CRISIL SME tracker: For manufacturing MSEs, it makes sense to create brands

Micro and small enterprises (MSEs) with retail consumers enjoy a competitive edge and better financial metrics compared with peers if they have branded products, reveals a CRISIL SME Rating analysis of more than 350 rated MSEs in the textile — readymade garments (RMG), electrical products, fast-moving consumer goods (FMCG), and food products sectors.

This is because creation of brands helps MSEs build differentiation for their products and earn customer loyalty, thereby ensuring they command better prices and greater market penetration.

For MSEs, with brands in the analysis, the return on capital employed (RoCE) was also higher by 300 basis points,