Maruti Suzuki: How critical is Manesar facility
· The violence at Maruti Suzuki's Manesar plant stalled production on Wednesday. The plant accounts for a third of the production capacity for the largest car maker in the country.
· Here are pointers that explain how important this facility is for the company:
· The Manesar facility has a capacity of 550,000 vehicles per annum. It accounts for a third of the company's production capacity.
· The plant assembles or makes popular and profitable models like Swift, Dzire, SX4, A-Star and the newly launched Ertiga. The average realisation of sales or revenue per car at Manesar is Rs 4,00,000 against overall realisation of Rs 3,00,000.
· If the plant closes for more than 7 days, it could hurt the company's net profit.
· If the plant is closed for a day, it costs Maruti Suzuki Rs 73 crore in revenue and Rs 8 crore in operating profit. If it closes for two weeks, the sales loss could be Rs 1,100 crore and operating loss of Rs 121 crore.
· Maruti sold 96,597 vehicles in June 2012. The company reported a net profit of Rs 1,409 crore over net sales of Rs 36,069 crore for the year ended March 2012.
(Src: From the Web)
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