NEW DELHI: 14 auto component manufacturers have been placed on rating watch by ICRA after Maruti Suzuki closed down its Manesar plant on temporary basis.
It is believed that various ICRA-rated auto ancillaries that enjoyed high revenue dependence on Maruti's Manesar unit are now likely to see lower cash accruals.
A statement from ICRA said, “Given the present uncertainties, it is difficult as of now to quantify the extent of supply disruption and its eventual impact on individual companies' financial risk profile. The firms under the rating watch list are ALP Nishikawa, Global Autotech, Jay Bharat Maruti, Juken Uniproducts, Kalyani Thermal Systems, Krishna Maruti, Lumax Industries, Machino Polymers, Neel Metal Industries, SKH Metals, Sona Somic Lemforder Components, Subros, Technico Industries and Uniproducts.”
ICRA stated that it is reviewing the situation and would conclude when clarity emerges.
The manufacturing of four car models - Swift, Swift DZire, A-Star and SX4 - has stopped since July 18 as the automaker announced lockout at the Manesar plant.