Manesar strike hits component makers

The strike at Maruti Suzuki’s Manesar plant has not only affected the company, but also its vendors. According to a company executive, a majority of auto parts manufacturers are being hit due to the workers’s strike.

The executive said 10-15 per cent of production had been affected. According to industry insiders, Maruti has 500 vendors, of which 200-250 have been affected by the strike. The majority of its vendors are located in Haryana. Punjab has 24 vendors.

Ludhiana-based G S Auto International Marketing Head Anadi Sharma told Business Standard: “Due to the strike, production has been completely suspended at Manesar. We have decreased the production by 10-15 per cent, so that we can mange the existing inventories." The company supplies suspension components to Maruti Suzuki.

Industry insiders feel the state government and management must find an early solution to the problem, otherwise it would severely hit small and medium enterprises.

They said only those ancillaries, which are major suppliers to the company, have been affected. “We have not been affected as we are not major suppliers to Maruti Suzuki. We are producing iron cylindrical blocks, while Maruti Suzuki uses aluminium blocks in most cars,” said J K Menon, managing Director, DCM Engineering Ltd.

DCM Engineering has a plant in Ropar, Punjab, where it manufactures engine blocks and cylinder heads.

Industry sources said there was a need for reforms in the labour policy and the state government should play a proactive role to address the issues of both the management and workers.