With the labour problem that started in the company in 2007, affecting production, the vendor units were also hit. The 206 units that had an annual turnover of about Rs. 270 crore were now having just about Rs. 130 crore turnover.Mr. Veeraraghavan said of the 206 units, 170 were located in Perianaickenpalayam area here. The 206 units used to employ nearly 35,000 workers, which had come down to 11,000 now. The units had invested about Rs. 250 crore.
Pricol proposed to shift a substantial portion of production from its Coimbatore plants to those located in other States if the labour problem persisted.This would hit the ‘single source suppliers’ and even force them to close down, he said.
The vendors would not be able to move to other States or continue to supply from here to Pricol plants in other States because of the cost. Hence, these units would have no option but to close down. This would also result in revenue loss to the Government, he added.