Maruti Suzuki's attempts in vain, as a further 4% decline recorded

Thursday 13 October 2011, 11:57 AM by

Even as the festive fervour has come as a silver lining for the constantly deteriorating Indian auto industry, one car maker still finds itself entangled in the adversities. The car maker is none other than Maruti Suzuki India, which continues its abysmal performance with a recent fall of over 4 % as suggested by trade reports on Monday. The decline was registered after the company used its authority to overcome the errant working conditions, by sacking 15 workers and suspending 10 others. Maruti Suzuki had also dismissed 10 workers yesterday, terminated 5 trainees and suspended 10 employees on the pretext of "the strike and violence at the Manesar factory premises".

As a part of the ramifications, shares of the company suffered a decline of over 4.32 % on the Bombay Stock Exchange (BSE), and 4.18 % and above on the National Stock Exchange (NSE), lowering the value of its share. The cost of a share has gone down to Rs. 1,065 and Rs. 1,066.60 for Bombay Stock Exchange and National Stock Exchange respectively.

The stock, however, recuperated from the worrisome nosedive and according to the last reports that came in, it was trading at Rs. 1,082.30 on the BSE, down 2.77 %, and at Rs. 1,083.75 on the NSE, down 2.65 %, at 1045 hours.

The lowering trend that prevails for Maruti currently, deserves immense attention, in the wake of the overall market being blooming for quite some time now. The auto market has risen with the 30-share Sensex trading at Rs. 16,342.91 points, up 110.37 points, and the wide-based Nifty 37.70 points higher at Rs. 4,925.75.

Maruti Suzuki
Maruti

According to an official statement released by the company, the no-production phase that became an inevitable part of the company was even followed by violence. And as a result, the terms of the agreement signed by the workers with the company management on 1st October, in the presence of Haryana government officials, was flouted.

Maruti Suzuki India Limited said that its primary concern is that of the safety and protection of people, as well as the plant and machinery. In the recent happening, the company "rescued" another 100 workers being "held under duress" by the protesting workers in the factory.

Workers at the Manesar plant were reluctant to end the stay-in strike on Friday afternoon, further deteriorating the production process. There were around 2,000 workers that actively participated in the stay-in strike inside the Manesar plant.