A quiet revolution is reshaping the SME landscape in Telangana. From bustling industrial clusters in Hyderabad to emerging hubs across the state, small and medium enterprises (SMEs) are embracing Artificial Intelligence (AI) to reimagine how they operate, compete, and grow. And according to Kotak Mahindra Bank, this transformation is not only real—it’s accelerating.

With over 8.9 lakh registered MSMEs, Telangana is home to one of India’s most dynamic entrepreneurial ecosystems. These businesses span sectors like pharmaceuticals, precision engineering, textiles, food processing, and electronics. What’s changing is how they’re using AI—not just for automation, but for smarter decision-making, predictive insights, and digital agility.

At the heart of this shift are SME founders and operators who are increasingly tech-savvy, ambitious, and open to innovation. “We’re seeing a new breed of entrepreneurs in Telangana,” says Shekhar Bhandari, President – Small and Medium Enterprises at Kotak Mahindra Bank. “They’re not just adopting AI—they’re integrating it into the core of their business models. And that’s where the real transformation begins.”

“AI is no longer a future concept—it’s a present-day tool for SMEs,” says Bhandari. “And when combined with the right financial architecture, it becomes a growth engine. Through platforms like Kotak FYN, the bank is enabling businesses to digitize trade finance, streamline collections and payments, and leverage AI-powered analytics to manage working capital more effectively. The platform’s intuitive design and multi-channel access—via mobile, web, and APIs—make it especially suited for SMEs that need speed, flexibility, and control.”

Kotak’s insights come from its deep engagement with SMEs across the region. But Kotak’s role goes beyond technology. The bank is expanding its footprint across Telangana’s industrial zones, investing in infrastructure and partnerships that support SME growth. Its teams work closely with business owners to understand sector-specific challenges and co-create solutions that are both scalable and sustainable.

This approach is yielding results. SMEs that once relied on manual processes are now using AI dashboards to forecast cash flows, optimize inventory, and identify new market opportunities. The impact is visible in improved margins, faster turnaround times, and greater resilience in the face of economic shifts.

“Telangana’s entrepreneurs are bold, visionary, and digitally fluent,” said Shekhar Bhandari, President – Small and Medium Enterprises, Kotak Mahindra Bank. “They’re not just keeping up—they’re leading. Our Kotak FYN platform is designed to support that ambition, offering universal access across mobile, web, and APIs. It’s intuitive, integrated, and built ‘For Your Needs’.”

As the state continues to attract global investment and scale new industrial heights, its SMEs are quietly shaping the future. Their success is a testament to what’s possible when ambition meets intelligent support—and Kotak Mahindra Bank is proud to be part of that journey.