CRISIL SME Tracker: Time for MSMEs in the machine tools sector to rejig

Micro, small and medium enterprises (MSMEs) in the machine tools industry need to enhance their production capabilities if they are to grab a higher market share and grow, a CRISIL analysis indicates. The analysis, covering over 100 rated MSMEs, highlights challenges such as lack of access to advanced technology, low investment in product development, smaller capacities, and high concentration in the automobile and auto ancillary sector.

The industry logged a healthy compound annual growth rate of 11 per cent in the past five fiscals, and is expected to continue growing at a healthy pace, given investments in end-user industries such as