MANISH GUPTA
Ranchi, July 27: Frequent closure of production at Jamshedpur-based Tata Motors is hurting hundreds of ancillaries in Adityapur industrial area that are dependent on the auto giant for supplying various auto components.
“The ancillaries of Tata Motors have no choice but to close down as and when the auto major closes its operations to match its production with the demand situation,” Adityapur Small Industries Association (ASIA) President Santosh Khaitan told lagatar24.com.
Khaitan said that the company believes in ‘Just-in-time’ inventory management where it receives the auto parts only when it needs and does not want to just increase the stock. Apart from ancillaries even the labourers engaged face financial loss on these days, he said.
It may be noted that Tata Motors, which produces heavy commercial vehicles like trucks, trailers, tippers, buses and other multi-axle vehicles, had a three-day block closure from June 22 to 24 and again four days closure from June 28 to July 1. In July, it shut down for two days on July 22 and 23, and again today (July 27).
“The ancillaries have incorporated the possibility of closure of three to four days at Tata Motors each month with lesser profits. And, there is no possibility of catering to another client as nobody has that spare capacity when Tata Motors is in full swing,” he said.
However, Khaitan said that the auto ancillaries in Adityapur have several times in the past approached the Jharkhand government for attracting other auto manufacturers to the region so that the hundreds of ancillaries are not at the mercy of one client.
“For many years, we have been recommending and requesting the state government to invite another big automobile manufacturing company in our state either in two-wheeler, cars or trucks segments. The current set of ancillaries can cater to all,” Khaitan said.
The ASIA President said that the ecosystem for auto companies in the Adityapur region is one of the best in the country. Apart from the high quality auto part manufacturers, the Adityapur Auto Cluster adds the all necessary macro infrastructure to the region.
“The Adityapur Auto Cluster has a tool room, a design centre and a testing centre apart from training and exhibition facilities. The ancillaries can manufacture any new auto part with the help of the cluster and some help from outside if we get the orders,” he said.
