Shares of Maruti Suzuki India on Thursday fell over 9 percent after rioting sparked by a labor dispute killed one person and injured dozens of others.
In just a single trading session market capitalisation of the company got eroded by Rs 3,183 crore, at Rs 32,188 crore from Rs 35,371 crore on Wednesday.
It all began around 11 AM on Wednesday with an altercation between Jiyalal, a worker, and his supervisor on the shop floor. Jiyalal allegedly slapped the supervisor, who in turn complained about it to the management — as a result of which Jiyalal was suspended.
91 employees, who were arrested, were produced before a local magistrate who remanded them to 14 days judicial custody. They have been accused of various charges including rioting with weapons, murder, attempt to murder, unlawful assembly, assault and trespass.
Intermittent strikes at the local unit of Japan’s Suzuki Motor Corp. highlight the fragile relation between the company’s management and the workers, which has caused substantial problems in the past.
Labour unrest at the factory, where the union has accused India’s biggest car manufacturer of anti-worker and anti-union activities, cost the company more than $500 million in lost production in 2011.