Officials shifted out of Manesar plant

Two industry bodies gave divergent opinions on the future of investment scenario in India following the violence and vandalism at the Maruti Suzuki plant at Manesar, even as a senior company executive ruled out the option of shifting operations from there.

While the Confederation of Indian Industry (CII) had said on Thursday that the incident will not impact industrial growth in the long run, Automotive Manufacturers Association of India (ACMA) said on Friday that it could negatively impact the investment climate in the country and the growth prospects of the industry.

“While the entire Indian economy is passing through turbulent times, the automotive industry has been a beacon of hope for industrial growth and job creation in the country,” said Arvind Kapur, president of ACMA.

CII Deputy Chairman (Northern Region) Jayant Davar had earlier said: “In the long run, this will not have major impact on industrial environment and growth.”

The industry body on Friday asked the Haryana government to implement steps to protect the plant. “CII strongly recommends that the state of Haryana should administer this effectively and enforce law and order so that such incidence would not be repeated,” said Malvinder Singh, chairman, CII (northern region).

Amid reports that the Manesar plant will be shifted, following successive incidents of unrest, a senior official said the company was instead contemplating expansion of the unit. A TV channel quoted S Y Sidiqqui, chief operating operator (human resources and administration) as saying: “We are looking at expansion at Manesar, not shifting out of there.”

However, Maruti Suzuki India has already started investing in Gujarat and plans to make the state the “Maruti hub.”

The new plant in Gujarat will come up at Mehsana where the company will initially invest Rs 4,000 crore, company sources said, adding that it will be expanded in stages.

The Society of Indian Automobile Manufacturers said moving the plant was not a solution. Condemning the violence, it said issues should be addressed properly so that they didn't recur.