Rajeev Karwal will offer services to SME sector

NEW DELHI: After stints in big-ticket brands such as LG, Philips, Electrolux, and Reliance, Rajeev Karwal is now becoming a management partner for the SME sector. He is floating a new outfit, Milagrow Business and Knowledge Solutions, which would essentially hand-hold small businesses by offering them professional management services, and if needed, take up sweat equity or strategic stakes in some of the ventures.

Management guru Dr Jagdish Seth would be associated with his venture in an advisory role while Prof Anil Gupta of IIM Ahmedabad would be a Value Ombudsman. “The idea behind the venture is to offer professional support services to the SME sector, give them management inputs and make available quality manpower resources,” Mr Karwal told ET. He has already signed up three clients in the internet, retail and organic food spaces, with a board position in one of the companies.

A network of senior management professionals would be available to assist small enterprises scale up their businesses, and even go global in tune with their business plans. “Many senior management professionals would like to impart their expertise to small businesses on a part-time or on a project-specific basis.

We would like to offer something akin to temping services for senior management professionals,” he added. As per industry estimates, there are around 1.2 crore SMEs in the country, employing over 3 crore people, accounting for around 35% of India’s exports. Unlike their counterparts in developed markets, most Indian SMEs are deprived of best-in-class management inputs, which affect their cost competitiveness in the long run.

To start with, Karwal’s outfit would focus on hand-holding companies with an annual turnover between Rs 20-100 crore, that straddle the SME space. He, however, does not rule out lending a helping hand to start-up operations. Regarding the funding of the new venture, Karwal said major part of it would be self-financed, augmented with income from consulting fees. “We are looking at setting up 20 offices in cities across the country over the next two years,” said Karwal. But what if an MNC approaches him with an offer-that-he-cannot-refuse? “At least for the next two years, I want to give 100% to this venture and nurture its growth,” he said.