Corporate fixed assets register strong investment growth in fy25 led by consumer pharma and infra sectors bob report

Corporate fixed assets register strong investment growth in fy25 led by consumer pharma and infra sectors bob report

The corporate sector is showing encouraging signs of growth in fixed assets for FY25, according to a recent report by Bank of Baroda.

The report highlighted a 7.6 per cent overall increase in fixed asset investments, with strong contributions from consumer-focused industries, pharmaceuticals, and infrastructure-linked sectors.

It said, ‘Most of the leading sectors in terms of being those that drive investment in the country are in the infra space and have registered impressive growth rates. The picture is diverse for consumer oriented industries which should show more traction in the coming year when consumption shows a revival’.

It noted that most of the leading investment driving sectors are infrastructure related and have recorded impressive growth. These include cement and construction, engineering, and the broader auto and mobility space.

The report suggested that these sectors are continuing to fuel the country's investment momentum.

In consumer oriented industries, the picture is more diverse. However, the report pointed out that these sectors are expected to gain more traction in the coming year as consumption revives.

Demand in certain consumer sectors has been mixed, particularly in urban regions, but the government's recent policy measures and falling inflation are likely to support a recovery.

Among consumer industries, the food sector saw a healthy 12.4 per cent rise in fixed asset investments, increasing from Rs 17,626 crore in FY24 to Rs 19,819 crore in FY25.

This reflects growing optimism among companies about future demand, especially after a subdued consumption period.

Other consumer segments also recorded notable trends. Investments in the edible oil sector grew by 12.3 per cent, from Rs 10,319 crore to Rs 11,593 crore.

The household and personal products segment, though a significant contributor, saw a modest 1.7 per cent rise in fixed assets, from Rs 62,606 crore to Rs 63,656 crore.

In the auto and mobility sector, passenger car manufacturers led with a robust 20.6 per cent investment growth.

Two- and three-wheeler companies expanded investments by 9.9 per cent, while auto ancillary firms saw a 14 per cent rise, with fixed assets increasing from Rs 15,979 crore to Rs 18,209 crore. The growing push for electric vehicles (EVs) has encouraged companies to boost capacity.

Retailing also stood out, with a strong 17.5% increase in fixed assets, from Rs 20,760 crore to Rs 24,384 crore, as businesses focused on expanding their physical presence to compete with online platforms.

Other sectors that reported healthy investment growth include private banks (16.5 per cent), chemicals (7.4 per cent), and engineering for construction (7.0 per cent).

The report concluded that companies across various industries are preparing to meet future demand and are steadily strengthening their asset base.