Ancillary units lose R1,700 cr on Maruti plant lockout

Written by Rajat Arora | New Delhi | Updated: Aug 20 2012, 07:19am hrs
As a result of the month-long lockout at the Maruti Suzuki Indias Manesar plant, ancillary units have suffered an accumulated loss of around R1,700 crore, according to the NCR Chamber of Commerce and Industry (NCCI).

There are around 3,000 micro and small and medium units, including sub suppliers, which are directly or indirectly related to Marutis Manesar plant. All of them have suffered a huge set back and have incurred a loss of around R1,700 crore after the lock out. These small industries are mostly based out of Gurgaon, Manesar, Rewari and Faridabad, said HP Yadav, president, NCCI.

With losses mounting and their units running to almost half their capacity for a month now, the suppliers are now expecting increased volumes after the plant starts operations. Around 200 units are directly supplying parts to Maruti whereas the others, including logistic firms, are indirectly depended on these firms.

The plant is expected to start functioning partially from August 21, so it will take time for operations to start in full swing. We hope that in September volumes would increase and well be able to make up for the losses incurred, said one of the vendors of Maruti, who didnt wish to be named.