Hope takes wings for Ancillaries

As Maruti Suzuki India Limited's Manesar unit gears up to start production on Tuesday, spare parts manufacturers have finally heaved a sigh of relief. The plant had been locked down after a labour unrest last month that left one senior executive dead and about 100 injured. The shutdown had adversely affected more than 500 automobile parts makers in the Gurgaon-Manesar-Bawal auto hub.

As Maruti Suzuki India Limited's Manesar unit gears up to start production on Tuesday, spare parts manufacturers have finally heaved a sigh of relief. The plant had been locked down after a labour unrest last month that left one senior executive dead and about 100 injured. The shutdown had adversely affected more than 500 automobile parts makers in the Gurgaon-Manesar-Bawal auto hub.

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With no fresh orders, production schedules at most units had gone haywire. Profits had dipped and several ad-hoc labourers had to be laid off.

"Finally, a new order schedule has been released. We look forward to make up for the huge losses we have suffered due to the Manesar production halt," said Dinesh Yadav of the Manesar-based DSC Auto Engineering which makes ball pins for steering wheels in Maruti cars.

"I had lost more than 60% of my business amid the demand slump," he said,

Units that produced auto parts for MSIL had to severely cut down on working hours too.
"Earlier, employees used to work three shifts but we had to cut it down to one since there was no demand," said another sub-vendor.
Production at most ancillaries in Udyog Vihar declined by 60-70% with several units reporting losses due to piled up of inventories. Nearly 2,50,000 workers, associated with MSIL directly or indirectly, have been affected by the lockdown.