31 October, 2020

They Shrunk The Pie

Falling domestic consumption cuts deep into Indian manufacturing

Photograph by Getty Images
They Shrunk The Pie
outlookindia.com
2019-11-22T11:30:53+05:30

Over the past two years, Shyam Saran (name changed), managing director of a construction-rela­ted manufacturing company in the National Capital Region, says his firm has had to lay off 150 workers due to slowdown in dem­and for commercial properties and residential projects except in some IT pockets in cities like Pune, Hydera­bad and Bangalore. “At least 10-15 decent-­size companies are affected by any slowdown in our business,” says Sar­an, adding that his company has witnessed a nearly 120 per cent drop in turnover over a couple of years. “Our outstanding payment due from the market is currently equal to our turnover, making for a tight squeeze on the finances.” The worry for people like ­Saran today is about how to sustain ­operations and not just profits.

V.K. Singh, director, Camson Bio Tech­nologies, says payment cycles have risen rapidly over the past few years. As farmers are its principal clients, from an earlier credit period of 90 days, the listed company that manufactures bio-fertiliser and biocides has...

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