Micro, Small, and Medium Enterprises rely on essential services such as machine supplies, software and hardware support, media communications, and more. These services are vital for their operations. MSME units consistently express the need for these services to be accessible at transparent and affordable prices. The National Small Industries Corporation is at the forefront of providing comprehensive services to MSMEs and aims to bridge the gap in unmet service areas for MSME registration. NSIC is actively inviting Expressions of Interest from manufacturers, service providers, dealers, and other relevant entities. The goal is to onboard their products and services onto the NSIC platform, making them available to registered MSME units through NSIC-MSME Aggregation Services.
Understanding NSIC-MSME Aggregation Services
The National Small Industries Corporation is revolutionising small industries through its NSIC-MSME Aggregation Services. This initiative aims to enhance price moderation within the industry, streamline prices, and provide a comprehensive platform for small businesses.
NSIC Limited has unveiled an innovative online aggregator service tailored to the needs of small industries. This service is particularly focused on the procurement of raw materials and logistics. The NSIC-MSME Aggregation Services serve as a nexus, uniting various key stakeholders in the industry, including raw material and logistics providers, software developers, and financial institutions.
One of the key features of this service is its capacity to empower industries to compare prices for goods and services. This enables them to make informed decisions and opt for moderate prices. NSIC will provide these services through e-commerce and the online aggregator portal.
NSIC acts as the facilitator for both sellers and buyers by formalising agreements through Memorandums of Understanding. Additionally, the platform ensures that financial assistance is readily accessible through financial institutions partnered with NSIC.
The guidelines for NSIC-MSME Aggregation Services including aspects like registration fees for sellers and service charges per transaction, have been clarified, instilling transparency and trust among all participants in the NSIC-MSME Aggregation Services ecosystem.
Objectives and Scope of NSIC’s B2B Services Revamp
The National Small Industries Corporation is currently undergoing a transformation of its existing portal to expand its suite of Business-to-Business services for Micro, Small, and Medium Enterprises. This strategic shift is aimed at providing a platform for registered NSIC members to access the services of reputable service providers experienced in catering to a large number of beneficiaries.
Key Service Areas
The revamped portal will cover a broad spectrum of services, primarily focusing on enhancing business interactions and facilitating various B2B transactions. The scope of services includes:
1. Sub-contracting Exchange: Facilitating subcontracting arrangements to boost collaboration and efficiency within the MSME sector.
2. Buying and Selling of Old Machinery: Enabling the exchange of used machinery, promoting resource optimisation.
3. Online Aggregation of Raw Material Demand: Creating a platform for MSMEs to aggregate their raw material requirements, enhancing procurement efficiency.
4. Online Negotiation: Providing a virtual space for negotiation between service seekers and sellers, streamlining the business exchange process.
5. Online Exhibition Registration: Simplifying the registration process for businesses to participate in online exhibitions, thereby expanding their market presence.
6. Reverse Auction Facility: Offering a reverse auction platform to optimise procurement and reduce costs.
7. Global Business Matching Service: Facilitating international business opportunities, connecting MSMEs with global markets.
Intermediary Role of NSIC
NSIC acts as a facilitator by providing an intermediary web interface connecting service seekers and service providers. This bridge enhances the efficiency and reach of these services, promoting seamless business interactions between MSMEs and service providers.
Collaboration and traffic transfer between NSIC and Service Provider Portals will extend the reach of services to MSMEs across India, ultimately fostering the growth and development of the MSME sector in the country.
Expected Outcome and Business Model for NSIC’s B2B Services
The anticipated outcome for NSIC B2B services includes:
Web Platform and Co-Branding
The anticipated outcome of NSIC’s B2B services revamp includes the establishment of a web platform operating on a co-branding basis. This collaboration enhances brand recognition and trust among users, thereby fostering a sense of reliability and professionalism.
Mutual Web Traffic Sharing
One of the primary goals is to facilitate mutual web traffic sharing between the NSIC portal and the service provider portals. This strategy serves to broaden the reach of services and expand horizons, ensuring that more MSMEs benefit from the platform.
