"MSMEs Contribute Around Thirty Percent To India's GDP": Anshuman Agarwal, Founder, Minimac

In an interaction with Urvi Shrivastav, Editorial Lead, BW BFSI, BW Businessworld; Anshuman Agarwal, Founder, Minimac, speaks about the issues surrounding MSMEs today, their future, and how they are making an impact in this direction.

What are the common concerns MSMEs have today?

MSMEs play a crucial role in our country's economic growth. There are many pressing issues plaguing micro, small, and medium-sized enterprises. One of the common concerns Indian MSMEs are facing today is hiring skilled manpower. Big companies offer handsome perks & benefits, and employees prefer to join those companies. It is difficult for MSMEs to match the packages offered by the big companies. As a result, small businesses are compelled to hire with modest experience levels, further limiting their long-term chances of growth. The second most common concern MSMEs have today is adapting to digitization. The reorientation of the MSMEs landscape towards the latest innovation and skills is a foremost structural challenge. Technological advancements are important to stay competitive, but due to a lack of financial resources, it's difficult to implement. There is a limitation on infrastructure, working capital rotation, digitization's impact on CAPEX optimization and asset utilization, etc. Lack of funds and resources makes it difficult for most MSMEs to access innovative technologies and expertise. 

Can you tell us about Minimac?

Minimac Systems Pvt. Ltd., incorporated in 2012, is a leading manufacturer, exporter, and technical consultancy company in India. We offer the best-in-class, versatile, application compatible, cost-efficient equipment for lubrication reliability and contamination control. Minimac provides global quality standardized and customized solutions for high-velocity oil flushing, chemical cleaning, oil purification & oil testing. Our vision is to spearhead technology evolution to achieve zero mechanical breakdown. We have established a strong brand and market presence in Asia, the Middle East & Caspian, North Africa, Africa, South-East Asia, and Australia. Research and development on technology and products have always been the key reason to keep Minimac products a step ahead of its competitors in the market. Technological development has been one of the core competencies which Minimac possesses, thereby ensuring a definite competitive advantage. Digitization is not a choice anymore; it's a necessity. It has brought stability to our business performance and broadened our reach. We have grown strong in our Lead Management System; now mapping a lead's journey and handling global enquiries are much more manageable. We are active in the Government e-marketplace addressing Indian PSU customers. We have taken initiatives like Tender Management System, ERP, Documentation & process structuring, building SOPs, etc. 

What is stopping Indian MSMEs from going global?

In my view, there is a serious gap between export market expectations, market-led research, ideas, and governing rules of financial institutions. Also, the export-related information and financing options are not clear to many. To make Indian MSMEs global, it's vital to ensure a better flow of information, credit and provide a field to innovate and penetrate the global arena. The Government has many schemes, financing options, loans, etc., to offer to MSMEs, but the advantages are not being utilized due to lack of knowledge and awareness. The companies must join Industries Association Programs to stay updated and develop strong interlinkages. 

How are you addressing this issue? 

I believe that if a business is successful domestically, it can be successful outside India also. Initially, we created a business model to target the prospects globally. Locating and analyzing the market, making connections, strategizing each market segment, etc., helped us expand and serve internationally. We focused on some broad areas like Digitization, Automation, and Integration, Logistics, and Export infrastructure. Understanding export procedures like documentation, custom clearance, and remittance enabled our products to gain recognition globally.  What are your expansion plans? Minimac has very aggressive and robust expansion plans. We have established a strong brand and market presence worldwide and are working towards reducing maintenance costs. Our vision is to spearhead technology evolution to achieve zero mechanical breakdown. Currently, we are one of the key players in the market. We are not just supplying equipment but also providing manpower and creating awareness in this field. We want to be a global leader in lubrication reliability and impact the lubricant industry. We are planning for more technology collaboration with companies abroad and build better products for the Indian market. Minimac, being a clean-tech company, is working towards reducing HCRs and developing innovative technologies that can help reduce carbon footprint. 

What is the future of MSMEs in India?

As the MSMEs contribute around 30 percent to India's GDP and employ about 11 crore people, the future is really bright. According to the new initiatives by the Indian Government, export revenue is deducted from total sales while calculating the turnover of MSMEs, which is good and positive not only for the sector but also for exports. The government has introduced many schemes to enhance manufacturing prowess and export potential. These policies and initiatives certainly gave a 'comfort zone,' and MSMEs are on the verge of achieving inclusive growth attaining self-reliance (Atmanirbhar Bharat).