SIDBI and BEE are working as co-implementing agencies for preparing a World Bank-funded project titled ‘Financing energy efficiency at MSMEs’
The Small Industries Development Bank of India (SIDBI) has signed an agreement with the Bureau for Energy Efficiency (BEE) to create energy efficient technologies for the MSME (micro, small and medium enterprises) sector.
The agreement will also help in creating awareness and capacity-building of local business development service providers to implement similar technologies, an official release issued said.
"The agreement will facilitate energy efficiency improvement through capacity-building among MSMEs and extend financial support for preparing investment-grade proposals for energy efficiency improvements," SIDBI chairman and managing director Sushil Muhnot said.
SIDBI and BEE are working as co-implementing agencies for preparing a World Bank-funded project titled 'Financing energy efficiency at MSMEs'. The project is also supported by the Global Environment Facility.
The main objective of the project is to improve efficiency and reduce green house gas emissions through commercial investments in energy efficiency goods and services among the target MSME clusters, the release added.
The potential energy efficiency market is estimated at over USD 3.1 billion and most of this potential lies with the 3 million SMEs which contribute to about 60% of the country's GDP.
The agreement with BEE involves developing an integrated approach with financial support to eligible proposals for adopting energy efficient technologies and measures, Muhnot said.
"In addition to reduction in direct energy intake, implementation of potential programmes can produce additional positive environmental impacts from reduced combustion of fossil fuels," he added.
The Lucknow-based state-run lender has been focusing on promoting funding clean technologies/production process under bilateral lines of credit from KfW of Germany and the Japan International Cooperation Agency.
These schemes have a two-pronged approach-concessional lending to encourage investment in green/energy efficient technologies and to generate and disseminate cluster-specific information, the release added.
Under the Japanese assistance, SIDBI has already provided assistance to over 2,000 units with aggregate assistance of over Rs800 crore for cleaner production and energy saving investments, Muhnoot said.
He added that to address environmental and social issues, the bank is planning to use an environmental and social risk management framework, called 'Small and medium enterprise finance and development project' and is being funded by the World Bank.
The project has already supported India SME Technology Services, a firm promoted by Sidbi and leading public sector banks, to prepare a carbon credit guidebook for MSMEs, update its existing basket of 800 technologies and flag them as carbon-free, clean, energy efficient technologies.
Project has initiated steps, in association with the science and technology ministry, to evolve a policy document on Technology Vision for MSMEs- 2020.
At no point in the ad does Infomedia Yellow Pages tell its customers what is so special about their product that will help to boost customers’ sales. Business growth for small players is a very serious issue, and it has to be handled with facts and logic
Here's the business promise: If you get your dhandha listed in the Infomedia Yellow Pages, you won't need to search for customers. They'll come to you. In fact, they'll come rushing to you! Sounds simple? It is. But what has the advertising agency done to deal with this proposition? Well, they've gone literal. And worse, they have added in irrelevant madness.
The television commercial features a small-time entrepreneur. As soon as he registers his company in the Infomedia Yellow Pages, hordes of clients come knocking at his door. Well, not knocking. They smash through his office.
Our man spots a red card at unexpected places. And when he grabs it, along with it arrive excited clients. And the clients burst into our entrepreneur's office through sofas, file cabinets, cartons… they even spring out from under the wooden floors! 'Kaam aata jaaye, bhadta jaaye…' goes the languid jingle. And of course, prosperity needs to be highlighted. So as the clients keep pouring in, the entrepreneur's office gets bigger and plusher.
The advert suffers from two very serious problems. On the creative front it's a huge bore, even if the ad agency execs and their special effects team had a blast producing it. There's zero entertainment for the viewer, despite the exaggeration route and despite all the slapstick stuff. This is unforgivable. The whole purpose of exaggeration is to get some adrenalin pumped into a banal promise, and to generate some laughs. If the ad fails on that score, it's sunk.
But the larger problem is the strategic one. At no point in the ad does Infomedia Yellow Pages tell its customers what is so special about their product that will help to boost their (the customers') sales. This ad feels more like a comic caper, and this is what small entrepreneurs would be most wary of.
Business growth for small players is a very, very serious issue, and it has to be handled with facts and logic. If it's magic the businessmen wanted, they'd visit a miracle baba (and god knows there are plenty of them going around). I am sorry to say, neither the brand manager nor his/her ad agency personnel have bothered to understand their customer. This is nothing short of hit-and-run advertising.
Not sure about the red cards featured in the ad. But I would certainly raise some red flags for this sort of advertising.
Brokerages say uncertain business conditions, regulatory hurdles for various projects and higher borrowing costs continue to hurt heavy engineering firms
The capital goods sector continues to be troubled by postponement of capex decisions by companies in uncertain business conditions, regulatory hurdles for projects and rising borrowing costs, which are all likely to hurt first quarter performance, according to various brokerages.
This sector, which has such biggies like BHEL and Sterlite as well as Thermax and Jyoti Structure, will see the full impact of rising input costs in the April-June 2011 period, according to ICICI Direct. The brokerage expects consolidated EBITDA margins of 12.9%, a decline of 70 basis points year-on-year and 680 basis points quarter-on-quarter, which is understandable as the first quarter is usually the weakest period for the business.
Angel Broking says that the capital goods index is still in the doldrums. In the three months to 30 June 2011, the index outperformed the broader indices with a gain of 5.1% in absolute terms, outperforming the benchmark Sensex by 8.2%. The index reported negative returns in April and May, but bounced back by about 6% in June, largely aided by the recent rally in the broader markets.
The spike in capital goods production reported in the June IIP numbers (Index of Industrial Production) also had a positive impact. But this is likely to be temporary, given the deteriorating macro-economic environment.
ICICI Direct estimates aggregate revenues for the sector in the first quarter at Rs13,005 crore (an 18.4% y-o-y increase, but a nearly 50% q-o-q decline). It has estimated aggregate profit after tax (PAT) at Rs1,031 crore (an increase of 7.9% y-o-y and a decline by 68% q-o-q). EBITDA is estimated at Rs1,677 crore (a 12.2% y-o-y increase and a decline of 66.9% q-o-q).
There are some significant challenges for the sector in the power segment where coal linkages, delay in land acquisition and environment clearances are expected to remain a drag in the near-term.
Notwithstanding these issues, ICICI Direct believes that BHEL and transmission companies will post better than average Q1 results, given the robust order backlog, relatively better order inflows and robust execution.
Motilal Oswal is positive on the sector, and has listed BHEL, L&T, Siemens and Cummins as its superior performers. Despite the uncertainty over interest rates and project awards, the brokerage is positive on the upturn in government and private capex.
Prabhudas Lilladher expects Suzlon Energy to be one of the better performers in the sector in the first quarter with estimated net sales of Rs4,116 crore (a growth of 71.2%y-o-y), EBITDA at Rs279 crore. It believes that domestic volumes would be up by 66% y-o-y at 250MW, driven by a strong domestic order book. However, the company would register an estimated net loss of Rs172 crore due to huge interest and deprecation costs.
The brokerage has picked Kalpataru Power Transmission as another good performer, with steady sales growth of 14.4% y-o-y to Rs613 crore. The company has announced orders worth Rs450 crore from domestic markets and Rs860 crore from international markets.
KR Choksey notes that while the investment cycle in core industries and the rate of capital formation has slowed down due to high capital cost and subdued demand, an easing of interest rates, improving sentiment with capacity utilisation could be the catalyst for a revival in the capex cycle in the medium term.