India Inc's candid captains sound SOS
Cautious companies freeze expansion, re-think deals and tighten belts.
By ET Bureau |
MUMBAI: The Aditya Birla Group is exploring options of closing down a Canadian unit. Tata Group chairman Ratan Tata has asked his business heads to go slow on future plans. Auto major Mahindra & Mahindra is rethinking business plans for the current fiscal year.
Wipro, the software leader, has instructed its business heads to brace for tough times and some hard decisions. JSW Steel has deferred its multi-billion dollar expansion plans.
India Inc seems to be in an exceedingly cautious frame of mind. The ongoing credit crunch and slowing demand is forcing large companies to cut down on expenses, roll back acquisition plans and generally scale back hitherto exuberant corporate activity.
The trend is in stark contrast to the situation six months ago, when companies were busy planning cross-border buyouts and huge expansion plans, money was easily available and the economy was still expanding at 8%.
And for once, Indian business leaders don���t seem to be shying away from bluntly spelling out the harsh realities. In direct and stark letters to employees, chairmen of India���s top companies have warned of trying times ahead.
On Wednesday, ET learnt the Birlas were mulling temporary closure of a pulp unit in Canada due to falling demand for rayon. Pulp from AV Nackawic is used to make viscose staple fibre (VSF).
Wipro, the software leader, has instructed its business heads to brace for tough times and some hard decisions. JSW Steel has deferred its multi-billion dollar expansion plans.
India Inc seems to be in an exceedingly cautious frame of mind. The ongoing credit crunch and slowing demand is forcing large companies to cut down on expenses, roll back acquisition plans and generally scale back hitherto exuberant corporate activity.
The trend is in stark contrast to the situation six months ago, when companies were busy planning cross-border buyouts and huge expansion plans, money was easily available and the economy was still expanding at 8%.
And for once, Indian business leaders don���t seem to be shying away from bluntly spelling out the harsh realities. In direct and stark letters to employees, chairmen of India���s top companies have warned of trying times ahead.
On Wednesday, ET learnt the Birlas were mulling temporary closure of a pulp unit in Canada due to falling demand for rayon. Pulp from AV Nackawic is used to make viscose staple fibre (VSF).
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