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March 01, 2001 | Feedback |
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Sector Focus : Consumer DurablesConsumer durables: State of the industry (2000-01) Consumer durables: Tariffs
ABS: Acrylonitrile butadiene styrene; HIPS: High impact polystyrene. Source: CRIS INFAC Televisions
Other consumer durables
Consumer durables: Budget impact Impact factors
Note: Figures in brackets indicate the closing share prices, on February 27, 2001 and February 28, 2001, respectively. pos= positive neg= negative neut= neutral Source: CRIS INFAC A: Prices of domestic colour television (CTV) are expected to be under pressure given that television imports are expected to be brought under the OGL from April 2001, under the WTO agreement. (At a customs duty of 40.4 per cent, competition is expected due to imports.) This is expected to have a negative impact on margins of domestic manufacturers, in spite of the expected increase in volumes due to lower prices. The marginal increase in the abatement rate on excise duty is not expected to have any significant impact. B: The levying of a countervailing duty, based on the maximum retail price (MRP), on imports of consumer goods is expected to benefit domestic producers. C: The incidence of a 4 per cent excise duty (without cenvat credit) on B/W televisions is expected to have a negative impact on the demand for black and white televisions (B/W TVs), as it would further reduce the price differential between B/W TVs and CTVs. This is expected to have a negative impact on producers such as BPL and Videocon, who have a significant market share in B/W TVs. D: The marginal reduction in the customs duty on air conditioners, washing machines and refrigerators is not expected to have a significant impact. E: The reduction of surcharge on corporate tax, from 13 per cent to 2 per cent and the expected decline in interest rates, is expected to have a positive impact on producers. Rediff-CRISIL Budget Impact Analysis
Disclaimer: CRISIL has taken due care and caution in compiling this report. Information has been obtained by CRISIL from sources which it considers reliable. However, CRISIL does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. CRISIL is also not responsible for any errors in transmission and especially states that it has no financial liability whatsoever to the subscribers/ users/ transmitters/ distributors of its web site. |