Coimbatore-based components manufacturer Pricol Limited on Thursday announced production holidays in its eight plants across the country for the month of September amid the current slowdown in the automotive industry.
In a regulatory filing, the company said it had declared non-working days in the range of 1-3 days in one plant and 3-6 days in two other plants in Coimbatore.
It has declared holiday of 1-3 days at its Pune plant and 3-6 days at Sri City plant. Pricol announced a 0 to 3-day holiday at two plants in Gurugram and one plant in Pantnagar for September. The company said the decision was taken to align the production with its sales requirements.
In a presentation last month at its annual general meeting, the company said the market de-growth was expected to be 15% or even more as per the current scenario.
“Sales across all the segments has dropped due to reduction in schedule from all the original equipment manufacturers (OEMs) due to market condition and monsoon failure during the first quarter of FY19-20,” the company said.
Pricol derives 69% of its business from two-wheeler and three-wheeler segments and 6% from the commercial vehicle segment. Tractor and four-wheeler segments account for 4% each to its revenue, according to the presentation.
Two-wheeler and commercial vehicle sales declined 22.24% and 38.71% respectively in August 2019 from the comparable period last year, according to the Society of Indian Automobile Manufacturers (SIAM).
