The indefinite lock-out declared at the Tiruvottiyur plant in Chennai is expected to hit the company’s topline as well as bottomline significantly, said KM Mammen, chairman and managing director, MRF.
The quantum of hit, however, will not be gauged at this point of time. Discussions are on between the management and labour union leaders, he said. A few round of talks held earlier between both the parties, ended up being futile.
“Since the Chennai plant is one of the major plants for the company and contributes substantially to exports (majority of the production for export markets), the ongoing lock-out will hit both topline and bottomline badly,”
Mammen said. The plant exports its products to over 65 countries, contributing 10% of the company’s turnover of Rs 5,000 crore.
Speaking after unveiling the company’s Formula 1600 car here on Saturday night, he said, “We are trying to makeover the lost production of Chennai plant through our other plants.”
On being asked whether the company will take back those workers who have been suspended for their alleged erring activities, Mammen said, “It all depends upon what kind of offences they have committed. If it is unpardonable we have to look into it,” he added.
The company expects the state government to allocate 500 acres of land at Trichy, for the new plant soon. The company will be investing Rs 500 crore, which will be scaled upto Rs 900 crore in phases. The proposed plant will have a test track too, he added.