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Maruti output trebles in nine years

The daily production at Maruti Udyog has trebled from 500 cars in 1993 to 1,500 cars in 2002 even with a considerably reduced workforce.

Speaking at a Confederation of Indian Industry conference on turnaround strategies, managing director Jagdish Khattar said that productivity has increased from 98-100 per cent to 120 per cent after the employee strength was reduced through a voluntary retirement scheme last year.

"Our cost on wages has come down to 3.9 per cent from 4 per cent of sales. Labour attendance has improved to 97 per cent from the previous level of 91 per cent, he said, attributing the company's turnaround to these factors.

MUL emerged from the red in FY02 by posting a net profit of Rs 550 million as against a net loss of Rs 690 million in FY01. Last year, it reduced 1,050 (about 19 per cent) employees from a total staff strength of 5,646 through a separation scheme.

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