Factory of key Maruti Suzuki supplier gutted
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New Delhi: A lighting equipment supplier to India’s largest car manufacturer Maruti Suzuki India Ltd shut its factory in Haryana after a fire broke out at the unit on Tuesday night.
India Japan Lighting Pvt. Ltd, which runs the factory in Bawal, supplies head and tail lights to Maruti Suzuki. It is also a supplier to Honda Cars India Ltd.
No casualties were reported, but the fire is said to have damaged the factory.
The move is likely to hurt Maruti, which sources lighting equipment from the Bawal-based supplier under a one component, one vendor policy.
A Maruti Suzuki executive, speaking on condition of anonymity, said initial assessment suggests that extent of damage is “not much”. “Maruti has stock for a day or two,” he added.
India Japan Lighting supplies lamps for Baleno, WagonR and Ciaz models of Maruti Suzuki, a second Maruti executive said.
To be sure, demand for Maruti Suzuki cars are at an all-time high, and the company is already struggling with capacity constraints to meet demand for the Baleno and Brezza.
The fire threatens to upset Maruti’s production plans.
Maruti Suzuki sources lighting components from three other suppliers—Lumax Ltd, Minda Group and Motherson Sumi Systems Ltd—as well, but their supplies are for specific models and one cannot fill in for another’s absence.
Earlier on Wednesday, a Maruti Suzuki spokesperson said the company was assessing the situation and that its own plant was running “at the moment”.
“Fire broke out at the first floor where the packing materials are kept,” another person aware of the matter said, requesting not to be named.
India Japan Lighting has a factory in Chennai as well which caters to demand from car companies based in south India such as Renault-Nissan Alliance.
In May, a similar incident happened at the Manesar factory of air-conditioning kit maker Subros Ltd, leading to a production loss of 25,000 cars for Maruti Suzuki.
On Wednesday, shares of Maruti Suzuki rose 0.57% to Rs.5,338 apiece while Sensex fell 0.18% to close at 28,926.36 points.