The 90-day strike was the turning point: Khattar

Strange as it may sound but, Maruti Suzuki India's Managing Director Jagdish Khattar attributes much of the success of his company to a strike by workmen six years ago.

"The 90-day strike was the turning point... Had we given in at that time we would not have been what we are today," he said, while looking back on his 14-year stint that will end shortly. Last month, Khattar turned down an offer of extension from Chairman O Suzuki.

However, the MD was uncomfortable talking about the reports that the Indian entity had overtaken the parent company (Japan's Suzuki Motor Company) in sales in the first half of the year.

"The 2001 strike was one of the toughest periods that I came across in Maruti Suzuki. It was actually the turning point," Khattar said, recounting the pressure (political) he faced, as the government was a 50 per cent partner at the time.

No giving in
Khattar, who joined Maruti as a marketing director in 1993, remembers the "total and unflinching" support he got from Suzuki and said, "If we were to give in to agitators, we would not have been what we are today. Salaries would have shot up, excess manpower and lower efficiency would have escalated the cost of production and our competitiveness would have been wiped out."

The workers were agitating for pay, perks and working conditions and a settlement was announced by then industries minister Manohar Joshi.

"The biggest strength was my own people in the factory, who, despite being less in number, kept production going," Khattar said. He admitted that his training as an IAS officer also helped.

Khattar said he had no regrets and was leaving the company a satisfied man.

"I am not someone who harps on the past. I have had an eventful tenure in Maruti. I have no regrets and I am leaving as a contented man."

Khattar, who was at the helm as the company changed from a public-private partnership between the Indian government and Japan's Suzuki Motor, to a fully-privatised entity, said he was "lucky in many ways to be a part of a change from the controlled economy to a liberalised one."

"Not only in Maruti. Even when I was with UP Cement Corporation and during my stint at the steel ministry, I have been a witness to the change," he said.

He recollected the time when he joined Maruti, there was a waiting list for cars, while today companies were offering discounts to beat the competition.

One lakh car
Replying to a question whether he was leaving without completing the task of matching Tatas' proposed Rs 1 lakh car, even as others such as Renault and Hyundai were planning ultra-low cost cars, Khattar said: "Every company has its own strategy and we cannot react to all. We need to focus on our strategy. As far as the Rs 1 lakh car is concerned, Suzuki has already made it clear it cannot produce a car at that price fulfiling all safety norms."

Khattar would not disclose his plans post-retirement. "First I will enjoy the break and think about it (future) later."