India Manufacturing Talk

News and Views on Manufacturing in India

Renault Nissan Oragadam Plans on track

In the wake of the recent news that Mahindra & Mahindra would no longer be part of the Renault Nissan venture at Oragadam, local industry received reassuring news when Nissan confirmed that plans for the Oragadam plant were on track.  The plant which is spread over 640 acres is scheduled to be completed in May 2010.   However in view of the global recession Renault’s plans for a manufacturing line at the facility has been suspended for the moment.

Citing a drop in global demand for cars from 68 million cars in 2007 to 54 million in 2008, Colin Dodge, Executive Vice-President, Nissan Motor Company, Renault’s decision to ‘suspend’ its plan for a production line at the upcoming facility should be read in this context.  “Renault is very much there in the venture. They will come back to have their production line,” he said.  The Oragadam venture would have flexibility to make products on three platforms — A segment cars, B segment products and light commercial vehicles.


Opportunities for Manufacturing Still Abound

The global recession has all but wiped out the exuberance of the manufacturing industries.  Nothing new to report here.  News all over the web and print medias focus endlessly on the agony being faced by the common man these days but the fact is that the manufacturing industries have been reeling long before.   Spiraling interest rates, the strong/weak dollar rates and the oil price crisis all started a slow down process that was effectively finished off by the global economic meltdown.

Companies all over seem to be floating a figure anywhere between 30% – 50%  reduction in order intakes and corresponding metrics.   The industries worst hit by the recession are the automobile industries and their ancillaries.  This has resulted in a snowball effect that directly affected all verticals that act as suppliers to the industry – iron & steel, transport, raw materials,  etc.   Most plants were effectively closed for months of November and December with some activity reviving in January.


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