As a fall out of the lockout at Maruti Suzuki’s Manesar plant following violence and arson, rating agency ICRA today placed 14 auto component manufactures on “rating watch with developing implications.”

Several ICRA-rated auto ancillaries, that have a high revenue dependence on Maruti’s Manesar plant, may experience lower cash accruals and in some cases possible stress on their liquidity position during the lockout, prompting the agency to place their ratings under “watch with developing implications“.

“Given the present uncertainties, it is difficult as of now to quantify the extent of supply disruption and its eventual impact on individual companies’ financial risk profile,” ICRA said in a release here.

The firms under the rating watch list are ALP Nishikawa, Global Autotech, Jay Bharat Maruti, Juken Uniproducts, Kalyani Thermal Systems, Krishna Maruti, Lumax Industries, Machino Polymers, Neel Metal Industries, SKH Metals, Sona Somic Lemforder Components, Subros, Technico Industries and Uniproducts.

ICRA said it is monitoring the situation and would conclude its rating action as and when greater clarity emerges.

Production of four popular models — Swift, Swift DZire, A-Star and SX4 — has been halted since July 18 as India’s top carmaker declared a lockout at the plant in Haryana following large-scale violence which led to the death of a top HR executive of the company.

According to ICRA, these four models together accounts for around 30-35 per cent of Maruti’s volume. For suppliers, the overall average realisation of components related to these four models is higher than those of components that go in models produced at Maruti’s Gurgaon facility.

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