November 7: Sales in the the medium and heavy commercial vehicle segment and the commercial vehicle segment of the automobile industry have dropped by 29 per cent and the 16 per cent in the first six months of the current financial year over the corresponding period in 1996-97.

According to the Ascon Industry Monitor prepared by the Associations Council and the Confederation of Indian Industry the other sectors facing severe slump in sales include soda ash, lead alloys, electric cables and wires and the two wheeler industry.The monitor states that the sales figure in these sectors have dropped by 30.7 per cent, 6.4 per cent, 15 per cent and two per cent during the period between April and September this over the same period last year.

The monitor further states that sales in the cold rolled steel and newsprint sectors have fallen by 0.5 per cent and 2.5 per cent in the first six months of the current financial year over the corresponding period in 1996-97.

The monitor, however, states that the fertiliser sector, synthetic fibre industry wagon and oil and gas equipment have done well in terns of sales in the first half of the current fiscal.

These sectors have recorded a growth rate of 25 per cent, 25 per cent, 40 per cent and 30 per cent respectively in sales over the first six month period in 1996.Construction, medium and heavy commercial vehicle, multi utility vehicle and motor cycle industry industries have experienced the worst decline in exports for the first half of the current financial year.

In the six month period between April and September this year, the production in the three sectors have dipped by 40 per cent, 38 per cent, 35 per cent and 34 per cent, respectively.

The monitor states that for 128 sectors, 24 showed growth greater than 20 per cent, 20 between 10 to 20 per cent, 48 sectors had growth of 10 per cent and 36 showed negative growth.

For the same period last year, out of 92 sectors, 30 had growth rate of above 20 per cent, 34 sectors grew between 10 to 20 per cent, 18 sectors had growth rates of 0 to 10 per cent, and 10 sectors had negative growth.According to CII, the industry in some sectors was not doing well mainly because the demand has been low and in many cases deemed export status was not granted.

The industries which have recorded an excellent percentage growth are, colour picture tube (25 per cent), ceramics (25), blended yarn (22), all yarn (21), in intermediate goods; colour TV (22), consumer electronics (20), rubber conveyor belting (47), personal computer (52) in the consumer durable segment; fertilizers (22), nitrogen (21), phosphate (24), in the basic goods; wagon (40), oil and gas equipment (22) in the capital goods, housing finance (29), nuclear power (36).

The industries which recorded a high growth from April to September, 1997 as against the corresponding period last year are aluminium (10), motorcycles (13), airconditioners (16), paints (10), tractors (25), chocolates (10), malted food (13.5).

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.