The Hindu : Tamil Nadu / Chennai News : Good show by automobile, IT sectors: CII survey

Online edition of India's National Newspaper
Thursday, Apr 26, 2007
ePaper

Tamil Nadu

Tamil Nadu - Chennai

Good show by automobile, IT sectors: CII survey

Special Correspondent

Double-digit growth rate in Oct 2006-March 2007 period Shortage of skilled labour and higher raw material costs concerns industry

CHENNAI: The information technology and automobile industries in Tamil Nadu have registered an impressive performance with double-digit growth during the October 2006-March 2007 period, according to a survey conducted by the Confederation of Indian Industry (CII) - Southern Region.

While the IT industry increased its revenue by 25 per cent, the automobile and auto component industry registered an 18 per cent growth in production, according to the Bi-annual Industry Monitor Survey. The IT sector's profit margins increased by 20 per cent during the period and it was expected to sustain the pace in the next half year too. The expected revenue increase is up to 35 per cent during April - September 2007, a press release here said.

With a lack of skilled manpower becoming a serious issue, industry leaders have suggested that a curriculum be framed in tune with industry needs.

In the automotive and auto components industry, exports witnessed a growth rate of 21 per cent and employment levels by around 9 per cent. During the next six months, the production and sales were expected to increase up to 15-20 per cent. Exports were expected to increase by around 20-25 per cent.

The textile industry witnessed a growth rate of 12 per cent while exports achieved a growth of 18 per cent. In the next half year, the industry was expected to increase its production and sales by 14 per cent and 15 per cent.

Shortage of skilled labour and higher raw material costs were some of the concerns of industry. The chemicals and fertilizer sector experienced a growth rate of 15 per cent in terms of production and 16 per cent in terms of sales.

Capacity utilisation

Exports recorded an excellent growth of 40 per cent during this period, which in turn resulted in a whopping capacity utilisation level of 10-15 per cent. The industry was expected to increase its production and exports at 11 per cent and 30 per cent during the April - September 2007 period. Increase in raw material cost and operational expenditures were some of the concerns for the industry.

The sugar industry witnessed an increase in production and exports to the tune of 11 per cent and 15 per cent. The industry's demands included a reduction in the excise duty on molasses and reforms in indirect and direct taxes.

Printer friendly page
Send this article to Friends by E-Mail

Tamil Nadu