Leading SMEs of India 2021

1 Dun & Bradstreet India is pleased to present the 12 th edition of its publication ‘Leading SMEs of India’. The publication provides insights on India’s Micro, Small and Medium Enterprises (MSME) sector and also includes listings of some of the leading SMEs across the country. The ‘Leading SMEs of India 2021’ publication features businesses with annual standalone turnover between ` 5 crore and ` 250 crores during FY20. The publication also presents detailed profiles of ‘The Select 500’ SMEs, which have shown consistent performance over the past years and show high degree of resiliency for better growth prospects. SMEs are considered backbone of an economy. In India as well, SMEs have played a crucial role in the domestic supply chain and are core to the economic growth. India’s SME and Mid-corporate segment accounts for almost 99% of all active businesses. The sector collectively contributes around one third to the GDP and almost 50% to the exports. It is also a key contributor in terms of employment generation, providing employment to ~111 million people. Through their contribution to the economic development, SMEs have also helped India in making steady progress towards achieving sustainable development goals in areas of poverty alleviation as well as reducing income inequality and regional imbalances. Thus, SMEs have truly evolved as the growth engines of the Indian economy. The SME sector however suffered a big blow due to the global COVID-19 pandemic and the consequent containment measures. The pandemic was particularly harsh to the sector as most of the businesses are micro in size and hence vulnerable to risks related to finance, cash- flow and operational disruption. As a result, SMEs in India have borne the biggest brunt of the financial impact of the pandemic in terms of reduced earnings and immediate drying up of cash flow. With the pandemic threat gradually receding, the SME sector is likely to face a post pandemic ‘New Normal’ which would require them to rethink their growth strategies. They would now need to be more open to investing in digital technology & data analytics to redesign their businesses. This digital transformation can enable SMEs to cut operational expenditures, automate business processes and understand consumer behaviour thereby empowering them to withstand the competition. In addition to this, SMEs need to leverage digital marketing to reach out to a substantial number of target consumers in a cost-effective manner. Lastly, though banks will continue to be the largest lending source for the MSME sector, the sector will need to explore other financing channels like Fintech, equity finance, peer to peer lending and Trade Receivable Discounting System (TReDS). This will help in bridging the credit gap for SMEs. While SMEs show strong entrepreneurial spirit during this challenging period, the government also needs to continue empowering them to create ‘Atma Nirbhar Bharat’. The government has already announced various measures in the areas of SME financing, assistance for market development, skill development and technology upgradation. Apart from this, the government would also need to focus on promoting digital literacy amongst SMEs, easing various licensing & compliance regulations and easing loan disbursal mechanism. All these measures can help SMEs to set on a sustainable recovery path. I hope you will enjoy reading ‘Leading SMEs of India 2021’ , and I look forward to receiving your valuable feedback and suggestions. Avinash Gupta Managing Director & CEO – India Dun & Bradstreet PREFACE Dun & Bradstreet