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October 04, 2018

SME Report

Micro, small and medium enterprises (MSMEs) lending of over Rs 15 trillion, accounted for around 22% of corporate lending in India as of fiscal 2018. The segment continues to offer attractive business opportunities for financiers, especially with the Goods and Services Tax (GST) regime in place. The challenge lies in spotting the sectors and clusters that are likely to offer the desired risk-adjusted returns. And that entails tracking the performance and riskiness of sectors and clusters on a timely basis.

 

Our report addresses this by providing:

 

  • Insights and outlook on business and financial prospects across sectors and clusters
  • Industry and cluster attractiveness matrices to differentiate between sectors and clusters
  • An interactive business and financial tool to assist in benchmarking across clusters and sectors
  • A database of ~7,000 SMEs, along with key financial ratios of ~6,000 of these
  • A six-month monitoring mechanism for SME sectors and clusters
  • Views on asset quality sector-wise and cluster-wise

 

Benefits of the report:

 

  • Identification of sectors with strong growth opportunities to aid focused lending
  • Assessment of risks and factors influencing the competitiveness of SME units across sectors and geographies, to enhance risk-monitoring capabilities for existing portfolio
  • Selection of promising geographies to focus on within a sector, based on business and financial analysis
  • Tools and databases for prospecting
  • Effective review and monitoring with introduction of six-month surveillance dashboard
  • Gauging the asset quality risk sector-wise and cluster-wise

 

Coverage of the report

 

  1. Outlook on 73 manufacturing, services and trading industries that have a large SME presence
    • Placement in industry attractiveness matrix
    • Industry size, structure, SME presence
    • Demand-supply scenario and forecasts
    • Impact analysis of implementation of GST on the relevant sectors and SMEs
    • Growth drivers
    • Key risks for SMEs
    • Financial performance of SMEs
    • Ratings distribution of CRISIL-rated companies
  2. Outlook from SME perspective (profiles of ~157 clusters across 73 industries)
    • Placement in cluster attractiveness matrix
    • Cluster snapshot (size, product profile, number of units, historical growth)
    • Comparison of financial performance of companies in a cluster vis-à-vis in the industry
    • Cluster competitiveness
    • Key risks faced by companies in a cluster
    • Ratings distribution of CRISIL-rated companies in the cluster
    • Outlook for the cluster from SME perspective
    • Voices from the industry
  3. Asset quality sector-wise
    • Views on asset quality sector-wise
    • Benchmarking a cluster’s asset quality with overall sector
  4. List of Around 7,000 SMEs
    • Location
    • SME/NSIC Rating
    • Constitution
    • Key financial parameters (select companies)
  5. Six-month surveillance dashboard
    • Demand/ supply sentiment over the past six months
    • Trend in key raw material movement
    • Impact of regulatory change/ new developments
    • Any reason for change in business potential/ financial strength
    • Any cluster severely impacted with reasoning
    • Ratings upgrade to downgrade ratio
    • Financial performance update
  6. Tools
    • Interactive tools to assist in benchmarking across clusters and sectors.
      • Financial tool to facilitate comparison on the basis of the past three years’ financial information, within sectors and clusters, and between sectors and clusters
      • Business tool offering information related to main products, capacities, plant locations, key clients, key risks, future capital expenditure plans, exports presence, etc. across ~6,000 SMEs rated by CRISIL
  7. Latest news and analysis
  8. SME related CRISIL releases
  9. Annexures
  10. Revenue cut-wise financials (provided on request basis only)
    • Rs 0-250 million
    • Rs 250-750 million
    • Rs 750-1250 million
    • Rs 1250-1750 million
    • Rs 1750-2500 million

Questions?

  • For any assistance/ query, please call:
    Ms. Karishma Shetty
    99672 37936 / 022 3342 8391
    Karishma.Shetty@crisil.com