DMAI seeks financial support from govt on assisting SMEs
By: ICN Bureau
Last updated : March 06, 2018 8:18 pm
The Dyestuff Manufacturers’ Association of India (DMAI) has requested the government for financial support so as to assist the small and medium enterprises (SMEs) which are not in a position to bear the initial cost of market development.
The Dyestuff Manufacturers’ Association of India (DMAI) has requested the government for financial support so as to assist the small and medium enterprises (SMEs) which are not in a position to bear the initial cost of market development.
"Our industry, after achieving a Compounded Annual Growth Rate (CAGR) of 17.5 per cent for exports in the decade ending 2000, has recorded a CAGR of 14.5 per cent for the decade ending 2010; and has set an aspirational target of 14.5 per cent for the coming decade. On realising this target, the world map share of Indian colorants and dyes intermediates industry will jump up from the current 12.5 per cent to 20 per cent by 2017," the DMAI said in its action plan for the 12th Five Year Plan.
According to the DMAI, emerging markets in Latin America, Africa and Commonwealth of Independent States and Eastern Europe have a considerable scope for export growth.
"To understand and get a grip on these untapped markets, we need to take trade delegations, arrange interactions with buyers and have a consistent campaign to project India'''s capabilities and establish '''Made in India''' as a brand of high quality standards.
"Our industry has a large number of SMEs which are not in a position to bear the initial cost of market development. To assist them and the industry in general, DMAI can organise these activities with government'''s financial support," it said.
The DMAI solicited the government'''s support to the industry as follows:
1. Include colorants and dyes intermediates under focus product scheme (2 per cent incentive)
2. Under focus market scheme (3 per cent incentive) includes Commonwealth of Independent States and Eastern Europe countries and Brazil.
3. Under market development or market assess initiative assistance of Rs 5 crore for 5 years.
With the Under market development or market assess initiative assistance, the DMAI proposed to organise on an average two trade delegations every year to emerging markets which "can help us achieve in these markets an export growth of over 200 per cent in the first three years and over 400 per cent in the first five years in these markets.
The DMAI also requested the government to encourage its members to visit as delegates or participate as exhibitors in international colorants-related exhibitions.
Dyestuff Manufacturers’ Association of India (DMAI)
First Published : November 29, 2011 12:00 am