Finex Industries Pvt. Ltd. – Advancing Towards Quality and Sustainability with ZED

Finex Industries Pvt. Ltd., based in Dindori, Nashik (Maharashtra), manufactures metal and wooden furniture and achieved ZED Silver Certification on 14 July 2025, following which, the enterprise reduced Cost of Poor Quality (COPQ) by 11%, rework by 10%, and defects by 1%, while improving workplace safety and resource utilisation. It also achieved savings through better energy efficiency, space utilisation and reduced consumable usage. According to the enterprise, ZED Certification has enhanced productivity, product quality and operational efficiency, demonstrating how Zero Defect, Zero Effect practices can drive sustainable and competitive growth for MSME.

Concept Clothing Pvt. Ltd. – Strengthening Quality and Efficiency through ZED

Concept Clothing Pvt. Ltd., based in Jalandhar, Punjab, achieved ZED Silver Certification on 14 June 2025, reinforcing its commitment to quality, sustainability and operational excellence. After adopting ZED practices, the enterprise reported an 80% reduction in workplace incidents, 50% reduction in Mean Time to Repair (MTTR), 7.4% reduction in rework and 4% reduction in rejection, along with significant savings through quality, environmental and workplace improvement initiatives. According to the enterprise, ZED Certification has strengthened operational discipline, improved process efficiency and enhanced overall competitiveness, demonstrating the value of Zero Defect, Zero Effect for MSME.

Strengthening MSMEs through Zero Defect, Zero Effect (ZED) Certification

The Ministry of Micro, Small and Medium Enterprises is promoting quality-driven and environmentally responsible manufacturing through the MSME Sustainable - ZED Certification Scheme. The initiative supports MSME in improving production processes, adopting better quality standards and reducing their environmental footprint, thereby strengthening their competitiveness in domestic and global markets.

A key focus of the initiative is to encourage greater participation of women entrepreneurs in quality and sustainable manufacturing. To reduce the cost barrier for women-led enterprises, the Government has provided 100% subsidy on the cost of ZED Certification for women-owned MSME. The provision came into effect from 11 November 2023 and makes the certification cost effectively zero for eligible women-owned MSME.

The support enables women entrepreneurs to assess and strengthen their manufacturing systems against recognised parameters of quality, productivity, safety and environmental sustainability. By facilitating access to structured assessment and certification, the initiative can help women-led enterprises build stronger processes, improve market credibility and prepare themselves for wider business opportunities.

Background

The Zero Defect Zero Effect (ZED) initiative encourages MSME to manufacture high-quality products while minimizing their environmental impact. It supports enterprises in continuously improving their technology, systems and manufacturing practices to enhance quality, productivity and sustainability. More than a certification programme, ZED provides MSME with a structured pathway for assessment, improvement, incentives and technology upgradation. The certification framework comprises Bronze, Silver and Gold, enabling enterprises to progressively achieve higher standards of quality and sustainability. Eligible MSME can also avail financial assistance of up to 75% of the cost of testing/system/product certification (maximum ₹50,000), up to ₹2 lakh for handholding and consultancy support, and up to ₹3 lakh for adopting Zero Effect solutions, pollution-control measures and cleaner technologies.

Growing Reach and Impact

The MSME Sustainable (ZED) Certification Scheme is emerging as a key driver of quality, sustainability and competitiveness amongst MSME. As on 7^th July 2026, around 9.49 lakh MSME had registered under the scheme, with over 6.67 lakh Bronze, 6,700 Silver and 4,800 Gold certifications awarded. The initiative has also provided more than ₹913 crore in financial support to help enterprises adopt quality and sustainable manufacturing practices.

The impact of ZED extends beyond certification. 22 States/UTs have integrated ZED into their industrial policies and are offering additional incentives to certified MSME. Further, 19 financial institutions are extending benefits such as concessions in processing fees and interest rates, making it easier for ZED-certified enterprises to access finance. A significant feature of the scheme is the 100% subsidy on ZED Certification for women-owned MSMEs, which removes the cost barrier and encourages greater participation of women entrepreneurs. By promoting quality manufacturing, resource efficiency and environmental sustainability, ZED is helping MSME strengthen their competitiveness, enhance market credibility and integrate more effectively into domestic and global value chains.

For details, please visit the website https://zed.msme.gov.in/

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Sunil Kumar Tiwari

E-Mail - hipessi[at]gmail[dot]com