Maruti Falls After Fire at Supplier Prompts Production Haltby
Fire affects production at air conditioner supplier Subros
Carmaker halted production at 2 plants from second-half Monday
Maruti Suzuki India Ltd. fell the most in a month after a fire at a component supplier disrupted supplies prompting the unit of Suzuki Motor Corp. to suspend production at both its factories.
Shares of Maruti declined 1.8 percent, the most since April 28, to 4,071.75 rupees at the close in Mumbai. The benchmark S&P BSE Sensex advanced 0.3 percent.
India’s biggest carmaker by volume said it has temporarily halted production at its factories in Manesar and Gurgaon, both located in the northern Haryana state, after a fire at a facility of parts supplier Subros Ltd. Operations at its two plants were halted starting second half of Monday, Maruti said in a statement.
Maruti and Subros are jointly assessing the extent of damage and examining the options to start supply from other facilities, the automaker said. Production will restart as soon as components become available, it said.
Subros, which makes compressors, condensers and other parts used in air conditioning systems, said separately that there was a fire at one of its plants in Manesar on Sunday at around 2 p.m. While there were no causality or major injury, the fire impacted the building, stocks, plant and machinery, Subros said in a statement. It’s taking steps to meet customer needs from three of its other factories.
Shares of Subros declined 3.9 percent.