Summer Internship

Report 2022

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Project Title: PAN India penetration for Tier 2 and Tier 3 cities, (untapped markets) specific
to the nature of the market - identifying all MSME clusters, scoping the potential for BLG &
SMEG, and coming out with a clear ask on policy and approach

Author: Roshani Ramesh Varpekar

Roll Number: 2021039

Course: Post Graduate Diploma in Management – Full Time

Company Name: ICICI Bank Ltd.

Purpose: This report has been prepared to document the output and the work done over the 8
weeks of internship pursued with ICICI Bank Ltd.

Submitted to/for: Dr. Divya Singhal (Faculty Guide)

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 Acknowledgment

I'd like to express my gratitude to our Director, Dr. Ajit Parulekar, for motivating us to
continue learning through practical exposure.

I am grateful for this project opportunity and would like to thank my faculty guide, Prof.
Divya Singhal, for her assistance with this project. Prof. Divya has been a guiding light
throughout my journey, and her valuable insight has assisted me in providing value to the
organization.

I am grateful to my project guides, Ms. Foram Parekh and Ms. Minaz Shaikh, for their
invaluable assistance throughout the project's execution. I am grateful to my project buddy,
Mr. Ishan Shah, for assisting and guiding me with the project's required deliverables. Mr.
Jigar Naik (Regional Head-Sales, Ahmedabad), Mr. Prarthit Trivedi (Regional Head-Sales,
Ahmedabad), and Mr. Deep Pandit (Regional Head-Sales, Rural Banking Business Group)
deserve my heartfelt gratitude for their valuable insights.
I would also like to take this opportunity to thank all of the other employees at ICICI Bank
for their valuable cooperation and support. I am indebted to the Goa Institute of Management
for trusting me with this opportunity.
Any omission in this brief acknowledgment does not indicate a lack of gratitude.
Thank You,
Roshani

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Agenda
Executive Summary:................................................................................................................................ 5
About ICICI Bank Ltd: .............................................................................................................................. 6
History: ................................................................................................................................................ 6
Size of the organization: ..................................................................................................................... 6
Guide Details ........................................................................................................................................... 7
Organization Guide Details ................................................................................................................. 7
Faculty Guide Details .......................................................................................................................... 7
Introduction ............................................................................................................................................ 8
Statement of the Problem .................................................................................................................. 8
Objective ............................................................................................................................................. 8
Micro, Small & Medium Enterprises ....................................................................................................... 9
Review of Related Literature ................................................................................................................ 10
Gujarat: ............................................................................................................................................. 10
Rajasthan: ......................................................................................................................................... 11
Data Analysis ......................................................................................................................................... 13
Data and Methodology ......................................................................................................................... 18
Data: .................................................................................................................................................. 18
Proposed Methodology .................................................................................................................... 18
Data Collection: ............................................................................................................................. 18
Analysis of Data:............................................................................................................................ 18
Recommendation:......................................................................................................................... 18
Hurdles & Bottlenecks .......................................................................................................................... 19
Conclusions ........................................................................................................................................... 19
Reference .............................................................................................................................................. 19

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Executive Summary:

The project majorly focuses on understanding the challenges faced by MSME industries in
tier 2 and tier 3 cities in the west zone. The regions allocated in the west zone are,
Gujarat: Ankleshwar, Bharuch, Vapi
Rajasthan: Udaipur, Kota, Kishangarh, Sikar.
The approach followed in this project for data collection is a secondary research approach.

The initial phase of this project is to understand the meaning of Micro, Small, and Medium
Enterprises. Further, we went on to research the offerings of ICICI Bank

Through secondary research, we found various MSME clusters in the above-mentioned above
cities of Gujarat and Rajasthan. The information gathered was on the lines of products
manufactured by the cluster, number of units present, challenges faced by the cluster,

The next task carried out is to identify the cities with low market penetration in the west zone
using the data provided by the bank. After having identified the cities with low market
penetration, the top 3 districts are placed in each state based on the export potential form
amongst those having market penetration of less than 5%.

