Operations resume at M&M's Nashik plant
07 March 2011
Operations at the Nashik plant of automotive major Mahindra & Mahindra resumed today, a day after workers went on a day's illegal tool down strike on Sunday, demanding a wage increase.
The management informed stock exchanges on Monday that it was confident the lost production would be made good soon and it did not expect any material impact in the short-term on sales volumes.
Office-bearers of the M&M Employees' Union have been on an indefinite hunger strike for the past week, demanding a wage hike for about a third of the work force. The company had reached a long-term wage settlement with the unions in 2009 and the next revision is due only in 2013.
The Nashik plant produces about 550 vehicles daily, including Xylos, Scorpios, Boleros and Logan cars.
Last week, the company announced a 20-per cent rise in auto sales in February; the company sold 33,378 auto units in February, as against 27,894 in the same month in 2010. The passenger vehicles segment saw a 16 per cent growth, while the three-wheeler segment expanded by 57 per cent.
The company sold 1,151 Logans, which was a 110 per cent growth over the February 2010 figure. Last month, M&M also launched its new pick-up model, the Genio.
Part of the $7.1-billion Mahindra Group, M&M reported gross revenue of Rs.6,684 crore for the December quarter. Profit after tax climbed by nearly 50 per cent during the quarter. M&M exported more than 5,000 vehicles in the third-quarter of the fiscal, a 50 per cent jump over the previous Q3.
Besides its automotive line – which includes passenger cars, utility vehicles, two-wheelers, three-wheelers and tractors – the company is also present in information technology, vacation ownership, agro-business, aerospace, energy, finance and insurance and real estate.