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Maruti Investments to Go Up to Rs 6,125 Crore

By Motortrend India Staff   |   07 September,2010

Maruti Suzuki India’s overall investments will go up to Rs 6,125 crore during the 2010-13 period, with the company today stating that it will set up a third plant at its Manesar facility at a cost of Rs 1,925 crore.

Addressing shareholders of Maruti Suzuki India (MSI) at the company’s Annual General Meeting, Suzuki Motor Corp Chairman Osamu Suzuki said the new plant at Manesar will have an annual production capacity of 2.5 lakh units and the investment on it would be 35 billion yen. “With this plant, total output from MSI will be at 1.75 million units,” Suzuki said. Currently, MSI has a total annual total output of 1.2 million units per year.

The third plant at Manesar is likely to be ready by the end of the 2012 fiscal or early 2013. Currently, MSI is investing Rs 1,700 Crore on a second plant at Manesar, which will have an annual capacity of 2.5 lakh units.

MSI is also investing another Rs 2,500 crore on an engine plant and research centre in Rohtak. With the announcement of an additional Rs 1,925 Crore investment, the company’s total planned investment in the 2010-13 period now stands at Rs 6,125 crore.

At present, MSI which is 54.2 per cent owned by Suzuki, has an annual capacity of 8,50,000 units at its Gurgaon plant, while the first plant at Manesar can produce 3,50,000 units annually, with the overall capacity totalling 12,00,000 units per year.

Suzuki said due to production constraints, MSI has been unable to meet demand properly. “Some of our models, we have not been able to properly supply, as we have lot of production issues. We have not estimated the demand for cars at which it has grown,” he added.

Besides adding new plants at Manesar, he said, MSI will also refurbish its three units at Gurgaon in a phased manner. “Gurgaon is our oldest plant. The plant has since deteriorated and we need to modernise it,” Suzuki said. The company also said it is looking at constructing regional offices at 16 locations.

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