Confederation of Indian Industry’s (CII) recent report has thrown a surprising as well as heartening result, wherein even after the Consumer Durable industry grew marginally in the recent past, the industry expects to grow at 10% in FY09. A snap poll conducted by CII on non-automobile based consumer durables sector showed that 92% of the CEOs expected 10% top line growth in FY09. On further dissection of the 92% positive CEOs, 31% of them expect top line growth to be in the range of 15-20% and another 31% of the CEOs expect the top line growth to be more than 20%.
On the profit aspect, the poll showed that. 69% of the CEOs expected profits to increase during FY09 and of these, 33% of the CEOs expected profits to increase by more than 20%. While on the export front, 90% of the interviewed CEOs expect exports to increase during the year 2008-09. Among those, 50% of the CEOs expected it to increase by 10% and another 20% of the CEOs expected an increase in exports by 10-20%.
The optimism of the CEOs may also stem from the fact that even though the sector grew marginally, it has seen progressive growth; the sector grew 3.8% in first three months of FY09, as compared with growth of 0.7% in the first quarter of FY08.
The poll also gave out impediments that the interviewed CEOs thought were plaguing the industry. Among the barriers to higher growth decked out in descending order were, infrastructure bottlenecks, rising raw material costs, high interest rates, regulatory burden due to multiple compliance formalities and frequent inspections.
However the snap poll is a positive sign for the industry as well as the economy, this confidence is further augmented by the recent ‘Mahabachat’ sale organized by leading retail chain company Big Bazaar, which saw record sales during the period.
On the profit aspect, the poll showed that. 69% of the CEOs expected profits to increase during FY09 and of these, 33% of the CEOs expected profits to increase by more than 20%. While on the export front, 90% of the interviewed CEOs expect exports to increase during the year 2008-09. Among those, 50% of the CEOs expected it to increase by 10% and another 20% of the CEOs expected an increase in exports by 10-20%.
The optimism of the CEOs may also stem from the fact that even though the sector grew marginally, it has seen progressive growth; the sector grew 3.8% in first three months of FY09, as compared with growth of 0.7% in the first quarter of FY08.
The poll also gave out impediments that the interviewed CEOs thought were plaguing the industry. Among the barriers to higher growth decked out in descending order were, infrastructure bottlenecks, rising raw material costs, high interest rates, regulatory burden due to multiple compliance formalities and frequent inspections.
However the snap poll is a positive sign for the industry as well as the economy, this confidence is further augmented by the recent ‘Mahabachat’ sale organized by leading retail chain company Big Bazaar, which saw record sales during the period.
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