MARKETING ASSISTANCE PROGRAMMESMarketing ProgrammesNIC Shoppe Exports Programmes The National Small Industries Corporation provides diversified marketing support in order to reach multi-product, multi-client and multi-locational markets and has adopted multi- pronged approach to effectively serve the marketing needs of the small scale sector. The Corporation also provides certain scarce indigenous as well as imported raw materials by inculcating high quality control consciousness while providing marketing support to this vibrant sector of the economy. The objectives of the internal marketing programme of NSIC are as under: - To ensure fair margin to
producers of goods
In its Internal Marketing Programme, the NSIC has, since 1976, adopted a consortia approach in which small units producing the same products are associated in the form of a consortium. The Corporation explores markets and secures orders for bulk quantities. The orders are farmed out to small units in tune with their production capacity. Testing facilities are provided or arranged to enable the units to improve and maintain the quality of their products and supply them conforming to the standard specifications. The Corporation also supplies balancing equipment, wherever needed. It undertakes discounting
of bills, wherever necessary, and releases 80-85% payment upon receipt
of proof of despatch.
The Corporation is also participating in bulk tender enquiries of Central and State Government, Public Sector Enterprises on behalf of the small scale units. Under this programme the Corporation is identifying large number of items for which it actively participates in tenders of these Departments and Corporations. On receipt of the orders, Corporation farms out these orders to the units on whose behalf it has quoted and gets the item made under its own supervision and supplies them to the buying agencies ensuring timely delivery and quality of products. This assistance has enabled a large number of small units to compete for the orders which are normally out of reach of the individual units because of bulk requirements. Products The products which have been taken up for internal marketing on above lines are as under: Hosiery items for which a consortium was formed in Tirupur which are sold under `NIC' brand name Hand-made paper for which a consortium was formed of units from all over the country. Regular A/Ts are placed on us by DGT&D, against open tender competition, orders for bulk quantities are also secured from user departments like the Railways, Stationery Offices as well as Public Sector Enterprises. NSIC also supplies paper based products like file cover, file flaps, etc. Electric fans for which a consortium has been formed in Calcutta, (West Bengal). This product is also sold direct to Public Sector Enterprises and Households. This product has also been given `NIC' brand name. Stationery items for which a consortium has been formed in Calcutta, (West Bengal). Orders for bulk quantities are secured from Government of India, GLS Lamps for which a consortium has been formed in Calcutta, (West Bengal). The items are sold to Govt. Departments for participating in tenders. CTVs for which a consortium has been formed in Madras (Tamil Nadu). This product has also been given `NIC' brand name. Other items which have been taken up for Internal Marketing are Steel Furniture, Shoes, Fire Extinguishers, Nylon Socks, Piston Rods, Jerseys, HRC Fuses, Computer and Accessories, Napkins, BOD Incubator, Oven and Hand Made Paper, Identity Card, etc. The NSIC also markets high quality machine tools such as Tool Room Lathe, Tool and Cutter Grinder, Tool Room Milling Machine, etc. and also machines like 45mm and 65mm PVC Extruders, Die Casting Machine and Leather Finishing Machines, produced in its Prototype Development and Training Centres in Okhla, Rajkot, Howrah and Madras. Agency The NSIC markets machinery and machine tools on agency basis. It markets PVC Extruders produced by Engel India Machines and Tools Limited, Calcutta. THe equipment was developed by NSIC in its Prototype Development and Training Centre in Howrah and the technology for its production was then transferred to this unit. The NSIC also markets, as
sole selling agents, a wide range of heavy duty multipurpose wood working
machines manufactured by A.O.K. Wood Working Machines, New Delhi, machines
like Power Hammer, Sand Mixer and Oil-fired Tilting Furnace manufactured
at the Government of India Production Centre, Ettamanur (Kerala) and Electric
Motors manufactured at the Government of India Production Centre, Tiruvalla
(Kerala). This is an on-going process and more machines are taken up under
Agency.
Marketing Development Centres - NIC Shoppe The NSIC has taken up establishment of Marketing Development Centres in the country as part of its internal marketing programmes. The centres have been conceived to - play a catalytic
role in providing exposure to the products of small scale units throughout
the country and assist in their direct and in-direct marketing,
The Marketing Development
Centres, known as NIC Shoppe offer an unprecedented opportunity not only
for exposure of small industries' products but also for their retail sale,
whole sale, distribution, tender marketing and export. The Centres are
intended to market on all-India basis as well as export a wide range of
products, consumer durables, electronics, builders hardware, etc. The Marketing
Development Centres are being setup in principal towns all over the country.
