Capital goods train delay hits India Inc's capex plans as manufacturers in China & Southeast Asia embark on their own expansion plans
import of capital goods and machinery to build factories as manufacturers in China and Southeast Asia embark on their own expansion plans. That could potentially hobble their ability to meet any rise in consumption demand.
Reliance is among Indian companies facing such challenges as it looks to set up production facilities for its fast-moving consumer goods (FMCG) business and scale it up, said a senior executive, citing difficulties in establishing bottling plants for Campa Cola with machinery suppliers asking for a year and more. Reliance didn't respond to queries.
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Offering CollegeCourseWebsiteIndian School of BusinessISB Leadership in AIVisitIIM LucknowChief Operations Officer ProgrammeVisitIIM LucknowChief Executive Officer ProgrammeVisitVarun Beverages chairman Ravi Jaipuria told analysts on an earnings call May 13 that its plant for Cream Bell dairy based beverages could only start operations in April instead of January due to "global supply chain issues".
Factoring in Factory Parts' Crunch
China is focusing on a manufacturing-led revival of its economy. Southeast Asian manufacturing hubs such as Taiwan, Vietnam and Indonesia are expanding component-level manufacturing. Besides, the Red Sea crisis and other geopolitical tensions have increased delivery times for machinery meant to set up or augment production lines. Schedules for factory parts such as injection moulding or heat exchangers have almost doubled to a year, said Jasbir Singh,
