Leading tyre maker Apollo Tyres has gone in for a two-day production holiday at its two factories in Kerala - Kalamassery in Ernakulam and Perambra in Thrissur. It is expected to resume production on Sunday. The holiday is on account of sluggish demand.
It would be an 'extended' Onam holiday after the closure for two days on Wednesday and Thursday. Sources said the slowdown in the vehicle sales had resulted in lesser demand from the original equipment manufacturers. It termed the holidays as part of product rescheduling.
The installed capacity of the Perambra stands at 1.14 lakh tonnes and Kalamassery 35,567 tonnes. Holidays as part of rescheduling would mean half salary on such days.
The slowdown in the passenger car segment has hit the company hard. It expects the stimulus package to improve things. The production reschedules are expected to happen in its factories in Gujarat, Tamil Nadu and Andhra Pradesh too if the situation does not improve.