Consumer durables industry questions IIP figures

Consumer durables industry questions IIP figures

New Delhi: The consumer durables industry has questioned the government’s IIP figures, which showed the sector recorded a production decline of 3% in October, saying that there were discrepancies in calculations.

“The method by which they have come up with the figure seems incorrect. It does not include products like set-top boxes, CCTVs and DVDs. They still include VCRs, and electronic typewriters, which are outdated," Consumer Electronics and Appliances Manufacturers Association (CEAMA) General Secretary Suresh Khanna said.

He said that during October, before Diwali, the consumer durables market had an overall growth rate of around 10%.

Expressing similar views, Samsung India Deputy Managing Director Ravinder Zutshi, who is also President of CEAMA, said: “Most of our top consumer products show double-digit growth. We don’t buy the view that the consumer durables industry has shown negative growth."

A Samsung India official said that in the past few months the overall consumer durables market has been doing very well.

“Sales are going up and we are maintaining a growth rate of around 25%. How can production be down when there is demand in the market," the official asked.

Weston Appliances Marketing Head Sunil Sethi said that while sales during October were up 13-15%, most companies had controlled production during the period.

“We had controlled production because of the slowdown, not so good bank lending, and inventories getting piled up. This might be the reason behind the negative growth," Sethi said.