One of India’s largest industry house Chairman has warned his CEOs of the impending recession and has suggested them to consider following measures:
- Draw down all loans/lines of credits from banks and institutions to max. extent possible
- Conservation of cash to max. extent possible
- Expeditiously finalize pending loan and funding agreements, even if they involve accepting higher interest rates.
- Put on hold any plans for acquisition (unless strategically critical)
- Aggressively implement restructuring of internal cost framework
- Defer non-essential capex and capacity extension.
(click on the image for a better resolution)
While it’s not really important to disclose the company name, the only context about them is that they have the ability to raise funds in no minutes – and the chairman is now talking about lines of credits/difficulty in raising funds/defer acquisition plans etc.
Startups – brace yourself for some tough times!
This is very interesting and might cause panic, but we all know that this is one of the biggest recessions that US has seen in the last eighty years (sources confirmed this) and the credit line from India somehow reaches US for all our major ventures.
We have all foreseen this but I still believe that India Inc. can see this off and come out less dependent on the dollar.