Maruti Suzuki India Ltd. (MSIL) realised the critical importance of rapidly installing Oxygen PSA plants, both to produce life-saving oxygen as well as reduce the immense logistical problems. It was found that these plants are being made by small scale units with very limited resources or ability to scale-up production. We located two companies in the NCR area, Airox Nigen Equipments Pvt Ltd and SAM Gas Projects Pvt Ltd. They were flooded with orders but had a capacity to manufacture only 5-8 plants a month. We decided to use our resources to help scale-up their production.
MSIL started talking to them from the 1st May and quickly reached an understanding with them. While technology, quality and performance, as well as all commercial matters, would remain the responsibility of the two companies, MSIL and its vendors would use their capabilities to rapidly scale up production. MSIL's involvement would be on a no profit basis.
Airox has its factory in Ahmedabad and SKH Metals, a vendor, is working with them. MSIL has been able to arrange new sources for Zeolite, an imported material and critical for a PSA plant. This will be airfreighted. Compressors are another important bought-out component. Airox has already reached an output of one PSA plant a day and this number will be rapidly scaled up to 4 per day within May itself. Output in May is expected to be 50-60 plants.
SAM Gas Projects Pvt Ltd is being assisted by our vendor JBML. MSIL is helping with all critical inputs. This company is expected to produce 20-30 plants in May.
MSIL and its vendors will procure oxygen plants from these two companies and donate them for medical use.
A separate MSIL team is working to ensure that the plants when produced are installed and commissioned as fast as possible.
The top management of MSIL is involved in coordinating and monitoring this activity and hopes that it will make some difference in the national fight against COVID.
Shares of MARUTI SUZUKI INDIA LTD. was last trading in BSE at Rs.6702.9 as compared to the previous close of Rs. 6665.9. The total number of shares traded during the day was 16466 in over 2375 trades.
The stock hit an intraday high of Rs. 6756.25 and intraday low of 6641.7. The net turnover during the day was Rs. 110244019.