Session on Manufacturing and Services   Speakers : Mr. R. Radhakrishnan, Hon’ble Speaker, Govt. of Puducherry Mr. R. Mananathan: Past Chairman, CII Puducherry Mr. C. S. Dwivedi: Past Chairman, CII Puducherry Mr. B. R. Babu, Managing Director, PIPDIC and Director, Port Mr. P. G. Subramaniam: CEO, ASAP Management Consultants Pvt Ltd Mr. M. M. Patel Inaugurated the Session and Introduced the Speakers

Excerpts from the session Mr. R. Radhakrishnan: Keynote address The Vision document is a great effort. This is the kind of effort that the Government requires from the industry. When the incentives ended, industries left. The reason is because industries had come, but industrialisation was not taking place. Earlier there was no government–industry interaction, but now, there is more interaction. Success of service sector is more now. If this gap keeps increasing, there will be a problem. Govt. will support speedy clearance of licenses. All stakeholders must co-operate. Mr. R. Mananathan – Topic: Industrial Climate in Puducherry A few decades ago, in order to encourage industries, subsidies and concessions were given, and many industries had come forward to set up shop in Pondicherry. After the benefits went, industries also left. Today, more than concessions, industries want good governance and support. As of now, the industry climate is not conducive for industries. Clearance from various departments, power connection and so on are taking a lot of time. If industries are not successful, employment will not happen. The cost of 1 acre of land in SEZ is 1.5 crores. With this price tag, no small-scale or medium-scale industry can go to the SEZ. Mr. C. S. Dwivedi – Topic: Manufacturing-Services perspective Concessions should go; we have to learn to stand on our own feet. Manufacturing is not R&D-centric now. Industries should first focus on their own issues like on-time delivery, R&D and so on. Industries should follow regulations. We have to improve efficiency “in order to sustain”. We have to become more customer – oriented and service – oriented. We have to start changing ourselves – as individuals and as a society – on commitments we make to ourselves. Mr. B. R. Babu – Topic: MSME Development We find that about 50% of the rural people contribute to only 5% of the state’s income. This is because the rural workforce is not paid properly. First priority must be to remove the discrimination. Regarding single window clearance, CII can come forward to talk to govt. to bring out solutions. Simpler procedures can be formulated. Concessions are over now. Industry should be more infrastructure driven. We are backing on ports and SEZ. Land and labour cost must be cheaper to bring more industries. Land cost has gone up in the recent years. Industrial estates can be formed outside using Tamilnadu infrastructure just like Hosur–Bangalore. Vertical development must be encouraged. Land usage must be planned and regulated. Anglo French Textiles has some land available, and new hub of business activity can be brought here. Mr. P. G. Subramaniam – Topic: Excellence model-Manufacturing and Services Constraints for industries will always be there. Excellence comes only when we do things despite the constraints. Others are just opportunity management. Journey of excellence is not smooth. Basic management system should be in place to help us in building the blocks. ISO certifications by itself have no meaning and they cannot lead to excellence. Government sectors like railway stations and police stations should go for IS15700 which are public service standards. The difference between manufacturing and services industry is slowly diminishing. After the building blocks have been made, we need to look at maturity attainment in the system. Unless maturity comes in, we cannot attain excellence. Excellence is a habit, so there must be consistence. Right from leadership, process, human focus and CSR, all must be excellent. As Aristotle said, excellence is a habit – once it is achieved, it cannot be removed.

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