Maruti Suzuki India: Quotes, News

BSE 12630.95122.65 (-0.97%)

NSE 12631.00122 (-0.97%)

On Monday (August 29) the production at the plant had halted as there was a standoff between the management and the workers over the signing of the bond.

"The ground work for preparation of a resumption of production was laid over the last 2 days and today we have been able to restart production," a company spokesperson said.

It was further added that the company has managed to produce 60 cars, that were a mix of Swift and A star. The spokesperson said, "There are 500 people working here. We would slowly ramp it up further."

To resume the operations of the company, the company has got 120 skilled professionals to Manesar. Additionally 50 engineers have been deployed from its Gurgaon plant, and 290 supervisors are also working at Manesar. Combined the total workforce is over 500. This workforce will be deployed in phases over the next few days.

The Manesar unit of Maruti Suzuki saw production halt on Monday when 21 employees were suspended and dismissed on charges of Sabotaging production and quality of its cars. On top of this all workers were asked to sign a good conduct bond.

Two days of production loss has already cost the company a revenue loss Rs 120 crores and a production loss of approximately 2,400 cars.

In a 13-day strike in June the company had suffered production loss of Rs 13,000 cars a revenue and a loss of 720 crore in June.

Meanwhile workers who do not sign the bond of good conduct were not allowed to enter the factory. The company also terminated or suspended services of 49 workers.

According to reports no talks have been initiated by the management with the workers. Also no notice was served to workers before they were suspended or fired.

VIEW: There can be a small pull back in the stock but we would not recommend any stock at this point as there is still a chance that the stock would see some major correction.

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