SMEs plan fresh investments
Having braved stiff competition both in domestic and international markets, Small and Medium Enterprises (SMEs) are now contemplating to inject fresh capital investments to upgrade their technologies.
By PTI |
NEW DELHI: Having braved stiff competition both in domestic and international markets, Small and Medium Enterprises (SMEs) are now contemplating to inject fresh capital investments to upgrade their technologies.
According to a survey of over 1,000 SMEs, nearly 950 plan to authorise more capital investment as compared to last fiscal and might graduate to the next higher category from their current status of 'medium enterprise'.
Optimism looms large in the sector as 79 per cent of the respondents to the survey by Confederation of Indian Industry expected an increase in their profit margins whereas 16 per cent felt there could be decline in their revenue earnings. Remaining five per cent expected no change in their profit margins.
With an increase in production and better capacity utilisation, most of the SME units foresee a positive shift in overall business situation in the country, it said.
On the production front, 56 per cent of the respondents expect the growth to be over 10 per cent, while 27 per cent see it between 5 to 10 per cent. As many as 12 per cent expect the growth to be less than five per cent and the rest five per cent respondents foresee a negative growth, it said.
Interestingly, threat of competition, is perceived as a major limiting factor to growth. High cost of funds and lack of working capital are also seen as limiting factors to growth in output, the survey said.
According to a survey of over 1,000 SMEs, nearly 950 plan to authorise more capital investment as compared to last fiscal and might graduate to the next higher category from their current status of 'medium enterprise'.
Optimism looms large in the sector as 79 per cent of the respondents to the survey by Confederation of Indian Industry expected an increase in their profit margins whereas 16 per cent felt there could be decline in their revenue earnings. Remaining five per cent expected no change in their profit margins.
With an increase in production and better capacity utilisation, most of the SME units foresee a positive shift in overall business situation in the country, it said.
On the production front, 56 per cent of the respondents expect the growth to be over 10 per cent, while 27 per cent see it between 5 to 10 per cent. As many as 12 per cent expect the growth to be less than five per cent and the rest five per cent respondents foresee a negative growth, it said.
Interestingly, threat of competition, is perceived as a major limiting factor to growth. High cost of funds and lack of working capital are also seen as limiting factors to growth in output, the survey said.
Download
The Economic Times Business News App for the Latest News in Business, Sensex, Stock Market Updates & More.
The Economic Times Business News App for the Latest News in Business, Sensex, Stock Market Updates & More.
Download
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
ADVERTISEMENT
