A new study reveals that basic operational improvements in India’s auto-component sector could release up to Rs 39,000 crore in working capital, addressing excess inventory and boosting capacity utilisation amidst sector challenges.
India’s auto-component suppliers are sitting on about Rs 98,000 crore of inventory, and a new study says relatively basic operational changes could free up as much as Rs 29,000 crore to Rs 39,000 crore in working capital across the sector. The report by Vector Consulting Group said frequent changeovers, quality losses, rework and weak material flow are leaving plants running at only 75% to 85% of installed capacity.
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