Alok Sharma has an experience of more than 3 decade mainly in Infrastructure, coal & Power sector. President of Cable & Conductor Manufacturer’s Association of India for 7 years (CACMAI). Advising Member for the formulation of erstwhile Interest Act, 1993. Nominated Member Federation of Indian Chambers of Commerce & Industry (FICCI). Member Committee for SSI – Punjab, Haryana & Delhi Chamber of Commerce & Industry.(PHDCCI)
As we are all aware that majority businesses collapse due to Delayed Payment or Defaults in Payments by the clients. This gave a thought to Mr. Alok Sharma & Mr. G S Rajasekaran & they laid foundation of “Delayed Payment consultants”. It has been seen that the management of MSME has always been struggling on delayed and no payment, since they need to do heavy investment in their business, they need experienced team to help get payments on time without spoiling relationships. His experience has supported lot of start-up companies to help their business sustain.
Here are the few important points of discussions:
What is DPC? Please elaborate?
Delayed Payment Consultants- DPC as the name suggests, is assisting Micro and Small Enterprises (MSE) of India to recover their Sales dues in most efficient manner in consonance with Micro Small Medium Enterprises Development Act, 2006(MSMED 2006). MSMED Act, 2006 is a central beneficial act to safeguard the interest and survival of MSE of India. Lack of awareness of Statute and settled laws is a major hindrance being faced by SME Sector
Need of DPC is paramount in the light of MSME Samadhaan Portal’s stark revealing facts that Facilitation Councils (MSEFC), in all States, have together disposed only 8% of total cases filed. The portal launched by Government of India on October 30, 2017, has received 40,269 applications till 11 May 2020, out of which only 3148 have been disposed off so far by MSEFCs. Further, the amount involved in disposed cases is only Rs. 598.85 Crores, out of total claim of Rs. 10,587.08 Crores.
What is your business model ?
The approach of DPC is to partner with the MSME for the realization of their dues not from the ringside but being at the forefront of the action plan. First conference with the MSE Client is free of charge in which relevant facts of the case are evaluated. In the event the claim is not maintainable, being hit by law, there is no cost to the SME. In the alternate, DPC amicably decides with MSE the basis of association and steps in the shoes of SME to realize due financial statutory dues.
What is your team strength? Tell us something about them ?
DPC's core team is headed by our Two founder SME entrepreneurs having experience of more than 25 years. They are assisted by core strategists who lead small teams covering and connecting cross section of fellow SME entrepreneurs, panelled CAs and lawyers pan India. Apart, on need based basis, advisor SME entrepreneurs with rich experience are consulted for unanimous decision on the coarse of action.
As per you what are the basic reason for the delayed payments for MSME’s?
The prime reason for MSMEs not getting their payments on time is their limited power and authority over their Buyers to adhere to their timely payment obligations. It is further aggravated due to tough competition within the SME sector. The buyer can anytime replace the Supplier and hence, commands the cycle.
What is the strength of DPC over competitions ?
DPC has been promoted by SME entrepreneurs, enriched with more than 25 years of experience, assisted by empanelled MSME advisors, lawyers and CAs. At the forefront are the experienced SME entrepreneurs having faced the brunt of law in person and in view, are abundantly rich in wisdom to suitably advise legal fraternity to achieve enshrined statutory benefits.
What do you think about the Industry & how is it going to evolve in next 5 years ?
SME Sector contributed nearly 35 % of GDP of India and employees more than 111 million people. India is a developing economy and is amongst the fastest growing economies of the world, qua COVID- 19. The contribution of SME sector is unstinted in India for years to come and in the backdrop, financial health of SME sector is of Prime concern of Government of India.
Today who all are the market leader in this industry and due to covid-19 do you foresee any major impact ?
SME Sector has been assisted by legal fraternity till now on case to case basis, irrespective of its outcome. It is for the first time that SME Entrepreneurs have commenced consultancy for their fellow Entrepreneurs with the concept of partnership. The relationship of DPC with his fellow SME entrepreneur is linked on the outcome of case.
What is your future expansion plan? Is there any capex requirements?
DPC is sufficiently insulated with a large cross section of SME Entrepreneurs from pan India to assist fellow SME Entrepreneurs. Future capex requirement is not envisaged for next 3 years.