Maruti Suzuki India Ltd. has closed a plant in Manesar, India, while an investigation continues over a riot that caused the death of one of its managers and injuries to at least 70 persons. R.C. Bhargava, chairman of Maruti Suzuki, said on July 21, 2012, that an early resumption of the operations at the factory is still not possible.
He declined to provide an estimate of how long the closure will last. The violent riot at Maruti Suzuki prompted the Federation of Indian Chambers of Commerce and Industry to say that what happened has undermined India's reputation as an investment destination.
R.V. Kanoria, president of the federation, said the incident is of deep concern for a country that seeks to project itself as offering an “environment that is business-friendly.” Kanoria likewise called for authorities to deal "firmly" with the situation.
Despite the production stoppage at its Manesar plant, which accounts for about 40 percent of Maruti Suzuki’s manufacturing capacity, the carmaker would not import cars to make up for the lost production, Bhargava said.
According to Indian police, all 3,000 union workers at the Manesar plant will be charged with murder and attempted murder for the riot that resulted in the death of Awanish Kumar Dev, a human resources general manager. The riot caused Marti Suzuki’s shares to drop by as much as 5.4 percent to 1,085.90 rupees, leading India's Sensitive Index lower.