Agro-processing micro, small and medium enterprises lead in northern states

CRISIL has analysed the growth of 3,850 micro, small, and medium enterprises (MSMEs) across India, rated by it between 2010-11 and 2012-13 (refers to the financial year April 1 to March 31). The analysis reveals that the sales of these CRISIL-rated MSMEs grew at a compound annual growth rate (CAGR) of 22.53 per cent during this period. In absolute terms, average sales per enterprise grew from Rs 1,668.80 lakh in 2010-11 to Rs 2,505.30 lakh in 2012-13.

The four northern states of India - namely Delhi, Punjab, Rajasthan, and Haryana - lead this MSME growth story. The analysis further revealed that MSMEs from the agro-processing sector are key contributors, enabling excellent growth in these four states. The impressive growth of 68 per cent recorded by these enterprises in the agro-processing sector far outpaces the 22.53 per cent growth rate recorded by CRISIL-rated MSMEs across various sectors in India. The other industry sectors that propelled this growth, and have registered superior growth, are chemicals (31 per cent), electrical components and equipment (27 per cent), fast-moving consumer goods (27 per cent), engineering and capital goods (26 per cent), healthcare (24 per cent), and metals (23 per cent).

Note: The analysis is based on the latest audited financial statements of CRISIL-rated MSMEs. Most enterprises finalise their audited financials by the end of the second quarter, after the closure of the financial year. CRISIL rates over 45,000 MSMEs in India. This fortnightly tracker brings our readers insights on MSMEs, a key element of the Indian economy.