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Escorts Suspends Manufacturing Amidst-19 Disaster

As a precautionary measure, Escorts will selectively temporarily shut down its manufacturing operations between May 1st and 3rd.

Escorts has ceased operations for three days.
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Escorts has ceased operations for three days.

Escorts, an engineering conglomerate that has diversified its business into three different segments: Escorts Agri Machinery (EAM), Escorts Construction Equipment (ECE), and Railway Equipment Division (RED), has decided to cease production as the country continues to have one Record increase in COVID-19 positive cases. As a precautionary measure, the company will selectively suspend its manufacturing operations between May 1st and May 3rd. Escorts has not yet announced a resumption date and the production stop could increase if the situation is not controlled and India continues with the record increase in COVID-19 positive cases.

In an application for approval filed after trading hours yesterday, Escorts made it clear that this will have no impact on meeting customer demand as there is sufficient inventory. The downtime is used for routine maintenance of the plant with employees in essential duties who are present on a rotation basis.

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Escorts is also in the agriculture machine business.


The situation across the country was really dire as the second wave of COVID-19 turns out to be even more threatening and claim more lives. In the past 24 hours, the country has recorded over 3.86 lakh new positive cases and 3,000 deaths, an all-time high for the ninth consecutive year. Seven states have already been partially banned to prevent the spread of this contagious virus, and sales across the industry have taken a blow. Big automakers like Maruti Suzuki and Tata Motors have already closed their production facilities in the middle of the crisis.

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