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Maruti Suzuki signs agreement with Gujarat government for land purchase

Modified On Jun 04, 2012 11:45 AM By CarDekho

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Car market leader Maruti Suzuki India Limited today signed State Support Agreement (SSA) with the Government of Gujarat for purchase of land near Mehsana to set up an all new manufacturing facility. The Agreement was signed by Mr. Shinzo Nakanishi, Managing Director and CEO, Maruti Suzuki India Limited and Mr. Maheshwar Sahu, Principal Secretary (Industry and Mines), Government of Gujarat in the presence of Gujarat Chief Minister, Mr. Narendra Modi.

Maruti Suzuki signs agreement with Gujarat government for land purchase

Maruti Suzuki’s new vehicle manufacturing facility will have the following highlights:

Initial annual capacity

250,000 * units in a phased manner

Future capacity expansion to be based on market conditions

Expected Commissioning

By 2015-16 *

Expected Investment

Rs 4,000 Crores * in 1st phase

For land & construction of plan

Subject to Maruti Suzuki India Limited’s Board Approval The new infrastructure in Gujarat will be a complete vehicle manufacturing facility. Government of Gujarat has allocated around 700 acres land to Maruti Suzuki India Limited for this manufacturing facility. This land purchase by the Company is in line with long term management view on expansion of its manufacturing facilities in India to meet future market demand. Based on the market demand the manufacturing facility near Mehsana will be added to the Company’s existing manufacturing facilities at Gurgaon and Manesar in Haryana.

This new facility will take Maruti Suzuki’s combined manufacturing capability to 2 million units by 2015-16.

Gurgaon and Manesar (incl. Manesar C plant)     : 17.5 lakh

Gujarat plant                                                     : 2.5 lakh by 2015-16 *

Total                                                                : 20.0 lakh by 2015-16

Subject to Maruti Suzuki India Limited’s Board Approval The Company estimates to generate direct employment for over 2000 people at the Gujarat facility. In addition, the ancillary units in the vicinity and supplier park will generate additional employment opportunities. In addition to Maruti Suzuki, Company’s vendors and ancillary suppliers are expected to invest in Gujarat at matching levels. Maruti Suzuki Gujarat plant will be located around 100 km from Ahmedabad. The new facility is around 300 km from Mundra port and hence would be well suited for Company’s exports initiatives. Maruti Suzuki will continue to increase its production at Manesar facility, where a third assembly line, (Manesar C plant, 2.5 lakh units annually) is expected to go on stream by mid 2013-14.

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