In the top 3 districts of each state, we have explored the challenges faced by the small-scale
industries in obtaining loans from banks, the number of UAM (Udhyam Aadhar
Memorandum) registrations, presence of ICICI bank, presence of competitor banks, schemes
and policies of competitor banks.

After having analyzed this data, we have formulated a recommendation that ICICI Bank as an
organization can act upon.

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About ICICI Bank Ltd:
History:

1955:
World Bank,
Indian 1999
government & ICICI Bank
business leaders listed on New 2002
collaborate to York Stock Merger
create ICICI Exchange sanctioned

1994 2001
ICICI bank set ICICI Bank
up as part of merged with
ICICI group ICICI Personal
Financial
Services
Limited and
ICICI Capital
Services
Limited

Size of the organization:

The quarter that ended in March 2022 for ICICI Bank was very successful (Q4FY22). In
Q4FY22, the lender reported a stand-alone net profit of $7,019 crore, a huge increase of 59
percent over the same period last year.
The number of employees as of 2021 stood at 97354.

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Guide Details
Organization Guide Details
Guide Name: Foram Parekh
Designation: Senior Product Manager
Cell No.: (+91) 7021567292
Email: [email protected]

Buddy Name: Ishan Shah

Designation: Product Manager
Cell No.: +91 8104113256
Email: [email protected]

Faculty Guide Details

Faculty Guide Name: Dr. Divya Singhal
Cell No: 9922910939
Email ID: [email protected]

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Introduction
Statement of the Problem

For the tier-2 and tier-3 cities assigned in the west zone of India, research the industrial
profile, challenges, business potential, e, and industrial policy (if any) of the MSME clusters.
Explore the challenges faced by the industries in these locations which could be addressed by
the organization.
Provide recommendations on how the organization can help the MSMEs mitigate these
challenges.

Objective

Sr Objectives
No

01 Conduct secondary research about MSME clusters in the tier-2 and tier-3 cities
assigned for the west zone

02 Identify the cities with low market penetration in the west zone

03 Shortlist a few cities from among the identified cities with low market penetration
having high UAM registrations and export potential

04 Research about the challenges faced by MSME in these identified cities and the
presence of ICICI Bank

05 Provide recommendations as to how ICICI Bank help the SME in resolving these
challenges and in turn improve the market penetration in these cities

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Micro, Small & Medium Enterprises

Classification of enterprises into Micro, Small & Medium Enterprises

Kind of As of July 1st, 2020

enterprise

All Enterprises All enterprises

Investment towards Annual Turnover

plant & machinery

Micro Up to 1 Cr Up to 5 Cr

Small Up to 10 Cr Up to 50 Cr

Medium Up to 50 Cr Up to 250 Cr

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Review of Related Literature

Gujarat:

The main industrial area of Bharuch is Ankleshwar, which is home to around 70 medium-
and large-scale businesses and other commercial activities. As a significant industrial hub,
Ankleshwar has made a significant contribution to the district's growth. With numerous big
chemical facilities manufacturing dyes, fertilizers, paints, dairy products, textiles, and cotton,
Bharuch is currently one of the most industrialized regions in India, not only in Gujarat. A
highly significant fertilizers and chemicals company, GNFC Ltd., has also had a presence in
Bharuch's Narmadanagar since 1976.

Locations assigned – Ankleshwar, Bharuch, Vapi

Ankleshwar
• Name Of The Cluster: Dyes & Chemical cluster, Ankleshwar.
• Principal Products Manufactured in the Cluster: Dye & Chemical, Pharmaceutical &
Bulb Drug Name of the No. of functional units in the Cluster: 920
• Employment in Cluster: 7200
• Average investment in plant & Machinery: 905 lakhs
• Major Issues/requirements: Presence of capable institutions
• Problems & Constraints: Pollution, Finance, Raw Materials

Bharuch
• With its strong industrial base in a variety of industries, including ports and
shipbuilding, textiles, drugs and pharmaceuticals, chemicals and petrochemicals, and
drugs and Pharmacia, Bharuch is a desirable location for port and shipbuilding
investments due to its excellent port connectivity and presence of Dahej port.
• Around and in the vicinity of Dahej port, several significant private players have built
their facilities.

