Indian small and medium enterprises (SMEs) in the auto component industry have shown improvement in productivity and become globally competitive, a Pricewaterhouse Coopers study has said.
Improvement in operational performance and cost cutting has helped SMEs acquire new customers besides getting additional orders from the existing customers.
“About 50 per cent of the firms have shown a percentage increase in inventory turnover ratio of 95 per cent while Kaizen activities have helped firms achieve cost savings,” a Commerce Ministry release quoting the study said.
The performance has strengthened the SME auto component suppliers to meet the requirements of automobile makers.
It said the SMEs have also been helped by collaborative efforts of the United Nations Industrial Development Organisation (UNIDO), the Central Government and Automotive Component Manufacturers Association of India.
“The UNIDO partnership programme would enable firms to enhance performance and get included in the global supply chain,” it added.