Smartphone and electronics companies affected by the recession following the Corona eruption have stopped production for the domestic market.
Companies stopped production at the domestic market.
Companies have stopped production for the domestic market. The second wave of coronavirus infection is underway in the country and the local lockdown has been imposed in several states to prevent an outbreak.
Also, online sales of non-essential items are prohibited. Due to this, the sale of electronics and smartphones in the country has almost come to a standstill.
Employees working in the factories of many companies are also affected by the corona.
In this era of epidemics, many companies like LG, Vivo, Oppo, Haier, Panasonic, Carrier Media and Godrej Appliance have completely shut down their plants. Companies like Apple and Samsung only produce for export.
These companies operate with only 25 to 40 percent human capacity. LG only produces for export.
Kamal Nandi, Business head of Godrej Appliances, said only 15 per cent of the markets would be open due to local lockdowns and restrictions.
But with limited shop hours, only 5 to 6 percent of sales are made. Nandi is also the President of the Consumer Electronics and Equipment Association (CEAMA) .
He said there was no point in making goods and risking the lives of workers.
Almost all brands have closed their plants for maintenance. We will start production after the market opens.
Haier, Indian President Eric Braganza said the company had closed its plant near Pune by the end of this month because some workers were unwell and locked up.
Voltas, a Tata group company.
Pradeep Bakshi, MD of Voltas, a Tata group company, also said that the company has closed some of its plants.
Contract manufacturer Dixon has stopped production of lighting, while equipment and television production is operating at 30 to 50 percent efficiency.
Panasonic India CEO Manish Sharma said the company would closely monitor the market reopening and demand situation and resume production accordingly.
That is enough to meet the current inventory demand, he said. Most companies have more than a month’s worth of inventory.
Maharashtra was the first to be locked up considering the country’s second corona wave. Since then almost every major state has imposed a lockdown at the local level.
Ten thousand crores loss.
This is the second year in a row that sales of AC and refrigerators have been badly affected in April and May.
According to CEAMA estimates, the loss this year alone is over Rs 10,000 crore.
ITC and Counterpoint Research said smartphone sales will also be severely affected in the April-June quarter.
Two senior executives of the industry said that Vivo and Oppo have stopped production at their plants in Noida.
Xiaomi has 30 to 40 percent capacity through its contract manufacturers