• Approximately 16500 small and medium-sized firms, including those in the textile,
chemical, and petrochemical industries, are located in the district.
Vapi
• Products manufactured: Organic and inorganic chemicals, dyes, and dye intermediates
• Number of MSMEs: 308
• Energy consumption: High
• Main fuels: Coal, natural gas, groundnut briquettes, furnace oil, wood, electricity
• Total energy consumption (toe): 107766

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 Cluster Name Sector District Number of MSME
Clusters
Ankleshwar Chemical Products Ankleshwar 220
chemical cluster
Bharuch Applique Applique Bharuch 80

Bharuch Hand Textiles Bharuch 90

Embroidery
Vapi Chemicals Chemical Products Vapi 500

Vapi Chemical Products Vapi 200

Pharmaceuticals

Rajasthan:

Locations assigned – Kishangarh, Kota, Sikar, Udaipur

Cluster Name Sector District

Leather, Sikar Leather Products Sikar

Tie and dye, Tie and dye works Sikar

Shekhawati
region

Pottery and Potteries products Udaipur

Terracota
Kota Doria Sikar Kota

List of MSME clusters according to UNIDO

Number of MSME Clusters

Gujarat
Ahmedabad 17
Amreli 2
Bhavnagar 5
Gandhinagar 1
Jamnagar 2
Rajkot 9
Surat 4
Surendranagar 2

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Vadodara 3
Valsad 3
Madhya Pradesh
Bhopal 1
Dewas 1
Indore 4
Jabalpur 2
Ujjain 1
Rajasthan
Ajmer 2
Bikaner 2
Dausa 1
Ganganagar 1
Jaipur 7
Shalwar 1
Nagaur 1
Sikar 1
Sirohi 1
Udaipur 1

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Data Analysis
Identifying Regions Of Low Market Penetration In The West Zone
We use the data of the market outstanding and the outstanding of ICICI Bank for all the cities
in the west zone.
Based on this data, we have found out the percentage of the book outstanding of ICICI Bank
over the total market penetration for the different cities in the west zone. These percentages
indicate the market penetration of ICICI Bank in the west zone.
There is a total of 73 cities having a market penetration lower than 10%.
There is a total of 57 cities having a market penetration lower than 5%. These cities are
namely:
All of these cities have a presence of ICICI branch.

State Presence of loan

City offering branch
Ajmer Rajasthan Yes
Amreli Gujarat
Anand Gujarat Yes
Anuppur Gujarat
Ashoknagar Madhya Pradesh Yes
Balaghat Madhya Pradesh
Banswara Rajasthan Yes
Baran Rajasthan Yes
Bardoli Gujarat
Barmer Rajasthan Yes
Barwani Madhya Pradesh
Betul Madhya Pradesh Yes
Bharuch Gujarat Yes
Bhavnagar Gujarat Yes
Bundi Rajasthan
Burhanpur Madhya Pradesh Yes
Chhatarpur Madhya Pradesh
Chittaurgarh Rajasthan Yes
Churu Rajasthan
Damoh Madhya Pradesh
Dausa Rajasthan Yes
Dhar Madhya Pradesh
Dohad Gujarat
Dungarpur Rajasthan
Gandhinagar Gujarat Yes
Guna Madhya Pradesh Yes

