When the entire economy is experiencing a sulk, automobile components too have been seen to hit in the recent times. The setback in the automotive component segment has come from Bosch Ltd. now. The auto-component manufacturer has suspended its operations of manufacturing units in Bangalore and Nasik. The company took the drastic step to avoid unnecessary stacking up of inventory.
If the other side of the decision is analyzed, one can certainly come to a conclusion that the company did it right in order to bring in an adjustment in production to meet actual demand for the products. If the same point is lagged, unnecessary building up of inventory cannot be avoided in any case. Earlier in a filing to the BSE, the auto-component manufacturer said that it has proposed to suspend the operations in the Bangalore and Nasik facilities.
Following the proposal, Bosch Ltd. actually stepped in to action. Company’s Bangalore facility’s operation was shut down from July 27th to July 30th, while the Nasik-plant’s operation was closed on July 30th and July 31st. The company has however two more manufacturing units; in Naganathapura (near Bangalore) and in Jaipur.
Bosch Group in India has cataloged a consolidated revenue of over 11,300 crore INR in 2011, while employing over 25,000 associates. Moreover, Bosch Ltd (a flagship company of Bosch Group) had actually recorded a revenue inflow of 8,000 crore INR in 2011.
Following the proposal of suspension of operations in two facilities, the share prices of the company sulked by 0.5% over then previous closure, falling down to 8,660.05 INR apiece on the BSE. The proposal not only came as a setback to the entire auto-component segment, but the case was equally same for the stock market too. On the other end, when the spokesperson of the company was approached repeatedly to comment on the same, he was found to be unavailable.