The Hindu Business Line : Textiles, manufacturing sectors doing well: CII

Industry can look forward to up to 20 per cent increase in demand in the next six months while production and sales are likely to increase by 15-20 per cent.

Hyderabad April 4

Industrial development in Andhra Pradesh has gained momentum and sectors such as textiles and manufacturing are performing increasingly well, according to a bi-annual industry monitor survey conducted by the Confederation of Indian Industry (CII), Southern Region.

According to the survey, with a growth of 20-25 per cent, the textile industry has done well during October 2006-March 2007 compared to April-September 2006. Sales and exports have increased by 15-20 per cent.

Further, industry can look forward to up to 20 per cent increase in demand in the next six months while production and sales are likely to increase by 15-20 per cent. This might lead to a 10 per cent escalation in employment, the survey said.

The manufacturing industry has witnessed a buoyant performance during October 2006-March 2007 with a 10-15 per cent increase in production levels, compared to April-September 2006. Consequently, sales as well as exports have also increased by 15 per cent and 15-20 per cent, respectively. The profit margin scaled up by 10 per cent with a 5 per cent increase in employment.

IT sector

The IT industry's revenue has increased by 10-15 per cent during the period, compared to the previous half year. Overseas billing has gone up by 14 per cent and profit margin by 1-5 per cent while employment rose 13 per cent, the survey said.

Pharmaceuticals production has gone up by 5-10 per cent and sales have also increased by around 10 per cent. However, export has remained at the same level. Another concern was the stagnant level of capacity utilisation. The industry is expecting a low-to-moderate performance during April-September 2007. Lack of skilled manpower is the major concern of the industry.

Export is expected to grow by 10 per cent and capacity utilisation level by 5 per cent during April-September 2007. The value of production is also likely to increase by 5-10 per cent during the period. Supply of quality power, infrastructure and better handling of goods in ports would enhance the productivity of EXIM activities.

Stagnant performance

The performance of agro-based industry during October 2006-March 2007 was almost stagnant compared to the previous half year. However, export of agro-based products increased marginally by 5-8 per cent. The industry expects a revival in the first half of the current fiscal, the survey said.

Availability of quality power, raw materials and infrastructure together adequate manpower with flexible labour laws would further propel growth, the survey added.

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