PR Newswire | 23 Dec, 2013
BANGALORE and MUMBAI: BMGI India showcases a 'Blueprint for the Orbit-Shifting Growth of SME's' in the 'Premier Round Table SME Summit', held at Hosur. As a part of 'Beyond Banking Approach' for enabling SME's in their growth journey, ICICI Bank has entered into a strategic partnership with BMGI as Knowledge Partners for providing SME's with Management Consulting advice.
This event saw representation from respected industry bodies such as Hosur Industries Association, as well as senior leaders from diverse SMEs of repute that included companies such as Ascent Circuits, Bimetal Bearings, CK AIRTECH India, Interpump Hydraulics India, Prime Gold International, P.M. Granite Export, SEP India, Snam Abrasives, Switchgear and Control Technics, Terex India amongst others.
The event was flagged off by Mr D Muralidhar, President, Hosur Industries Association, wherein he touched upon the pain being felt by SME's and shared their interest on looking forward to further insights from this summit. As part of the Summit, BMGI India provided a roadmap to the SME sector on how to 'Make Headway in a Volatile Market and Improve Profitability'.
"The SME's of today are primed to be the leaders of tomorrow," said Mr Naresh Raisinghani, CEO & Executive Director, BMGI India. He showcased a roadmap that would enable their evolution into tomorrow's leaders, in the face of the challenges faced by the SME sector in today's environment.
Mr Raisinghani recommended four critical drivers for the sector in order to not just manage for today, but to excel and make profitable growth happen consistently in the face of uncertainty and volatility. The drivers stressed on were Cost Reduction, Sales Improvement, Strategic Expansion and Changing the Orbit.
Giving credence to the saying, "Well begun is half done", Mr Raisinghani strongly advocated selecting the right opportunity areas for the first driver on Cost Reduction. He advised on selecting critical and chronic issues as well as setting aggressive targets that would pave the way for breakthrough results in reducing costs. His ideas revolving around reducing variable costs, improving manpower productivity, reducing material costs and improving OEE, were well-received by the diverse participants.
As part of the driver on Improving Sales, Mr Raisinghani shared levers for revenue growth that included enhancement of current price points, increasing sales productivity and improving customer satisfaction. Through a case, Mr Raisinghani highlighted how a comparison of price with competition and subsequent price alignment, enabled a medium-sized company to expand their revenues substantially and that too, without impacting the business volumes.
Stressing on the need to go beyond one's current paradigms, Mr Raisinghani talked about the need for Strategic Expansion. This, he highlighted, could be achieved by adding new product/service lines, entering newer geographies and expanding distribution channels. He illustrated this by sharing a client's journey, who witnessed multi-fold improvement in revenues and a 100% improvement in profits through reaching out to newer geographies and moving from solution selling to manufacturing, amongst other strategic initiatives.
The last driver on Changing the Orbit lay a strong emphasis on Radical Business Transformation. As part of this driver, Mr Raisinghani advocated on the need to innovate new products/services, consider external investments and acquisitions and lastly, engaging a professional Management Team to run the business. He shared how a container manufacturer client through structured innovation designed an innovative product which was considered as one of the most innovative packaging in the last 100 years.
Mr P Vishwanath, Vice President and Rajesh Joshi, Sr. General Manager, Ador Fontech showcased how their organization countered a slow-down of over 5 years after several years of rapid growth. During this phase, the organization critically looked at complete operations that eventually led to planned improvement initiatives for driving profitable business growth. He shared that initially the focus was on identifying and filling gaps only through improving efficiencies.
They shared that they realized multi-fold success when strategic initiatives were tied to business objectives.
Endorsing Mr Raisinghani's perspective on strategic expansion and the importance of innovation, they stressed on how Ador Fontech, then a service organization, looked beyond their current business model which was purely revenues from their service business and instead set a focus on getting into manufacturing as well. This new focus acted as one of their best strategic levers to propel their growth agenda. To be able to support the new business requirements, they had to introduce and expand their product groups from 1 to 4 viz., welding consumables, services, equipment and technologies. They highlighted how they had to also create new sales channels & reorganize their sales structure and orient their team around new revenue streams.
In 2011, Ador Fontech has been rated as Top 100 Company under a Billion Dollars by Forbes Asia and Top 20 fastest growing small companies by Economic Times.
The event served as an enabling platform for small and medium enterprises by providing them insights on taking their organizations to the next level.
Breakthrough Management Group International (BMGI), global consulting firms with a strong focus on delivering results, partners with organizations in various stages of their business life cycle to transform their business performance. BMGI is recognized as the world leader in harnessing the power of cutting edge techniques in the area of Innovation, Strategy, Problem Solving and Business Transformation for achieving tangible business results. BMGI enables businesses drive growth and improve profitability. Headquartered in the US, BMGI has offices in 13 countries around the globe. BMGI has delivered cumulative benefits to its clients worth several billion dollars with an ROI of 5:1 to 20:1.
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