M&M mulls shifting production from Nashik unit

Facing a difficult situation due to the strike by workers at its manufacturing facility in Nashik, auto major Mahindra & Mahindra (M&M) is believed to be considering shifting production to other sites.

"Options are being considered to shift the production to other sites," a company source said today but no official confirmation could be obtained.

Production at the company's Nashik facility, which makes about 500 vehicles daily, was affected for the third consecutive day today because of the strike by its 4,000 workers demanding the reinstatement of an office-bearer of the employees' union.

The workers have gone on strike "in response to disciplinary action initiated against an office-bearer of the employees' union", the company said.

Meanwhile, the suspended employee Madhav Dhatrak, president of the internal union, said that the tool-down strike would continue until the suspension order is withdrawn and other demands fulfilled.

The Nashik plant produces M&M's flagship Scorpio and utility vehicles Bolero and Xylo, besides rolling out Mahindra Renault's sedan Logan.

The plant has an annual production capacity of 1.5 lakh units.