Lock-down for Incap’s factories in India extended
The Karnataka state government has extended the intensified measures and the lock-down until 7 June 2021. However, Incap has been granted a permission for partial operations to support the manufacturing of critical electronic equipment including applications for healthcare.
It was on the 10th of May that Incap had to temporarily close down its factories in Tumkur until 24 May 2021. The temporary closure was related to the Karnataka state government’s intensified measures against the coronavirus pandemic. The EMS provider says that it continues its close co-operation with the Karnataka state government and follows the instructions announced, Incap expects that the factory will be back to normal operations by 7 June 2021, a press release reads. The closure and the partial operations of the factories in India is not expected to have an impact on the company’s outlook for 2021. Incap estimates that its revenue, operating profit (EBIT) and adjusted operating profit (EBIT) for 2021 will be clearly higher than in 2020. The increase in revenue and operating profit estimate is driven by the strong development at the Indian factories and the ramp-up of the factory expansion, that has proceeded faster than expected. Furthermore, the visibility related to the customers’ forecasts and the company’s own assessments of the business development has improved.