Tuesday, June 07, 2011
By Pranjal Gera
Maruti Suzuki faces $20 mn loss
India’s largest car maker-Maruti Suzuki is facing a loss of about $20 Million, since its ¾th workers have gone on strike, which began last Saturday. A steadfast source of the Company, requesting ambiguity, said the company at Manesar Plant in Haryana has lost production of 1800 units so far.
On Monday, Maruti Suzuki sacked 11 of its employees who were purportedly the master brain behind the strike. Mr. R.C.Bhargava, the Chairman of the Company, said, “This is an illegal strike. The workers will have to face the consequences. But we are ready to meet the demands of the workers in the next month’s election.”
The workers are demanding separate union as they don’t want to be allied with the Gurgaon Union. They say we are being forced to do so. Subsequently they did a 2 hour tool-down on Saturday.
Manesar plant can put with the production of 3.5 lakhs units annually.2 new units are being installed at this plant which can produce 2.5 lakhs units annually at the cost of 3,625 crores.
The last time when MSI faced a major strike was for 3 months, from November 2000-January 2001. This strike has come when Maruti sales have increased by 1.9% as against the sales of May 2010. This made MSI rise on BSE at 0.67%. But due to the strike, Maruti Suzuki India’s share was down by 1.67%.
But the company said there wills barely any concern on the sales and delivery of the cars.
