Investors are eagerly looking at Maruti Suzuki stock as the India’s biggest car manufacturer is resuming production at its riot-hit Manesar, Haryana-based plant today, August 21.
The Manesar plant remained locked for more than a month in wake of a large-scale riot by workers. The manufacturer had announced an indefinite lockout at the riot-hit plant on July 21 following the worst ever violence in its history on July 18, in which one senior official lost his life and nearly 100 others received severe injuries.
The company has declared that the plant will operate in just a single shift. Maruti Suzuki India COO S Y Siddiqui said, “We are reopening the plant with 300 workers. With this workforce, we will operate just a single shift from 8 am to
The manufacturer will initially produce 150 cars daily, less than 1/10th of its original capacity, with 300 workers. The plant will start production with two very popular cars, viz. Swift and Dzire. The production of the SX4 and A-Star vehicles will be resumed soon after.
The shut down has cost the company an estimated of $100 million in damage to property and machinery, and nearly $256 million in revenue.
The production is being resumed, but given the fact that the company is resuming production under very heavy security cover, many still doubt that the production will be sustainable.