Start Small, Dream Big & Never Lose Hope: Message from Mr Vinay Patil, Immediate Past President, ISCMA, on the occasion of National Small Industry Day 2024
Mr Vinay Patil is the Immediate Past President, Indian Speciality Chemical Manufacturers’ Association (ISCMA), which is an all India body representing manufacturers of speciality chemicals.
Mr Patil is also the Managing Director of S A Pharmachem Pvt. Ltd.
On the occasion of National Small Industry Day 2024, SME Communities met up with Mr Patil and had a fascinating conversation on the intricacies of being a speciality chemicals manufacturer and how MSMEs are poised to play a critical role in harnessing the growth potential of the chemical sector.
As an entrepreneur yourself, how would you describe the journey of the small industry segment players in the overall Indian economy?
I started my entrepreneurial journey in 1985, it has been every bit exciting for me and the joy of starting a small business, overcoming obstacles, growing it bit by bit, year on year – that’s simply indescribable.
According to the Ministry of Chemicals & Petrochemicals, Government of India, there are about 3 lakh MSMEs that represent roughly thirty per cent of the domestic chemical industry with clusters in Ahmedabad, Mumbai & Thane.
These entrepreneurs are the risk takers and growth drivers in our economy and I feel that the Indian chemical industry is poised for multi-year growth on the back of these small businesses.
What are some of the challenges facing the small industries in the chemical segment and how are industry bodies like ISCMA helping MSMEs confront these issues?
ISCMA offers its MSME members necessary support in terms of compliance on environmental issues, responsible care, safety and health, technology and skill upgradation, REACH regulation, eco-certification and other capabilities which will help Indian speciality chemical manufacturers compete on a strong footing at the global level.
We at ISCMA also work closely with policy makers and larger industry bodies to represent the voice of the small industry players at national forums.
What is the composition of the informal sector and unorganised smaller units in the overall Indian chemical industry?
The approximate size of the unorganised sector is comparatively high in certain segments like agrochemicals, fragrances, dyes & intermediates, and certain niche speciality chemicals.
Due to requirements of compliances, regulatory requirements on pollution & water treatment, as well as technology upgradation, research & development and other such capital-intensive segments, the share of the small industry players is far lower in segments like petrochemicals.
How did the MSMEs in the unorganised sector cope with the challenges faced in the recent times like the pandemic and supply chain risks due to geopolitical developments?
Our speciality chemicals industry experienced large scale disruption and sharp contraction during the recent pandemic. However, the recovery was equally quick and consistent especially in cleaning products, basic chemicals, detergent intermediates etc, to begin with, which was then followed by a sharper recovery in the overall sector.
I feel there is a need for larger pool of credit capital for the small industry players and a reasonable relaxation in repayment norms for these MSMEs in the informal sector.
Going forward, what is the outlook for the small industry players in the speciality chemicals segment?
The MSME sector will certainly continue to be an important part of the overall Indian economy. ISCMA feels that there is a good potential in the export market, wherein the MSMEs can endeavour to become part of the global supply chain.
They can achieve this by direct exports or by supplying inputs to larger domestic players, who cater to the export market. There is a tremendous employment potential that the MSME sector has, and our Government’s initiatives have helped in supporting the small industries sector from time to time.
Speaking of the Government support, can you highlight certain measures undertaken by regulators and policy makers in recent times to support the small industry players?
There has been a strong willingness on behalf of the policy makers and regulators to help the small industry segment. If you recall, the Reserve Bank of India had introduced a moratorium on interest & principal payments in 2020 for six months, also there were mechanisms which were introduced for resolution framework for the pandemic induced stress.
Then there was the Emergency Credit Line Guarantee Scheme (ECLGS), which the government announced to help small industries to confront the mass economic disruptions induced by the pandemic.
Moreover, from an export potential the Government also helps the small industry players by implementing business friendly policies through Free Trade Agreements (FTA) with various trading country partners of India, along with rationalisation of duty structure and anomalies under these FTAs.
All these MSME friendly initiatives go a long way in helping the small industries in the informal sector.
What is your parting message to the MSME segment on National Small Industry Day 2024?
This day, which has been celebrated from 2001, ever since it was first conceptualised by the Central Government, serves as a reminder for both central and state governments to underscore their commitment to fostering and sustaining these foundational businesses, which serve as the backbone of India’s economy.
My message to my fellow Indian entrepreneurs is – start small, dream big, take calculated risks, never lose hope and be consistent in your efforts, only then success will be yours!
