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CII survey reveals positive shift in SME scenario

Staff Reporter

KOCHI: The business outlook survey of small and medium enterprises (SMEs), prepared by the Confederation of Indian Industry (CII), foresees a positive shift in the business situation in the country in the next six months. The survey, based on an analysis of more than 1,000 responses, indicates an increase in production, capacity utilisation, turnover and profit margins. The survey relates to the actual performance during January-June 2005 with forecast for July-December 2005.

Among the respondents, 62 per cent are optimistic about the general business scenario, 28 per cent expect the business situation to remain the same with a continued trend for low-to-moderate demand. Only 10 per cent of the respondents feel the business prospects have declined in comparison to that in the previous year.

As many as 89 per cent of the respondents reported an increase in the demand of their products. Two per cent reported no change in demand while 9 per cent registered a decline in demand. The projection for the next six months reveals that 94 per cent foresee an increase in demand for their products.

A total of 85 per cent of the respondents have shown a turnover growth in the past six months. Two per cent of the respondents have maintained status quo and 13 per cent registered a decline. Projections revealed that 95 per cent foresee an increase in turnover, 1 per cent expect status quo and 4 per cent a decrease.

In terms of total orders, 85 per cent have shown a growth, 1 per cent maintianed status quo while 14 per cent registered decline.

Projection revealed that 96 per cent foresee an increase, 1 per cent expect status quo and 3 per cent a decline.

The production growth expectations reveal that 56 per cent expect more than 10 per cent growth and 27 per cent foresee a growth of 5 to 10 per cent. Twelve per cent expect a growth between zero per cent to 5 per cent. Just 5 per cent foresee a negative growth.

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