Maruti hoping to re-open Manesar

With state government support, Maruti hopes to re-open operations at Manesar even as suppliers await more indications of a return to normalcy.

The dark clouds of labour strife hanging over Maruti’s Manesar plant are expected to blow over soon. The carmaker is considering re-starting production by August 16, say sources who spoke to our sister publication Autocar Professional. The lockout at Manesar continues to have a cascading effect on around 650 ancillary units in the Gurgaon-Manesar-Dharuhera industrial belt that employs over a million workers, many of whom are contract workers besides those employed by the 270 parts suppliers in the vicinity. 

Meanwhile, P K Gupta, additional chief secretary, Haryana Labour and Employment Department, has confirmed that the state’s chief minister in his meetings with the top management of Maruti as well as subsequent official level meetings, has pushed for restoration of production at the Manesar plant at the earliest.

The lockout is costing Maruti about Rs 90 crore a day with the Centre and state government together losing Rs 15 crore daily from excise revenues and other duties, according to Assocham secretary general D S Rawat. As a result of the lockout, daily production of 1,600 to 1,700 units of Maruti’s popular models have been affected. The Swift, Dzire, A-star and SX4 are manufactured at Manesar and account for 30 to 35 percent of Maruti’s total production. The backlog for the Swift and Dzire has already climbed up to 120,000 units.