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TVS Motor's Chairman and Managing Director Venu Srinivasan today said auto industry should focus on managing the cash flow and should be more flexible. He also said if the next Government is not going to be strong in the Centre, things can go worst.
In his address at the MMA Annual Convention 2014 at Chennai today, he said one need to apply the following principles, which will pay off when the economy rebounds.
Maintain thoughtful action, hedge risks, focus on key bets, target adjacent segments, while exiting segments where one can't make money.
While stating cutting the staffs is not a good solution, Srinivasan said "staff cost is like a surgery, don't take it as first option".
Stating that the auto industry should focus on cash flow, reduction of debt burden is also important and one should keep investment powder dry to invest into the right areas, at the right time, said Srinivasan.
He estimated the country's growth would be around 4.7% and anything below five% means India is in recession.
Commenting on upcoming 2014 Lok Sabha elections, Srinivasan said, "it will be the most critical election since independence, so there are risks attached to the outcome of election. If strong Government doesn't come things can go worst".
He said, currently things are gloomy, bit all gloom will replace by sunrise. Currently macro trends suggest higher degree of turbulence, GDP growth has slowed down, investment has reduced, inflation pressure are high.
There is much to learn from past precedence, said Srinivasan.
