That Small and Medium-sized Enterprises (SMEs) in India are increasingly adapting and digitalizing, especially in the aftermath of COVID-19 is no secret. While tech start-ups like Cred and PharmEasy have entered the Unicorn club in 2021, a number of businesses like Nykaa (makeup and beauty), Quirksmith (jewellery and accessories), Gonoise (wearable tech), etc. are using digital platforms and social media to sell their products across a much wider market. Robust logistics and distribution is critical for their business growth, but also very complicated – unless they partner with an expert like Gati-KWE.
A number of Small and Medium-Sized Enterprises (SMEs) dot the Tier 2 and Tier 3 cities and small towns in India. While mainly involved in manufacturing, they also form a part of the ecosystem of several other industry sectors.
SMEs – What are they?
Small and medium businesses are recognised by the Government of India as those business entities having investment of less than INR 10 crore and a turnover up to INR 50 crore; and investment less than INR 50 crore and turnover of up to INR 250 crore respectively. As per a Government of India report there are 0.33 million small, and about 5,000 medium enterprises in the country. The Make in India thrust, along with the clarion call for Atmanirbhar Bharat (Self-reliant India) gave an impetus to these businesses.
SMEs along with micro enterprises, account for 40% share in the exports market and 45% in the manufacturing sector. Together they contribute around 8% of India’s GDP and engage over 60 million people in employment. They have rightfully been called the backbone of the Indian economy.
Partnering profitability for SMEs
For a small or medium business owner in India, one of the biggest concerns is delivering goods at the earliest, with minimal cost. This is where Gati-KWE steps in with a deferred service offering for companies with low bandwidth of last-mile distribution spend. The new and differentiated services are designed to propel growth-focused SMEs towards their goals and accelerate growth in the sector.
"We have always been an SME-centric organization and witnessed significant growth in this segment. Our deeper engagement with the SME sector has actually propelled us to expand our network and operational reach through continuous addition of operating units and channel partners," Manish Jain, National Head - SME, Gati-KWE, said.
With the implementation of the nationwide Goods and Services Tax (GST) in 2017, these businesses now have the whole geography of India available to them to procure raw materials and sell their goods. Gati-KWE’s presence in over 19,800 PIN codes covering 735 of India’s 739 districts gives them a geographical edge like no other.
Moreover, with the one-stop, nationwide network, businesses don’t need to coordinate with multiple vendors for different geographies. They can save time and money by having one robust logistics partner like Gati-KWE who caters to all their logistics need.
SMEs that are embracing digitalization and e-commerce need support, flexible policies and customised offerings – just what Gati-KWE brings to the table. It operates as a partner for SMEs, understanding their requirements and enabling them to grow their business horizons and profits, rather than just moving cargo from one point to another.
With Gati-KWE’s customer centric approach, the SMEs enjoy personalised and customised support as per their requirements. There is one point of contact, who guides them through the whole process. This along with the simplified billing – one invoice for procurement, forward logistics and reverse logistics, enhances the ease of doing business. Additionally, SMEs catering to multi-brand outlets (MBOs), have the option of tech-enabled multi-location pickup services, which can be accessed through Gati-KWE’s new WhatsApp chatbot 'Genie' offering instant assistance or through the customer portal on the website.
The edge of experience and expertise
Gati-KWE’s expertise, further strengthened by access to a global network and services for diverse logistics verticals as an Allcargo Company, gives SMEs the confidence of having an experienced partner by their side. An attitude of going the extra mile to ensure customer delight only adds to this collaborative approach.
A robust and thriving SME sector is crucial for the economy to thrive and recover from the ill-effects of the pandemic. For leading logistics services providers like Gati-KWE this is an opportunity to partner with SMEs and contribute to India’s growth story.