Bajaj Auto may shift 50% of Pulsar bike production to Waluj

Bajaj Auto plans to shift 50 percent of its Pulsar bike production to Waluj plant in Aurangabad if the strike at Chakan plant which entered the 41st day today is not called off by workers, Managing Director Rajiv Bajaj told CNBC-TV18 today.

“Our decision next week will be to consider that for at least the foreseeable future 50 percent of production; that is 1500 per day will be permanently embedded into the Aurangabad plant,” Rajiv said.

The two-wheeler maker has already shifted almost one-third of its total production out of Chakan plant. Out of total capacity of 3000 unit, the company currently produces 1000 bikes from Waluj. Rajiv explained that as the company had already shifted the production to Waluj Pulsar bike output was not majorly impacted.

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The workers at Chakan plant went on a strike with demand for wage hike and Employee Stock Options towards the end of June. The company has had five meeting with labour commissioner so far. On July 17, Bajaj Auto had rejected labour union's demand for allotment of Employee Stock Options. However, the company was ready to discuss other issues that the union has raised, including reinstatement of suspended workers.

Bajaj Auto has taken back seven of 22 suspended workers at Chakan, Rajiv said. Even as an investigative committee could take up to three months to decide on disciplinary action against 15 out of 22 suspended workers, Rajiv announced a back up plan only to meet its export commitments.

Bajaj Auto had recently announced a plan to launch a slew of Discover bikes starting July-August timeframe considering the upcoming festive season. He hopes to move 100 percent of production back to Chakan, but at the moment the company is trying everything it can to maintain production targets.