SIDO Small Industries Development Organisation India

General information
Good practices
name

SIDO Small Industries Development Organisation

Type of institution

It is an attached office of the Department that assists the Ministry of Small Scale
Industries (SME). SIDO was established on the basis of the recommendations of
the Ford Foundation

Registry
Information

Members and governance

Structure
SIDO, known as the Office of the Development Commissioner (Small Scale
Industries), operates under Ministry of Small Scale Industries as the nodal
development agency for SMEs (please note that SIDO operates on behalf of
Small Scale Industries only)
Small Scale Industry Board (part of Small Scale Industry Ministry)
The SME Board, which is part of the Small Scale Industry Ministry, is the main
th
advisory body of SIDO. Small Scale Industry Board was last constituted on 13
October, 2000 with 90 members besides the Chairman The Board provides a
forum for interactions among its members in order to facilitate coordination and
inter-institutional linkages and to render advice to the Government on various
policy matters and other related issues concerning SME. The term of the Small
Scale Industry Board is two years.

Year of establishment

Established in 1954

Address

Development Commissioner (Small Scale Industries),

A-Wing, 7th Floor, Nirman Bhavan, New Delhi 110011 - India
Phone: 91-11-23016176
Fax: 91-11-23018315

Web site

www.smallindustryindia.com

E-mail

dcssi@laghu-udyog.com

Contact person

Mr. Suresh Chandra

Development Commissioner
Phone: 91-11-23016176
Fax: 91-11-23018315
Additional Development Commissioners
Dr C S Prasad
Phone:91-11-23017611
csp@nb.nic.in
Mr. K S Ludu
Phone:91-11-23018847
ksludu@nb.nic.in

Objectives, Mission and Development:

SIDOs major SME-related activities include assisting the Ministry in evolving

policies and programmes and coordinating policies and programmes of State
Governments.
SIDO also provides a comprehensive range of extension services through its
field offices and allied institutions and monitors or implements a large number of
Government-sponsored programmes.
As a consequence of the increased globalisation of the Indian economy, small
industries are required to face new challenges. SIDO has recognised the
changed environment and is currently focusing on providing support in the fields
of credit, marketing, technology and infrastructure to SMEs. Global trends and
national developments have further stressed SIDOs role as a catalyst of growth
of small enterprises in the country.

Budget / financial allocation

The small-scale sector contributes significantly to industrial production,

employment generation and dispersal of activities in backward and rural areas.
The SMEs sector accounts for about 40% of the gross value of output of the
entire manufacturing sector of the country and 35% of total exports from the
country.
Facts and
figures

The Government has raised the investment limit for SMEs in some sectors from
US$ 220 thousand to US$ 1100 thousand (2001); and in general, for micro units
from US$ 11 thousand to US$ 55 thousand (1997).
The small-scale sector has grown rapidly over the years. The growth rates
during the various plan periods have been very impressive. The number of
small-scale units has increased from an estimated 0.87 million units in the year
1980-81 to over 3.4 million units in the year 2000.

Organisational structure

Since it is an attached office of the Ministry of Small Scale Industries, it does not
have Business Units within its structure. However, The Ministry is supported by
a number of support agencies and some providers of specialised services in the
following areas: Finance, Technology Up gradation, Technical Training,
Industrial Infrastructure, Entrepreneurship Development, and Marketing
From SIDO depend several companies/ Business Units.
National Presence
SIDOs main office is located in New Delhi and is organise as follows:

30 Small Industries Service Institutes (SISIs), set up in State capitals and

other industrial cities all over the country
28 Branch Small Industries Service Institutes (Br. SISIs), set up in State
capitals and other industrial cities all over the country
4 Regional Testing Centres (RTCs) located in Mumbai, Chennai, Calcutta,
and in New Delhi
7 Field Testing Stations (FTSs) located in Jaipur, Bhopal, Kolhapur,
Hyderabad, Pondicherry, Chenganacherry, and in Bangalore.
21 Autonomous bodies which include:
11 Tool Rooms (TRs) and Tool Design Institutes (TDI) located in
Indore, Ahmedabad, Ludhiana, Hyderabad, Bhubaneshwar,
Jamshedpur, Calcutta, Jallandhar, Guwahati and Nagaur. State
Govt. run tool rooms are located in Lucknow, Delhi, Bangalore,
Mysore and Goa
4 Product-cum-Process Development Centres (PPDCs) located in
Kannauj Firozabad, Ramnagar, Meerut and Agrai
2 Central Footwear Training Institutes (CFTIs) located in Agra &
Chennai
1 Electronics Service & Training Centre (ESTC) in Ram Nagar
1 Institute for Design of Electrical Measuring Instruments (IDEMI),
located in Mumbai
2 National Level Training Institutes, and 1 Departmental Training
Institute located in New Delhi, Hyderabad, and Guwahati
Production Centre in Tiruvalla

