Home >> Uncategorized >> Labour strike pulls Maruti Suzuki’s net profit down 60%

NEW DELHI: The country’s largest carmaker Maruti Suzuki posted a 60% fall in net profit for the second quarter to end September, its worst quarterly earnings in more than a decade and wide off analyst expectations, mainly due to a prolonged labour strike that hit production.

The strike caused loss of production of 28,539 cars and pummelled profits to Rs 240 crore. Maruti had posted profits of Rs 598.2 crore in the last fiscal year.

The company now plans to set up a new facility of around 1 million cars at Mehsana of Gujarat on a 1,400-acre plot it will buy, said Maruti Chairman RC Bhargava on Saturday.

“Gujarat is part of the long-term plan to make cars for the expanding Indian market and exports for the parent Suzuki Motor Corporation. Logistics of moving cars from North India can be shortened and Gujarat is ideal location for that,” he said. The price for the land has not been decided yet.

Gujarat chief minister Narendra Modi’s government is known to be business friendly. The government has earmarked 500 acres in Mehsana for the project, said Bhargava. Maruti has said that along with vendors, it could invest up to Rs 18,000 crore in Gujarat as it aims to produce around 2 million units.

The company, which has manufacturing plants in Gurgaon and Manesar, has a cumulative capacity to make 16 lakh cars a year. Maruti, 54.2% owned by Japan’s Suzuki, said last week it had resolved the unrest at the Manesar plant, which was shut for more than 45 days in the quarter.

The strike happened at a time when the Indian automobile sector was facing a sharp fall in demand due to rising interest rates, fuel and vehicle costs. Car sales in India fell in July in their first monthly decline in nearly three years. They continued to slide in August and September.

Maruti net sales fell 15.7% to Rs 7,540 crore in the quarter with total vehicle sales declining 19.6% to 2,52,307 units from a year ago.

(Sunday Economic Times)

the author

Leave a Reply

Your email address will not be published. Required fields are marked *

  • Contact

    India CSR News Network

    CSR India Corporate Social Services Pvt Ltd

    CIN: U93000CT2012PTC000120

    Registered Office: House No.222, Krishna Vatika, Boirdadar, Raigarh - 496001 (Chhattisgarh) INDIA

    Mumbai: India CSR, 208, Sangeet Palaza, Marol Naka, Andheri East, Mumbai - 400059

    New Delhi: India CSR, M-65, Panther Lane, GK-1, New Delhi

    M: 91 (0) 99810 99555 (Rusen Kumar)

    E: editor@indiacsr.in (Only editorial)

    E: info@indiacsr.in (Only business proposal)

    W: www.indiacsr.in

  • About Us

    We welcome your feedback, comments, suggestions and ideas. We are also interested in finding new data sources, sponsors for our site and our partner sites, and organizations who would like to work with IndiaCSR to help change the world. The website has been founded by stalwarts from the industry and is growing steadily to become an inspiring network of business people working towards the common goal of sustainability. Mission: Our mission is to support practitioners and organizations in building responsible and sustainable business in India and in this way to contribute to sustainable development of societies at large.
  • Privacy Policy

    What is this Privacy Policy for?

    This privacy policy is for this website and served by IndiaCSR and governs the privacy of its users who choose to use it. The policy sets out the different areas where user privacy is concerned and outlines the obligations & requirements of the users, the website and website owners. Furthermore the way this website processes, stores and protects user data and information will also be detailed within this policy.

    read more..

  • Partner with us

    Whether it’s through our B2B or CSR partnership programs, partnering with India CSR can help you to increase business network, build your brand, and expand your reach worldwide. India CSR has always believed in the advancement of information technology & communication, learning, and education, playing a key role within those knowledge communities for generations.

    read more..

Top