Leading auto component manufacturer Endurance Technologies’ executive director and chief operating officer Ramesh Gehaney on Monday said the profit-linked incentive (PLI) scheme for autos is encouraging even as there is a cap for export and revenue to be eligible for the scheme. He also added that at present only 14 percent of auto ancillaries are eligible for the PLI scheme.
Speaking in an interview with CNBC-TV18 on the situation in Europe, Gehaney said, “As far as business from here to export is concerned, it’s Rs 100 crore which goes to Europe. So container (shortage) is not too much of a problem there but yes, we are also struggling in getting the containers on time. So 30 percent of business comes from Europe so that doesn’t have any container impact from India.”
On the demand front, he said, “Brexit, I understand that the tier one suppliers are realigning and recalibrating themselves because in case the business gets transferred from the UK to Europe, what the scenario would look for them. So recalibration is going on which would be beneficial for the people who are there in Europe as more business comes in Europe although it will have an impact in the UK too.”
On PLI scheme, Gehaney said, “The statistics say that only 14 percent of auto ancillaries are eligible for the PLI scheme. So it would benefit tier two and three by the dependence of the original equipment manufacturers (OEMs) and tier-one percolating the orders down the line,” he said.
On CAPEX, Gehaney said that it would depend on order inflow.
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