Today, the Reserve Bank released the results of the 56th round of the quarterly Order Books, Inventories and Capacity Utilisation Survey (OBICUS), which provides a snapshot of demand conditions in India’s manufacturing sector1 during October-December 2021. The survey covered 800 manufacturing companies. Highlights: - The capacity utilisation (CU) for the manufacturing sector at the aggregate level picked-up further to 72.4 per cent in Q3:2021-22 from 68.3 per cent recorded in the previous quarter reflecting improved manufacturing activities (Chart 1 and Table 1).
- Manufacturing companies received more new orders during Q3:2021-22 as compared with that in the previous quarter as well as their level a year ago (Chart 2 and Table 2A).
- The finished goods inventory (FGI) to sales ratio marginally increased during Q3:2021-22 whereas raw material inventory (RMI) to sales ratio recorded a decline. Both these ratios were higher than their corresponding levels a year ago but underwent large swing resulting from high volatility in manufacturing activities during the pandemic (Chart 3 and Table 3A).
Note- Please see the excel file for time series data. ANNEX 1: Data Tables Table 1: IIP*-Manufacturing and Capacity Utilisation (CU) | Quarter | Number of responding companies | Capacity Utilisation | IIP-Manufacturing (Quarterly Average) | De-trended Quarterly IIP-Manufacturing | Q3:2020-21 | 610 | 66.6 | 133.2 | 6.1 | Q4:2020-21 | 557 | 69.4 | 136.5 | 7.6 | Q1:2021-22 | 640 | 60.0 | 119.1 | -11.0 | Q2:2021-22 | 728 | 68.3 | 131.6 | 0.5 | Q3:2021-22 | 757 | 72.4 | 135.1 | 3.5 | *: Index of Industrial Production (Base: 2011-12) | Table 2A: Order Books Growth (Q3:2020-21 to Q3:2021-22) | Quarter | Number of companies | Q-o-Q Growth # (per cent) ** | Y-o-Y Growth # (per cent) | Backlog Orders | New Order Book | Pending Orders | Backlog Orders | New Order Book | Pending Orders | Q3:2020-21 | 155 | 0.3 | 15.4 | 7.2 | -13.8 | 22.1 | -7.7 | Q4:2020-21 | 85 | 7.6 | 2.3 | -1.8 | 7.2 | 32.9 | 2.3 | Q1:2021-22 | 120 | -0.5 | -19.0 | 5.3 | 11.8 | 105.7 | 17.3 | Q2:2021-22 | 184 | 10.8 | 2.1 | 3.9 | 10.2 | 16.9 | 15.1 | Q3:2021-22 | 205 | 3.5 | 10.5 | 7.8 | 19.5 | 20.9 | 20.5 | #: Growth rates are calculated using three rounds common set of companies, namely, companies responded in the current quarter, one quarter ago and the same quarter a year ago. **: Not seasonally adjusted. | Table 2B: Average Size of Order Books (Q3:2020-21 to Q3:2021-22) | Quarter | Number of companies | Average Amount (₹ Crores) | Backlog Orders | New Order Book | Pending Orders | Q3:2020-21 | 155 | 181.2 | 242.7 | 194.2 | Q4:2020-21 | 85 | 199.8 | 243.4 | 196.3 | Q1:2021-22 | 120 | 188.1 | 171.0 | 197.8 | Q2:2021-22 | 184 | 197.9 | 195.7 | 207.4 | Q3:2021-22 | 205 | 182.3 | 224.4 | 196.6 | Table 3A: Sales and Inventories Ratios (Q3:2020-21 to Q3:2021-22) | Quarter | Number of Companies | Ratio (per cent) # | Total Inventory / Sales | Finished Goods Inventory / Sales | Raw Material Inventory / Sales | Q3:2020-21 | 471 | 56.8 | 21.7 | 26.6 | Q4:2020-21 | 418 | 57.5 | 22.0 | 27.2 | Q1:2021-22 | 478 | 78.6 | 29.5 | 36.9 | Q2:2021-22 | 537 | 60.5 | 20.9 | 29.4 | Q3:2021-22 | 681 | 58.1 | 22.4 | 28.0 | #: Weighted average of industry level ratios using GVA as weights | Table 3B: Average Sales and Inventories (Q3:2020-21 to Q3:2021-22) | Quarter | Number of Companies | Average Amount (₹ Crores) | Sales | Total Inventory | Finished Goods Inventory | Work in progress Inventory | Raw Material Inventory | Q3:2020-21 | 471 | 719.6 | 372.3 | 143.5 | 60.0 | 168.8 | Q4:2020-21 | 418 | 959.2 | 461.2 | 183.3 | 66.2 | 211.6 | Q1:2021-22 | 478 | 869.2 | 489.7 | 208.8 | 79.7 | 201.2 | Q2:2021-22 | 537 | 1012.6 | 494.4 | 200.0 | 78.6 | 215.8 | Q3:2021-22 | 681 | 1027.9 | 465.0 | 193.5 | 62.0 | 209.5 | Note: The computations of order book growths and inventory to sales ratios are based on methodology given in the RBI press release dated October 8, 2021 (link: https://www.rbi.org.in/Scripts/PublicationsView.aspx?id=20650) and not on the basis of averages given in the above tables. |