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Unfazed Indian CEOs confident about growth
By
siliconindia news bureau
New Delhi: The incessant surge in the input and interest cost in India does not result in production slow down, finds CII survey. While 50 percent of CEOs surveyed refused any hamper to their top line growth only 18 percent affirmed being affected.
The survey brought in many of the CEOs from top Indian companies including ICICI MD and CEO KV Kamath, TVS Motor Chairman and MD Venu Srinivasan, Bajaj Auto Chairman Rahul Bajaj, Ashok Leyland MD R Seshasayee, GE India CEO Tejpreet Chopra, HUL MD Nitin Paranjpe and HCL Infosystems CEO Ajay Chowdhry, with similar consensus that they do not foresee any production slowdown in this fiscal, even as rising input and interest costs are affecting the net profit margins.
It was also said that even as uncertainty remained on overall industrial and GDP growth, the firms do not expect production to slow down at their companies. However, a toll in the net profit margins can be expected with the increase in raw material costs as well as interest costs. The survey said that, with the inflation on the rise as an outcome of the rise in global commodity prices, the risks involved in the economic scenario are definitely large. About 39 percent of respondents said their cost of production had increased by 10 percent while 32 percent said the increase had been 10-20 percent.
The survey brought in many of the CEOs from top Indian companies including ICICI MD and CEO KV Kamath, TVS Motor Chairman and MD Venu Srinivasan, Bajaj Auto Chairman Rahul Bajaj, Ashok Leyland MD R Seshasayee, GE India CEO Tejpreet Chopra, HUL MD Nitin Paranjpe and HCL Infosystems CEO Ajay Chowdhry, with similar consensus that they do not foresee any production slowdown in this fiscal, even as rising input and interest costs are affecting the net profit margins.
It was also said that even as uncertainty remained on overall industrial and GDP growth, the firms do not expect production to slow down at their companies. However, a toll in the net profit margins can be expected with the increase in raw material costs as well as interest costs. The survey said that, with the inflation on the rise as an outcome of the rise in global commodity prices, the risks involved in the economic scenario are definitely large. About 39 percent of respondents said their cost of production had increased by 10 percent while 32 percent said the increase had been 10-20 percent.
Reader's comments(2)
1
The demand surge in the economy was propelled in last 8-9 years or so by the
percieved 'boom' in IT & ITES sector. To assume that it would continue would be
preposterous.
The signs of fiscal disbalnces and heating of the economy coupled with
inflations are actually going to fray the nerves of the economy, which the
government is vehemently denying. After all you have the two best economist in
the government at the helm and the belief that if you can not have chapatis then
, well have the cake. ( honestly no, I have a lot of respect for both of them).
In an agrigarian economy with lopsided development the emerging urban mass with
some kind of regular cashflow may be able to sustain the momentum of growth, but
slow down is inevitable and all symptoms are there clearly. The biggest skimmer
& funding agent, has been the stock markets where some people made wanton money
largely on speculations rather than on the movements of fundamental indicators.
This is unfortunately the hollowness of the strength of Indian Economy. We just
behave like ostrich.
The resurgance & sustainance of manufacturing sector is critical to maintain the
growth momentum and a policy assurance for that on a long term basis would be
crucial to instill the confidence in the Indian Economy, which of late
vacillates too often between feel good and low and too often...
It would be nice to see the prophecies of the elite club come true, it would
definitely augur well of the masses.
By the way, what these elite bands are doing to bring in social security
networks for the masses with reaal benefit and not paper benefits?
The empire would expand when the emperor learns to care and share, are our
emperors doing that?
Please blogg.....
percieved 'boom' in IT & ITES sector. To assume that it would continue would be
preposterous.
The signs of fiscal disbalnces and heating of the economy coupled with
inflations are actually going to fray the nerves of the economy, which the
government is vehemently denying. After all you have the two best economist in
the government at the helm and the belief that if you can not have chapatis then
, well have the cake. ( honestly no, I have a lot of respect for both of them).
In an agrigarian economy with lopsided development the emerging urban mass with
some kind of regular cashflow may be able to sustain the momentum of growth, but
slow down is inevitable and all symptoms are there clearly. The biggest skimmer
& funding agent, has been the stock markets where some people made wanton money
largely on speculations rather than on the movements of fundamental indicators.
This is unfortunately the hollowness of the strength of Indian Economy. We just
behave like ostrich.
The resurgance & sustainance of manufacturing sector is critical to maintain the
growth momentum and a policy assurance for that on a long term basis would be
crucial to instill the confidence in the Indian Economy, which of late
vacillates too often between feel good and low and too often...
It would be nice to see the prophecies of the elite club come true, it would
definitely augur well of the masses.
By the way, what these elite bands are doing to bring in social security
networks for the masses with reaal benefit and not paper benefits?
The empire would expand when the emperor learns to care and share, are our
emperors doing that?
Please blogg.....
Posted by:
Rajeev
2
Indians will be always confident even if they are losing hold. Still they will
be confident till their business collapses
be confident till their business collapses
Posted by:
Mathew
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