International presence
SIDO provides specialised consultancy to various countries as well as with the
assistance of International Agencies, such as UNIDO. Opinions and views are
being exchanged continuously with International Organisations like APO-Japan
and UNCTAD-Geneva. The countries, which have already received the services,
are: Senegal, Cameroon, Benin, and Vanuatu.
Countries like Zimbabwe, Trinidad and Tobago are in the process of negotiating
the specialised consultancy. Further, many countries, like South Africa,
Venezuela, Malawi, Mauritius, Zambia, Brunei Darussalam and Kazakhstan are
in touch with India through contact points ensuring cooperation among Denmark
and Germany, for the set up of specialised Tool Rooms (training centres
equipped with latest imported machines/equipment developed with the help of
SIDO)

General information related to technology area (product/market)

Framework of the
main activities

Industrial sector/s of reference

Food Products
Metal Industries
Electrical & Machinery
Chemical
Rubber and plastic products

Industrial technologies of reference:

By means of its State of the Art Tool Rooms and Training/testing Centres, SIDO
has developed very important advances in the following technologies:
-

Hand Tool Technology/Manufacturing/Design

Tool Engineering
Technology in CNC,
CAD/CAM Systems,
Precision Engineering
Robotics
Heat Treatment
Electronics
Agro-technology
Chemical technology
Energy and New Technologies
Mechatronics
Mould and Die Making Technology

Framework of the
main activities

Type of services provided

Through its Technical Centres, Tool Rooms, Testing Centres, Product/Process

Centres, and Institutions located nationwide, SIDO provides the following
services:
Formative
- Training for managers & supervisors to upgrade their knowledge and skill
- IPR workshop
- Training in technology, inspection, quality control testing
- Training and manpower development
Informative
- Databases and Reports on Technology trends and Trade reports
- Formulation of industrial development policies to facilitate accelerated growth
of SMEs based upon local resources and markets
- Identification technology and equipments for setting of identified industries
based upon local/export market requirements of volume, quality, etc
- Several publications available on line
Consulting
- Advising the Government in policy formulation for the promotion and
development of SMEs
- Providing techno-economic and managerial consultancy, common facilities,
and extension services to SMEs
- General consultancy, covering all aspects of industrial development
Research
- Marketing Research outsourcing and collaborative projects
- Strategy driven basic and applied research
Others
SIDO also provides extended support through:
- Relevant funding for roundtrip airfares for participation by SME Entrepreneurs
in overseas fairs/trade delegations. The scheme also provide for funding for
producing publicity material (up to 25% of costs) for individual SMEs &
Associations
- Project Sub-contracting Promotion policy.
- Vendor Development Programme. For linkages between small, medium, large
industry
- Comprehensive policy for investment marketing brand promotion and
overseas market access.
- Organise WTO sensitisation programmes for small-scale industries.
- Comprehensive plan for promotion of rural entrepreneurship
- Master Website on Small Industries comprising information on policies and
procedures, technology, products, with hyperlinks to states and countries.
- Comprehensive plan for preparing Small Scale Industries for e-commerce,
with appropriate electronic infrastructure support
- Preference will be given to the Micro Sector while organising Buyer-Seller
Meets, Vendor Development Programmes and Exhibitions
- Environmental Services
- Technical Assistance
- Marketing Services
- International Cooperation
- Export Promotion

Services on line

SIDO has its own web portal (www.smallindustryindia.com) where it is

possible to obtain all kinds of information regarding the network and it also
provides on-line access to some database contacting a number of important
publications.
SENET (Small Enterprise Information & Research Centre Network).
Launched in April 1997, SENET began as an Intranet project launched by
the Office DC (SME). It provides Intranet services to create a network and
database for Small Enterprises and to promote a network alliance among the
information service providers (such as, SMEs/Private/Public sectors). This
network provides a series of technical publications: project profiles,
directories, cluster study reports, and other data

Technological partnerships

CMC Web Tech

APCTT (Asian and Pacific Centre for Transfer of Technology)
TANSTIA (TamilNadu Small and Micro Industries Association)
CGTSI
ITC
SEPTI
IIE Guwahati Training Institute

