Rane Group to hold back 50% of Rs 500 cr investments

Slowdown has also resulted in decreased output while capacity utilisation across plants is around 65%, says company MD Harish Lakshman

Auto component major Rane Group is holding back about 50% of its planned investments of Rs 550 crore in the wake of the slowdown in the market.

"The group had a planned investment of Rs 550 crore for the next three years. Now with the slowdown, about 50% of the investments has been scaled back," Rane TRW Steering Systems Managing Director Harish Lakshman told PTI here on the sidelines of an ACMA annual convention here.

Last year, out of a total planned investment of Rs 250 crore, only about Rs 130 crore was invested.

"This year also it will be more or less the same as last year," Lakshman said.

The slowdown has also resulted in decreased output while capacity utilisation across plants is around 65%, he added.

In view of the depreciating rupee, efforts are being made to increase exports, he said.

"But as it happens, there is always a time lag in executing such steps but we are definitely working to increase our exports," he added.

When asked if there have been job cuts due to the slowdown, Lakshman, who is going to be the new President of ACMA said, the component industry has started retrenchments, mostly of temporary workers.