Dun & Bradstreet India takes another step forward in its commitment to service the small and medium enterprises in India. In a strategic association with the SME Rating Agency of India Ltd (SMERA), D&B India has conceptualised the publication series, Emerging SMEs of India. “Emerging Textile SMEs of India” is the second publication in this sector-based series, after the successful launch of “Emerging Auto Component SMEs of India” in September 2006.

The SME segment has come into the limelight, with increased focus from several government institutions, corporate bodies and banks, and is rightly viewed as an agent of economic growth. In addition to the government’s thrust towards promoting the SME segment, several latent business opportunities have also opened up with globalisation and sustained growth of India’s economy. However, there is a lack of structured information on India’s SME sector. A sincere attempt to fulfil this lacuna was our principal rationale in undertaking this exercise.

This unique publication is in recognition of the significant contribution made by SMEs to India’s industrial development. It is estimated that SMEs account for over 90% of industrial units in India and 40% of value addition in the manufacturing sector. They contribute 35% to India’s merchandise exports. This one-point reference document will provide a platform that enhances the visibility of these important constituents of the Indian growth story.

The publication on the Textiles sector was a unique undertaking and involved contacting over 8,000 companies, screening them on the basis of turnover, investment and employee size. The end result is a repository of authenticated information on the truly small and medium enterprises that have a turnover of less than Rs 1,000 mn.

The new business environment for textiles, defined since the phasing out of the Multi Fibre Arrangement in January 2005, has brightened prospects for Indian textiles and clothing trade. In 2005-06, textiles exports were valued at US$ 17 bn, having recorded a 22% growth, y-o-y. This robust growth is expected to continue over the next 2-3 years, led by cotton ready-made garments and home furnishings. Apart from earning foreign exchange, the sector also has significant employment potential. The insights included in the publication are based on a statistical analysis of collated data, and highlight interesting benchmarks for textile companies in the SME segment.

The SME publication 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 SMERA for their consistent support in this exercise. I am sure you will find this issue of ‘Emerging Textile SMEs of India’ useful and I look forward to your suggestions.

Dr Manoj Vaish
President & CEO - India
Dun & Bradstreet