Confederation of Indian Industry conducts useful meetings. As such, it is a very large organization that advocates on policy issues and has a significant influence on how the industry is shaping up. One of the meetings they have conducted, I attended, was the investors meet on 22nd February, 2012. The agenda was to bring the investors and borrowers together to see if there can be a match making exercise (as Dr. Harish Patnaik put it).

As an assistant professor my interest in attending the meeting was only too academic. To the most part of the day, it was what was expected: the cry of the small business owners that banks and other investors don’t support them as much as they should. But when Mr. Ramesh Kumar (CII MSME Committee) took over, the picture started changing to a more balanced perspective. With a panel that represented banks, nonbanking financial corporations, venture capitalists, angel investors, private equity consultants and other governmental bodies who raise funds, he tried placing a few points in the heads of the borrowers (fund seekers). I found reasons why it was important.

Four presentations caught my attention for four different reasons:

1. Presentation One: The fund seeker was in the business of training different IT Courses, and had a revenue of INR 18 Lacs, with an annual profit of INR 1.5 Lacs. His fund request was about INR 1 Crore that was supplemented with what he alleges to be a business plan (an excel sheet that shows how he can pay back). The venture capitalist on stage had just one question to this proposal! “Can you give it all to me in one page stating why you think you will be successful?“. The answers to that were lame; I thought it was waste of time.
2. Presentation Two: The man who presented looked firm, confident and explained their business, dairy. The annual turnover was at INR 64 Crore, and they were seeking another INR 30 Crore to expand their business. Again, the question was same from the panel of investors. Only this time, the man gave an answer that was as firm as he looked. He said, “We are the one of the first players in the business. Our growth projections are reasonable. We offer an exciting exit plan for the investors“. It was sufficient to create a discussion among the panel. Just as I thought this man would get the fund he sought, he murmured during lunch with me that their business may be expanded even without this funding assistance, and that he found alternative ways to do it. Amazed I am with his confidence, and more with his preparation!
3. Presentation Three: The man looked professional in his approach. And before I saw him on stage, I found him networking actively. He probably won half the game there! When he was done presenting his set of slides, he convinced the panel that it was a business in which he faces no competition, and that there is a high entry barrier. What I am surprised is the ease with which he could drive his point through! I think he got a cheque before he left the meet. By the way, he was selling fish.
4. Presentation Four: The man was an experienced engineer, looked like a bureaucrat too. His idea was genuine, offers exceptional operational gains, though I must say it is not a ground-breaking innovation. His presentation did not really seek funds, but sought assistance on identifying the prospective investors (wonder if he thought there was a difference, at least on this stage!). That he was a technical man (if that makes sense), and not a finance man (excuse me again) was his point that prompted him to make that kind of a request. I pity his understanding of the meet, but can’t resist admiring his ideas and the magnitude of gains that he showed are possible. Indian railways has a lesson to learn from him, and they can save upto INR 600 Crore at least every year.

It was all business upto this point. There were seekers meeting the investors; some got washed away in questions, and some ended discussing. But here comes another man, an alumni of IIM, white haired and with wrinkles on his face, to talk about executive coaching and how it can help the businessmen to get the best out of themselves. I appreciate his points, but on the forum I must admit, it looked out of place. When it was business all through, talk of coaching seemed like a rat trying to find a piece of cheese in a prince’s ball.

Another CII Meet today, this time on Doing business with UK, at Green Park, Vizag. Let me see if I find something better here…