The document summarizes a violent incident that occurred at Maruti Suzuki's Manesar plant in Haryana, India. The incident resulted in the death of the General Manager and injuries to 90 officials after they were attacked by workers. The violence partially burned down the plant and forced its closure for a month, costing the company over $22 million. The incident is believed to have been caused by tensions between recognized unions and demands for a new union at the plant.

1. Maruti Udyog Limited
Manesar (Haryana) - A Menace
Presented by :- Dipesh Agrawal
PGDM-03-NMIMS

2. Overview of Company
• Maruti Suzuki has been the leader of the Indian car
market for over two and a half decades.
• The Company enjoys automobiles sector with 52% of
market share.
• The company has two manufacturing facilities located at
Gurgaon and Manesar (Haryana).
• Both the facilities have a combined capability to produce
over 1.5 million vehicles annually.
• The Company offers 15 brands and over 150 variants.

3. Incident–A Brief
• The incident is described as an “absolutely unforeseen
event”.
• The violence claimed the life of General Manager (HR)
Awanish Kumar Dev.
• The incident also left about 90 officials and supervisors
injured.
• The disaster partially burnt down the plant and forced its
lockout.
• Senior officials were attacked with unfinished car
parts.

4. Cause
• There was a recognized labour union named Maruti
Suzuki Kamgar Union (MSKU).
• Demand to establish new union called Maruti Suzuki
Employees Union (MSEU).
• Creating serious defects in quality to fail the compulsory
vehicle inspection (VI) test.
• Deliberate attempts to reduce output.
• It was the result of political interference with the help of
unions.

5. Impact on Company
• Operations were stopped for a month.
• The overall loss is estimated to be over Rs 1,500 crore.
• It accounts for about a third of Maruti’s total production.
• Fear of insecurity to employees and their family.
• Problem of lack of labour resource.

6. Impact on Economy
• Large labour force has been unemployed.
• The lockout is costing nearly 80 crores a day which also
contributes to GDP.
• Balance of trade has also been affected .
• It has also led huge loss to country resources .
• Disturbance in the country affecting the public.

7. Conclusion
• It was a spontaneous outburst of emotion.
• It is not at all beneficial to anyone ,from whichever
prospective.
• Unions resist the change and dominate the
management.
• Flexibility in labour laws should be allowed.
• Instead the workers would have chosen some other
peaceful ways to express their unhappiness.