Prepared by: 1_BASAVRAJ A B PATIL 2_RK 3_DEEPAK KADLASKAR 4_KUSHAL 5_MALLIKARJUN J 6_PRAVEEN RATHOD 7_PRAVEEN HOSUR 8_CHETAN DESAI

9_RAMU MALI 10_NAVEEN BENKIPUR

Under the guidance of: prof.ARJUN VIRUPAKSHI

What is SIDBI ?
Is an apex financial institution in the field of rural development.
Is Small Industries Development Bank of India.

Was setup under the SIDBI Act-1989 and commenced operation from April,1990.
Was de-linked from IDBI to provide functional

autonomy and operational flexibility in year 2000.

Functions meant to help small scale industries

Refinances loans given to small scale sector by primary lending institutions.
Discounts and rediscounts bills relating to the

transaction of machinery of the small scale sector. Extends seed capital through specified agencies.

Cont
Assistance for export of products of small-scale

sector. Provides services like leasing and factoring. Give financial support to purchase raw material and the sales of finished products

SMALL

Makes BIG Difference

Small industries contributes more than 45% share in industrial production. Share in services is more than 65%.
80% share in employment generation. More than 35% share in Indias export.
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Fast Track Finance

Direct Credit Scheme

Technology Upgrad.

Export Finance

Venture Capital

Bills Finance

Factoring

Indl./ Mktg Infrastr.

SIDBI Set up on April 2, 1990

for

Promotion, Financing & Development of Small Scale Industries &

To

Co-ordinate the functions of institutions

serving the Small Industries.

Indirect Assistance
Through more than 910 PLIs with 65,000 + branches

Direct Assistance

Through network of SIDBIs more than 59 offices

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SIDBI Nodal Agency for Government Schemes

National Equity Fund Integrated Infrastructural Development Scheme

Technology Development & Modernisation Fund

Scheme
Technology Upgradation Fund Scheme for Textiles and

Jute Industries
Tannery Modernisation Fund Credit Linked Capital Subsidy Scheme

Credit Guarantee Fund Scheme for Small Industries

(through separate Trust)

Credit Linked Capital Subsidy for Tech Upgradation of SSI

New or Existing SSI units To facilitate technology upgradation in specified

products/ sub sectors 15% capital subsidy from GoI on the loan amount (eligible loan ceiling Rs.100 lakh) SIDBI is the nodal agency

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Receivables Finance Scheme

Eligibility for large purchasers Minimum sales of Rs.15 crore Minimum net worth of Rs.3 crore Not in default to Banks / FIs Limit based on credit purchases from SSIs during past year / projected growth in sales for the current year

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Developmental programs Focus Areas

Entrepreneurship Development Programmes
Supported 1,709 EDPs, comprising 779 programmes for rural youth,

331 for women and 599 for other target groups Human Resource Development Organised 240 SIMAPS and 1074 STUPs benefiting over 20000 participants Technology upgradation 25 clusters for upgradation adopted Set up TBSE being converted to Technology Bank Pioneering initiatives taken in clusters include Mutual Credit Guarantee Fund (MCGF) Programme.

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Focus Areas (Contd..)

Emphasis on environment management, quality management
Conduct of over 88 awareness programmes on environment and

quality management Constitution of Expert Group to advise on environment related issues Support for conducting workshops for specific industrial sectors to enable them to appreciate the concept of cleaner production. Research and Information Dissemination Book on Technology for SSIs WTO related studies
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SIDBI Updates..
Cisco announced that it is collaborating with Small Industries Development Bank of India and Tiruchirappalli Regional Engineering College- Science and Technology Entrepreneurs Park to promote information and communications technology ICT entrepreneurship and innovation in the country. Small Industries Development Bank of India (SIDBI) has signed a loan agreement with Japan International Cooperative Agency (JICA) for 30 billion yen (Rs.1, 500 crore).
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Cont
The loan will be used by SIDBI for financing the micro small and medium enterprises (MSMEs) for energy saving and environmental-friendly projects. The other projects include Chennai Metro project, Hyderabad outer ring road project (phase 2) and Capacity development for forest management and personnel training project. Annual Award-2008 at Tehran, Iran. Sidbi has been awarded as specific Plaque of Merit
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Provision of Charter
SIDBI was established on April 2, 1990. The Charter establishing it, The Small Industries Development Bank of India Act, 1989

envisaged SIDBI to be "the principal financial institution for the promotion, financing and development of industry in the small scale sector and to co-ordinate the functions of the institutions engaged in the promotion and financing or developing industry in the small scale sector and for matters

Business Domain of SIDBI

The business domain of SIDBI consists of small scale industrial units, which contribute significantly to the national economy in

terms of production, employment and exports. Small scale industries are the industrial units in which the investment in plant and machinery does not exceed Rs.10 million

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Cont..
About 3.1 million such units, employing 17.2 million persons account for a share of 36 per cent of India's exports and 40 per cent of

industrial manufacture. In addition, SIDBI's assistance flows to the transport, health care and tourism sectors and also to the professional and self-employed persons setting up small-sized professional ventures.

