The Hindu Business Line : `VC funding in manufacturing sector needs more support'

He was speaking at an interactive session on "Challenges before the first generation entrepreneurs", organised by the Mangalore-Manipal chapter of Public Relations Society of India in Mangalore.

Arch Commerz is engaged in the production and marketing of intermediates for pharmaceutical industry.

"If there is no firm decision by the Government on VC funding, there will be more entrepreneurs in service sector than in manufacturing sector. This may affect Indian industry," he said. Compared to the western countries, VC funding is yet to pick up in India.

Mr Kamath suggested that entrepreneurs consider a foray into herbal arena, as most of the western countries are looking at Ayurveda as an alternative medicine in a big way. This area is likely to rake in nearly $20 billion for Indian entrepreneurs, he said.

Post-2005, pharmaceutical industry would witness lot of changes due to WTO norms. The cost of medicines will be at least 10 times more than what is being paid now, he said. Indians should be prepared to face this challenge.

Speaking on the challenges before the entrepreneurs, Mr Kamath said that a single-window agency could help tackle most of their problems.

Giving his own example, he said that he tackled 28 departments before setting up his unit in Maharashtra. "While China has actual single-window clearance for its entrepreneurs, why can't we repeat it here," he said.

Mr Kamath said that bankers play a significant role in the career of the entrepreneur.

"Once the entrepreneur is able to get bank finance for the project, 50 per cent of his/her challenges are over."

He termed marketing more challenging than manufacturing for an entrepreneur.

Giving his example, Mr Kamath said that his company manufactures intermediates for pharmaceutical industry than the final product.

Thus his company is a non-competitive supplier for most of the pharmaceutical companies in India and abroad, he said.

Entrepreneur has to face numerous challenges in his/her export ventures also.

Getting into the vendor list of European companies is important.

However, most of these companies equate Indian companies with Italian companies as unreliable. This is one of the major roadblocks being faced by the entrepreneur, he said.

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