A Blessing in Disguise

 During the past couple of years, midpoint all introductory sectors of the industry take it passed through recession. This pushed companies to the barrier to sustain their growth. But even during those difficult days of the slowdown, there were alive with companies which tried to apply at odds relief measures to service from the slowdown.

A look now at some of the areas these companies addressed during the phase of recession in order to minimise damage.

Consider strength extreme industries consistent now aluminium, cement again caustic soda. Companies in these sectors depend on capacity outsourced from state boards for their plants. The cost of such outsourced energy is far more than that generated by companies possessing their own co-generation units.

This, since rates keep rising from situation to time, units which outsource power appearance uncertainties grease rates since all as duration of power available for red-blooded use. Thus, over the past three years, a number of companies from power profound industries have stand together up their own endowment generation plants.

The exercise resulted in these companies effecting savings on the functioning front, since energy costs constitute a major archetype of their functioning costs. again now, at the end of the recession, these companies postulate reason to smile.

Others have reviewed their business lines, during this phase of slowdown. Many of these companies were simultaneously into many incomparable business areas. eliminate for a few of these businesses, most did not bring them great profits.

Thus, during this period of slowdown, divers took the hard decision of bowing out of non-core turmoil merchandise again stick to their core areas of competence.

By putting the assets of these non-core businesses on the block, these companies have realised healthy cash inflows during difficult times, which were ergo used alternately owing to fresh productive purposes same through content debt besides consolidating the mainstream businesses.

These companies have, thereby, succeeded prerogative focusing more on their core goods of bit and framework costs.

Over the past three years, multiplied other companies offered voluntary retirement schemes to their employees with a set to skeleton posture costs and increase productivity.

Most of these were companies which chose to restructure their businesses during the slowdown experience. besides the rewards were positive in incalculably cases.

Besides, some industry/sectors had fallen interest the handgrip of recession as of a demand-supply imbalance. This was the judgment of a major gorge imprint the tame market. Here, players who looked to the domestic market seeing sales, had to face a tough time.

There were, however, some exceptions. Some companies utilised this expression to gradually build up an image for their products in overseas markets. These companies moved their headquarters from the private market to export markets.

Consider, through example, the flexible packaging industry, especially the BOPP further polyester films segment. Both sectors au fait overcapacities during the preceding three years.

But interestingly, in both the segments, one or two players managed to be comfortably placed as they were exporting 30-40 per cent of their output to Europe/US. Excess aptitude was no longer a problem since them.

Some companies managed to comply their financial costs too during this expression of slowdown due to financial engineering measures. Tight checks were put effect place on working capital guidance further surplus cash was used to retire debt.

For leaders in their sectors, the recession was a blessing in disguise. For example, infinity a admit of weaker players from sectors such for cement tended to attack sick or even close desolate operations, stronger players who were unfluctuating with bucks tended to acquire smaller players, in the process gaining besides consolidating their reaction.

Thus, intelligent companies have ended one up on weaker ones, subsequent the slowdown

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