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Cont.
SIDBI Among Top 30 Development Banks of the World
SIDBI retained its position in the top 30

Development Banks of the World in the latest ranking of The Banker, London. As per the May 2001 issue of The Banker, London, SIDBI ranked 25th both in terms of Capital and Assets

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Govt subsidy schemes

Technology Upgradation Fund Scheme for

Textile Industries (TUFS) Credit Linked Capital Subsidy Scheme (CLCSS) Integrated Development of Leather Sector Scheme (IDLSS) Scheme of Technology Upgradation / Setting up / Modernisation / Expansion of Food Processing Industries (FPTUFS)

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Purpose of SIDBI
To provide factoring service to the manufacturers in SSI sector supplying their products on credit terms to various

purchasers in the domestic market with a view to assisting them in their receivable management as also providing them with finance against the receivables factored.

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SIDBI Chairman & Managing Director

The Ministry of Finance, Government of India have vide their Notification dated April 01, 2011, appointed Shri S. Muhnot as the Chairman and Managing Director of Small Industries Development Bank of India (SIDBI).
Shri S. Muhnot

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Cont.
Prior to taking up this assignment, Shri Muhnot was the Executive Director of IDBI Ltd. Before that, he was the Managing Director and CEO of IDBI Capital Market Services Ltd.

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Association of RUDSETI
Association of RUDSETI with Small Industries Development Bank of India (SIDBI), started modestly in the year 1997-98. The meaningful partnership to achieve the common goal has grown consistently. The support of SIDBI for conducting REDPs and other new initiatives has increased progressively over the years. The number of programmes sponsored and fund disbursed since 1997-98 are as under:

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Besides supporting Entrepreneurship Development Programmes (EDPs), SIDBI is also supporting RUDSETI for organizing good number of NGOBanker Interface, Trainers' Training Programme for NGOs and RUDSET Bazaars.

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Achievements
SIDBI retained its position in the top 30 Development Banks of the World in the latest ranking of The Banker, London. As per the May 2001 issue of The Banker, London, SIDBI ranked 25th both in terms of Capital and Assets. Credit Guarantee Fund Trust for Micro and Small Enterprises popularly known as CGTMSE is widely being used by many PSU Banks and Private sector banks to fund MSME sector.

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Than Q

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 VENTURECAPITALAnUndertakinginvolvedR

iskDaretodoorSaysomethingORAmountinv estedbytheperson/stocarryoutthenewlyestab lishedbusiness

Bankatlal Badruka College for Information Technology

Punit.K.Dwivedi

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meaning
Meaning Venture capital means funds made

available for startup firms and small businesses with exceptional growth potential. Venture capital is the financial support to young, rapidly growing companies/ individuals that have potential to develop into significant economic contributors by the Business men/ Group to create a product or service which has a unique idea

Bankatlal Badruka College for Information Technology Punit.K.Dwivedi

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Features and charactericts

1.
2. 3. 4. 5.

High risk Participation in management Provided at earlier Stage Finance to Smaller and Less Mature companies Finance new and: rapidly growing companies Lack of liquidity Long time horizon
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Need for venture capital

To bridge the gap b/w Capital and Knowledge
Maximum utilization of available resources

Bankatlal Badruka College for Information Technology

Punit.K.Dwivedi

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Types of funding
Seeding Capital
Startup capital Early Stage Capital Expansion Capital Last Stage Capital

Bankatlal Badruka College for Information Technology

Punit.K.Dwivedi

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 VENTURE CAPITALIST---A venture capitalist is a person or investment firm that makes venture investments, and these venture capitalists are expected to bring managerial and technical expertise as well as capital to their investments
Characteristics Well Managerial Skills Well Knowledgeable Sophisticated Investors Comes forward to take risk Decision Making Ability Analyzing Skills Technology Back Ground Scientist/Researchers
Bankatlal Badruka College for Information Technology Punit.K.Dwivedi

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SERVICES GENERALLY PROVIDED BY VCS

Finance to new and: rapidly growing companies
Finance to Typically knowledge-based

sustainable, up scaleable companies Purchase equity/quasi-equity securities Assist in the development of new products, or services Add value to the company through active participation
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Funding process
Step 1 Business Plan Submission
Step 2 Introductory Conversation/Meeting Step 3 Due Diligence Step 4 Term Sheets and Funding

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