No major loss after Maruti's 13 day strike, says Rico Auto

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No major loss after Maruti's 13 day strike, says Rico Auto

Arvind Kapur, managing director, Rico Auto Industries talks to CNBC-TV18 about the latest happenings in his company and the auto ancillary sector.

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Arvind Kapur, managing director, Rico Auto Industries talks to CNBC-TV18 about the latest happenings in his company and the auto ancillary sector.

Below is a verbatim transcript of his interview with CNBC-TV18's Sonia Shenoy and Reema Tendulkar. For complete details watch the accompanying video.

Q: Could you tell us on account of this 13 day strike at Maruti , how much of your production was affected and also if you could quantify it in terms of an amount?

A: We have wide range of customers and Maruti is one of our customers. In Maruti itself they have got two plants, one is in Gurgaon and the other is in Manesar. Almost 90% of our supplies are mainly to the Gurgaon plant and its only 10% which goes to the Manesar facility. I am sure after they start production again, they are going to recover and they will get back to the total volumes that they have actually promised at the beginning of the year.

Q: How much did they promise at the beginning of the year and assume they are not able to scale up; could you give us an idea of how much is lost?

A: We supply 1% of our turnover and 1% we would lose about 13 days of that so that's what the loss would be.

Q: There was a threat that the All India Trade Union Congress (AITUC) and the Centre of Indian Trade Unions (CITU) would spike up and then would cause some of the other auto ancillaries to also spiral out of control. Has the entire situation been calmed over there?

A: Yes, things are absolutely normal in all the plants. We have checked up at various plants and productions are normal. I don't think that's going to happen but lets wait and watch. By evening the situation would be clear but I don't think there would be any issues because the Maruti issue has been settled.

Q: You supply to other OEMs as well. Has there been any kind of production loss over there for your supplies?

A: No, not at all in fact Hero Honda has done exceptionally well and our exports are doing very well. The other customers like Tata Cummins and others despite there being a slowdown as far as some commercial vehicles are concerned, especially, the smaller ones, Tata Cummins is doing exceedingly well. Their demand is more than what we have been supplying normally.