The Micro, Small and Medium Enterprises Development Act of 2006, which came into effect from October 2, 2006 defines SMEs as entities that have an investment of above Rs 10 mn and below Rs 100 mn in plant and machinery for firms engaged in production of goods. Considering the challenges entailed in tapping financial information from a highly fragmented sector, Dun & Bradstreet India (D&B India) has formulated a correlation between investment and turnover to arrive at a benchmark of Rs 1,000 mn turnover for the SMEs.
Emerging Textile SMEs of India focuses on manufacturers of textile products across the value chain, from yarns, fibres to processing and finished goods. Trading companies have been excluded. The publication also includes diversified companies operating in the textiles and readymade garments space and having business interests in other industries. The publication has excluded subsidiaries of large Indian business houses, multinational companies and subsidiaries of multinational companies, thus honouring the true Indian entrepreneurial spirit that the SMEs represent.
The companies that qualified on the basis of turnover were further screened through another set of parameters to arrive at a truly representative list of emerging SMEs. Companies with negative net worth and those declared financially sick by the Board for Industrial & Financial Reconstruction (BIFR) as of end-November 2006 were eliminated. Other considerations included financial growth performance over the past two years, growth prospects and production efficiencies.
Every effort was made to ensure that the publication covers textile and readymade garments manufacturers located across the length and breadth of the country. Based upon D&B India’s in-house database and industry association members’ lists, we identified a large universe of manufacturers. The companies were contacted through various industry associations and consultants, advertisements in India’s leading business dailies, direct contact through mailers, reminder letters, telephone calls and e-mails.
The information contained in this book is sourced and compiled from questionnaires circulated and administered by D&B India, telephonic interviews, company websites and information available in the public domain. The information has been further verified and authenticated to ensure its accuracy.
The Emerging Textile SMEs of India, the second in the series after Emerging Auto Component SMEs of India, provides a brief profile of the small and medium enterprises in the textiles and clothing segment. The text highlights the product profile of the included organisations, their manufacturing facilities, key management details and their operations.
The sections titled Industry Report and SME Insights are special analyses on the textiles and apparel industry which looks at current trends, competitive dynamics and the future outlook for the segment. The SME Insights section presents analytical findings drawn from the primary information collated by D&B India.
We are confident that Emerging Textile SMEs of India will provide a platform for Indian entrepreneurs to network and to showcase their capabilities. We would be pleased to receive your valuable feedback and suggestions. Your satisfaction remains the goal in our journey towards excellence.