5

Organised Industry

P. Mohanan Pillai


1.0. Introduction

The data on Kerala's large and medium industries are spread across various published sources on Indian industry. In this paper we shall be examining the current status of data from various sources used in the policy formulation and research studies on industry in India. Following this we shall briefly discuss the major gaps in database in terms of comprehensiveness and reliability for understanding the regional dimensions of the industrial sector. The paper also critically evaluates the data sources and gaps on Kerala's large and medium industries.

2.0. Corporate Sector Data: An Overview

Industrial data are collected essentially according to the schedule of enquiry designed to meet the national requirement and not of specific regions. The major data sources for large and medium industries in India are published by:

  1. Central Statistical Organisation


  2. Reserve Bank of India.


  3. Industrial Credit and Investment Corporation.


  4. Bombay Stock Exchange

  5. Centre for Monitoring Indian Economy


  6. Department of Company Affairs


  7. Department of Industrial Policy and Production


  8. Department of Public Enterprises
The major source of comprehensive data for industrial sector as a whole is Annual Survey of Industries published by Central Statistical Organisation. The ASI schedule has three parts. Part I collects data on capital structure, workforce, wage bill, consumption by broad categories of inputs and output. Part II, conducted by Labout Bureau collects data on different aspects of labour statistics such as working days, mandays worked and, earning and social security. Part III, conducted by National Building Organisation, collect data on housing activity i.e., houses constructed by employees. Majority of the studies on relative performance of industries, growth trends, productivity and inter-regional industrial structure, are based on this source.

Another important source for industrial statistics is Reserve Bank of India. RBI gives component-wise consolidated data on finances of the corporate sector, such as large and medium public and private limited companies, on a sample basis. The data is useful for financial ratio analysis on a time series basis. This data are also increasingly used for corporate planning and financial projections. RBI also gives separate information on foreign branches and foreign controlled rupee companies. Again, surveys carried out on foreign controlled companies gives details on foreign collaboration having varying degrees of collaboration.

Industrial Credit and Investment Corporation ( ICICI) and Industrial Development Bank of India ( IDBI ) compile information on companies relating to the financial performance of the client companies. This information is also available industry-wise and state-wise, but confined only to assisted companies.

Bombay Stock Exchange, in its Stock Exchange Directory, publishes financial statistics of quoted public limited companies. The focus is on financial ratios. A brief profile of the company is also given which inter alia include information on history of the company, place of its incorporation, registered office, foreign equity holding, technical collaboration etc. A more elaborate coverage of corporate statistics in terms of number of companies covered and their characteristics, are available from two major publications released by Centre for Monitoring Indian Economy. The first source is called the Indian Corporate Sector Information on Financial Status of Companies. This source also gives information on types of industry, age and size. Another publication with still more comprehensive data on the number of companies (around 6000) is the computerised database known as PROWESS. In addition to financial ratios, this source gives information on type of ownership, products, industry gaps, share prices, share holding pattern, capacity utilisation etc.

Department of Company Affairs of the Government of India have four major publications: "The Directory of Joint Stock Companies in India", published annually, gives information on financial variables under different ownership groups. Another publication entitled "Registration and Liquidation of Joint Stock Companies in India", contains complete list of companies registered and liquidated in India. This may enable to create a Directory of Operating Companies at a point of time. Annual Report of the Department of Company Affairs gives an aggregate picture of the number of companies registered on the basis of region, ownership, activity and size. Since it is a summary picture, information do not specify activity pattern. Information on newly registered companies are available from the "Company News and Notes" published by the Department in a summary form.

For large industries, Directorate General of Technical Development (DGTD) used to collect the data on quantity and value of industrial output. However, it is confined to only limited product lines. After dismantling DGTD, the newly created Department of Industrial Policy and Promotion compiles information only on physical quantities of output on items included in the index of industrial production. Another major source of information ion central pubic enterprises is the Public Enterprises Survey, carried out every year by the Department of Public Enterprises. The industries have been classified in different groups keeping in view the nature of products / services. Along with consolidated accounts, a brief summary of the nature of activities, and the physical and financial performance are also given.


