State-owned National Small Industries Corp's (NSIC) net profit for 2018-19 is likely to be lower because of stiff competition from private players, an official said Tuesday.
The company is also looking to start offering services like insurance, transport, logistics and IT solutions to the micro, small and medium enterprises (MSMEs).
"We may take a hit in our profitability. We have to compete with the private players and profit is not our only motive. Our prime objective is to serve people," NSIC Director (Planning and Marketing) P Udayakumar said.
The turnover of the firm will, however, rise in 2018-19, Udayakumar said while addressing a press conference here.
"The exact figures I cannot tell at this moment. It will be known when the final audit will be done. I am saying this from the trend we are seeing," he said.
Also Read
During fiscal 2017-18, NSIC had clocked a turnover of Rs 22,457 crore, he said.
On entering new business, Udayakumar said the entity will start offering aggregated services to its customers within the next few months.
"We will offer services in software development, insurance, transport and logistics, among others. Next few months, all will start. Our aim is that the MSMEs get these services without anyone exploiting them," he explained.
On procurement targets, Udayakumar said most of the PSUs have crossed the mandatory 25 per cent sourcing from MSMEs, but the ministries and government departments are lagging behind.
NSIC has been pursuing various technical, promotional and commercial activities for the growth of entrepreneurship and MSMEs in the north east through its array of services and activities since the last couple of decades, he said.
Disclaimer: No Business Standard Journalist was involved in creation of this content
