Ficci To Hike Subscription Fees To Shore Up Revenue

The Federation of Indian Chambers of Commerce & Industry (Ficci) has drawn up a plan to increase its membership subscription revenue from the current Rs 3 crore a year to at least Rs 6 crore a year by 2000-01.

The plan has been chalked out in view of the falling subscription revenue from corporate members.

The plan envisages an increase in annual subscription rates from member-bodies, which have not been increased in the last few years; modification of membership rules and rationalisation of annual fees. There is also a proposal to raise the admission fee for associate members from the current Rs 500 to anywhere between Rs 2,500 and Rs 5,000.

 

In addition, Ficci is also planning to double its annual budget from the present Rs 7.5 crore per annum to Rs 15 crore per annum in three to four years time.

According to the minutes of the chambers executive committee meeting held last week, the situation on corporate membership is rather deficient, as is well known since the beginning of this financial year.

This has been aggravated by seven resignations in this financial year, in addition to six last year. However, Ficci has also inducted five members this year: Coca-Cola, Andhra Paper, Infrastructure Leasing & Financial Services, Asian Paints and Alps Industries Ltd.

The resources to provide for the increased budget will be raised mainly from membership subscription.

Ficci is banking on a surge in associate membership subscription to achieve the projected level of subscription revenue. Towards this end, it plans to modify its membership rules and rationalise the annual fees.

The receipt from associate members has increased to Rs 1.38 crore in the current year against Rs 80 lakh in the last five years.

The Rs 1.38 crore collected from associate members this year was achieved by charging them annual subscription linked to their turnover or profit.

In some cases, the classification of associate members was changed to avoid their taking refuge under some low-paying broad category.

While making new members in the last 10 months or so, we have been able to get better revenue from them by classifying them differently from what they would have been classified normally, it was said at the meeting.