Opportunities & Challenges for SMEs in Vizag

Business Standard Smart Business

The future of many small and medium industries in the port city of Visakhapatnam looks uncertain as they continue to depend solely on procurement needs of public sector undertakings.
 

Historically, Vizag’s SME sector evolved as a vendor base for around half a dozen public sector units, including Vizag Steel, located in the city. Some of these PSU units are no more in the pink of their health while the procurement needs of other PSU units changed over time. This has caused disruptions in the order flow to these local SMEs.
 

Vizagapatam Chamber of Commerce and Industry and Business Standard conducted a panel discussion on the challenges and opportunities for SMEs in Visakhapatnam in the light of the changing external conditions around them.
 

Discussing these and other issues faced by the local industry, the panel speakers said it was high time the entrepreneurs of these SMEs looked beyond the procurement orders from PSUs by exploring opportunities in new product areas.
 

N Ramakrishna, owner of Pratap Industries and Former President of Vassiwaa said that the small industries require government support to navigate through these difficult times. He said investing in new machinery has been a big challenge for the small industry.
 

GVR Naidu, Assistant Director, MSME Development Institute, Visakhapatnam, advised the local industrial units to get registered on the government procurement portal to be able to win the orders from outside Vizag.
 

Professor M S Jawed, Indian Institute of Management (IIM), Visakhapatnam, said SMEs need to use e-commerce as a tool to access markets outside their immediate vicinity. He said that IIM-V would work closely with local entrepreneurs to help find ways in transforming their businesses to become more viable.