Dun & Bradstreet India (D&B India) has reinforced its commitment towards servicing small and medium enterprises through the launch of its publication series, Emerging SMEs of India, brought to you in a strategic association with SME Rating Agency of India Ltd (SMERA). We are pleased to launch the sixth publication in this seminal series, Emerging Engineering SMEs of India. The other five releases in this sector-based series, pertaining to Auto Components, Textiles, Food Processing, Pharmaceutical and Chemical SMEs of India, were released earlier in 2006-07, and have been very well received.

The SME segment is the subject of intense focus from several Government institutions, corporate bodies and banks, and is rightly viewed as an agent of economic growth. However, there is a lack of structured information on India’s SME sector. A sincere attempt to fulfill this lacuna was the principal rationale in undertaking this exercise. This one-point reference document will provide a platform to enhance the visibility of these important constituents of the Indian growth story.

The Engineering sector is the largest industrial segment of the Indian economy, characterised with the presence of a large number of sub-segments. On a broad level, the sector is classified as heavy engineering and light engineering. The sector is relatively less fragmented at the top, as the competencies required are high, while it is highly fragmented at the lower end and is dominated by smaller players. It is the light engineering goods segment that provides the major opportunity for the SME segment, due to the use of medium to low-end technology in the production process. This segment has a low entry barrier, on account of the comparatively lower requirement of capital and technology. Due to its intrinsic nature, this segment is therefore characterised by small capacities and high level of competition among the players.

The engineering sector in India has been growing on the back of growth in the user industries and several new projects being undertaken in various core industries such as railways, power, infrastructure, etc. Capacity creation in sectors such as infrastructure, oil & gas, power, mining, automobiles, auto components, steel, refinery, consumer durables, etc, is driving growth of the engineering industry. We expect demand in the engineering sector to remain healthy primarily on account of the Government’s increased thrust on infrastructure development. The continuing growth of the manufacturing sector and favourable regulatory policies would provide further boost to the sector’s growth. The SME players will need to enhance competitiveness, marketing skills and visibility to exploit the upcoming opportunities.

Emerging Engineering SMEs of India preserves the D&B commitment to providing information and knowledge that facilitate informed business decisions. D&B India has drawn on its time-tested expertise in the information business to the benefit of the small and medium companies, as this publication amply reflects.

Finally, I would like to thank the SME Rating Agency of India Ltd (SMERA) for their consistent support in this exercise. I am sure you will find this issue of Emerging Engineering SMEs of India useful and I look forward to your suggestions.

Dr Manoj Vaish
President & CEO - India
Dun & Bradstreet