Maruti Suzuki's second plant to start in Manesar

Stocks

oi-Monika Nihalani

By Monika Nihalani

Published: Friday, September 2, 2011, 12:47 [IST]

Maruti Suzuki speeds up the construction of its another plant in Manesar so as to accelerate production and meet revenue targets. The new plant which was scheduled to start in late September will be in operations within two days.

The new plant has set up with an investment of Rs 1,700 crore and likely to produce 30-40% more units than its existing plant.

The production at its existing plant had halted for two days i.e. on August 29 and August 30 as there was a standoff between the management and the workers over the signing of the 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.

The plant had been the middle of many controversies since June when a 13-day strike by its employees had halt the production of cars at the plant.

Though the company had resumed work at its existing plant, but standoff between the management and the workers still remain. The construction activities were accelerated over its new plant as the company aims to cover up the losses occurred over two days.

To resume the operations of the company, the company on Wednesday has appointed 120 skilled professionals to Manesar. Additionally 50 engineers have been deployed from its Gurgaon plant, and 290 supervisors are also working at Manesar.

"Since the company is short of manpower at this stage, starting operations at this second plant will be a shot in the arm for the company. In all, the company now has 680 trained and experienced people available for production. All these people are being deployed to start and scale up production at the plant," said a Maruti Suzuki spokesperson.

The company will continue the recruitment drive for trained workers in order to normalise production in coming days, the spokesperson added.

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