Micro, Medium & Small Scale Industry
Sector Update

Incident at Maruti Plant in Manesar to have Advese Impact on the Ancilliary Industry: Deep Kapruria, Chairman CII National MSME Council

The MSMEs in the Supply Chain for Maruti plant are likely to face the ‘adverse’ trickle down effect, both in terms of their capacity utilisation and employment, as a result of the shutdown at the Maruti plant in Manesar, after last week’s unrest, said Mr Deep Kapuria, Chairman, CII National MSME Council.

He added that the shutdown is likely to result either in piling of inventories, or rendering excess labour, that are not conducive to the healthy growth of the MSMEs in the Gurgaon – Manesar industrial belt, along the Delhi Mumbai Industrial Corridor.

It may be noted that MSMEs will contribute significantly towards the development of Delhi Mumbai Industrial Corridor project, however such an unfortunate incident may not only lead to an erosion of investors confidence, but also undermine the relations with the labour unions, said Mr Kapuria.

The entire Autocomponent Supply Chain (dominated by the MSMEs), that  wrote the Maruti Success story is at the edge of a major crisis. The need of the hour is to build a consensus among all the stakeholders to ensure that the production at the Maruti plant is back on track, at the earliest, failing which the problem would only aggravate. At the same time let the law of the land take its course for bringing the culprits to book, and restoring the confidence of one and all concerned.

CII would like to reiterate that both the Union and management of Indian manufacturing should learn from Maruti incidence and take appropriate steps to prevent loss of valuable man-hours and ensure desirable economic growth.

According to estimates the lockout is expected estimated to be costing the company Rs 90 crore every day. It has already been two days since operations here first came to a halt, and according to the company''s latest statement, there is still no certainty as to when the production will finally resume.