All eyes on Maruti as Manesar plant sets to reopen today

Maruti Suzuki stock will be everyone’s focus today, as the lock-out at Maruti’s Manesar plant will end today, reports Ronojoy Banerjee of CNBC-TV18.

The production at Maruti’s Manesar plant is all set to resume after more than a month of closure due to violence. The company has announced that they will be producing only about 150 cars, which is less than 1/10th of their original capacity.  Around 300 workers mostly permanent would be reporting to work today but the big question is that is this sustainable given the fact that the company is resuming production under very heavy security cover, which is unprecedented in the Gurgaon-Manesar belt.
In this week, Osamu Suzuki the chairman of the company is slated to visit India and among the key things that will be on his itinerary would be to meet Narendra Modi, chief minister, Gujarat. In the meeting, ways and means to bring forward the date of the commissioning of the Gujarat plant would be discussed.
It is clear now that Manesar facility is unlikely to see it pull or production start any time soon. The company earlier said that they will look to hire more workers in September but at this point in time, less than one-tenth production given the kind of competition it is facing; it does not look like a sustainable model.