Despite strike at Chakan, Bajaj meets production target

The Chakan plant, which produces the KTM and Bajaj brands, is at present operating with manpower little more than half its total strength

Despite a partial strike at its Chakan plant near Pune that will complete a month later this week, Bajaj Auto Ltd achieved 100 per cent of its production requirement on Monday.

Improved participation by workers over the last several days and shifting of production to another plant helped India's second largest two-wheeler maker to meet the output target.

The Chakan plant, which produces the KTM and Bajaj brands, is at present with manpower little more than half its total strength. From two bikes a worker, the company has increased output to 2.6 bikes a worker.

“Today, 757 workers have reported to work and we will produce 2,000 vehicles at Chakan and 1,100 Pulsars at Waluj; 100 per cent (Chakan and Waluj) of our requirement of all brands of the Pulsar, Avenger and KTM is achieved,” the company said in a statement.

Striking workers had paralysed production at the Chakan plant on June 25, demanding higher wages, resinstatement of sacked workers and discounted rates on equity shares. Though the Bajaj Auto management agreed to discuss the wage issue, it has declined to entertain the demand on allottment of shares.

Since the strike began, Bajaj Auto has lost more than 20,000 units in production though the company clarified that it has not faced any difficulties in meeting consumer demand as it had an inventory for four-five weeks.

The company moved one-third production of the Chakan plant to Aurangabad. The Pulsar range began to be produced at Aurangabad little more than a week after the strike began. Production of the KTM range remained at Chakan.

The Chakan plant employs 1,500 workers and has a peak operational production capacity of 4,000 units per day. However, the company had been operating at 3,000 units per day to meet its requirements.

The stock of Bajaj Auto gained 0.95 per cent on Monday to close at Rs 1,985.65 on BSE, while the benchmark Sensex closed 0.05 per cent higher at 20,159.12.