Incap Ramping Up Factories in India

Article By : Incap Corp.

Despite operating with reduced capacity since May 24, Incap continues to ramp up the production at its India factories to be able to begin full operation on June 14.

Incap Corp. temporarily closed down its factories in Tumkur, India from May 10–24, in line with the government’s lockdown directive to contain the worsening coronavirus pandemic situation. On May 24, Incap announced that the lock-down had been extended until 7 June, and that it had been granted a permission for partial operation of its factories. Currently, the lockdown in Karnataka has been extended until June 14. Incap’s factories in India have been operating with reduced capacity since May 24, but the company continues to ramp up the production to be able to begin full operation on June 14.

“We are fully committed to support the local government in its actions to contain the virus and to protect the health and safety of our employees. In addition to following strict restrictions guaranteeing social distancing at our factories, we continue to organize vaccination drives in order to help our employees and their families get vaccinated. To support the local community, we have donated computers for the center that is in charge of the monitoring and controlling the pandemic situation of the Tumkur area. As we are ramping up our production, we will continue to focus on limiting the effects that the current restrictions may have on our customer deliveries,” said Otto Pukk, President and CEO of Incap.

The closure and the partial operations of the factories in India do not have an impact on the company’s outlook for 2021, which was published on April 21, 2021. Incap’s previously announced outlook for 2021:

Incap estimates that its revenue, operating profit (EBIT) and adjusted operating profit (EBIT) for 2021 will be clearly higher than in 2020.

The increase in revenue and operating profit estimate is driven by the strong development at the Indian factories and the ramp-up of the factory expansion, that has proceeded faster than expected. Furthermore, the visibility related to the customers’ forecasts and the company’s own assessments of the business development has improved.

The estimates are given provided that there are no major negative changes in the coronavirus pandemic situation, currency exchange rates or in component availability and they are based both on Incap’s customers’ forecasts and the company’s own assessments of the business development.

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