D & B To Identify Buyers Abroad For Ssi Products

The Small Industries Development Bank of India (Sidbi) has engaged US-based Dun & Bradstreet (D&B) to conduct product specific studies for identifying potential buyers and market opportunities for Indian small sector industry (SSI) products.

Every year D&B will undertake comprehensive studies for two to three selected SSI products and we will distribute it to the small-scale industry on concessional terms, Sidbi managing director Sailendra Narain said.

To begin with, D&B will take up those products in which the small scale sector is strongly placed. The study would focus mainly on identifying market opportunities in India and abroad, usual buyers and the market segment to be targeted.

 

We feel this will help SSI sector to understand the market better, Narain said.

The bank has already tied up with D&B for providing widely-accepted D&B company rating, to Indian SSI units. It is reimbursing 50 per cent of the charges, if demand for rating is routed through Sidbi.

It is also giving subsidy of Rs 15,000 to first 1,000 units for credit rating assistance which includes other credit rating agencies also such as Crisil and Icra.

The $1.4 billion American company, having a vast worldwide network, specialises in providing rating, marketing and business information at over 46 million companies in about 200 countries.

Dun & Bradstreet credit rating is proving very helpful for the SSI exporters, as they get virtually a golden pass to enter in the arena of international marketing, P Srinivasa Rao, chief general manager and head of the marketing department, said.

The present agreement is another step towards providing increased assistance to SSI units to undertake activities necessary to increase their sales turnover in the domestic and export markets, he said.

Sidbi expects that studies done by the D&B would be very useful for the small-scale sector as these include fashion forecasting, which is a very costly affair and out of reach of many small entrepreneurs.

Earlier, small scale companies were facing difficulties in approaching consultancy firms individually, but that situation will be eased now, Rao said.

Dun &Bradstreet provides through its business information reports comprehensive and validated data on company financials, business principles and payments history.

Among the range of products of D&B are business marketing service, trade information, risk management services, international risk and payment review and key business directories.

Sidbi has already geared up its programme of direct assistance for financing marketing activities of SSI products.

Existing SSI units in the small-scale sector with a good track record and sound financial position qualify for assistance and new units are encouraged on a selective basis, Rao said.

The scheme is also available to specialised organisations incorporated as corporate entities and providing marketing assistance, infrastructure and support services to industrial concerns in the small-scale sector.

Sidbi already provides assistance for undertaking various marketing related activities such as marketing research, preparation of strategic marketing plan, advertising and participation in trade fairs.

Support is given for setting up of facilities for providing market support to SSI units such as data bank, libraries and Internet services.

Sidbi, however, uses its discretion to sanction loan under the scheme that does not exceed Rs 10 lakh per borrower, Rao said.