Auto component major Rane Group is holding back about 50 per cent of its planned investments of Rs 550 crore in the wake of the slowdown in the market.
“The group had a planned investment of Rs 550 crore for the next three years. Now with the slowdown, about 50 per cent of the investments have been scaled back,” Rane TRW Steering Systems Managing Director Harish Lakshman told PTI here today on the sidelines of an ACMA annual convention.
Last year, out of a total planned investment of Rs 250 crore, only about Rs 130 crore was invested. “This year also it will be more or less the same as last year,” Lakshman said.
The slowdown has also resulted in decreased output, while capacity utilisation across plants is around 65 per cent. In view of the depreciating rupee, efforts are being made to increase exports, he said.
“But as it happens, there is always a time lag in executing such steps but we are definitely working to increase our exports,” he added.
When asked if there have been job cuts due to the slowdown, Lakshman, who is going to be the new President of ACMA, said that the component industry has started retrenchments, mostly of temporary workers.