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Date : Aug 05, 2022
Order Books, Inventories and Capacity Utilisation Survey on the Manufacturing sector for Q4:2021-22

Today, the Reserve Bank released the results of the 57th 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 January-March 2022. The survey covered 765 manufacturing companies.

Highlights:

  • At the aggregate level, the capacity utilisation (CU) in the manufacturing sector rose to 75.3 per cent in Q4:2021-22 from 72.4 per cent recorded in the previous quarter, showing improvement for the third successive quarter. (Chart 1 and Table 1).
Chart 1: Capacity Utilisation (CU) and De-trended IIP (Manufacturing)
  • Manufacturing companies received more new orders during Q4:2021-22 as compared with the level in the previous quarter as well as in the corresponding quarter a year ago (Chart 2 and Table 2A).
Chart 2: Growth in New Orders
  • With significant improvement in demand condition, companies augmented their inventories to meet new orders: as a ratio to sales, the finished goods inventory (FGI) and raw material inventory (RMI) increased during Q4:2021-22 (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
Q4:2020-21 557 69.4 136.5 7.3
Q1:2021-22 640 60.0 119.1 -10.6
Q2:2021-22 728 68.3 131.6 0.8
Q3:2021-22 757 72.4 135.0 3.2
Q4:2021-22 727 75.3 138.1 5.7
*: Index of Industrial Production (Base: 2011-12)

Table 2A: Order Books Growth (Q4:2020-21 to Q4:2021-22)
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
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
Q4:2021-22 207 4.7 5.6 4.6 14.2 28.4 25.1
#: 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 (Q4:2020-21 to Q4:2021-22)
Quarter Number of companies Average Amount (₹ Crores)
Backlog Orders New Order Book Pending Orders
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
Q4:2021-22 207 176.3 222.4 184.2

Table 3A: Inventory to Sales Ratios (Q4:2020-21 to Q4:2021-22)
Quarter Number of Companies Ratio (per cent) #
Total Inventory / Sales Finished Goods Inventory / Sales Raw Material Inventory / Sales
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
Q4:2021-22 651 65.2 24.7 30.5
#: Weighted average of industry level ratios using GVA as weights

Table 3B: Average Sales and Inventories (Q4:2020-21 to Q4:2021-22)
Quarter Number of Companies Average Amount (₹ Crores)
Sales Total Inventory Finished Goods Inventory Work in progress Inventory Raw Material Inventory
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
Q4:2021-22 651 1123.2 530.2 219.2 79.8 231.2

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 April 08, 2022.


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