State-owned National Small Industries Corp’s (NSIC) net profit for 2018-19 may see a drop because of stiff competition from private players, an official said Tuesday.
The company is also looking to start offering services like insurance, transport, logistics and IT solutions to the micro, small and medium enterprises (MSMEs).
It may take a hit in NSIC’s profitability. Now, they have to compete with the private players and profit is not the only motive. They want to focus on serving people, said NSIC Director (Planning and Marketing)
As reported by Business Today, the turnover of the firm will,will rise in 2018-19, said the director.
He added that the exact figures cannot be disclosed but, once the final audit would be done, it shall be told.
During fiscal 2017-18, NSIC had clocked a turnover of Rs 22,457 crore, he said. On venturing into this new business, he said the entity would start offering aggregated services to its customers within the next few months.
The company will offer services in software development, insurance, transport and logistics, among others. All of it in the next few months. The aim is to get these services to the MSME’s without anyone exploiting them, the director said.
On procurement targets, he said most of the PSUs have crossed the mandatory 25 per cent sourcing from MSMEs, but the ministries and government departments are far behind.
NSIC has been looking at various technical, promotional and commercial activities for the growth of entrepreneurship and MSMEs in the north east through its array of services and activities since the last couple of decades, he said.
