| teeply, these companies will take a hit on their margins. The 15% demand growth witnessed so far this year in domestic agrochemicals may not continue in future.
Even on the exports front, things may not work out well for the industry, despite a weak rupee. Due to the ongoing credit crisis, a number of overseas importers are unable to secure letters of credit required for importing materials, thereby resulting in a fall in demand for domestic manufacturers. As a result, companies may achieve their sales target in the second half based on healthy domestic demand, but their profit targets will take a hit.
Global economic crisis has taken its toll on most sectors including Manufacturing and services sectors in India. Sectors affected include textiles, steel, construction, automobiles, gems & jewellery or IT & IT-enabled services, finance, hospitality, travel & tourism. India’s merchandise exports dipped by a whopping 12% in October ’08. |
