In absolute terms, the total inventories of these companies increased to R2.48 lakh crore during financial year 2010-11 from R1.63 lakh crore during financial year 2008-09.
Of the total 817 companies measured in the study, 354 reported a decline in the inventories to sales ratio. The sectors where the ratio rose particularly were the steel and textiles industry.
Among the industries studied, eight industries, had inventory-to-sales ratios above 20 % during 2010-11. Mention may be made of air conditioners, cigarettes, engineering, jems & jewellery, pharmaceuticals, sugar and textiles.
In 2008-09, there were seven industries with inventories-to-sales ratios of 20% or more. Mention may be made of diversified, cigarettes, pharmaceuticals, sugar and pesticides. Those with very low inventory-to-sales ratios in 2010-11 were auto ancillaries, automobiles, paper, fertilisers, refineries and petrochemicals.