MM up nearly 2% after workers end strike at Nashik plant

Country's largest utility vehicle producer Mahindra and Mahindra (M&M) rose nearly 2 percent on Friday morning after the company's Nashik workers ended their tool-down strike yesterday.

The tools down agitation at M&M's Nashik automotive plant , which began on Tuesday, was called off on Thursday after the management agreed to the workers demands. The stock had been under pressure since the strike had caused a production loss of 500 vehicles.

The production loss, however, wouldn't have any immediate impact on sales since it has three weeks stocks in the pipeline.

M&M said it has struck an agreement with workers at the Nashik plant. It has withdrawn suspension of two workers and the management and union will finalise salary by April 15, it added.

The strike had brought production at the plant to a halt since Tuesday, thus affecting production of its Bolero, Xylo and Scorpio utility vehicles.

M&M's Nashik union said the company cut wage hike demand to average Rs 20000 while union had sought average Rs 36,000 wage hike.

Shares went up 1.37 percent to Rs 897.10 on Bombay Stock Exchange at 10:36 am.