New Delhi, 26 August 2008 - Consumer Durables sector is showing signs of a turn around and expects to register an increase in top line (sales) growth during 2008-09, according to CII Consumer Durables Sector snap Poll results issued here today.

The CII snap poll conducted on non-automobile based consumer durables sector revealed that 92% of the CEOs expect the top line growth to be 10% and of these 92% of the CEOs, 31% of them expect top line growth to be in the range of 15% to 20% and another 31% of the CEOs expect the top line growth to be more than 20% during the year 2008-09. "The signs of turn around and the growth optimism have come on the backdrop of a difficult period experienced by this sector last year. This goes on to reveal the vibrancy of this sector to compete and grow", said Mr Chandrajit Banerjee, Director General, CII.

Revealing the outlook on exports for the current year, 90% of the polled CEOs expected exports to increase during the year 2008-09. Of these, 50% of the CEOs expected it to increase by 10% and another 20% of the CEOs expected an increase by 10-20%.

The poll revealed that 69% of the CEOs expected profits to increase during the year 2008-09 and of these, 33% of the CEOs expected profits to increase by more than 20%. The rise in raw material costs and high interest cost are putting pressure on profits, the CII poll said.

Outlining the impediments to growth, the CEOs revealed that Infrastructure bottlenecks, rising input costs, cost and access to capital, regulatory burden due to multiple compliance formalities and frequent inspections were the major inhibitors to growth of the Consumer Durables sector. Of the CEOs polled, 77% of them expressed that Infrastructure bottlenecks and rising input costs were the top most factors that could impact the growth of consumer durables sector in India. The CEOs also revealed their concerns over high interest rates making consumer durables loans dearer.

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