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 Hoshangabad Madhya Pradesh Yes
Jalor Rajasthan Yes
Jhabua Madhya Pradesh
Jhalawar Rajasthan Yes
Jhunjhunun Rajasthan
Junagadh Gujarat
Karauli Rajasthan
Khandwa Madhya Pradesh Yes
Kheda Gujarat
Mahesana Gujarat
Mandla Madhya Pradesh
Morena Madhya Pradesh
Nagaur Rajasthan
Narsimhapur Madhya Pradesh Yes
Panna Madhya Pradesh
Patan Gujarat
Porbandar Gujarat
Raisen Madhya Pradesh Yes
Rajgarh Madhya Pradesh
Rajsamand Rajasthan Yes
Sagar Madhya Pradesh Yes
Sehore Madhya Pradesh Yes
Seoni Madhya Pradesh Yes
Shahdol Madhya Pradesh
Shajapur Madhya Pradesh
Sidhi Madhya Pradesh
Sirohi Rajasthan
Surendranagar Gujarat Yes
Tonk Rajasthan
Umaria Madhya Pradesh
Valsad Gujarat Yes
Vidisha Madhya Pradesh Yes

Districts having no presence of ICICI Bank in Madhya Pradesh:

• East Nimar
• Sigrauli
• Panna

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Presence of other banks in the above-mentioned districts:

East
Panna Singrauli
Nimar
Axis Bank Axis Bank Bank of Inida

Syndicate bank Yes Bank

UCO Bank
Union Bank Axis Bank
Yes Bank
Bank of India Saraswat Co-op Bank

Saraswat Co-op.
Bank State Bank of India UCO Bank

Based on the analysis, we have shortlisted a few districts based on the highest export value in
the states of Gujarat, Rajasthan, Madhya Pradesh
Gujarat

State District ITCHS Sector Export Value

Code in Rs)

Gujarat Valsad
38089199 Other insecticide 118.59 Cr

38089290 Other fungicide 65.67 Cr

63049250 Terry Towel 80.64 Cr

TOTAL 2541.88 Cr

Gujarat Mahesana 52010015 Indian Cotton 271.51 Cr

87002291 Motor car 393.72 Cr

9093129 Other seeds of Cummin 140.07 Cr

TOTAL 1799.50 Cr

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Gujarat Bhavnagar 28112200 Silicon Dioxide 37.14 Cr

71023910 Diamond 94.78 Cr

71220000 Onion Dried 48.76 Cr

TOTAL 496.39 Cr

Rajasthan

State District ITCHS Code Item Desc Export Value

in Rs.

Rajasthan Chittorgarh 52114200 Denim 26.61 Cr

78011000 Refined Lead 11.92 Cr

79011100 Zinc 353.24 Cr

TOTAL 457.46 Cr

Rajasthan Ajmer 55151130 Fabric of 26.27 Cr

Polyester

68022390 Others 18.47 Cr

68109990 Others 10.99 Cr

TOTAL 181.03 Cr

Rajasthan Banswara 52094200 Denim 14.00 Cr

55095100 Yarn of polyester 12.75 Cr

55151930 Fabric of 9.5 Cr

polyester mixed
with other fibres

TOTAL 88.78 Cr

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Madhya Pradesh

State District ITCHS Code Item Desc Export Value

in Rs.

Madhya Raisen 52052310 Grey 81.99 Cr

Pradesh
52052410 Grey 88.18 Cr

85451100 Electrodes 147.75 Cr

TOTAL 975.06 Cr

Dewas 30049091 Chemicals 141.09 Cr

Madhya
30049099 Other Medicine 77.93 Cr
Pradesh

63053200 Man-made 70 Cr
Textile materials

TOTAL 645.52 Cr

Madhya Khargone 52093290 others 30.65 Cr

Pradesh
63023100 Other Bed Linen 63.46 Cr
of Cotton

63026090 Toilet Linen 77.40 Cr

TOTAL 311.16 Cr

Narrowing down the challenges to each cluster

Chemical Industry – Ankleshwar, Valsad, Bhavnagar
1. Low credit period provided by suppliers and late payment by the customers
2. Low credit availability to MSME under priority sector lending
3. Lack of awareness of schemes and policies
4. Lack of awareness about financial procedures affects SMEs
5. Increase in cost of raw material

Textile Industry: Ajmer, Banswara, Chittorgarh

1. Product portfolio improvement
2. Unavailability of dedicated departments to handle loan processing
3. Stringent bank credit policies
4. Poor maintenance of books of accounts

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Data and Methodology
Data:

The data provided by the organization was in the form of book outstanding of ICICI bank and
the total market loan outstanding for each of the districts in the west zone of India.

