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Our Bureau

New Delhi, Aug. 23

Consumer durables sector is showing signs of a turnaround and expects to register an increase in topline (sales) growth during 2008-09, according to CII Consumer Durables Sector Snap Poll results issued here on Sunday.

The CII snap poll conducted on non-automobile-based consumer durables sector revealed that 92 per cent of the CEOs expect the topline growth to be 10 per cent and of these 92 per cent of CEOs, 31 per cent expect topline growth to be in the range of 15 per cent to 20 per cent and another 31 per cent of the CEOs expect the topline growth to be more than 20 per cent during 2008-09.

“The signs of turnaround and the growth optimism have come on the backdrop of a difficult period experienced by this sector last year. This goes on to reveal the vibrancy of this sector to compete and grow,” said Mr Chandrajit Banerjee, Director-General, CII.

Revealing the outlook on exports for the current year, 90 per cent of the polled CEOs expected exports to increase during 2008-09. Of these, 50 per cent of the CEOs expected it to increase by 10 per cent and another 20 per cent of the CEOs expected an increase by 10-20 per cent.

The poll revealed that 69 per cent of the CEOs expected profits to increase during 2008-09 and of these, 33 per cent of the CEOs expected profits to increase by more than 20 per cent. The rise in raw material costs and high interest cost are putting pressure on profits, it said.

Outlining the impediments to growth, the CEOs revealed that infrastructure bottlenecks, rising input costs, cost and access to capital, regulatory burden due to multiple compliance formalities and frequent inspections were the major inhibitors to growth of the consumer durables sector.

Of the CEOs polled, 77 per cent of them expressed that infrastructure bottlenecks and rising input costs were the topmost factors that could impact the growth of consumer durables sector in India.

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