The study looks at 21 industries based on the balance sheet data of 308 big companies. Data on f.o.b value of exports, foreign exchange earnings and spending are for 1997-98 and 1998-99.The companies which are doing f.o.b value of exports are considered for this study. The total forex earnings of the 308 big companies marginally declined by 0.4 per cent to Rs 20,588 crore in 1998-99 from Rs 20,667 crore in 1997-98. But the actual exports of goods calculated on f.o.b basis was slightly higher at Rs 19331 crore in 1998-99 against Rs 18,758 crore in the previous year, an increase of 3.1 per cent.

The gross salesof these companies increased by 7.4 per cent to Rs 1,87,673 crore in 1998-99 from Rs 1,74,791 crore in 1997-98. The share of exports of the 308 companies to the total exports of the country was around 13 per cent in 1998-99. On the other hand, the total foreign exchange expenditure including imports and dividend repatriation was Rs 28,191 crore in 1998-99 against Rs 28,434 crore in the previous year, a decline of 0.9 per cent. The net foreign exchange earnings figures were negative during 1997-98 (-Rs 6,795 crore) and 1998-99 (-Rs 6,511 crore).

Total exports as a percentage of gross sales for the 308 big companies was lower at 10.30 per cent in 1998-99 against 10.73 in the previous year. This was probably due to the lower growth of exports compared to the sales growth. Another feature is that only 25 per cent of the 308 big companies exported more than 20 per cent of their sales during 1998-99.

There was more than 200 per cent growth in f.o.b value of exports by the fourteen companies.Companies areBhansali Engineering, Birla 3M, Computech, GIS, Hindustan Motors, Manugraph, Nagarjuna Fertilisers, Nirma, Pearl Polymers, Revathi CP, Search Chem, Shalimar Paints, Tata Yodogawa and West Coast Paper.

West Coast Paper exported 902 MT (value Rs 232 lakh) of paper and paper board and duplex board during the year 1998-99 as against only 82 MT (valued Rs 25 lakh) in the previous year. These exports were executed for supplies to Dubai,Ethiopia and Srilanka.

Twelve companies namely Adani Exports, Hind Lever, Tata Steel, Reliance Industries, Ranbaxy, ITC, Tata Engineering, Suashish Diamonds, Essar Steel, Arvind Mills, Century Textiles and Suraj Diamonds recorded more than Rs 300 crore f.o.b value of exports during 1998-99. Among the above 12 companies, the maximum growth in f.o.b value exports can be seen in the case of Reliance Industries. Reliance's export revenues, increased 83.5 per cent in the year 1998-99 to Rs 589.56 crore. This places Reliance among the top five manufacturer-exporters from India, eventhough exports accounted for less than 5 per cent of Reliance's total gross sales. Reliance's international customers are based in the US, Canada, UK, France, Italy, Netherlands, Russia, Saudi Arabia, Yemen, Abu Dhabi, Oman, Qatar, Japan, Korea, Australia, Mauritius and several other countries.

The top ten among the 308 big companies in terms of exports as percentage of sales in 1998-99 were Spel (100per cent), Shrenuj & Co (99.18 per cent), Goldiam International (98.78 per cent), Eurotex Industries (92.66 per cent), Suashish Diamond (93.95 per cent), Jayant Agro (92.17 per cent), Suraj Diamonds (91.66 per cent), Patspin (88.75 per cent), Orchid Chemicals (87.70 per cent) and Indo Count (85.74 per cent. These companies are mostly export oriented companies. Nearly 50 per cent of the big companies showed a significant rise in the ratio in 1998-99. Significant among them are Alcobex Metals (7.71 per cent in 1997-98 to 14.74 per cent in 1998-99), Bells Control (5.49 per cent to 16.31 per cent), BhansaliEngineering (2.40 per cent to 7.48 per cent), Computech (24.44 per cent to 47 per cent), DCW (5.69 per cent to 11.84 per cent), Liberty Shoes (4.36 per cent to 11.09 per cent), Manugraph (11.03 per cent to 40.60 per cent), Revathi-CP (7.97 per cent to 20.62 per cent), TRF (0.06 per cent to 32.87 per cent) and Vardhman Polytex (10.68 per cent to 23.93 per cent).

Significant declines in the ratio can be seen in the case of Abhishek Industries (27.87 per cent in 1997-98 to 18.07 per cent in 1998-99), Bajaj Tempo (10.76 per cent to 1.59 per cent), Ginni Filaments (66.83 per cent to 10.83 per cent), Grand Foundry (45.61 per cent to 23.87 per cent), Praj Industries (34.39 per cent to 1.11 per cent), Ruchi Strips (10.72 per cent to 3.21 per cent), Thirumalai Chemicals (24.87 per cent to 10.28 per cent) and WS Industries (53.88 per cent to 32.52 per cent).

However, industry wise, of the 21 industry groups covering the 308 big companies of the sample survey, 8 industries namely aluminium (-12.3 per cent), cement &products (-7.5 per cent), food products (-0.9 per cent), paper & products (-11.2 per cent), iron & steel(-4.6 per cent), sugar & breweries (-20.8 per cent), tobacco (-20.5 per cent) and tyres & tubes (-17.8 per cent) registered decline in f.o.b value of exports during 1998-99. An impressive increase in f.o.b value of exports posted during 1998-99 in the case of paints (597.12 per cent), computer (software & hardware)(44.9 per cent), fertilisers (39.9 per cent), manmade fibre (18.26 per cent), other chemicals (18.16 per cent), cotton textiles (13.26 per cent), and diamonds & jewellery (12.4 per cent). The top three positive net foreign exchange earners during 1998-99 can be seen in the case of cotton textiles (Rs 980 crore), food products (Rs 385 crore) and pharmaceuticals (Rs 228 crore). In terms of exports to sales ratio, more than 20 per cent ratio during 1998-99 can be seen in the case of diamond & jewellery (94 per cent), computer (software & hardware) (57.92 per cent) and cotton textiles (28.68 percent).

FE Research Bureau