Proposed Methodology

Data Collection:
For the tier-2 and ties-3 locations of the west zone that have been assigned, conducted
secondary research to get insights about the industrial profile, challenges faced,
business potential, and several MSME registrations as per UAM.
Compared to the loan offering schemes of leading private and public sector banks.
Coordinated with project guide to collect data that would help in gathering insights
about the market share of ICICI Bank in the west zone out of the total market
penetration of all the existing banks.

Analysis of Data:
Using the data provided by the organization, found the list of cities in the west zone of
India where the market share of ICICI Bank is less than 5%.
T.re were a total of 73 cities where the market penetration of ICICI Bank was less
than 10% and a total of 57 cities where the market penetration was less than 5%.
Among these cities identified top 3 districts having
• Highest number of UAM registrations (Category 1)
• Highest export value (in Rs.) (Category II)
In the top 3 cities identified under each category, conducted secondary research to
explore the challenges faced by MSMEs in these districts.

Recommendation:
1. Setting up more dedicated departments in branches located in tier 2 and tier 3 cities to
handle loan processing and ease out the loan application process
2. Increasing lending of working capital to capital-intensive industries like textile, which
have volatile working capital requirements due to fluctuating prices of raw materials
3. Chemical industries are seeking to expand product portfolios, ICICI Bank can create
new policies that financially assist these industries in launching new products
4. Setting up loan offering branches in tier 3 cities where there is no presence of ICICI
bank
5. Provisions of loans at low-interest rates
6. Information related to the procedure of receiving loans should be circulated frequently

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Hurdles & Bottlenecks

1. It was difficult to obtain the latest data for the period of 2020-2022 while conducting
the secondary research online mode
2. It was challenging to conduct the regional analysis and understand the pain points of
MSMEs without being physically present in those geographical locations
3. Daily communication with project guide/project buddy was challenging in virtual
mode

Conclusions

Although ICICI Bank currently has a 65 percent market share in the retail segment, to tap
into tier -2 and tier -3 cities with a meager market share, the bank would need to take a
reactive approach by tailoring products and offerings to the needs of emerging textile and
chemical industries in the west zone.

Reference
1. Top Export Districts in The Country. Pib.gov.in. (2022). Retrieved 25 May 2022, from
https://pib.gov.in/PressReleaseIframePage.aspx?PRID=1780245
2. (2022). Retrieved 25 May 2022, from https://www.bankofindia.co.in/content/document/unido-
clusters.pdf
3. (2022). Retrieved 25 May 2022, from
https://dashboard.commerce.gov.in/commercedashboard.aspx
4. Clusters List. (2022). Retrieved 25 May 2022, from
https://industries.rajasthan.gov.in/content/industries/doi/rscdp/clusters-list.html
5. (2022). Retrieved 25 May 2022, from http://www.laghu-udyog.gov.in/clusters/clus/smelist.html
6. (2022). Retrieved 25 May 2022, from
https://www.resurgentindia.com/pdf/790903237Defining%20the%20future%20of%20Rajastha
n%E2%80%99s%20Economy.pdf\

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June 30, 2022

TO WHOMSOEVER IT MAY CONCERN

This is to certify that Roshani Ramesh Varpekar bearing Applicant ID: 4951910 had done her
Summer Internship with ICICI Bank Limited from April 4, 2022 to May 28, 2022 with our SMALL
& MEDIUM ENTERPRISE GROUP.
She had worked under the guidance of Minaz Sheikh , Purvi Agarwal (SMEG policy) , Foram
Parekh and Ishan Shah. She has successfully completed her project.
We wish her all the best for her future endeavors.

Regards,

Nishtha Jolly
ICICI Bank Campus Team