The Hindu Business Line : Manufacturing sector for speedy eco clearances, better power

Hyderabad, April 15 The manufacturing sector in Andhra Pradesh has called for speedy environmental clearances and better availability and quality of power.

According to the Bi-annual Industry Monitor Survey, conducted by the Confederation of Indian Industry (CII) – Southern Region for October 2007 to March 2008, “The major concerns raised by the industry are shortage in raw material supply and increasing input prices. Apprehensions were also raised on the quality, availability and distribution of coal.”

The survey pointed out that the manufacturing industry grew significantly during October to March 2008 period compared to that of April to September. “Though the production levels and sales increased by 8 to 10 per cent, exports declined up to 20 per cent. The capacity utilisation levels and inventory levels on the other hand went up by 10 per cent and 5-10 per cent, respectively,” it said.

Outlook

On the outlook for the first half of the current fiscal, the survey pointed out that the industry was expecting a positive growth in most of the parameters for industrial performance. “Compared to October-March period, the production and sales levels are likely to go up between 15 and 20 per cent and 4 per cent, respectively, during the April to September period. Meanwhile, exports and value of production are expected to increase by up to 5 per cent each,” the survey pointed out.

The agro-based industry in the State, however, saw some mixed trends during the second half of the previous financial year. “The industry’s production and sales went up between 5 and 10 per cent and 8 to 15 per cent, respectively. However, exports declined by 10 per cent,” it said.

It also pointed out that though the demand was likely to increase by five per cent, the production and sales may not increase and exports are likely to decrease between three per cent and five per cent, during the first half this fiscal.

“The industry has also suggested that the transport infrastructure should be improved for timely delivery of highly perishable raw materials,” the survey said.

Textile industry

The textile industry, like the agro industry, also saw a mixed performance during October to March 2008 period compared to the period between April and September last year.

“Though the production and sales went up between 5 per cent and 10 per cent, exports saw a decline of 10 to 15 per cent. Capacity utilisation levels increased by up to 5 per cent, while the inventory levels remained unchanged,” the survey said.

It added that the demand is likely to go up by around 20 per cent and this in turn will lead to an increase in the level of production at least by three to five per cent during the first half of the current financial year.

“Sales are expected to increase by 5 per cent and exports by 10 per cent. However, despite a likely increase in price of up to 3 per cent, the profit margins are expected to remain the same,” the survey said.

“The industry feels that the rising raw material cost especially cotton prices impacts industry’s competitiveness. It has sought the Government’s support to increase the production of cotton,” it added.

More Stories on : Industry Associations | Environment | Andhra Pradesh

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