Transaction Reports
Another expected outcome is the generation of detailed transaction reports through the web service offered by service providers. These reports offer insights into the actual transactions conducted on their portal by NSIC B2B members.
Increase in B2B Membership
NSIC aims to witness a substantial increase in B2B membership as a result of the revamp. The expanded services, co-branded platform, and improved reach are expected to attract a growing number of MSMEs to become members of the NSIC B2B portal.
Business Models
The business model for NSIC’s B2B services revolves around the relationship between service seekers and service providers. It is structured to ensure the seamless functioning of the platform and mutual benefit for all parties involved. Key components of this business model may include:
- Subscription or Membership Fees: NSIC may charge service seekers or providers a subscription or membership fee to access and utilise the platform’s services.
- Transaction Fees: Transaction fees may be levied on successful transactions conducted through the platform, creating a revenue stream for NSIC.
- Advertising and Sponsorships: NSIC can explore advertising and sponsorship opportunities on the platform, allowing businesses to reach their target audience effectively.
- Data Insights and Analytics: Offering data insights and analytics as a service can be a revenue stream, helping businesses make informed decisions based on user behaviour and trends.
- Premium Services: NSIC can introduce premium services with advanced features, charging users for access to these upgraded functionalities.
NSIC-MSME Aggregation Services – Expression of Interest
The National Small Industries Corporation Limited invites reputable companies and organisations to submit online Expression of Interest for NSIC-MSME Aggregation Services aimed at facilitating MSMEs. These services are intended to operate as commercial offerings, covering a wide range of products and services that cater to the diverse needs of the MSME sector.
Products and Services Covered under NSIC-MSME Aggregation Services
The NSIC-MSME Aggregation Services includes the following categories:
1. Reputed Indian manufacturers of machines/equipment, including Defence items.
2. Authorised Indian Dealers of Imported machines/equipment.
3. Information Communication and Technology enabled Digital Services, such as Software, Apps, Cloud, Digital Infrastructure, B2B, B2C, and E-Commerce service providers.
4. Computer Hardware and Peripheral Manufacturers, as well as Authorised Indian Dealers for Imported Items.
5. Fin-Tech Companies, Non-Banking Financial Companies and Micro Financing Institutions.
6. Transportation and Logistics Service Providers.
7. Agro Business Entities and Agencies.
8. Solar and Renewable Energy Equipment Suppliers.
9. Raw Material Suppliers.
10. Communication Agencies and Media Solution Providers.
11. Providers of any other product/services required by MSMEs.
Submission of Expression of Interest
Interested companies and organisations are requested to submit their Expression of Interest by completing the online form available on the following link: http://www.nsic.co.in.
The submission deadline for NSIC-MSME Aggregation services is within 15 days of the publication of this EOI. Any further announcements related to this invitation will be posted on the NSIC website: http://www.nsic.co.in.
Required Documents
Companies and organisations interested in participating in this EOI are required to submit the following documents:
1. Company Profile, including details of work experience.
2. Details of the services provided by the firm.
3. List of existing clients for the same services.
4. Proposed Project Plan on Non-commercial Terms with NSIC.
5. Mutually agreed rates for the members of the B2B Portal.
6. Proposed discounts or tariffs for NSIC B2B members, if applicable.
7. Web address of the Service Provider.
This EOI presents an opportunity for businesses to collaborate with NSIC and contribute to the growth and development of the MSME sector in India.
Final Thoughts
The launch of NSIC-MSME Aggregation Services represents a significant leap forward for the National Small Industries Corporation Limited in its mission to empower MSMEs. The comprehensive range of services offered, from facilitating procurement to enhancing digital solutions, demonstrates a commitment to addressing the diverse needs of the MSME sector. By inviting reputable companies and organisations to express their interest in collaboration, NSIC is not only expanding its services but also fostering mutually beneficial partnerships.
The co-branded web platform and mutual traffic sharing promise to enhance reach and accessibility. This initiative of NSIC holds the potential to boost the MSME sector, drive economic growth, and promote entrepreneurship. With transparency and innovation at its core, NSIC-MSME Aggregation Services open doors to new opportunities and greater resilience for small businesses in India.
