Consumer Durables And Smartphone Companies Might Close Their Plants Due To Lockdown


Multiple brands, including consumer durable and smartphone makers are likely to shut down production lines as sales are not good enough due to lockdown. Besides, the Government has restricted the sales of non-essential items to curb the spreading of the COVID 19.

Consumer Durables And Smartphone Companies Might Close Their Plants

Notably, firms like Panasonic, Vivo, Oppo, Haier, LG, and Godrej Appliances are expected to shut down and plans to reduce the production. Similarly, Apple and Samsung are likely to cut production.

"There is no point in manufacturing goods and putting workers at risk. This is true for almost all brands that have gone for maintenance shutdown of their plants. We will resume production when markets open up," Godrej Appliances business head Kamal Nandi was quoted by ET.

The report claims that Samsung plants are closed for three days a week. Besides, Godrej Appliances said that only 15 percent market is open due to lockdown and restrictions. Nandi added that only 5 to 6 percent of sales are coming from stores due to restrictions.

Other Companies That Have Closed Operations

Similarly, Haier India president Eric Braganza states that the company has already shut down its plant until May end. Besides, Tata-owned Voltas also closed its plants. Additionally, Dixon is operating with 30 to 50 percent capacity.

In fact, the CEO of Panasonic said that they are waiting for the market to open and then, they will start operations. Meanwhile, the report said that some of the brands are already carrying inventory. Notably, the report claims that sales of air conditioners and refrigerators have not been good.

The Consumer Electronics and Appliances Manufacturers Association (CEAMA) expected the industry has lost Rs. 10,000 crores in a year. The smartphone companies are also going to face challenges in the Q1 of the ongoing financial year as per market research firm IDC and Counterpoint.


The smartphone and smart television do not come under the same list, which is why ICEA has asked the Government to consider the same list. Notably, people are not spending money on non-essential items and purchasing essential items like food.

However, we believe that if Government starts vaccinating employees then, there might be a chance that companies start their production lines again.

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