ID :
13371
Tue, 07/22/2008 - 13:34
Auther :
Shortlink :
http://m.oananews.org//node/13371
The shortlink copeid
India Inc does not see slow down in production: C.I.I. survey
New Delhi, July 22 (PTI) A majority of C.E.Os. from topIndian companies including I.C.I.C.I. Bank, Bajaj Auto, T.V.S.
Motor, G.E. India, and H.U.L., do not foresee any production slowdown in this fiscal, even as rising input and interest costs are affecting the net profit margins, a Confederation ofIndian Industry (C.I.I.) survey has found.
The Chief executives in a snap poll conducted by C.I.I.
said even as uncertainty remained on overall industrial and G.D.P. growth, the firms do not expect production to slow downat their companies.
C.E.Os. who were part of this survey included C.I.I.
President and I.C.I.C.I. M.D. and C.E.O. K.V. Kamath, T.V.S.
Motor Chairman and M.D. Venu Srinivasan, Bajaj Auto Chairman Rahul Bajaj, Ashok Leyland M.D. R Seshasayee, G.E. IndiaC.E.O. Tejpreet Chopra, H.U.L. M.D. Nitin Paranjpe and H.C.L.
Infosystems C.E.O. Ajay Chowdhry.
About 50 per cent of C.E.Os. surveyed said their top line growth would not be hampered, 18 per cent said it would be affected. Despite the relative optimism, the downside risks to the economic outlook remain high on account of high inflation being fuelled by the rise in global commodity prices, thesurvey said.
However, the increase in raw material costs as well as interest costs were having an impact on net profit margins, itsaid.
About 39 per cent of respondents said their cost of production had increased by 10 per cent while 32 per cent saidthe increase had been 10-20 per cent .
The economic scene may not be as bad as some of the numbers indicate, as the medium to long term prospects for the manufacturing sector remains positive. This is being borne out by the fact that large capacity addition plans are beingcarried out unaltered, the survey said.
The creations of these new capacities are part of the larger investments in pipeline, which could be worth as much as 700 billion U.S.D. for the next three years. These investment plans would ensure that the economic growthprospects remain positive, C.I.I. said.
The services sector, so far, had not been affected by the global downswing. Though profitability in most segments of services have reduced, the sector is still in good health, itsaid.
Motor, G.E. India, and H.U.L., do not foresee any production slowdown in this fiscal, even as rising input and interest costs are affecting the net profit margins, a Confederation ofIndian Industry (C.I.I.) survey has found.
The Chief executives in a snap poll conducted by C.I.I.
said even as uncertainty remained on overall industrial and G.D.P. growth, the firms do not expect production to slow downat their companies.
C.E.Os. who were part of this survey included C.I.I.
President and I.C.I.C.I. M.D. and C.E.O. K.V. Kamath, T.V.S.
Motor Chairman and M.D. Venu Srinivasan, Bajaj Auto Chairman Rahul Bajaj, Ashok Leyland M.D. R Seshasayee, G.E. IndiaC.E.O. Tejpreet Chopra, H.U.L. M.D. Nitin Paranjpe and H.C.L.
Infosystems C.E.O. Ajay Chowdhry.
About 50 per cent of C.E.Os. surveyed said their top line growth would not be hampered, 18 per cent said it would be affected. Despite the relative optimism, the downside risks to the economic outlook remain high on account of high inflation being fuelled by the rise in global commodity prices, thesurvey said.
However, the increase in raw material costs as well as interest costs were having an impact on net profit margins, itsaid.
About 39 per cent of respondents said their cost of production had increased by 10 per cent while 32 per cent saidthe increase had been 10-20 per cent .
The economic scene may not be as bad as some of the numbers indicate, as the medium to long term prospects for the manufacturing sector remains positive. This is being borne out by the fact that large capacity addition plans are beingcarried out unaltered, the survey said.
The creations of these new capacities are part of the larger investments in pipeline, which could be worth as much as 700 billion U.S.D. for the next three years. These investment plans would ensure that the economic growthprospects remain positive, C.I.I. said.
The services sector, so far, had not been affected by the global downswing. Though profitability in most segments of services have reduced, the sector is still in good health, itsaid.
