He was speaking after inaugurating the 3rd MSME summit in New Delhi last week, which was jointly orgaanised by ACMA and the Ministry of Micro, Small & Medium Enterprises. “While we have seen growth come to a standstill due to uncertainty and lack of confidence, the challenges for the future are equally daunting. Lack of availability of power, poor managerial bandwidth and low return on investments add to the challenge of unutilised capacity, especially for small Tier 2 and Tier 3 manufacturers. The industry has a lot more ground to cover and become cost competitive, while the Government needs to ensure a dependable and competitive ecosystem and infrastructure, the industry needs to focus on internal efficiencies and opportunities other than the conventional to keep their heads above water,” he said.
N.K Maini, redefined VUCA as Vision, Understanding, Communication and Agility; and urged the industry to strategize such that the adversity turns into an advantage.
Sudam Maitra, referred to VUCA as the ‘New Normal’. "To mitigate volatility, MSMEs must strategically design a long-term road map, have effective financial planning, prudently manage manpower, work smarter & leaner, and focus on limited dedicated yet diversified customers without any compromise on quality," he said.
On the occasion Ramesh Suri, Vice President, ACMA said, “The purpose of this summit was to understand the dynamics of the Indian automotive market with focus on MSMEs, the factors affecting their de-growth and what could be the possible strategies to manage the volatility in the industry. The industry and the government will need to collaborate in helping companies manage the challenges especially handholding the Tier 2/3s, the weakest link in the entire automotive value chain”.
At the plenary sessions, the discussions revolved around the need for the auto component manufacturers to be innovative and being able to create higher value addition.