www.smeda.org.pk

Presentation on

Small & Medium Enterprise Development Authority

(SMEDA)

Ikhtiar Ahmed KhosoRegional Business Coordinator

SMEDA-Hyderabad022-787358, 0301-3511922

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Scheme of Presentation1. SMEs and Brief History of SMEDA

2. Role and Responsibility of SMEDA

3. Services of SMEDA (for New Business)

4. Services of SMEDA (for Existing Business)

5. Entrepreneurship Development

6. Training Services of SMEDA

7. SMEDAs PSDP Projects

8. Modernization & Rehabilitation of Rice Sector

9. Achievements of SMEDA Larkana

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Estimated Number : 3.2 million (99% MSMEs)

Value Addition in Manufacturing: 35%

Contribution to GDP: 30%

Share in manufactured exports: 25%

Contribution in Employment: 99 % Non -

agricultural Sector jobs

SMEs in Pakistan

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SMEDA

Prime Ministers’ Notification dated October 13,1998 established SMEDA as an AutonomousCorporate Body with following functions

– Apex Policy Making Body for SMEs

– Facilitate Support Services to SMEs

– Serve as Key Resource Base

– Voice of Small Business within the Government

– Kick Start economy through aggressive SME support programs

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Responsibilities

Facilitate on Policy-making and provide overall Planning relating to SMEs in Pakistan

Protect the interests of SMEs

Identify research parameters and priorities

Conduct professional overall monitoring and evaluation of SMEs

Advise the Federal Government for allocation of funds to identify research and planning priorities

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Responsibilities – Contd.

Act as resource base for providing expertise, information, data, statistics necessary for SMEs

Provide, arrange and facilitate support services necessary for SMEs

Establish association of persons, firm, company, body or corporation concerning SMEs in Pakistan

Initiate, take, continue, implement and perform any and all activities for encouraging and facilitating the growth and development of SMEs

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Below is a Snapshot of SMEDA’s Business Development Services offered to new SMEs through a nation-wide network of Helpdesks:

• Project Identification• Business Plan Development• Business Information (Pre-feasibility Studies,

Databases, Project Briefs & Library)• Business Matchmaking• Legal Services• How to approach banks for financing

Services For New Business

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Services For Existing Business Below is a Snapshot of SMEDA’s BusinessDevelopment Services offered to ExistingSMEs:

• Business Plan Development• Assistance in Raising Finance• Legal Services (Export & Import Regulations, Taxation & Company Registration)• Technical / Technology Support• Marketing and Capacity Building• Industrial Information Network – B2B E-Commerce & Business Information Portal (www.iin.com.pk)

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Entrepreneurship DevelopmentWomen Entrepreneurs Information Network (WIN) –www.win.org.pk– Exclusive Women Entrepreneurs dedicated Web portal– Consolidated Information exchange and web based

Service Solution– Networking Opportunities for Women Entrepreneurs

SHELL Live Wire, Youth Affairs Department – SMEDA Targeting young people aged 18-32 years– Encourage new business Start-up as a viable career

option– Provide free of cost information, advice and support in

developing their entrepreneurial skills

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Development of B2B portal for sustainable SME industrial DevelopmentPortal for Textile & Leather in Sept. 2004Services to be offered– Info. on Govt. Rules, Regulations & Policies– Business Financing– International Market Identification – Trade Leads– Technology / Industrial information– Information on Int’l Standards and Compliance Procedures– Investment opportunities

Industrial Information Network (IIN)www.iin.com.pk

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To provide continuous facilitation to the SMEsTo support & enhance the Entrepreneurs skills of the SMEs of SindhTo increase the Business Knowledge to improve SMEs ProductivityTo introduce new techniques and systems of the businesses

Objectives

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SMEDA’s PSDP Projects

Sr.Name of the Project Location Approval Status Cost (Rs. M)

