There are plenty of initiatives that Shri Modi is personally involved, Digital India is key to India’s growth. Individuals and corporate have taken initiative to migrate every manual process into automated process. There are some in the industry who have identified the vacuum in such solutions at various levels.
One such area is ERP solutions for SME’s. We met the MD of Eazy ERP to understand more about the same.
What is the market size of ERP solutions in India?
Well it is difficult to gauge the market size in numbers. But yes it is as big as the Tally market size. The government has announced implementation of GST. Once the process starts, more and more SMEs would need the solutions. The market size is really big.
What should be the turn over the business that should have an ERP?
We are looking at a base turn over of at least INR 10 crore upwards. Our solutions are INR 2.5 lacs onwards. Basically any business that has multiple processes and vendors should have an ERP solution to best control, low inventory and optimum use of funds on hand. Our solutions are basically targeted for food and apparel industry. This takes care of end to end process. Purchase, sales, inventory, etc.
How do you track tangible assets? And what success RFID has got in it?
We still use bar code stickers. RFID though good but the cost is still high for SME business.
If you look at India as a market. Which region has shown natural inclination for such solutions and any region that is yet to pick up?
Barring eastern India rest of India, especially the Metro, tier 1 and 2 city have shown good interest. With regard to east, if you see seeds of Industrialisation where first sowed in Bengal. They have developed the art of doing business. Over the years the world has moved ahead but they have some resistance in adapting to technology (traditional business) as somehow they manage day to day affairs. But yes, with technology they can always improve performance and productivity.
Is there any competition from MNC in ERP solutions?
There are a lot of MNC ERP players in the market. However they are mostly targeted at large corporate companies. On the other hand we are focused at solving the problem of Indian SMEs. Since the SMEs are booming, there is enough of room for us to make our niche.
Do you think the government of India should educate the SME’s for ERP solutions?
Yes. Government assistance will go a long way. There was a time when government used to give benefits to businesses that had ISO certification. This helped both industry and government. For example, the government can announce some benefits to SME’s who use ERP solutions for business. You must have seen Tax holiday given by government to promote manufacturing and tourism. And when GST is implemented the government would have convenience and the SMEs can save themselves of fire fighting in filing returns.
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