Monday, 20 August 2012

Maruti's love affair with Manesar

Maruti was the name of the car of a middle class guy and for some it still is. Maurti Suzuki ltd in all its lifetime has been one of the pioneering figure in Indian Car industry somewhat like a Dravid but now has been upstaged by the Kohlis & Rainas of this world.
Add to that the injuries and by injuries I mean the damages & conflicts it has been suffering for some time now especially from Manesar - the heart of Maruti Suzuki Ltd.
So when I write this episode, firstly I remember my Ecommerce professor who have been using this example as a part of his discussion and we did not understand the depth of it. Well now I do.
So the current scenario is bad. Conflicts, damages, deaths, plant shutdown, share prices down and what not. But was it the same all along ? The Maruti-Manesar love affair is long one. Since 2007, Maruti is enjoying this live in relationship and the oodles of romance followed.
And like those naughty vendors who disturb the romancing couples in gardens, the vendors of all bought out components fr Maruti cars just dwelled on the outskirts of Manesar to facilitate the relationship. Seats, glass, steering systems, electronic units, radiators .. you name them and the companies which make them are there.
About 70 percent of Maruti's 200 odd vendors are based in Gurgaon-Manesar belt. Its like for your ration, they have ten odd baniyas at their disposal then whos going to go to the mall for shopping.
Year after year the fruits of relationship (read as new car models) came into this world and the car industry accepted then with open hearts and stamped them as legitimate. The infrastructure which Maruti has built  is impossible to replicate in short period. Plans are made with a view till 2013.
But now is the time of domestic violence where the important cog of this relationship i.e. the trust has gone for a toss. And there stands this Gujju with open arms and strong infrastructure arms to steal Maruti from the clutches of Manesar.
So then how will Maruti fare in this new relationship ? The deal is struck. 700 acres of land near Mehsana and forecasted spending of 4000 crore rupees by 2015-16. But the love still persists. The management is not in favour of shutting the plant down although it has been shut indefinitely for now. The major factor is the skilled labour availibility as any local found is interested in partnership and not to work for them. Silly Gujarati business mind cheapshot.
But the fact still remains. Maruti to Gujarat FC from Manesar FC is like that interesting transfer which the entire Indian Political environment is watching. It almost seems that the transfer papers are signed and Maruti just needs to go for a medical. #FootballingMetaphor

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