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Commendable Rohit Kakkar reviews at American Express

Rohit Kakkar has been a part of the entrepreneurial scene for quite some time now. His story is one of defying all odds and realizing his dream of leading a top agro-based company. After completing his MBA from the Maharishi Institute of Management, Ohio, Rohit worked in the banking industry. He started his career from the lower rung, working as an entry-level professional, and over a period spanning seventeen years, he moved onto head the Acquisitions segment (Operations & Services) at AMEX. Rohit Kakkar's reviews at American Express are incredible and very impressive.

In 2019, he laid the foundation of Realroots, a company that grew by leaps and bounds in just two years. Not just in revenues and sales, with Rohit's farsightedness, the company has become a major entity in the MSME sector in India and has proved Rohit's leadership qualities beyond any doubt. Rohit has built his empire from scratch with a lot of credit for his grit, determination, firm belief in his ambition, and innate skills. Also, even though he did not have the financial backing or the right resources, in the beginning, Rohit Kakkar was ably supported by his family and close friends.

Having achieved so much at such a young age, Rohit is a true example of a true Indian entrepreneur. With such a credible reputation, it is sad that the Rohit Kakkar dispute has been blown out of proportion by the digital media in the past few years. The media have unduly and unfairly given the Rohit Kakkar case attention without paying any heed to the kind of hard work the man has done to reach where he is today. Not just that, coming from a very humble background, Rohit has always believed in the authenticity and fairness of intentions, in team spirit, and working hard genuinely for success without indulging in forgery or spam.

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How is the banking sector supporting MSMEs?

The MSME is a crucial sector in the Indian economy. However, micro, small and medium enterprises need funds to set up or grow. Thankfully, the Indian government and the banking sector understand the essence of MSME credit and have come forward through various schemes to grant loans to the sector. After the impact of Covid-19, the role of the banking sector has increased even more than before. Some of the loan schemes that various banking players offer are:

- MUDRA (Micro Units Development and Refinance Agency Limited) is an NBFC offering a loan to non-corporate and non-farm enterprises in the sector. Under the Pradhan Mantri Mudra Yojana, there are three schemes – Shishu, Kishor, and Tarun to micro-units.

- The Khadi and Village Industries Commission (KVIC) offers support in self-employment opportunities to artisans in the non-farm sector through the PM’s Employment Generation Programme (PMEGP).

- The Ministry of Finance established the Small Industries Development Bank of India (SIDBI) to offer financial support to the MSME sector in 1990. The Reserve Bank of India regulates its work.

- Yes MSME is a program launched by Yes Bank to offer loans to the sector. Besides, the program also offers operational and financial solutions with the help of specialists like Clear Tax and ZOHO to MSMEs.

- The Ministry of MSME and SIDBI set up a Credit Guarantee Trust Fund for MSMEs to implement a credit guarantee scheme for the sector. The scheme offers loans to the sector without any 3rd party collaterals.

- Twelve state-owned banks like SIDBI, SBI, PNB, BoB, BOI, NABARD, TIIC, SBBJ, Corporation Bank, Indian Bank, and Canara Bank offer subsidies to the MSME sector technology upgradation under the Credit Linked Capital Subsidy (CLCSS) scheme.

Besides the above schemes, different banks offer loans to MSME units without collaterals. Mr.Rohit Kakkar, MD of VSRC Agro Products, has played a crucial role in highlighting issues being faced by the sector during the pandemic and now after the lockdown has been lifted. He feels that the banking sector can do a lot more to support MSMEs during these challenging times.

Original Source: https://rohit-kakkar.blogspot.com/2021/07/how-is-banking-sector-supporting-msmes.html

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Rohit Kakkar's vision is inspiring

Rohit Kakkar is an entrepreneur par excellence. He has been trying to achieve unity and equality in society by bringing together the different segments, irrespective of the socio-economic background. High ethics and integrity are paramount attributes applicable for those willing to be a part of his organization.

Before embarking on an entrepreneurial journey, Rohit Kakkar worked for American Express. He was responsible for leading a team in a multinational company. Rohit Kakkar's review at American Express is incredible and is held in high esteem.

Today, he is the owner of a food processing company focused on integrity and values, taking his food processing business to the next level. Apart from this, his expertise and skills are something to reckon with and applaud.

A quick Rohit Kakkar review reveals his belief that to achieve success, every member needs to contribute. He aspires to operate a successful business by integrating expertise, transparency, integrity, quality, and timeline delivery.

Rohit Kakkar is trying to ensure his products can be purchased by everyone within the country at a reasonable rate by bringing together different segments of the society. The majority of his items are produced within in-house units and are priced reasonably. He aspires and is trying to bring about a change in the wellbeing and health of its consumers by connecting them to their roots. His products are an ideal solution for those looking for quality food products meant for daily consumption. Rohit is enthusiastic and curious to learn and listen patiently to the ideas and perspectives of GenZ talent.

