Consumer durables companies cut production by 25%

netfreak

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I had a feeling that Indian urban economy is doing pretty well. This is a sign of over-enthusiastic manufacturing or economic slowdown.... :huh:
The year seems to be ending on a sour note for makers of consumer durables. Major companies like LG, Philips and Onida have started slashing production and imports by 22-25% following a massive slump in demand in the last quarter of ’05.

Companies are sitting on high inventory levels, which have been built up to meet the traditional jump in sales during festive season. Diwali, this year, failed to live up to the targets set by most companies.
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More here
 

netfreak

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These three things normally do not occur at the same time.

If they do, its called stagflation.

And when that happens, its time to throw the cash and buy gold. On of theWORST things that could happen to ANY economy (Including US).

http://www.internetional.se/toft/stagflation.htm
 


max

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erm...thats what has happened. Electronic goods have been over produced and shipped to India. They have been over priced and now with the 4% and stupid duties and octroi have pushed up the prices up further. This has led to lower purchases of electronics, over stocked inventories which has lead them to sell their goods to customers at about 25% lower prices with goodies (which are the right prices BTW)... Remember, 3000-4000bucks for an average Indian is big $$$
 

netfreak

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overly high prices...[/b]

OR

over stocked inventories which has lead them to sell their goods to customers at about 25% lower prices [/b]

Which version is ture :unsure:

And Octrai etc is Mumbai specific.... usually people do not pay 51 Rs per liter for petrol in India.
 

max

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both of my statements are true. Overpricing led to overstocked inventories...
 



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