Eicher Motors hits new low

Eicher Motors is among the top three losers on the BSE since the opening bell. It went down to hit a new low at Rs.23,100.

Despite reporting a 2% rise in sales for September.18 at 71,662 units, the market is perturbed by its announcement that it has lost production of 10,000 units due to the ongoing workers’ strike at the Oragadam plant. Royal Enfield said its manufacturing facility at Oragadam has been operational since Saturday, September 29, 2018, after a part of the workforce had not reported for duty since September 24. The company expects to reach regular levels of production in a phased manner. Its manufacturing facility at Vallam Vadagal (near Chennai) continues to be operational and deliver to its full capacity.

The company clarified that it has not terminated anyone in the wake of recent developments at the plant and that salary revisions are done annually. The last annual salary revision was done in April 2018, and the next revision is due in April 2019.

The company said it is in dialogue with its plant-based forums to amicably resolve all concerns. The management is scheduled to hold talks with the trade union today and all eyes will be on how things unfold there.