MCCIA survey: Festival demand pushes Pune industry production up from Oct’s 55% to 72% in Sept

A survey by the Mahratta Chamber of Commerce Industries and Agriculture (MCCIA), its seventh since the Covid-19 lockdown began in late March, has concluded that

A survey by the Mahratta Chamber of Commerce Industries and Agriculture (MCCIA), its seventh since the Covid-19 lockdown began in late March, has concluded that the current level of production has gone up from 55 per cent in September to 72 per cent in October, among the companies surveyed.

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The rise in production, according to industry players, is mainly due to an increased demand attributed to the festival season, currently underway.

The survey, findings of which were released on Tuesday, has also revealed that on average, the number of employees working has gone up from 68 per cent in September to 77 per cent in October.

At least 175 organisations in the Pune district participated in the survey, where the factors like current level of production, number of employees working and future expectations were analysed.

The surveyed companies were also asked about when their production levels were expected to be the same as it was in January 2020. Thirty per cent of the companies said production was already at pre-Covid levels while 11 per cent of the respondents maintained that they expect production levels to go back to pre-Covid levels in less than three months.

As many as 28 per cent of the respondents said they expect it to take between three and six months, while 16 per cent said it would take between six and nine months. Three per cent said it would take beyond nine months and 11 per cent were uncertain.

The distribution of organisations surveyed - micro, small, medium and large – is 27 per cent, 33 per cent, 17 per cent and 22 per cent, respectively. Sixty-six per cent of the organisations surveyed are from the manufacturing sector and 16 per cent from the services sector. The rest are involved in both manufacturing and services.

Sudhir Mehta, president, MCCIA, said, “In the MCCIA’s monthly survey on economic recovery in the Pune Region, we are very glad to see a substantive jump in economic activities from September to Octover, especially among MSMEs. We need to cross the hump of the possibility of the second-wave uncertainty due to winter, to benefit from the further reduced levels of uncertainty. We are on the right track, but it’s important to not forget about some sectors and employees who are disproportionately impacted by the pandemic; e.g. MSMEs unbanked by the formal sector.”