This concept can further be expanded to cover marketing of industrial machinery
in the future.
NSIC assists small scale industries to market their products in the International Market and has adopted a single window assistance approach for export of small industries products abroad. NSIC's services to its exports associates comprises of the following: NSIC's services to its export associates comprise of the following: - To obtain enquiries, specifications and samples through its indenting agents, participation in exhibitions, trade fairs, and buyer-seller meets and visits to foreign countries, and to pass them on to the small scale unit. - To assist small scale units in the development of counter samples and to despatch them for approval of the foreign buyers. - To negotiate contracts with the foreign buyers and farm them out to small scale units. - To attend to the entire export documentation work. - To pay 80% of the value on proof of despatch of goods. - To arrange import of raw materials, wherever necessary. - To finance and supply balancing machinery for modernisation, expansion and testing, wherever necessary. - To monitor production, inspect the products for quality and specifications and arrange to export. - To negotiate documents through normal banking channels with the overseas buyers. - To arrange deferred payment credit facility from EXIM Bank in respect of such buyers where deferred payment credit facility is extended. Balance of payment, after recovering its service charges varying generally from 2.5% to 3% depending upon the value of the order, profit margin available and turnover expected, interest and other bank charges, is released to the export units on realisation of the payment from foreign buyers. The products which are presently exported by NSIC are - Non-ferrous builders'
hardware,
The NSIC is exporting small industries' products to several developed countries like USA, UK, West Germany, Canada, Holland, etc. The major items of export to these countries are non- traditional goods. As a strategy to promote exports of appropriate technology capital goods and support services and wide range of products manufactured by the small scale sector, the Corporation is participating both in national and international exports, buyer- seller meets and trade fairs, etc. The approach adopted by the Corporation has had a big impact and resulted in considerable demands from large number of countries thus opening up vast international markets to this sector. Special Export Efforts NSIC has also developed linkages with U.N. System Organisations all over the world for boosting exports to these international agencies. It has already two rosters of Potential Suppliers of Goods and Services from international agencies. It has already compiled two rosters of Potential Suppliers of Goods and Services from India to U.N.Systems of Organisations all over the world, which enabled India to increase its share in the purchases of these international agencies from 1.65% to 3.45% and India emerged on top as supplier amongst developing countries. It participates in a number of International Exhibitions and Trade Fairs around the globe every year. EXHIBITION/TRADE FAIRS & BUYER SELLER MEETS The products of the Small Scale Sector are displayed in specified Trade Fairs/Exhibitions free of charge. Inquiries, specifications & samples received directly or through its specified indenting agents are passed on to the concerned small scale units for development and final offer. NSIC assists units to do costing and pricing for International markets and also assists them by providing technical information. ABSORPTION OF MARKETING OVERHEADS & EXPORT PROMOTION NSIC also assists the small scale sector by providing assistance in negotiations with the overseas buyers by sending samples and for subsequent correspondence for procuring export orders at its cost. RAW MATERIAL ASSISTANCE PROGRAMME The export orders received by the Corporation are passed over to the concerned associate units for shipment. For such orders NSIC also provides raw material assistance at concessional rates of interest as notified by Reserve Bank of India within specified norms and conditions of the corporation. ASSISTANCE UNDER LEASING FOR TECHNOLOGY UPGRADATION Small Scale Units which require technology upgradation for executing export orders are considered on priority by NSIC for providing necessary machines etc. under our leasing scheme. PRESHIPMENT ADVANCES Also provides upto 80% of the invoice value on proof of despatch, as preshipment advance at Reserve Bank of India notified rate of interest. ASSISTANCE FOR SHIPPING Assists small scale units in making shipments and assists them to prepare all related/shipping documents. EXPORT INCENTIVES All export benefits are claimed and passed onto the export units without any deduction or else NSIC gives the option to units claim the benefits themselves. EXPORT DOCUMENTATION All export documentation with respect to shipping, claiming incentives, negotiations of documents and post shipment activities are done entirely by NSIC and the unit need not register itself with other export related agencies. ASSISTANCE FOR PROJECT EXPORT Also exports Small Industrial Projects with emphasis on relevant technology to Developing Countries. Project formulation is carried out in-house by NSIC and plant machinery is supplied from quality manufacturers after due inspection. NOMINAL SERVICE CHARGES A nominal service charge
is levied on case to case basis.
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