The Hindu Business Line : Industry growth ‘robust’ in AP

Hyderabad, Dec. 13 Major industries in Andhra Pradesh have registered good performance in the first half of the current fiscal compared with the corresponding period of previous fiscal, according to a survey conducted by CII, Southern Region.

The study was conducted to find the industrial growth during April 2007 and September 2007 focussed on top five sectors on the basis of their contribution to State Gross Domestic Product (SGDP).

They were agro, manufacturing, pharmaceuticals, information technology and textile industry.

Pharmaceuticals

The pharmaceutical industry in the State registered an impressive performance during April-September 2007.

The production level and the production value were increased by 20-25 per cent and 15 per cent respectively. The industry’s sales and exports went up by 15-20 per cent.

During the second half, the pharmaceutical industry in the State is expected to register a buoyant in the second half of the current year. It pointed out that the spurt in the demand would raise the production by 25 to 30 per cent while the sales turnover is expected to increase by 20 to 25 per cent.

Agro Industry

The agro industry enhanced production and sales by 20-25 per cent and 20-22 per cent respectively. However, the exports and profit margin declined by 25 per cent and 5 per cent respectively.

During October 2007-March 2008, the industry expects a 10-15 per cent growth in demand, 15 per cent growth in production and sales.

Availability of skilled manpower and high capital investment requirement are some of the concerns impacting the performance of the industry, the survey said.

The performance of IT industry in Andhra Pradesh was moderate in the first half of the current fiscal year. The revenue went up by 5-10 per cent and the level of employment increased by 10-15 per cent. The industry expects about 10-15 per cent increase in revenue during October 2007-March 2008 as compared to April 2007 - September 2007. The employment level could an increase by 25-30 per cent during October 2007 - March 2008, it said.

The textile industry recorded 12.5-15 per cent increase in production, 5 per cent increase in capacity utilisation and about 8 per cent rise in sales during April-September 2007.

However, the exports and value of production came down by 37.5-40 per cent and 5-8 per cent respectively due to strong rupee which appreciated over 10 per cent in one year.

The industry is expecting a moderate growth during October 2007 - March 2008, the survey.

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