Maruti has been suffering because of strikes and it has brought a bad name to a good brand. Maruti in an extreme scenario, may exit completely from Manesar and shift to Gujarat.
The logic behind above assumption is that it has signed a pact in June with the Gujarat government to buy 700 acres of land near Mehsana to set up a factory. It is estimated that Maruti will spend around Rs 4,000 crore and commission the factory by 2015/16.
Maruti wants to continue operating from Manesar as its Manesar plant rolls out Swift, Swift Dzire, SX4 and A-star models from two assembly lines. A third line is in an advanced stage of completion and is expected to be operational by 2013.
"It takes a long time to replicate it anywhere else," he adds. In addition, the proximity of the Gurgaonand Manesar facilities gives Maruti flexibility in manufacturing and change the product mix in line with demand.
Thus it is in the interest of striking employees to have a peaceful settlement with Maruti as well as it is in the interest of Haryana to keep Maruti under its belt failing which it will be sending very negative signals to the global investing fraternity.
Now the onus lies on Bhupinder Hooda, CM Haryana that how he is able to handle the situatthe interest of Haryana.
