The Hindu Business Line : Durables industry disagrees with IIP figures showing a fall

New Delhi, Dec. 12 The Index of Industrial Production figure indicating a decline in output of three per cent in the consumer durables sector has taken some companies by surprise. Manufacturers are claiming that the sector has been growing at double digits. But industry associations and analysts are projecting a sluggish outlook for the short-term.

According to IIP figures, consumer durable goods in both segments — consumer durables and consumer non-durables — shrank by three per cent and two per cent respectively.

“In durables, the slump has been expected for a while. During Diwali, sales had peaked. But compared with last year, there has been a slackening in demand. There is likely to be a cut in production for the forthcoming quarters as well,” Mr Rajoo Goel, Secretary General, Electronics Industries Association of India, said.

Number blocks

Consumer Electronics and Appliances Manufacturers Association of India’s Secretary General, Mr Suresh Khanna, said, “The IIP figures are misleading as everybody sold their inventory in the month of October. But post-Diwali, sales have been sluggish and some contract manufacturers have cut down on production.”

In an interview to PTI, Mr Khanna said, “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 They still include VCRs, and electronic typewriters, which are outdated.”

Citing another reason for the decline in output , Haier’s COO, Mr Pranay Dhabhai, said, “This year all major festivals were in the month of October compared with last year when the festival period fell in November. Production happens usually a month before festivals. Hence, there will be a dip if you compare with last year. So far, we have not seen a slowdown in demand.”

Demand line

Mr V. Ramachandran, Director (Sales and Marketing), LG India, says, “The industry has grown by 15 per cent. On an average, consumer electronics has shown a growth by 12-15 per cent, home appliances by 15-20 per cent and air conditioners by 8-10 per cent and the demand has been consistent.”

Samsung India and Godrej and Boyce too echoed the sentiments. “We disagree with the IIP figures as we have been witnessing double-digit growth. Despite a bad summer, we do not expect a ‘negative growth’ in categories that we are dealing with,” Mr Ravinder Zutshi, Deputy Managing Director, Samsung India, said.

Water purifying devices company Kent RO, however, said that it is witnessing a slowing in demand. “We are feeling the heat. It may be seasonal but in general also the demand has gone down by about 5-6 per cent. We are not undertaking a cut in production as we manufacture according to the market demands,” said Mr Mahesh Gupta, Managing Director, Kent RO.

More Stories on : Performance | Personal Products

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Collaboration key to profitable growth, says Biyani

New initiative from Gati

Amway India plans selling points in gyms, spas, beauty salons

Southern Fried Chicken eyes India market pie

Plaza Premium plans chain of airport lounges

Durables industry disagrees with IIP figures showing a fall

Volvo Race edition car

Microsoft showcases ‘connectivity features’ to be part of Windows 7

Reliance Life unveils new product