Bajaj Auto Restarts Production Operations At Two Facilities: Chakan Plant Remains Shut

Bajaj Auto has received the nod from local authorities to restart production and resume operations at two of its facilities in India. This includes the Waluj, Aurangabad facility in Maharashtra and the plant in Rudrapur, Uttarakhand.

Bajaj Auto Resumes Operations & Two Facilities With Limited Staff: Receives Nod From Local Authorities To Restart Production

The restart of production operations is part of the new guidelines from the Ministry of Home Affairs. The new regulations allow industrial establishments in rural areas to open operations from the 20th of April 2020.

Bajaj Auto Resumes Operations & Two Facilities With Limited Staff: Receives Nod From Local Authorities To Restart Production

The two Bajaj Auto facilities will follow all the guidelines set by the Ministry and ensure the safety of their employees are taken care of. ET Auto reported that Bajaj Auto has received an approval for 850 workers to get back to work at its Waluj plant in Aurangabad.

Bajaj Auto Resumes Operations & Two Facilities With Limited Staff: Receives Nod From Local Authorities To Restart Production

The company will start production of knocked-down kits of motorcycles and other commercial vehicles for the export market. The start of production for the export market will help ease the ongoing cash flow challenges. Rajiv Sharma, Executive Director, Bajaj Auto also stated that the company currently has Rs 1000 crore worth of export orders pending.

Bajaj Auto Resumes Operations & Two Facilities With Limited Staff: Receives Nod From Local Authorities To Restart Production

Bajaj Auto exports almost 50 per cent of its total production to international markets. This includes Latin America, Africa and other South-East Asian countries as well.

Bajaj Auto Resumes Operations & Two Facilities With Limited Staff: Receives Nod From Local Authorities To Restart Production

Bajaj Auto, will have to keep their Chakan plant closed at least until the 27th of April, 2020. The Maharashtra government withdrew its decision to allow operations to restart around Pune recently.

Bajaj Auto Resumes Operations & Two Facilities With Limited Staff: Receives Nod From Local Authorities To Restart Production

Both, the Municipal Commissioners of Pune and Pimpri-Chinchwad Municipal Corporations have sealed all the areas under their jurisdiction until the 27th of April. This is due to concerns regarding the rising cases of COVID-19 in that area. The authorities will allow supply of essential goods to the areas only if employees are staying within the campus.

Bajaj Auto Resumes Operations & Two Facilities With Limited Staff: Receives Nod From Local Authorities To Restart Production

Bajaj Auto also stated that they have sufficient inventory of BS6 vehicles to cater to the domestic market. Hence, production operations at their facilities will concentrate mainly on exports alone.

Bajaj Auto Resumes Operations & Two Facilities With Limited Staff: Receives Nod From Local Authorities To Restart Production

Thoughts About Bajaj Restarting Production Operations Amidst COVID-19 Lockdown

Bajaj has slowly restarted production operations at its plant with a limited number of employees. The restart of production, even in limited numbers will help the company ease the cash crunch and offer financial relief, especially after having shut operation for over a month due to the lockdown.

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Read more on: #bajaj auto
Article Published On: Thursday, April 23, 2020, 14:23 [IST]
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