1 Agro Food Processing Faclty. Multan Pun.CDWP (2006) 207.7302 Chromite Beneficiation Plant Khanozai, Bal. DDWP (2006) 24.6603 Foundry Service Centre Lahore Pun,CWDP (2009) 179.4004 GPDMC Hyd. Sindh DDWP (2007) 59.2705 Gujranwala Business Centre Gujranwala, Pun.CDWP (2006) 98.7806 Khadi Crafts Dev. Com Multan Pun. CWDP (2009) 230.0007 Leather Crafts Dev. Com. Multan, Pun. CDWP (2009) 214.0108 Policy & Project Imp, M&E Lahore, Pun. DDWP (2007) 25.8209 Red Chilies Processing Cent. Kunnri, SindhCDWP (2009) 192.930

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SMEDA’s PSDP Projects(cont.)Sr.Name of the Project Location Approval Status Cost (Rs. M)

10 Revival of Cutlery Inst of Pak. Wazirabad, PunjabDDWP (2007) 39.84011 Revival of HLFC Hyderabad, SindhDDWP (2007) 58.89312 Sialkot Business & Com. Cent. Sialkot PunjabCDWP (2007) 171.67013 SME Subcontracting Exchange Gujranwala, PunjabDDWP (2007) 26.09014 Sports Indu.Development Cent Sialkot, PunjabCDWP (2006) 435.63715 Washing & Pressing Unit Charsadda, K. P. DDWP (2007) 5.38016 WBIC Karachi, SindhDDWP (2007) 58.84017 WBIC Peshawar, K. P.DDWP(2007) 28.41018 WBIC Lahore, PunjabDDWP (2007) 59.590

Total Projects Cost 1,924.020

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Modernization & Rehabilitation of Rice Sector

The Rice Cluster in Sindh: Larkana Shikarpur Qanbar Shahdad kot Thatta Badin Dadu

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Value Chain Analysis of Cluster Products

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Paddy

Cleaning

Mechanical or Sun drying

Shelling Unit

Cleaning De-husking Husk Separator

PaddyBrown rice

Polishing unit

Bran Separator

Rice Grader

Full Processed

RiceWeighing and

packing

Broken Rice

Rice Powder & Impurities

Process flow chart for Rice Milling Units in Interior Sindh

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Process flow chart for Rice exporting Units (Mostly in Karachi Sindh)

Rice processed rice mill in Interior Sindh

Silky unit

De stoning unit

Color Sorting Machine

Grading

Weighing and Packing

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Modernization and Rehabilitation of Rice Sector

VALUE CHAIN PROGRESSION

Primary Process Industrial Inputs/ intermediaries

Consumer Goods

Rice Paddy•Growing• Separating paddy from chaff• Transportation

Brown Rice •Branded Rice•Par boiled Rice•Broken Rice•Rice Powder

•Ready meals•Rice Bran •Rice Cereals•Rice Husks•Noodles /Vermacilies

Sun Drying•Dried Within controlled environment•Dry Milling

Milling•Hulling •Husking

Processing•Boiling (parboiled only)•Polishing•Sorting•Grading•Packing

Food Processing

Value Added & Bi-products

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Modernization and Rehabilitation of Rice Sector

Issues in Rice Milling

Obsolete rice milling machinery:

Obsolete method for hulling, leads to higher

broken %

Drying method, leads to more moister

Not using moisture meter

Higher Electric consumption

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SWOT ANALYSIS

Modernization and Rehabilitation of Rice Sector

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STRENGTHS: Climate is very much suitable for Irri category. Pakistan rank # 1 at Rice consumption and Production ration Reasonable road infrastructure and communications Availability of few rice research centers within the cluster Easily availability of labors at Cost effective rates US $ 600-700 million Non Basmati export Better water supply in rice growing region of the province Reasonable network of banks available within the cluster

WEAKNESSES:

High transportation cost up to Port Qasim to supply the product for export markets / Railway Stations are in active

Lack of power supply. Outdated Research institutes need new equipments and resources. Lack of skilled labors / No vocational institutes imparting training for machine operation

/ boiler handling

Modernization and Rehabilitation of Rice Sector

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Modernization and Rehabilitation of Rice Sector

WEAKNESES : Cont: Low level of modernization and up gradation technology Unawareness about export markets trend limited interaction between growers and research centers. Limited level of capacity as association of growers as well

processors have not team of professionals. Growers have low level of influence in fixing of paddy support price.

