Power2SME -- India's first 'buying club' for Small and Medium Enterprises (SMEs) is set to enter Coimbatore -- starting with its Vendor Development Programme to support the regional manufacturing SMEs to evolve towards ease of doing business.
The company shared details of the programme with captains of industry, with focus on SMEs operating in automotive and engineering industries. Discussions touched on how they can reduce their procurement costs through partnering with Power2SME, its vice-president-Business Development, Deepak Gupta, told reporters here today.
Stating that nearly 70 members of local chapter of Indian Chamber of Commerce and Industry and Southern India Engineering Manufacturers' Association are interested in doing business with the company, Gupta said it would facilitate streamlined process for procuring raw materials and credit financing, among others.
Though the portal's focus area was limited to steel and plastics, it has tied up with at least four majors such as JSW, SAIL, Jindal and Essar for procurement of steel and two others for plastics, he said.
Gupta said that since Tamil Nadu was an upcoming SME hub, especially for auto components, pump manufacture, textile spares, the launch was aimed at associating with the SMEs and being a part of their growth story.
"Since SMEs lack bargaining power, they end up paying huge sums on procurement of raw material. We streamline the process and facilitate the SMEs to source the supply on time and at rates which they cannot match. We help in credit financing from NBFCs as well," he said.
Asked about enquiries on other materials from the region, being a motor and pumps hub, Gupta said "there were enquiries for aluminium, copper, industrial paints and ball bearing. Considering the category, we will expand."
The company, which started operations in July 2012, registered Rs 18 crore turnover in the first year, Rs 63 crore in 2013-14 and Rs 137 crore in 2014-15, he said.
With more than 30,000 SMEs registered with the company, it was expecting Rs 350 crore turnover this fiscal, Gupta said.
On expansion plans, he said the company was exploiting potential in Karnataka, Andhra Pradesh and Telangana in the south and Punjab in the north and was also looking at Jharkhand.
