As China scrambles to contain the country’s worst outbreak of COVID-19 since early 2020, mobility restrictions have added to the chaos in the global supply chain. China has imposed stay-at-home orders on millions and slapped lockdowns in several parts of the country, which could impact production in India.
"There is a delay of a week in imports from Shenzen and the delay of imports could impact production here in April," said Atul Lall, Managing Director (MD), Dixon Technologies in an exclusive interview with CNBC TV-18.
Also Read: Dixon Technologies: Growth holds up, margin feels the heat
Electronics and auto companies may reduce output from April 2022 as supply of parts to India from China could be delayed by 10-15 days.
He added that there is a supply disruption in LED televisions as the shipments have been delayed by a week or so. However, he is also optimistic of normalcy getting restored soon.
"Our facilities in China are not under complete shutdown, but going through a slowdown. Normalcy for shipments may be restored sometime later this week - in four-to-five days," added Lall.
On the company's inventory in its goods, Lall said that there is an inventory for 15-20 days for mobile and television.
The export market for mobiles is significantly strong in China and the supply side of mobiles has not taken a hit so far, however the situation is under lens, according to Lall.
At 10:52 am, shares of Dixon Technologies were trading 2.15 percent lower at Rs 4,410.25 apiece on the BSE.
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