MM Forgings moving part of manufacturing unit to Trichy Viralimalai and Madurai Tier II cities

Labour shortage in Chennai is driving auto-parts maker MM Forgings to shift a part of its machining processes to tier-II cities in Tamil Nadu.

“Growing labour demand and higher wages elsewhere is causing attrition which in turn is causing availability issues”.

“Today, CTC on casual labour is Rs 250 a day. It is difficult to compete with a Nissan or Bharat Benz on wage rates.”

For the last six months, MM Forgings has been moving machining related processes to its other plants in Tiruchi (Viralimalai) and Madurai, where labour is more stable and quality better. In the next few months, it plans to shift 10-20 per cent of its processes from Chennai.

“In Tiruchi and Madurai, we get people who are natives. Whereas, in Chennai, it is largely migrant labour from Orissa and Assam”.

Isn't it a great plus for Madurai and Trichy on the advantages of Manufacturing units setup in Tier-II cities?!!

Quoted from bl.net