Consumer durables sector may grow 10% in FY’09: Survey

Consumer durables sector may grow 10% in FY’09: Survey
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First Published: Sun, Aug 24 2008. 05 14 PM IST
Updated: Sun, Aug 24 2008. 05 14 PM IST
PTI
New Delhi: Consumer durables sector, which was facing sluggish demand over the last few quarters, is expected to witness a topline growth of over 10 per cent in the current fiscal, a survey of industry leaders conducted by CII says.
According the survey, around 92% of the CEOs has expected that the sales are expected to increase by 10% in 2008-09.
Out of these 92% CEOs, 31% expected top line growth to be in the range of 15 to 20% while another 31% expected the sales growth to be more than 20% during the year 2008-09, the survey said.
The optimism stems from the fact that against a negative growth of 0.7% in the first quarter of 2007-08, the sector grew by 3.8% in the first three months of the current fiscal.
“The signs of turnaround and the growth optimism have come on the backdrop of a difficult period experienced by this sector last year,” CII Director General Chandrajit Banerjee said in a statement.
The survey, however, said that rise in raw material costs and high interest rates are putting pressure on profits.
Outlining the impediments to growth, CEOs revealed that infrastructure bottlenecks, rising input costs and access to capital, regulatory burden due to multiple compliance formalities and frequent inspections were the major inhibitors to the growth of the consumer durables sector.
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First Published: Sun, Aug 24 2008. 05 14 PM IST