Jamshedpur: The global�economic�meltdown continues to take its toll on major companies in the city. Apart from Tata Motors several other leading companies are also suspending production to meet the challenges.
Sources informed that with the slump in the auto sector, Tata Motors decided for the longest block closure this time.
�The market conditions are not favourable we have to take block closer rather than creating inventory,� said an official.
Over five thundered ancilliary units in the industrial belt of Adityapur are facing the prospect of closure or sale of their business as a direct fall-out of the recession in the auto industry which has severely affected even majors such as Tata Motors
Vendors and auto ancillary units in the region, totalling almost 2000, are facing perhaps their toughest challenge yet, with orders coming down to a mere trickle, even as principals such as Tata Motors have drastically cut production to tide over tough times.
�The situation was really tough at that time. But now the industries
are recovering. We have found that about 20,000 workers have regained
the job after the increase in demand. If the pace of recovery remains
the same the rest 15,000 workers would soon join the hub,� conceded
the official.
He said that most of the workers who loss their jobs were
temporary workers, some working on daily wages. He said that most of
the industries in Aditypur depend on Tata Motors. Due to fall in
demands the manufacturing industries, small and medium enterprises
whose business revolves around the well being of big ticket players
like Tata Motors, Tata Steel were on the verge of closer and workers
were the worst sufferers.
However with the market scene improving the units that reduced their
workings shifts to one have increased it to two shifts.
It may be mentioned that out of 800 and plus industry units some 70
units, mostly manufacturing companies that produces the ancillary
parts of the final product of the big enterprises, even pulled down
their shutters during the recession period.
�In spite of the odd conditions the entrepreneurs did not loose their
hope completely.We are quite hopeful that by the end of current
financial year things would improve and we will consolidate
thereafter. If the demand from Tata Motors increases several companies
would start functioning on three shifts,� noted Santosh Khaitan,
general secretary ASIA.
It may be noted that the sprawling Adityapur Industrial Area houses
more than 800 units- including 11 large-scale, 64 small scale and 166
tiny industries. A few important industries that has global presence
are Usha Martin Group, RSB Group, Tata Steel Growth Shop(TGS) etc.,
too situated in this industrial belt, situated in Seraikela-Kharsawan.
There are 20 industries, which export its products to the USA,
Australia and other European countries.
