Incubator Nirma Labs fate uncertain
Nirma Labs, promoted by the Rs 2,000-crore Nirma group to help budding entrepreneurs and start-ups, is facing serious hurdles.
By Mahima Puri & Mansi Bhatt, TNN |
AHMEDABAD: Nirma Labs, promoted by the Rs 2,000-crore Nirma group to help budding entrepreneurs and start-ups, is facing serious hurdles. Just within three years of the launch of Nirma Labs, Nirma group is considering plans to close down the centre. Nirma Labs, started by technopreneur Dr Madhu Mehta jointly with promoters of Nirma group is being currently reviewed by the group.
The group is contemplating the move despite the fact that around nine projects are already in the incubation stage at the entrepreneurial and incubation centre.
When contacted, Dr Madhu Mehta, chief architect of Nirma Labs told ET: “At present, we are reviewing the functioning of Nirma Labs. However, no plans on closure or future course of action have been drawn up so far.”
Sources say that the authorities at Nirma are not keen to enrol fresh candidates in the centre anymore.
Though officials are shying away from commenting on the subject, those close to Nirma Labs say that Nirma Education and Research Foundation of Nirma industries is not keen on investing huge money into incubations and ideas anymore.
When questioned about the fate of existing projects and closure of the centre, director of Nirma university and member of the advisory board of Nirma Labs NV Vasani said, “Nirma Labs has already completed a few years, and this is just a review process. The decision taken will take into consideration the existing incubatees and their projects.”
Nirma chiefs feel that investing crores into a few projects in not a viable option. The CEO of Nirma Labs, Thyagrajan, is set to leave the centre.
The chief architect of the centre, Dr Madhu Mehta had started the model in 2004, with support from Nirma vice-chancellor NV Vasani. Out of the four batches at NirmaLabs so far, only three projects were formed into companies, while nine are under the incubation stage. Since 2004, the centre has groomed around 28 participants and incubated around 15-17.
It has incubated a total of eight projects so far. The institute has structured programme and the candidates have to go through an admission process before they are incubated.
The institute has also created a pool company which will hold stake in all the companies being commercialised with the help of Nirma Labs. The pool company holds around 5% in each company and if the project mentor has been associated with the company for significant time, he also gets stake of 5%.
The institute also offers networking opportunity with industry experts as well as with venture capitalists and angel investors. Apart from mentors from the centre, the teams also have a team of expert advisors who help on several issues.
The group is contemplating the move despite the fact that around nine projects are already in the incubation stage at the entrepreneurial and incubation centre.
When contacted, Dr Madhu Mehta, chief architect of Nirma Labs told ET: “At present, we are reviewing the functioning of Nirma Labs. However, no plans on closure or future course of action have been drawn up so far.”
Sources say that the authorities at Nirma are not keen to enrol fresh candidates in the centre anymore.
Though officials are shying away from commenting on the subject, those close to Nirma Labs say that Nirma Education and Research Foundation of Nirma industries is not keen on investing huge money into incubations and ideas anymore.
When questioned about the fate of existing projects and closure of the centre, director of Nirma university and member of the advisory board of Nirma Labs NV Vasani said, “Nirma Labs has already completed a few years, and this is just a review process. The decision taken will take into consideration the existing incubatees and their projects.”
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According to sources, the structure may not be wound up completely, but those associated with it might try to revamp it. “There is a possibility that existing projects might be incubated at some other place and the operations of the centre might move out of Nirma University premises,” said a source. Nirma chiefs feel that investing crores into a few projects in not a viable option. The CEO of Nirma Labs, Thyagrajan, is set to leave the centre.
The chief architect of the centre, Dr Madhu Mehta had started the model in 2004, with support from Nirma vice-chancellor NV Vasani. Out of the four batches at NirmaLabs so far, only three projects were formed into companies, while nine are under the incubation stage. Since 2004, the centre has groomed around 28 participants and incubated around 15-17.
It has incubated a total of eight projects so far. The institute has structured programme and the candidates have to go through an admission process before they are incubated.
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The grooming programme is spread over seven months, while the incubation is for 18 months. At Nirma Labs, each incubated project gets seed funding of up to Rs 20 lakh from the centre and each team member gets sustenance of Rs 8,000 per month. Once the project is commercialised, Nirma Labs holds 10% equity in the project. The institute has also created a pool company which will hold stake in all the companies being commercialised with the help of Nirma Labs. The pool company holds around 5% in each company and if the project mentor has been associated with the company for significant time, he also gets stake of 5%.
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The projects incubated at Nirma include two RFID projects, gold jewellery projects, a project on security mechanism, health monitoring system and few more. After a participant enrols at Nirma Labs he undergoes a grooming programme and has to invest around Rs 50,000 for fees and an equal amount on accommodation and food. The institute also offers networking opportunity with industry experts as well as with venture capitalists and angel investors. Apart from mentors from the centre, the teams also have a team of expert advisors who help on several issues.
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