India Inc on war footing to cut costs, conserve cash to offset Covid impact

Capex is the first head on the chopping block, followed by operating costs and overheads

India Inc is on a war footing to cut costs and save cash to counter the dip in revenues and profits caused by the Covid-19 pandemic. The first spending item on the chopping block is capital expenditure (capex), followed by operating costs and overheads, including sales and marketing expenses. 

Aditya Birla Group flagship Grasim Industries, for example, has put all capacity expansion plans on hold, with the exception of routine maintenance capex. Prior to the pandemic, the company was implementing a Rs 7,800-crore capex programme in its viscose staple fibre and chemical divisions. Of this, it has already spent Rs 2,800