MSMEs in Pune region face supply chain and cash flow issues

Radheshyam Jadhav Pune | Updated on May 28, 2020

Supply chain and cash flow are the two major issues MSMEs in Pune region are facing revealed the survey conducted by the Mahratta Chamber of Commerce, Industries and Agriculture (MCCIA).

About 155 companies participated in the survey of which 69 per cent (108) MSMEs said that supply chain issues were a major concern while the same number of companies listed cash flow as the concern. Interestingly only 39 per cent, MSMEs said that labour issues like migrant labourers going back and local manpower refusing to come back to work was a major concern.

The survey found that 46 per cent MSMEs surveyed are operating at less than 20 per cent capacity while 41 per cent are operating at 20-50 per cent capacity. Only 13 per cent are operating at more than 50 per cent capacity.

The weighted average of the pending receivables of the MSMEs surveyed was between ₹2 crore and ₹3 crore. This includes receivables from the private and the public sector.

“Since the reopening, economic activities have gone up but industry, especially MSMEs, still face multiple challenges. The government needs to closely monitor to ensure that banks transmit credit to MSMEs and also it needs to further strengthen the ‘Employment Bureau’ to help industries meet the labour demand-supply gaps,” MCCIA Director-General Prashant Girbane told BusinessLine.

He added that the government and PSUs need to publish periodic reports on delayed dues paid “ We hope that starting first week of June, there is further increase in economic activities with of course due care for health and safety,” he added.

Published on May 28, 2020

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