The economic slowdown has begun to hurt companies across industries forcing many top rankers to cut production, opt for reduced working hours and rationalise their workforce.
Sample this:
On Friday, India’s leading truck maker, Tata Motors, confirmed the shutdown of its Pune unit for six days this month, which will follow a three-day closure of its Jamshedpur plant. Ashok Leyland, the second largest producer of trucks, slashed its weekly working days to three.On the same day, JSW Steel opted for a 20-per cent cut in output this month. Another steel maker Essar also confirmed reduction in capacity utlisation. Last week, Tata Steel’s UK subsidiary, Corus, effected a similar cut.
Textile and Cement
Grasim Industries, an Aditya Birla Group company, had cut production of Viscose Staple Fibre by about 30 per cent of its total capacity of 3.33 lakh tonnes/annum at Nagda in Madhya Pradesh and Kharach, Gujarat units.
Cement manufacturers have reduced capacity utilisation to about 85 per cent because of a sharp fall in demand from the realty sector, which consumes about 55 per cent of the total production of 200 million tonnes.
Petrochemicals
Petrochemicals major Reliance Industries, as per newspapers report is planning rationalisation of price structure to align with input cost and slowdown in demand. The company last month had offered a VRS for its employees in the Patalaganga plant.
Why is this happening?
Non-availability of finance and high interest rates had forced customers to postpone purchases.
Sample this:
All the sectors are feeling the pain
- Truck makers slash working hours
- Steel,Cement, Textiles trims output
- Airlines cut number of flights
- Shippers see drop in traffic
Demand is slowing as credit crunch, high rates weigh on customer spending
Auto & Steel SectorOn Friday, India’s leading truck maker, Tata Motors, confirmed the shutdown of its Pune unit for six days this month, which will follow a three-day closure of its Jamshedpur plant. Ashok Leyland, the second largest producer of trucks, slashed its weekly working days to three.On the same day, JSW Steel opted for a 20-per cent cut in output this month. Another steel maker Essar also confirmed reduction in capacity utlisation. Last week, Tata Steel’s UK subsidiary, Corus, effected a similar cut.
Textile and Cement
Grasim Industries, an Aditya Birla Group company, had cut production of Viscose Staple Fibre by about 30 per cent of its total capacity of 3.33 lakh tonnes/annum at Nagda in Madhya Pradesh and Kharach, Gujarat units.
Cement manufacturers have reduced capacity utilisation to about 85 per cent because of a sharp fall in demand from the realty sector, which consumes about 55 per cent of the total production of 200 million tonnes.
Petrochemicals
Petrochemicals major Reliance Industries, as per newspapers report is planning rationalisation of price structure to align with input cost and slowdown in demand. The company last month had offered a VRS for its employees in the Patalaganga plant.
Why is this happening?
Non-availability of finance and high interest rates had forced customers to postpone purchases.
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