Relationships/integration's with developers of technology

SIDO operates in active interaction and co-operation with universities,

employment and business centres, technology centres, different kinds of centres
of expertise, and other regional actors. Among the most relevant relationships
can be mentioned:
The Technology Bureau for Small Enterprises (TBSE): Its mission is to
render value added services for technology transfer and collaboration
opportunities in order to enhance market competitiveness of Indian small-scale
industries and promote sustainable development
TBSE provides a platform in which enterprises can tap opportunities at the
global level for acquisition of technology or establish business.
The National Small Industries Corporation Ltd. (NSIC): Since its
establishment, NSIC has been providing support to start ups; small scale
industries and micro enterprises (SMEs) through its various innovative schemes
such as, stimulation and support by developing new enterprises through
financial, marketing, and technology support. Moreover, in order to promote
Indian technologies in international markets, NSIC is launching a dedicated
website for SMEs where they can display their technologies or technology
requests.
National Institute of Small Industry Extension Training (NISIET): a Premier
Institute belonging to the Ministry of SME, Government of India, always in
forefront providing vital support, training & extension services to Small and
Medium Enterprises (SMEs) in India and overseas, is offering Unlimited
Opportunities for Two Way Transfer of Technologies established international
industries partnerships. Other relationships with Danish and German Centres for
the establishment of Tool Rooms

Main information on Key Projects

1. National Programme on development of Indian Toy Industry
The aim of this project is to implement an establishment of a Toy
Design and Development Institute with facility of tooling, training and
testing of International standard in Greater Noida, U.P.; to provide
assistance to a group of selected toy units in order to help them
develop technologically; and to develop the Indian Toy Market
Partnerships: ICAMT / UNIDO, Toy Association of India, Toy
Association of India, State Governments of Uttar Pradesh,
Maharashtra and Delhi, Small Industries Development Bank of India
(SIDBI)
2. National Programme for Development of Stone Industry in India
(NPDSI)
The Centre for Development of Stones is the Common Facilities
Centre for the entire Indian Stone Industry was set up as an
autonomous organisation by Government of Rajasthan and
Rajasthan State Industrial Development & Investment Corporation
Ltd. (RIICO) with a mission to develop, promote & support the
dimensional stone sector and related industries in India.
Partnerships: NPDSI is a joint effort of Government of India, through
its Ministry of Small Scale Industries; and United Nations Industrial
Development Organisation (UNIDO) through its International Centre
for Advanced Manufacturing Technologies (ICAMT)
Projects

3. Indo-German Tool Programme

This programmes goal is to assist small-scale enterprises,
particularly metal and plastic groups in different fields such as,
design and manufacture of precision dies and tools, moulds, jigs and
fixtures, gauges, etc. It assists SMEs in using and maintaining the
above mentioned tools and equipment properly. Therefore, under
this projects scheme, well-equipped modern production facilities
with state of the art equipment have been built to provide SMEs with
full-fledged training workshops, an up-to-date design department, a
versatile heat-treatment shop, testing and quality control equipment,
consultancy, and marketing assistance
Partnerships: Government of Germany, and Respective Indian State
Governments
4. Indo-Danish Tool Rooms (IDTRs)
Under this programme, the Government of India has established 6
Tool Rooms and Training Centres in some important locations in
India. Today these 6 centres have acquired mastery in mould and
die making technology, and gained an excellent level in terms of
precision and quality in the development and manufacture of
sophisticated moulds, dies, and tools. Furthermore, training courses,
both regular and tailor-made; and special technical consultancy are
just some of the services these TRs provide to SMEs in India
Partnerships: Government of Denmark under the Bilateral
Development Co-operation Agreement, and Respective Indian
State/Central Government
-

Main information related to the "level of market orientation"

Plans for strategic development

Focus on credit, marketing, technology, infrastructure, regulatory regime and

impact of globalisation
Legislative support to factoring services, limited partnership act, single law
for SMEs
Promotion of linkages between large and small enterprise
Emphasis on the service sector
FDI window
Priority to sunrise industries

SIDO target for the next five years:

Target 12% annual growth as compared to 9% during last five years
Employment growth at 4% per annum, similar to the last five years

Strategy

Revenue Model

Market Partnerships

Ministry of SME and ARI (Ministry of Small Scales Industries and Agro Rural
Industries)
KVIC (Khadi and Village Industries Commission)
Coir Board
RBI (Reserve Bank of India)
UNIDO (United Nations Industrial development Organisation)
EAN India
IIP
SIA (Secretariat for Industrial Assistance)
WIPO (World Intellectual Property Organisation)
NPC (National Productivity Council of India)
SIDBI (Small Industries Development Bank of India)
CEDOK (Centre for Entrepreneurship Development of Karnataka)
CSIR India (Counsel of Specific Industrial Research)
Anti-Dumping Directorate
APO-Japan
UNCTAD Geneva

Private / public role

SIDOs revenue model is composed of public funding and fees. That is, 60%of
financing comes from the government and the rest (40%)comes from the private
industries.

Main information related to the "network system"

Participation with
other networks

Despite it has developed an extended activity also at international level, SIDO

has so far established limited relationships with international networks. It must
be clarified that SIDO is boosting market development at international level
through networks. This because the Country objective is to promote
internationalisation of local SMEs and networks might be a tool to reduce the
go to market costs.