Bosch shuts down its Bangalore plant

Bosch shuts down its Bangalore plantThe announcement came as a shock to many when Bosch, one of the leading auto component manufacturers in the country and a subsidiary of Robert Bosch announced a lock-out at its Naganathpura production plant.

While the lock-out was declared keeping in mind the safety of employees, machinery and the other installations, the situation arise when there was a rift between an officer and a worker over wage revision.

Analysts are of a view that the lock-out will severely hamper the profitability of component major in the country as it has lost a Rs. 30-crore worth order from Maruti Suzuki while the orders from companies like Hyundai, Ford and Tata are also under major threat. The point of worry for the company is that the workers working at its Adugodi plant are also under the 'go slow' mode from February 12th and it may make the situation even worse for the company.

The Adugodi plant employs around 4,500 workers and is one of the most important units for Bosch in India. Industry watchers believe that the lock-out may lead to governmental intervention keeping in mind that Bosch is one of the oldest companies operating in Bangalore.