Speaking at a seminar on "Current industrial scenario and outlook" organised by the Bombay Chamber of Commerce & Industry, Doshi pointed out that industrial capacities are now virtually available as commodities, which may be used to create value even without fresh tangible investments.

Lead indicators like expansion of non-agricultural credit and market structure also does not reveal much as companies are working out innovative inventory management models to optimally utilise the existing capital. "The market is going through a rapid transformation and several businesses are losing their shine by the day. The courier companies, for example, lost almost 50 per cent of their businesses due to the advent of theelectronic mail and are looking at newer avenues to maintain profitability," Doshi said.

The M&M director refused to believe the popular perception that there has been a slowdown during the last three years. "On the contrary, we can cite quite a few companies which maintained steady growth during this period. It is during these difficult times that one can differentiate the men from the boys as pricing becomes a crucial factor. I am confident that there are reasons to feel optimistic about the future," Doshi observed.

Speaking on industrial restructuring, Crisil managing director R Ravimohan felt that there was need for caution as the visible signs of industrial recovery may prompt many corporates to shelve their restructuring plans.

"Restructuring measures, both at the corporate and external level, are badly needed. The real danger that lurks at this stage is that many companies may stall their restructuring initiatives citing the industrial turnaround. This may turn out to be fatal,"Ravimohanobserved.

The Crisil chief felt that diversified conglomerates are better equipped than single product companies to combat recession. "India, being a shallow market, diversified companies are in a better position as it has a more than one business for generation of cash flows," he said.

To give a push to the restructuring efforts, Ravimohan underlined the need for evolving effective bankruptcy and foreclosure laws and greater labour market flexibility.