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Date : Aug 06, 2021
OBICUS Survey on the Manufacturing sector for Q4:2020-21

Today, the Reserve Bank released the results of the 53rd round of the Order Books, Inventories and Capacity Utilisation Survey (OBICUS) for the January-March 2021 quarter covering 584 manufacturing companies. The survey provides a snapshot of demand conditions in India’s manufacturing sector1.

Highlights:

  • The aggregate capacity utilisation (CU) level increased to 69.4 per cent in Q4:2020-21 from 66.6 per cent recorded in the previous quarter, supported by gradual improvements in demand conditions after further easing of restrictions related to the COVID-19 pandemic, before the onset of its second wave in mid-March 2021 (Chart 1).

Chart 1
  • Manufacturing companies received more new orders during Q4:2020-21, when compared to that in the previous quarter as well as in the corresponding quarter a year ago (Chart 2).

  • New order growth (Y-o-Y) remained positive from Q2 to Q4:2020-21 after remaining in the negative terrain for the preceding two quarters, which were partially affected by the nation-wide lockdown conditions after the onset of the pandemic.

Chart 2
  • As sales increased at faster pace when compared to the increase in raw material inventory (RMI) and finished goods inventory (FGI) during Q4:2020-21, the ratios of both RMI and FGI to sales declined (Chart 3).

Chart 3

Note - Please see the excel file for time series data.


ANNEX 1: Data Tables

Table 1.1: IIP*-Manufacturing and Capacity Utilisation (CU)
Quarter Number of responding companies Capacity Utilisation IIP-Manufacturing
 (Quarterly Average)
De-trended Quarterly IIP-Manufacturing
Q4:2019-20 349 69.9 127.9 2.4
Q1:2020-21 406 47.3 77.9 -46.6
Q2:2020-21 563 63.3 121.2 -4.6
Q3:2020-21 610 66.6 133.2 3.9
Q4:2020-21 557 69.4 136.5 3.1
*: Index of Industrial Production (Base: 2011-12)

Table 1.2: Order Books (Q4:2019-20 to Q4:2020-21)
(Based on common set of 45 companies in 9 quarters)**
Quarter Amount (₹ Crores) Q-o-Q Growth (%)*** Y-o-Y Growth (%)
Average Backlog Orders Average New Order Book Average Pending Orders Average Backlog Orders Average New Order Book Average Pending Orders Average Backlog Orders Average New Order Book Average Pending Orders
Q4:2019-20 184.0 146.6 178.8 -1.6 -0.9 -2.8 4.5 -16.8 -1.8
Q1:2020-21 178.6 79.7 182.4 -2.9 -45.6 2.1 -1.2 -49.5 -1.4
Q2:2020-21 182.9 150.7 159.5 2.4 89.1 -12.6 -2.2 6.4 -14.7
Q3:2020-21 158.7 175.2 177.6 -13.2 16.3 11.3 -15.2 18.4 -3.5
Q4:2020-21 177.9 189.2 176.6 12.1 7.9 -0.6 -3.3 29.0 -1.2
**: As required for calculating growth rates in recent 5 quarters.
***: Not seasonally adjusted

Table 1.3: Average Sales and Inventories (Q4:2019-20 to Q4:2020-21)
(Based on common set of 145 companies in 5 quarters)
Quarter Amount (₹ Crores) Ratio (per cent)
Average Sales Average Total Inv Average FG Inv Average WiP Inv Average RM Inv Total Inv/Sales FG Inv/Sales RM Inv/Sales
Q4:2019-20 1113.4 609.9 193.8 47.3 369.1 54.8 17.4 33.1
Q1:2020-21 651.7 562.3 171.6 82.3 308.5 86.3 26.3 47.3
Q2:2020-21 887.4 557.9 172.7 87.9 297.3 62.9 19.5 33.5
Q3:2020-21 997.2 618.1 184.7 78.8 354.6 62.0 18.5 35.6
Q4:2020-21 1227.9 633.2 188.6 83.8 360.7 51.6 15.4 29.4
RM - Raw Material; WiP - Work in progress; FG - Finished Goods; Inv – Inventory.

1 The survey responses are voluntary. Results of the previous survey round were released on the Bank’s website on April 07, 2021.


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