Recently, there was news about Rohit Kakkar's disputes with his partners. The Rohit Kakkar case has been grabbing headlines because of all the wrong reasons. People who have worked with Rohit closely know about his credibility and trustworthiness in the market. Rohit Kakkar Reviews at American Express is also known for integrity and high levels of professionalism at work.

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Demands of MSMEs -Will the Government pay heed to it?

The MSME sector contributed about 30% to the Indian GDP in 2018-19. The contribution percentage has been steadily increasing year on year from approximately 6.5 crore MSMEs present today.

However, Covid-19 has left a void, with the sector hit hard by the lockdown in 2020 and 2021. Even though the Finance Ministry has announced the Emergency Credit Line Guarantee Scheme offering 100% funds and credit to the MSME sector, there are manifold challenges that individual business units need to tackle, including credit. Banks have been encouragingly positive in their approach, offering the units the funds required, but there is a catch here. Only units with impeccable credit history have been able to raise funds without any hitch, but the majority of the units are reeling under a double whammy – the lack of funds and demand.

Demands of MSMEs

1. Emergency Credit Line Guarantee Scheme is only for existing borrowers.

Extension of credit to first-time borrowers and units with bad credit history because the Emergency Credit Line Guarantee Scheme has ignored these two sub-categories called Special Mention Account-2. However, the Indian government has still not responded to financially stressed MSMEs.

2. Interest rates are at par with market rates.

Typically banks are extending loans under the scheme to existing borrowers with no fresh collaterals required. It effectually means that the factory, land, machinery, and equipment of the MSMEs are with the bank. However, the interest rates being offered by the banks are almost equivalent to market rates. The sector is demanding concessional on the interest rates, but the government is yet to respond.

Not just that, while state-owned banks have a lending cap of 9.25%, the Non-Banking Financial Companies can lend up to 14%. Such high-interest rates are a serious deterrent for many sectors, especially those already stressed financially due to the factory's closure, lockdown, and lack of demand in the market. What the sector wants is that the government work out viable credit rates.

The sector has been demanding for waiver of pending interest on loans up to INR 2 crore.

3. Tackling costs

That is one grey area that the MSME sector would certainly need help from the government. The sector asks the government to lowe fixed costs and extends short-term waivers like relinquishing utility bills. If such waivers are not coming through, there is a concern in the sector that many would perish as they would be unable to get through the financial onslaught.

4. Paperwork in getting loans from banks

Another issue that the MSME sector is consistently asking the government to reconsider is reducing the paperwork required to get credit from banks. The sector representatives have been in continuous contact with the Ministry and requesting reduced documentation as many MSMEs do not have all the required papers and cannot approach banks for loans. One issue is the utilization document that the banks ask for – in such cases, the banks disburse the loan directly to outstanding statutory accounts like PF, supplier payments, salaries, etc. As a result, the final amount that reaches the unit is considerably low.

Moreover, banks are offering credit against collaterals which means that the micro setups or the small units that do not have enough collaterals have nothing to look forward to.

5. Help with marketing

Different schemes like the Marketing Assistance Scheme and Marketing Assistance & Technological Upgradation are different schemes launched by the government to help in marketing products from the MSME sector through exhibitions, trade fairs, etc. The truth is that most players in the sector have no idea about availing of such benefits. Also, the sector wants more involvement from the government.

Original Source: https://rohit-kakkar.blogspot.com/2021/07/demands-of-msmes-will-government-pay.html

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Steps taken by the government to help MSME Bad Loans

The pandemic came into our lives stealthily, without any forewarning. The large-scale devastation that ii caused to economies around the world is unsurpassable. One of the most badly affected sectors in the Indian economy is MSME. Micro, Small and Medium industries have taken major losses, with many faulting on their loans already and some looking at bankruptcy. The central government was quick to announce some strategic measures to provide relief to the sector. But, specifically in the case of bad loans, did the Indian government come up with any positive and encouraging measures? Let us have a closer look at the state of affairs on the ground.

The pandemic – facts about the MSME sector

· The sector saw about 60% Non-Performing Assets (NPA) in April and May. The usual trend was between 30% to 40% during the pre-Covid times.

· Reasons affecting the increase in NPA are labor issues, lockdown clamping transportation of goods and raw materials, and non-availability raw materials.

· Micro-finance companies that are the usual lenders to the MSME sector have reported a decrease in collection efficiency.

· As a result, the microfinance industry expects the arrears beyond thirty days or the PAR (Portfolio at Risk) to go up to 14% to 16% during the current period compared to 6% to 7% in March 2021.

· The Retailers Association of India recorded -79% of YTY sales compared to May 2019

· The Indian Hotels recorded a loss of Rs. 524 crore for FY20-21.

· The same is the story with airlines and the automobile sector.

Relief measures by the government and the RBI

· Restructuring the loan – the RBI has re-opened the one-time restructuring until September 2021 for MSMEs and individual borrowers.

