Crisil SME tracker: Flood-hit Kerala MSEs stare at working capital hiccups

As per the National Sample Survey, 2016, Kerala had 2.379 million MSEs, employing 4.464 million people

Kerala-based micro and small enterprises (MSEs) are expected to take a huge hit to their financial profiles following the deluge and floods across the state — especially the southern part — this year.

Manufacturers, comprising 70 per cent of all MSEs in the state, will be worse off, especially in food processing, textiles, coir and footwear, which are largely unorganized and highly working capital-intensive, with average working capital (WC) days of close to 100 days, far higher than the all-India average of 66 days. 

After the floods in Chennai, CRISIL-rated manufacturing MSEs in that region had seen a 10 per cent fall