Uncertainty to continue for next 12 months: Anant Goenka

MUMBAI: Anant Goenka, MD of RPG Group’s flagship company Ceat, expects uncertainty to continue for the next 12 months, with a Vshaped demand revival after the end to the lockdown seeming rather unlikely in a year that may cause the tyre industry’s business to shrink a minimum 25%.

“There is no specific numbers we can give on the impact on the business. Among many scenarios, the current scenario indicates a 25% dip at least,” cautioned Goenka.

The company is working on multiple scenarios on keeping the business viable even at 20-50% decline in revenues.

“We will not reach normalcy for the next 10-12 months. The larger level economic pain will be there, spending will be much lower, the economy will be much weaker, private investment will be missing for a while - and all these things will change the paradigm of business,” said Goenka. Ceat has assured all its employees that there will no job cuts or salary cuts and the company has already paid wages in full to its contractors and workers.