Maruti Suzuki’s top management will review the ongoing probe on the violence at its Manesar plant in a “couple of days” with the Haryana Government, said Mr S.Y. Siddiqui, Chief Operating Officer, Administration (IT and HR).
Almost a week after the clash which left one official dead and 96 injured, five Maruti officials are still in hospital. The two Japanese expats in the ICU, however, have been released.
Meanwhile, the Gurgaon Police has arrested and sent 91 workers for judicial enquiry; has arrested five more; but has only been able to nab one leader of the Manesar plant’s union, Maruti Suzuki Workers Union.
Mr Ravindra Tomar, ACP and Head of the Special Investigation Team set up by the Haryana Government, said: “We’re still searching for the other Union members. An update will be given very soon.”
The carmaker is focusing on rehabilitating the injured. According to the company officials, resuming production will be considered only after the investigation is over.
The Government, which is treating the matter under “criminal proceedings” and not as a case of “industrial unrest,” has appointed Mr K.T.S. Tulsi as public prosecutor to “fast-track” the investigation.
Maruti shares on the BSE were up 2.34 per cent to Rs 1,105.20.
PTI adds : The State Government has asked the company to pay Rs 235 crore to the Haryana State Industries and Infrastructure Development Corporation as enhanced compensation to farmers for land acquisition under a Supreme Court order. The Corporation, in a notice issued on June 25 after a communication in March went unanswered, warned the company that if it did not deposit the amount within three months, the land allotted for the Manesar plant “shall become liable for resumption and further action would be taken.”
A team of top management from Maruti has already met the Chief Minister, Mr Bhupinder Singh Hooda, and the Corporation’s MD, Mr Rajeev Arora.
Festival bonanza
Maruti Suzuki could miss the festive season sales bonanza this year, with the violence at its Manesar facility expected to lead to an almost month-long halt in production.
The festive season usually leads to a 20-25 per cent sales jump for carmakers. It typically starts by late September, continues with the ‘Navratras’ and ends with Diwali (usually in end-October or November). Buyers prefer timing their purchases to this period, as it is believed to be auspicious.
Cars made at the 5.5 lakh unit a year capacity Manesar plant — the Swift, Dzire, SX4 and A-Star — accounted for almost 40 per cent of sales between April and June this year. So, no supply of these will cause a significant dent on Maruti’s sales. The estimated revenue loss on a month of production halt is around Rs 2,700 crore.