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Bosch plans shutdowns to avoid inventory pile-up news
14 October 2013

Auto components manufacturer Bosch India on Friday said it will suspend manufacturing in its Bangalore and Jaipur plants for periods ranging from two to six days this month to avoid inventory build-up.

While the Jaipur plant will be shut on 12, 19, and 28 October and 2 November, the Bangalore plant will remain close on 15 and 31 October, 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 Bombay Stock Exchange.

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 these two plants. It had done so in September and August due to the same reasons.

''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 said.

The company 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 Rs252 crore for the second quarter ended 30 June.


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Bosch plans shutdowns to avoid inventory pile-up