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Jul 29, 2009

Pricol vendors’ appeal to State Government

The Pricol Vendors’ Association has appealed to the State Government to hold talks with the Pricol management and workers to find a solution to the labour problem in the company.Association president Ramesh Veeraraghavan told presspersons here on Monday that Pricol had about 1,100 vendors here and 206 of them were ‘single source suppliers’ to it. Their production capacities and shop floor were designed to meet Pricol’s needs.

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.

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