Auto components manufacturer Bosch India on Friday said it will suspend manufacturing in its Bangalore and Jaipur plants to avoid inventory build-up.
While the Jaipur plant will be shut on October 12, 19, 28 and November 2, the Bangalore plant will remain close on October 15 and 31, it said.
“With a view to adjust production to meet the demand for products and to avoid unnecessary build-up of inventory, it is proposed to suspend the manufacturing operations at the plants,” the company said in a statement to the BSE.
The company that manufactures critical components for both petrol and diesel engines said that due to the slow demand from its customers (car companies), the manufacturing has to be controlled.
This is not the first time that the company has closed its plants.
It had done so in September and August due to the same reasons. It had closed its Jaipur plant on September 25-28 and 30; and the Nashik plant for three days on September 16, 17 and 19. In August, it had closed its Nashik facility on 16 and 17 and Jaipur plant on 19, 21 and 23.
“We have to manufacture based on the customers’ demand. Though sales have picked up during the festival season, but the companies have to manufacture as per the inventory that were piled up from the earlier pipeline,” a company spokesperson told Business Line .
The company also manufactures auto components such as starter motors, electrical drives, electronics and steering systems and has 10 plants in the country, including Ahmedabad, Bangalore, Chakan, Chennai, Coimbatore, Manesar and Verna.
The company that supplies its products to almost all automobile companies such as Maruti Suzuki India, Hyundai Motor India, Tata Motors and Ford India, had reported a net profit of Rs 252 crore for the second quarter ended June 30.
The company’s shares on Friday closed at Rs 8,700 on the BSE, down 0.85 per cent from the previous close.