As lead partner of the EU-funded SWITCH Asia project called, “Asian Cleantech MSME Financing Network” (ACMFN), ADFIAP conducted a project supervision and monitoring mission from July 2-6, 2018 with its project partner in India, the Hyderabad-based Confederation of India Industries (CII). Subsequent project visits were also conducted to various MSME cluster units in the cities of Tiruppur and Pune. ADFIAP was represented in the supervision mission to India by Country Project Manager, Ms. Arlene S. Orencia, Head, Projects and Programs of ADFIAP Consulting (AC).
ACMFN is a 4-year project which aims to build and leverage a cleantech financing eco-system to spark improved access to finance for Asian cleantech MSMEs in order to enhance sustainable consumption and production patterns in Asia. Cleantech refers to products, services, and processes that reduce or eliminate negative ecological inputs, improve the productive and responsible use of natural resources, and provide superior performance at lower cost.
India has been identified as one of the focal country-beneficiaries in Asia under the ACMFN project. CII is the National Focal Point (NFP) in India which serves as the primary interface where all relevant technical and financial expertise converge to provide a favorable clean investment climate, particularly for MSMEs in India. CII has extensive experience with cleantech MSME funding through the New Ventures India Program, a joint initiative of CII and World Resources Institute (WRI) India. CII was established with the aim of matching scalable green business opportunities with skills, talent, technology, markets and money.
The mission went to Tiruppur and visited 10 MSME cluster units that are part of the supply value chain of the Tiruppur Cluster which is made up of hundreds of MSMEs that supply India’s huge garment and textile industry requirements. Another 60 MSME cluster units, all of which are members of the Tiruppur Exporters’ Association (TEA) of India, have signified their interest in the ACMFN project and have joined CII-initiated capacity-building training seminars to deepen their understanding and knowledge of sustainable consumption and production (SCP). The collaboration was sealed when CII signed a Memorandum of Understanding (MoU) with local industry association (Tiruppur Exporters’ Association -TEA) on promoting cleaner production through facilitation of clean technologies which gave a wide media mileage to the ACMFN project. Detailed bankable project reports were prepared for 3 MSME cluster units and submitted to the Small Industries Development Bank (SIDBI) for project financing.
For the MSME Cluster units in Pune, CII used the OEM (Original Equipment Manufacturer) Cluster approach to identify MSMEs that are qualified beneficiaries of the ACMFN project. The identified OEM Cluster was Godrej Appliances, a company under the Godrej Group of Companies, one of the biggest business conglomerates in India with a revenue turnover of over USD 4.1 billion. Godrej Appliances is one of the largest players in the home appliances sector in India and makers of the refrigerators, freezers, and washing machines that carry the famous Godrej brand. Visits to two (2) MSME manufacturers which supply 100% of their total production to Godrej appliances were also conducted.