Auto components maker Pricol on Thursday announced a fresh round of production holidays at its plants in October. The block closure varies from a minimum of one day to a maximum of five days. In September, the company had gone for production holidays across its plants in India with a maximum of six non-working days at Coimbatore plants.
In a communication to stock exchanges, the company said that as part of aligning production with sales requirements it will observe non-working days at its plants in Coimbatore, Gurugram, Pune and Sricity (Andhra Pradesh).
Accordingly, plant 1 at Coimbatore will observe one-three days as non-working days. Plants 3 and 4 at Coimbatore will observe three-five days; plant 2 at Gurugram will observe a day during the month. Plant 5 at Pune will not work for one-three days and plant 10 at Sricity (near Chennai) in Andhra Pradesh will have one-three non-working days in October, the company said.
Pricol follows auto component makers such as Bosch, Wabco, TVS group companies like Sundram-Clayton, Lucas TVS, among a few others that have announced production holidays across their plants in the last few months due to weak demand.
Started in 1975, Pricol is one of the oldest and leading auto part makers in India with an interest in auto wiping systems, driver information systems and sensors, fuel pumps and allied products, telematics, oxygen sensors and electrical water pumps.
The company has 13 manufacturing plants. It also has operations in Indonesia, Brazil, Czech, Mexico and Spain to serve global customers.
For the quarter ended June 2019, the company reported a loss of Rs 19.07 crore (against a profit of Rs 4.86 crore in the same quarter last fiscal) and a reduced turnover of Rs 303.06 crore as against Rs 341.54 crore in Q1FY19. Rating company CRISIL, in its recent analysis, said auto parts companies’ revenue growth would halve in the next two fiscals. Auto OEMs are expected to take a sales hit due to the implementation of new safety norms and BS-VI emission norms, which will collectively effect the components sector as OEMs alone account for 65% of components demand.