India Mart knowledge service has recently conducted a survey which has revealed that only 5.2 percent of SMEs in Rubber and Rubber products sector plan to invest in computers. IndiaMART is one of India’s largest online B2B marketplaces.
In fact 71.3 per cent of responded that they planned to increase their production capacity. Another 16.5 per cent said they were looking at increasing their employee base, but only 6.9 per cent of the SMEs said they would be opening new offices.
For 30.4 per cent of the respondents, the order book position increased in the 0-20 per cent range in the period from January-September 2011. For 27.8 per cent it did not show any change, while for 26 per cent of the respondents it increased by more than 20 per cent. Only 15.6 per cent of the survey participants witnessed a decline in their order book during this period.
The survey further showed that 55.6 per cent of the respondents are increasing raw material costs, while 19.3 per cent of the respondents believe global competition is their biggest hurdle. Poor infrastructure and access to adequate finance came third and fourth with 10.4 per cent and 11.3 per cent respectively. Only 3.8 per cent cited rising fuel costs as an obstacle.
Around 80.8 per cent of the respondents said they took up continuous product improvement as part of a new initiative, while 9.5 per cent each said they had undertaken green energy technology and promoting community development as part of a new company initiative.