Sundaram Clayton Ltd. (SCL), a part of the $8.5-billion TVS Group, announced that its major plants will work for a five days in week due to business slowdown across sectors.
The company said this in a regulatory filing.
Earlier last week, the company had suspended the operations of its Chennai plant for two days, on August 16-17, on similar grounds.
Similarly, auto-component maker Lucas-TVS closed down its operations on August 16-17 while Ashok Leyland shut its Pantnagar plant in Uttarakhand for 11 days during July 2019, citing business slowdown.
SCL is one of the largest auto-components manufacturing and distribution groups in India. It has four plants in Tamil Nadu and one in South Carolina.
During the first quarter ended June 2019, SCL’s net profit dipped 30.63% to ₹4.87 crore. Income from operations slipped to ₹374 crore from ₹469 crore. Other income rose to ₹7.13 crore from ₹4.97 crore.
TVS Motor Co., a leading two-and three-wheel manufacturer, had initiated a major cost reduction programme to meet uncertainties in the automobile sector.
Addressing the shareholders at the recent annual general meeting, TVS Motor CMD, Venu Srinivasan, said: “Last year itself, our cost reduction was the highest achieved in India. And this year, we are trying to push it further. He had also termed the current fiscal as volatile and an unpredictable year.
