New Delhi, Aug 24: In a turnaround, the consumer durable sector is expected to register an increase in sales growth during 2008-09, according to a CII snap Poll. The poll conducted on non-automobile based consumer durables sector revealed that 92 per cent of the CEOs expect the top line growth to be 10 per cent.
Of these 92 per cent of the CEOs, 31 per cent of them expect this growth in the range of 15-20 per cent, while another 31 per cent of the CEOs feel the sales to be more than 20 per cent during the year 2008-09. ''The signs of turn around 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,'' CII Director General Chandrajit Banerjee said.
Revealing the outlook on exports for the current year, 90 per cent of the polled CEOs expected exports to increase during the year 2008-09.
Of these, 50 per cent of the CEOs feel that exports will increase by 10 per cent, while 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 the year 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,'' the CII poll 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 top most factors that could impact the growth of consumer durables sector in the country.
The CEOs also revealed their concerns over high interest rates making consumer durables loans dearer.