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LATEST NEWS UPDATES | Industries opt for lock down, cut work hours to tide over slump caused by demonetisation -Aakash Ahuja

Industries opt for lock down, cut work hours to tide over slump caused by demonetisation -Aakash Ahuja

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published Published on Nov 22, 2016   modified Modified on Nov 22, 2016
-The Times of India

RUDRAPUR: Many of the over 700 factories in the industrial belt of Udham Singh Nagar have either slowed down production or opted for a short-term lock down due to problems in transport of goods and a dip in demand. Demonetisation of currency notes of Rs 500 and Rs 1,000 has hit not just small industrial units but also giants like Parle and Britannia, many of which have declared a five-week day week to cut down on production. Some of the small unit operators in Pantnagar and Sitarganj said that if the currency crisis is not controlled till the first week of December, they would be forced to completely shut down their plants.

Talking to TOI, Mrityunjay Singh, head of human resources at Parle Biscuits in Pantnagar, said, “We now have a single shift for workers involved in production. Earlier we had employees work three shifts. The demand has plummeted and we have reduced production as our products do not have a long shelf life.”

Sales head of Britannia, DK Bhatt, had a similar tale to tell. "We have also cut down on shifts for our workers. We will review the situation next week and take a decision accordingly,” he said.

It is not just the manufacturers of perishable commodities that are suffering. Deputy general manager of Bajaj Auto Ltd, Ashutosh Sharma, said that the currency crisis has led to a fall of 25% in bike manufacturing. "We have over 15,000 vehicles lying in our company warehouse as previous orders are yet to be picked up while very few orders have been placed in the past week,” Sharma said.

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The Times of India, 19 November, 2016, http://timesofindia.indiatimes.com/city/dehradun/Industries-opt-for-lock-down-cut-work-hours-to-tide-over-slump-caused-by-demonetisation/articleshow/55517256.cms


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