Go-slow at Omax Auto hits Hero

Labour unrest at two factories of auto component firm Omax Autos at Dharuhera in Haryana has led to disruption of supplies to various manufacturers, including leading two-wheeler manufacturer Hero MotoCorp.

The Gurgaon-based company, which supplies over 90 per cent of the components it manufactures to Hero MotoCorp, alleged that its workers are slowing down production to demand increase in salaries and confirmation of jobs.

"Since last week, the workers have deliberately slowed down the production at our two factories in Dharuhera. It has led to over 35-40 per cent decline in daily dispatches. Supplies to major customers like Hero MotoCorp is also hit," Omax Autos AVP Operations and Plant Head Dharuhera Suresh Sharma said.

He said Omax Autos supplied components worth Rs 1.1 crore per day earlier, which has now come down to around Rs 80 lakh per day to Hero MotoCorp since the workers started slowing down production. The company supplies components such as sprockets and tubular parts to the Hero MotoCorp. Comments from Hero MotoCorp could not be immediately obtained.

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