1. Maruti Udyog Limited
Manesar (Haryana) - A Menace
Presented by :- Dipesh Agrawal
PGDM-03-NMIMS
2. Overview of Company
• Maruti Suzuki has been the leader of the Indian car
market for over two and a half decades.
• The Company enjoys automobiles sector with 52% of
market share.
• The company has two manufacturing facilities located at
Gurgaon and Manesar (Haryana).
• Both the facilities have a combined capability to produce
over 1.5 million vehicles annually.
• The Company offers 15 brands and over 150 variants.
3. Incident–A Brief
• The incident is described as an “absolutely unforeseen
event”.
• The violence claimed the life of General Manager (HR)
Awanish Kumar Dev.
• The incident also left about 90 officials and supervisors
injured.
• The disaster partially burnt down the plant and forced its
lockout.
• Senior officials were attacked with unfinished car
parts.
4. Cause
• There was a recognized labour union named Maruti
Suzuki Kamgar Union (MSKU).
• Demand to establish new union called Maruti Suzuki
Employees Union (MSEU).
• Creating serious defects in quality to fail the compulsory
vehicle inspection (VI) test.
• Deliberate attempts to reduce output.
• It was the result of political interference with the help of
unions.
5. Impact on Company
• Operations were stopped for a month.
• The overall loss is estimated to be over Rs 1,500 crore.
• It accounts for about a third of Maruti’s total production.
• Fear of insecurity to employees and their family.
• Problem of lack of labour resource.
6. Impact on Economy
• Large labour force has been unemployed.
• The lockout is costing nearly 80 crores a day which also
contributes to GDP.
• Balance of trade has also been affected .
• It has also led huge loss to country resources .
• Disturbance in the country affecting the public.
7. Conclusion
• It was a spontaneous outburst of emotion.
• It is not at all beneficial to anyone ,from whichever
prospective.
• Unions resist the change and dominate the
management.
• Flexibility in labour laws should be allowed.
• Instead the workers would have chosen some other
peaceful ways to express their unhappiness.
