Maruti Manesar woes: How much will it impact co?

According to Mahantesh Sabarad, senior analyst at Fortune Equity India, the  production loss would be close to 7,000-8,000 units per week.

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Below is the edited transcript of his interview with CNBC-TV18's Udayan Mukherjee and Mitali Mukherjee.

Q: It is again the same plant where the key categories for Maruti are rolling out, Swift Dzire and Swift. What kind of impact can the company face compared to what happened the last time around, when there was a strike?

A: If you look at last time around, there was a different set of agitation. The workers were agitating for their demand. One of the key demands was recognition of their union. This time around this seems to be kind of a flash strike where in tempers flared up and there has been a strike. Whether you call it a strike or a lockout, the production has halted.

Difference is that this time around there will be little stand off, unlike last time where some negotiations were going on. What is the impact? It literally depends on how many number of days the plant is shut down.

Q: Can you quantify it on a per day kind of loss in volume at the Manesar plant?

A: If I were to look at the per day production, then it was close to around 1,500 vehicles per day. If we look at week’s period of disruption or production halt then typically you will have some days where you will have a buffer stock to take care of a ramp up later on. So, we would estimate per week production loss of close to 7,000-8,000 units. So, that’s the kind of impact that we might see.