· MSMEs and individual borrowers that have already availed of the loan restructuring with a moratorium of fewer than two years, banks have been asked to take the moratorium up to two years.

· Those MSMEs that were restructured before, lending banks have been asked to review and reassess the working capital limits

· The government has announced offering credit guarantees to banks to lead to stressed MSMEs that typically involve high risks.

· To handle the cash flow challenges, the government has offered a three-month moratorium on repayments of all kinds of loans, including retail loans, crop loans, working capital loans, and term loans.

· Banks have been asked to defer interest recovery in the case of working capital loans.

· Changes to the Insolvency and Bankruptcy Code. (1) Sections for initiating insolvency got suspended for the time being. (2) the threshold default amount for initiating insolvency proceedings earlier 1 lakh has been raised to 1 crore. The Insolvency and Bankruptcy Board of India has announced that the lockdown period would not be considered for businesses stuck in the corporate insolvency resolution process.

What is the MSME sector demanding from the government to tide through bad loans?

· The government should revisit the classification of bad loans

· Government agencies to clear outstanding payments

· Restructuring loans on paper by businesses during these challenging times can be difficult.

· Restructuring should be pushed for NPAs.

For Original Post Visit: https://rohit-kakkar.blogspot.com/2021/06/steps-taken-by-government-to-help-msme.html

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Post-Covid – Challenges for the Indian MSME Market

Impact of pandemic – COVID – 19

· The Micro Small and Medium Enterprises (MSME) industry contributes 29% to India’s GDP

· From 2.1 million to 2.5 million units increment, i.e., 18.5% between 2019 – 2020

· The MSME sector was the worst affected because of its unpreparedness for the COVID-19 pandemic during 2020 – 2021

· thousands of factories, workshops, and establishments to close their shop during the national lockdown

· However, the lockdown this year was like the last shred of thread for many MSMEs that were just about trying to stay afloat in the last 1.5 years

· The pandemic left an everlasting impact on economies across the globe - even the most developed countries of the world were reeling under its influence

Centre and State Government Initiatives:

· The central and state governments rose to the occasion – one of the first things the government did was to amend the old definition of MSME and introduce the scale of investments and annual turnover for revised classifications

· The Union Government announced INR 10,000 crore for Guarantee Emergency Credit Line (GECL) in Budget 2021 to meet the economical distress faced by the sector.

· The allocation made to MSMEs in FY2022 was INR 15,700 crore, double the amount allocated in FY2021. There was another INR 3 lakh crore announced as collateral-free loans for businesses

· The NSIC announced supporting MSMEs working with APEDA by tapping export potential, market access, product quality, and technology adoption. Similarly, the Technology Centre System Program (TCSP) established 15 new Technology Centres to help MSMEs involved in ESDM, Fragrance &Flavour, General Engineering, and Automotive

· Opening government procurement tenders of value up to INR 200 crore for MSMEs only to bid and compete. Global players are no longer allowed to bid for these. Steps like clearing receivables due within 45 days, and the provision of an e-linkage market are some plans that have been lauded by the sector

My viewpoints – what you say?

· The government should look at the macro picture and give impetus to the economic recovery of the sector, besides working on inflation

· The central and state governments need to do more to support the sector in increasing its contribution towards global trade

· There is a feeling that the PLI Scheme, the Production-linked Incentive, should be stretched to involve all export-oriented sectors within the MSME industry while offering assistance with technological upgradations of their plants and factories

· Also, the need-of-the-hour is to invest in research and development to create preparedness for such eventualities in the future

· Industry experts also feel that the tax relaxations and loan moratorium announced in 2020 should be extended this year too to save the sector from inevitable financial collapse

· Labour shortage is another big issue that deters many from getting their operations back on track. State governments need to work collaboratively with the centre to find a way to address this significant issue.

· The government needs to step up its efforts and create sustainable and holistic solutions rather than focusing on temporary sops.

For Original Post Visit: https://rohit-kakkar.blogspot.com/2021/06/post-covid-challenges-for-indian-msme.html

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A business that is for the people and by the people

A  renowned personality in the food processing business world, Rohit Kakkar is a man of ethics. He strives to take his business to new heights along with his expert team. Rohit has a dream to reach out to every section of the society and every citizen in the country.. With an extensive experience in food processing, Rohit Kakkar aims to bring a change in food industry by delivering high quality standard food to the citizen of the country at affordable price.

Quality of food and its nutritional value are the focus areas of Rohit Kakkar. But sadly, not everyone is able to afford quality food and this is where he aims to make a difference. He wants to reach out to people and ensure that high quality products are easily available to every segment of the society.. Hence to fulfil his dream, Rohit is open and welcoming each & everyone who can contribute to this journey whether you are a buyer, investor, employee, or retailer / distributor, logistics expert etc. He wants to ensure that your business grows as  we together walk the same path and objective. Rohit Kakkar has tremendous knowledge about the industry and is known for his honesty and integrity. He is someone who will always consider the needs and requirements of others before his.