members in various technologies, new rules and regulations and statutory mandates. GST remains as priority for the association. “We are hopeful that the GST will be introduced sometime soon; especially since the government has said that it will conduct special sessions to debate on the bill, legislate it and make it into a law,” say the hopeful duo. Cloud is still new to the MSME segment. Maru admits that very few MSMEs have deployed the cloud, but the lack of adoption is largely because of the lack of awareness and concerns regards data privacy and data security.

“Technology today is as instrumental in business transformation as a business strategy...Many smaller units purchased computers and have started using Tally for basic accounting. A large many are also using PoS for sales and marketing, inventory, business communications, etc...another enabler is the frequent workshop TSSIA conducts in order to train its members in various technologies, new rules and regulations and statutory mandates.”

— Ashish Sirsat, CEO, Naik Oven Manufacturing Company and Vice President,  Thane Small Scale Industries Association