 "GRAPH")
Surging metal prices and cheaper imports are impacting the profitability of MSEs manufacturing small electrical components and equipment. Additionally, intense competition and limited value-addition restrict their ability to pass on increases in input cost. Aluminium, copper and steel constitute around half of such cost. In the 12 months to September 30, prices of aluminium, copper and steel have surged 10-40 per cent.
An analysis of 250 such MSEs rated by CRISIL shows fluctuations in commodity prices have had an adverse impact on their profitability.
Additionally, demand for domestically manufactured products has been impacted because a 3.4 per cent rise in the rupee
