Escorts, an engineering conglomerate which has diversified business in to three different segments- Escorts Agri Machinery (EAM), Escorts Construction Equipment (ECE) & Railway Equipment Division (RED), has decided to suspend production as the country continues to witness a record surge in COVID-19 positive cases. As a precautionary measure, the company will be temporarily shutting down its manufacturing operations, on selective basis, between May 1 and May 3. Escorts hasn't shared a resume date yet and the production halt might increase if the situation is not controlled and India continue with the record spike in COVID-19 positive cases.
In a regulatory filing made after trading hours yesterday, Escorts made it clear that there will be no impact on fulfilling customer demand because of this as it has maintained sufficient inventory at hand. The shutdown period shall be utilized for routine plant maintenance with employees in essential services present on rotational basis.
Escorts is also into agri machinery business.
The situation across the nation has been really grim as the second wave of COVID-19 is proving out to be even more threatening and is claiming more lives. Over 3.86 lakh new positive cases and 3000 deaths have been recorded in the country in the last 24 hours which is at all-time high for the ninth day in a row. Seven states are already under partial lockdown in a bid to prevent the spread of this contagious virus and sales across the industry have taken a hit. Major automakers like Maruti Suzuki and Tata Motors among others have already shut down their manufacturing plants amidst the crisis.
