After witnessing a lull in industrial activity over the past 8-9 months, the manufacturing sector is finally showing signs of recovery. The SMEs in the industrial sector, which were anticipating a bleak 2009-10, are now heaving a sigh of relief as some segments in the manufacturing industry have posted moderate growth in 2008-09.
CII survey indicating positive signs
A recently released report by the Confederation of Indian Industry (CII)-ASCON has indicated slight moderation in the growth figures of some industrial segments in the second and third quarters of the last financial year.
Small manufacturing units engaged in the production of fertilisers, low and high-density polythene, pig iron, steel and mopeds showed marginal improvement during the second half of the previous financial year as compared to the corresponding quarters in 2007-08.
“Though the manufacturing sector has slowed down considerably on the whole, with most of its segments posting negative growth on a yearly basis, a few sectors have managed to clock modest growth figures during the second half of 2008-09,” commented K Nihalani, Director Adelina Investments, a mid-sized investment consultancy firm in Kolkata.
“Green shoots of growth have been observed by some small firms despite the challenging conditions,” added Mr Nihalani.
According to the CII report, SMEs engaged in manufacturing asbestos cement, switch gears, power cable equipment and capacitors reported robust growth. However, small businesses did not fare well in sectors like commercial vehicles, capital goods, distribution transformer, industrial valves, energy meters and motor starters, and posted negative growth for the second half of 2008-09.
“Last financial year proved to be a dismal one for auto component, machine tools and motor starters manufacturers as the demand in these sectors remained weak for most part of the year. However, contrary to general perception, some industrial segments have reported balanced growth, raising hopes for brighter prospects for this sector,” said A Ghosh, an executive working with Kamal Engineering Works, a small-sized manufacturer of engineering tools in Kolkata.
Though the manufacturing sector is slowly gaining momentum, small units need to stay on their toes and follow the market movements closely till a complete recovery happens.
Source: http://www.bestsyndication.com/?q=node/29690
CII survey indicating positive signs
A recently released report by the Confederation of Indian Industry (CII)-ASCON has indicated slight moderation in the growth figures of some industrial segments in the second and third quarters of the last financial year.
Small manufacturing units engaged in the production of fertilisers, low and high-density polythene, pig iron, steel and mopeds showed marginal improvement during the second half of the previous financial year as compared to the corresponding quarters in 2007-08.
“Though the manufacturing sector has slowed down considerably on the whole, with most of its segments posting negative growth on a yearly basis, a few sectors have managed to clock modest growth figures during the second half of 2008-09,” commented K Nihalani, Director Adelina Investments, a mid-sized investment consultancy firm in Kolkata.
“Green shoots of growth have been observed by some small firms despite the challenging conditions,” added Mr Nihalani.
According to the CII report, SMEs engaged in manufacturing asbestos cement, switch gears, power cable equipment and capacitors reported robust growth. However, small businesses did not fare well in sectors like commercial vehicles, capital goods, distribution transformer, industrial valves, energy meters and motor starters, and posted negative growth for the second half of 2008-09.
“Last financial year proved to be a dismal one for auto component, machine tools and motor starters manufacturers as the demand in these sectors remained weak for most part of the year. However, contrary to general perception, some industrial segments have reported balanced growth, raising hopes for brighter prospects for this sector,” said A Ghosh, an executive working with Kamal Engineering Works, a small-sized manufacturer of engineering tools in Kolkata.
Though the manufacturing sector is slowly gaining momentum, small units need to stay on their toes and follow the market movements closely till a complete recovery happens.
Source: http://www.bestsyndication.com/?q=node/29690
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