Rice processors have also limited say in policy initiatives. Non availability of quality paddy. Ignorance in Trade Policy to support direct exporters from the

cluster. No testing lab available in the cluster

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Modernization and Rehabilitation of Rice Sector

OPPOURTUNITIES: Banned on Non Basmati Rice export from some world player.Demands are growing & Prices are stable in international marketHuge potential for Parboiled rice as some major player are not active.Possible production of organic Rice

THREATS : World price volatility EU legislation and regulations on health, environment, safety, labeling.Interrupted electric supply / higher oil/ gas pricesLaw & order situation with in the cluster.Delay in supply of fertilizers

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Modernization and Rehabilitation of Rice Sector

Training need analysis

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Modernization and Rehabilitation of Rice Sector

CURRENT STATUS OF TRAINING SERVICE PROVIDERS

AGRICULTURE EXTENSION WING, AGRICULTURE DEPARTMENT SINDH:Following are few awareness and training activities of this Wing:

Creating awareness on usage of agriculture machinery for better

quality and quantity productivity

Balanced use of fertilizer and pesticide

Individual contact with farmers,

Field farmer days / seminar at various places,

Village level farmers training programs,

Demonstration of the technology through laying out demonstration at

farmers field,

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TRAINING NEED ASSESSMENT OF RICE CLUSTERS OF SINDH

TRAINING REQUIREMENT OF GROWERS Modern Agriculture & Farming Techniques Exposure visits to model farms locally and internationally. Post Harvesting Preservation & Processing Techniques specially (Improved Sun

Drying Techniques) Farm Management & Development Skills. Low Cost Storage Techniques. Awareness Seminars on Potential of Rice Exports How to start export training. Pest & Pesticides Management Health & Safety Issues Farm Machinery and operation management Networking events within clusters to share new development in the cluster

/country/world (Exporters may be encouraged to join such meeting to share theirknowledge

Social & Environmental Compliance Rice Import Requirement of Different Regions & Countries.

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TRAINING REQUIREMENT OF RICE PROCESSORS

Training programme on analysis of Physical &Chemical Parameters in Rice products:

Training programme on analysis of Pesticide Residues Training programme on Microbiological analysis Implementation of Social & Environmental

Compliance Implementation of Health & Safety Issues Better Storage Management. Awareness Programs on different Support Programs

(Export Incentives, Machinery Up gradation, Loans onlow mark-up etc) offered by Government

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Projects required by cluster

• Parboiled Rice PlantsParboil rice is value addition and gives better $ value in

international market.

High value of investment becomes entry barrier for rice sector to get benefit of growing opportunity.

Ideal Project for Public Private partnerships.

Project cost is 120 mn / plant for a capacity of 300 Tons/day. The cost does not include price of land.

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Projects required by cluster

• Husking & Polishing Mills up gradationUse of SBP LTFF scheme for the project.

The mark up is subsidized under the scheme which may further shared by new support programs for rice growers of Sindh.

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Projects required by cluster

• Establishment of Network / Consortium to establish direct exporter from cluster.

Need 6-8 millers to create a group, Project

should enhance their capacity from supply

side, trained them & support to enter in export

market.

Project may take start initially from five

groups.

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Achievements of SMEDA Larkana

Established in 2004 Rendered services to 700 exporters, importers, and other

SME's Generated investment opportunities of Rs.142,296,856 Created 116 employment opportunities Prepared PC I, pre-feasibility reports for investment in rice

sector Developed 8 business plans for clients Developed 3 District profiles for investment Conducted diagnostic on larkana’s rice cluster published

by UNIDO, Pakistan Organized 30 plus training programs/seminars, trained 600

participants31

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Thank You