2.1. Data Sources Relating to Kerala

From the above discussion it is seen that sources such as ASI, CMIE, and Directory of Joint Stock Companies though have some dimensions on Kerala's industries, are not available in time. Besides, data are scattered across the various publications from which it is difficult to cull out easily. There are three major sources of data on large and medium industries operating in Kerala. The Survey of Public Enterprises gives latest information on the performance of Central public sector enterprises located in Kerala. The annual Review of Public Enterprises brings out financial performance of public enterprises owned and managed by the Kerala Government. The Annual Reports of promotional agencies like Kerala State Industrial Development Corporation, Kerala State Financial Corporation and Kerala State Industrial Enterprises are another source.

Regarding the first source, the information regarding the public sector enterprises owned by central Government is available on a systematic basis from survey reports. It is not available in a ready-to-use form. Efforts are to be made to develop a database by collating company-wise details given under each industry group. With respect to public sector enterprises belonging to the state government, there is no way to assess the real position, delay in audit. The data available with the promotional agencies pertain to only the assisted companies. Regarding data on important commodities in Kerala like cashew, coir and rubber, a picture on product profile, growth and trade performance are available from the reports of the responsible promotion councils and Boards. However, company wise details cannot be gathered from such sources. Otherwise, product specific data on industrial performance is not just available. Even industry associations and Chambers do not collate and publish information either industry wise or company wise.

3.0. Limitations

Despite misgiving about the quality of ASI, it still appears to be the only comprehensive data source for industry analysis. However, since being published with considerable time lag, it cannot be used for analysis on the ongoing trends in the industry structure and performance. No comparative study of inter regional industry performance also is possible with this data. For understanding the ongoing trends, one is forced to rely on index of industrial production with limited coverage of product groups. It is also devoid of regional dimension. However, for a comparative study on the past trends in inter regional performance of industry, including that of Kerala is possible with this data. Again, the ASI data do not give organisational details industry wise and size wise, the comprehensive nature of ASI is also being questioned in recent years due to high incidence of non-reporting after liberalisation.

RBI data, though useful for financial analysis of private corporate sector, the sample size appears to be extremely low and it is highly sensitive to the blow up factor (paid up capital). Again, the results are available on a highly aggregated form devoid of regional specificity.

The CMIE data consist of a broad coverage of balance sheet information in an expanded form; therefore, it cannot go beyond the conventional balance sheet analysis of individual companies. Neither physical indicators (employment, output etc) nor regional dimensions are considered in it. However, one can construct a profile Kerala 's private corporate sector by collating information on the place of registration of individual companies. This, however, appears a laborious task. This is the case with data available with Directory of joint stock companies. Information on financial and physical performance of central government owned public enterprises with the Public Enterprise Surveys on a time series basis, but company-wise details are discussed under industry groups. For companies with multiple products, harmonisation of data is necessary. The data are also not given on the basis of specific regions. For a regional picture of industries and companies one has to rearrange and reclassify information

With liberalization, Kerala's industrial structure has undergone several changes. This necessitates a more detailed database on various issues such as;

  1. the presumptions on the strength and weakness of the industry and firms;

  2. alternative strategies for strengthening the capabilities and develop comparative advantages to compete effectively in the liberalised market and participate in developing industries which are advantageous to the region; and


  3. new types of relations that need to be established among states and industries in the changed context need identification.
In this context, the issues which become important are capital structure, investment behavior, cost structure, wage structure, profitability, employment etc. need to be studied in a comprehensive manner or in conjunction with one other, firm wise as well as industry wise. The availability of adequate data in a ready-to-use form is necessary. Data harmonisation needs to be attempted.

References

Malik, M.S. (1998): "Industrial Statistics, Current Status, Limitations and Data Gaps" (paper presented at a Seminar on Restructuring of Indian statistical Base, (New Delhi, Indian Statistical Institute).

Nagaraj, R (1999): "How Good are Industrial Statistics? An Explanatory Note", Economic and Political Weekly, February 18-25.

Pillai, P., Mohanan and Shanta (1999): "Industrialisation in Kerala, Status of Current Research And Future Issues", (Trivadrum, CDS).

Roy Choudhary, Uma Dutt: "Finances of Private Corporate Sector ", Journal of Indian School of Political Economy.

Saluja, M.R (1998): "Industrial Statistics In India, Source, Limitation and Data Gaps", Economic and Political Weekly, May.

Shanta & Raj Kumar (1999): "Corporate Statistics: The Missing Numbers" Working Paper no 295, (Trivandrum, CDS).

Veeramani (2001): "Analysing Trade Flows and Industrial Structure 'The Question Of Data Harmonisation", Working Paper 321, (Trivandrum, CDS).