A Report on Kerala Business to Business Meet 2004
In the post Globalization competitive International Economic Order, generation of employment has been one of the main objectives of the economic development and growth of the State. There is no disputing the fact that the Small & Medium Enterprises (SME) sector in the State has contributed in large measure towards this end. But to survive in the changed competitive economic order, the SME sector has to continually evolve through adoption of better technologies, reducing cost and improving quality in order to tap new markets globally for their sustainable growth. This is especially relevant for the traditional sector within the State and other sectors where the State has an inherent advantage in terms of potential for rapid growth. Hence there is urgent need to explore new markets, increased access to existing ones and tap emerging opportunity to ensure a rapid growth to the employment generation prospects in the State.
During the past few years, the Department of Industries, Government of Kerala is increasingly transforming itself as a facilitator for the SME Sector to showcase the State as a manufacturing base and a reliable supplier of quality goods and services. There is a general perception that Kerala has a very weak manufacturing base. This is contradictory to the fact that our manufacturing sector contributes about 20.7 % of the State Domestic Products (SDP) of which the contribution from the SME sector is substantial. There are hundreds of branded and unbranded quality products, which is manufactured in our State. Many of them can act as an outsourcing base for big players both National & International Market.
With this objective, Department of Industries, Government of Kerala has organized ‘Kerala Business to Business Meet 2004’ from February 19-21, 2004 at Galfar International Convention Centre, Hotel Le Meridien, Kochi. This B2B Meet was intended to create a platform for the Manufacturing Units of our State to have an indepth interaction and one to one meetings with the Business Houses / Buyers / Trade Associates / Trade Representatives of Foreign Embassies from all over the Country and Abroad. This Meet would enable the manufacturers to get a first hand knowledge of the market demands, emerging markets and requirements in terms of quality standards besides helping them to explore the possibility of sourcing advanced and better technologies.
The Business to Business Meet 2004 was focused on Small and Medium Enterprises, of the State. The Meet also aimed to showcase the existing strong manufacturing base, to highlight our quality products both in the branded and unbranded ones and to sustain the existing industry enabling the economic development of the State.
The event was organized by the Department of Industries in association with Kerala Bureau of Industrial Promotion (K-BIP), Kerala State Industrial Development Corporation Ltd. (KSIDC) and Kerala Industrial Infrastructure Development Corporation (KINFRA). The Kerala State Small Industries Association (KSSIA) and Confederation of Indian Industries (CII) also supported the event.
The right balance between Traditional and Modern and a critical mass in manufacturing capacity were used as the criterions to identify the ten sectors which was presented in the Kerala Business to Business Meet 2004. The Traditional sectors in Kerala economy – Coir, Cashew, Spices, Handloom & Handicrafts – plays a significant role in the State’s economy in terms of employment as well as export income generation. Lack of proper marketing avenues at the global and National level is one of the major problem faced by large number of entrepreneurs engaged in this sector. By organising this B2B Meet, we were able to bring the renowned names at the national and global level face to face with our manufacturers in these sectors so that they could develop a stable and sustainable business relationship. This also will avoid the intermediaries between the manufacturer and the buyer thereby reducing the final cost of the product.
Chemicals, Rubber, Wood products, Machinery and Processed Food represented the modern sectors of the Manufacturing industry in the State. The product base of the chemical Industry included agro-chemicals, fertilizers, rare earths, minerals, cleaning agents etc. The pre-eminent position of Kerala in natural rubber production is very well known. The B2B Meet focused on promoting the products made out of rubber in the State. Similarly the selection of wood industry was also prompted by the mastery achieved by the manufacturers in the State in processing variety of woods especially the rubber wood to make vibrant products.
Ayurveda was selected both as a product and service. This attempt made in the B2B Meet will send a message across the world that Kerala is the right destination to source the most authentic Ayurvedic products and Healthcare services in the Country. The selection of the ten key industrial sectors for the B2B Meet was made after a careful analysis of the strengths and weaknesses of the State in these sectors. More sectors or products can be included into the B2B portfolio in the coming years.
The Department of Industries and other related agencies along with the event managers entrusted has been working in tandem which made the event a grand success. The effort put by them succeeded very well which can be seen from both the number of sellers as well as buyers who participated in the Meet.
The registrations of the Manufacturing Units (Sellers) from the State received an excellent response and 310 Units registered as Kerala sellers with representation from all the 14 districts of the State. The maximum number of registrations received was from Ernakulam (75) followed by Thrissur (40) and Thiruvananthapuram (33). The maximum registrations in the sector was for Processed Food & Spices (69) followed by Rubber & Plastics (46) and Ayurveda / Herbal / Pharmaceuticals (43).
Similarly we have received 451 Nos. buyer registrations. A total of 303 Buyers participated, out of which 218 were from outside Kerala & within India, 25 were from Kerala, 41 were Foreign delegates and 19 were from Embassies and Consulates. The Foreign delegates were from UAE, Saudi Arabia, Austria, Geneva, Muscat, Bahrain, Kuwait, Singapore, Netherlands, Canada, Sweden, Mexico, Turkey, Korea, Philippines & Italy. Eight foreign Country Embassies participated in the Meet and the Netherlands delegation led by their Ambassador also had an exclusive session ‘On Doing Business with Netherlands’, in association with Government of Kerala.
Shri. P.K. Kunhalikkutty, Hon’ble Minister (Industries & IT), while inaugurating the Meet said that the overwhelming response received by the event is a reflection of the paradigm shift taking place in the minds of the people from the Country and abroad about Kerala as an investment destination as well as a place to establish stable relationships. The Hon’ble Minister also said that the Government would seriously consider to make the Kerala B2B Meet as a calenderised annual event.
Shri. A.K. Antony, Hon’ble Chief Minister, while addressing the gathering along with the Netherlands Business delegation said that Kerala is gradually becoming an investor friendly State. He said that the mindset of most of the Keralites have already undergone the change for the better and nobody could now resist the course of the winds of change. He informed that the Government is concentrating on policy changes that will put the State on a progressive path and are trying to develop development politics.
Shri. K. Sankara Narayanan, Hon’ble Minister (Finance), Shri. K.V. Thomas, Hon’ble Minister (Fisheries & Excise), Shri. V. Ramachandran, Vice Chairman, Kerala State Planning Board, Shri. N. Chandrasekharan Nair, Chief Secretary, Government of Kerala, Shri. C.P. John, Member, Kerala State Planning Board, Shri. M.A. Yousef Ali, Managing Director, EMKE Group, Shri. Umesh Shenoy, General Manager, Canara Bank also addressed the participants in the various sessions of the B2B Meet.
Besides the presentation from Foreign Embassies like Australia, Canada and Netherlands leading National Institutions and Departments like Indian Railways, Director General of Foreign Trade, Directorate General of Stores & Disposals etc. made presentations on various schemes and incentives offered by the irrespective Departments. Similarly financial institutions like Canara Bank, Kerala Financial Corporation, Small Industry Development Bank of India & State Bank of Travancore were also given exclusive sessions and interactions with the participants.
As part of the event two CD ROMs – first giving details of the entire registered Kerala Sellers taking part in the Meet and the second providing detailed information about the ten sectors was released. A directory titled “Seller Info Book” and a guide on Investment Opportunities ‘Resurgent Kerala’ were also brought out during the Meet.
The three day event focusing on the SME Sector of the State showcased the State on a strong Manufacturer rather than the earlier perception on a Consumer State. As Hon’ble Minister for Industries cited in the inaugural address, the Government will make it as a regular affair and more sectors will be included in the Portfolio in the future.