New Delhi, Dec 12 (KNN) In an attempt to explore the various complications of the Micro, Small and Medium Enterprises (MSMEs) involved in the machine tools sector, CRISIL conducted a study that revealed that the problems including lack of access to newer technology and low investments in product development hamper MSME growth.

The study further revealed that while the industry registered a healthy growth rate of 11 per cent in the past five years, the sector need to enhance production capabilities in order to grab a higher market share and registered increased growth.

The study however observed that the sector is expected to continue to grow healthily.

The study further said that here is very low investment in product development in the machine tool MSMEs. Also limited skill-sets for customisation is another prime hurdle that the sector needs to overcome.

Citing data, the study says that only one in every six units spend on new product development. Also thus one in every six spends only a meagre of their annual revenue, making the figure next to nil.

The study suggested that the MSMEs at this stage must improve competitiveness and quality through adoption of new technologies via global collaborations.  Also the sector must invest in capacity addition in order to grow. Also the sector should consider diversification beyond automobiles in order to sustain in the long run, the study observed.

The study was undertaken by CRISIL, formerly known as Credit Rating Information Services of India Limited, a global analytical company providing ratings, research, and risk and policy advisory services. (KNN/DA)