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Date : Apr 08, 2022
OBICUS Survey on the Manufacturing sector for Q3:2021-22

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).
Chart 1: Capacity Utilisation (CU) and De-trended IIP (Manufacturing)
  • 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).
Chart 2: Growth in New Orders
  • 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).
Chart 3: Inventories to Sales Ratios

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.


1 The survey responses are voluntary. Results of the previous survey round were released on the Bank’s website on February 10, 2022.


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