Bosch Shuts Down Manufacturing In Jaipur Plant On December 30 And 31, 2013

Bosch, a worldwide auto ancillary player in the automotive industry, has informed the BSE of the suspension of its manufacturing process in its Jaipur plant on the last 2 days of the CY13. The reason for this shutdown given by the company is that this decision was in a bid“to meet its product demands and to avoid unnecessary build up of inventory”.

With this announcement, the company’s stock price dropped by 1.97% and closed at Rs 10,232 as on December 30, 2013).

Being an auto ancillary player, the company supplies various parts to the automotives industry. Its Jaipur plant, commissioned in the year 1999, is a state-of-the-art facility and the lead plant to produce VE type pumps.

During the third quarter of CY13, Bosch reported 4% growth in its topline to touch Rs 2236.38 crore YoY. The operating expenses increased by 13% to Rs 1823.31 crore on a yearly basis. Its bottomline also surged by 15.5% to Rs 234.25 crore.

In the calendar year 2013, the Indian automobile industry went through a continued demand decline. For the month of November 2013, domestic passenger car sales declined to 142849, down around 8% from that in October 2013.