Maruti Suzuki, the country’s largest car maker was recently struck by a 14 day labour unrest at its production facility in Manesar, Haryana. After that, the company in efforts to derisk its manufacturing operations is scouting for land in Maharashtra and Gujarat. A senior Maharashtra Government official commented that preliminary discussions were held with the company officials to assess requirements for land and other infrastructure. One of the probable options is Khed which is around 40 kms from the Pune city. Other alternative locations are also looked into.
Recently the company had also expressed its interest to set up the manufacturing unit in Gujarat. The official also said that the Maharashtra Government will have to create a customized package of incentives for Maruti Suzuki. The company will then consider the offers from both governments and then take a final decision. If the new facility comes up, it will beneficial for the company in terms of delivering cars to the different dealers in western and southern India. Also the freight cost will be drastically reduced. Another senior official said that in Maharashtra the textile mill strike of 1980s led by Dr Datta Samant, was the only major industrial unrest of the last 30 years. Neighboring Gujarat has not been so lucky; it had its own share of strikes in the past.