New Delhi, Aug 27 (GCBusiness) Welcoming a slew of measures announced by Union Finance Minister Nirmala Sitharaman to revive the economy, Vishal Sharma, Managing Director of ElconConnectors Cables Pvt Ltd on Tuesday said here it would help Indian economy and improve liquidity situation.
‘The measures taken by the government will help boost the India economy. Now, an auto loan will be cheaper and the government’s announcement of an upfront capital infusion of Rs 70,000 crore in public sector banks (PSBs) will improve the liquidity situation,’ Mr Sharma, who has more than a decade experience in the automotive sector, told UNI.
Talking about India’s target of five trillion economy, he said ‘ if India needs to achieve the target, our GDP needs to grow at more than nine per cent rate and I think the government is doing its job’.
He was speaking on the sidelines of an event in which ElconConnectors, the country’s leading component manufacturer announced its joint venture with Indonesia’s PT Banshu Group and PT Askara Internal to manufacture Wiring Harness in India.
‘Government is taking new initiatives to achieve its five trillion economy target. They scrapped enhanced surcharge on FPI (Foreign portfolio investors). I believe we get more investment through FDI and FPI policies to achieve the target,’ he said.
‘Just after a few days of the announcements, we are getting some good indications like yesterday Sensex jumped 793 points, or 2.16 per cent, to close at 37,494, which was the second biggest single-session gain in this year,’he said, adding that a transfer of Rs 1.76 lakh crore from the RBI to the government would help the Centre to boost economy.
Under the agreement, the companies had announced an investment of Rs 20 crore to construct a state-of-the-art 45,000 sq ft the manufacturing facility in Greater Noida.
‘This facility will also house an extensive Research & Development (R&D) center. The new company will be called Elcon Banshu Wiring System Pvt. Ltd (EBWS) and shall manufacture customized Wiring Harness for all the Automotive OEMs,” the company said.
“The Indian automobile sector is set to grow in the coming years and vehicles manufactured in India will amongst the best in the world which will require the best components. Our focus to establish EBWS as quality supplier as per BS6 standard and contribute to OEMs as an engineering partner, Mr Sharma further said.
Speaking on the occasion, Deddy Harsono, Owner & Director, Banshu Indonesia, said ‘Owing to the Bharat stage VI emission regulations, which will come into force by 2020 and become mandatory, there will be a significant potential and opportunity for wiring harness manufactures who can supply quality products? Banshu has more than 20 years of experience and has a team of engineering experts working dedicatedly on developing the technology for a wiring harness for over a decade and we have found mutual growth opportunities.’
Akihiko Yoneda, President Director, PT Banshu Electric Indonesia at the occasion stated, “I am truly pleased to announce the creation of this Joint venture, which will enable us to reach a wider market and cater to the demand of one of the fastest growing automotive markets. The demand for the 2-wheelers in India by 2020 is estimated to be 21 million units, we are gearing up for this future demand.”