Maruti Suzuki inks agreement with Mundra Port for a mega car Terminal for Exports
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Maruti Suzuki inks agreement with Mundra Port for a mega car Terminal for Exports

Feb 20, 2008
  Maruti Suzuki inks agreement with Mundra Port for a mega car Terminal for Exports
 
Mundra, Feb 20th, 2008
 

Mundra (Gujarat): Maruti Suzuki India Ltd (MSIL) and Mundra Port and Special Economic Zone Ltd (MPSEZL) today signed an agreement for a mega car terminal, expected to be operational by December 2008, at Mundra in Kutch district of Gujarat.

The agreement was signed by Mr Shinzo Nakanishi, Managing Director and CEO, MSIL, and Mr Gautam S. Adani, Chairman and MD, MPSEZL, at Mundra Port in the presence of senior officials from MSIL & MPSEZL.The initial investment in the project is expectedto be around Rs 100 crore. Of this, MPSEZL will invest Rs 60 crore in setting up infrastructure at the port. MSIL will invest Rs 40 crore to set up a Pre-Delivery Inspection (PDI) centre at the port premises.

 

MPSEZL is planning to augment the port infrastructure in due course of time, a company spokesman said

Mr Nakanishi said Maruti Suzuki is ready to play a much greater role in Suzuki's global operations. "We have the technology and skills to build top quality cars for the international market. But our export ambitions need infrastructure support on the ground, and this initiative will be a big step forward in filling that gap."

Mr Adani said the port would develop cost-effective Roll-on Roll-off (RORO) terminal for facilitating automobile export by Maruti Suzuki, the largest car manufacturer in India. "Our RORO terminal at Mundra will provide cost competitive support to Indian automobile industry for international trade and our aim is to make Mundra a hub for automobile exports. The excellent draft at Mundra will allow berthing of the largest car carriers and turn them around in the least possible time.

"Maruti Suzuki's exports have grown significantly this year, and will touch 50,000 units in 2007-08 (nearly 28 per cent growth). The company currently exports from Mumbai Port. Maruti Suzuki will be launching its new model, A-Star, by the end of this calendar year. With this, exports are likely to go up significantly. The company plans to export two lakh cars annually to Europe and the rest of the world by the year 2010.

Maruti Suzuki will commence export operations at Mundra Port from January 2009. In view of increasing export volumes, it will continue exports from Mumbai as well.

The new terminal will have a car stockyard spread over 35 acres, and a dedicated 'buffer area" for cars to be parked just before loading on the PCC (Pure Car Carrier) ships. The car terminal's RORO berth would speed up the loading process and minimise the chance of damage to cars.

This mega car terminal's PDI Centre, spread over 7,500 square metres, would conduct the final quality check before the cars are loaded on ships for export. The Rs 40 crore being invested in this facility is part of the Rs. 9,000-crore investment plan announced by MSIL and Suzuki Motor Corporation (SMC) of Japan.

MSIL, a subsidiary of SMC, is the leader in passenger cars and MPVs in India, accounting for almost 55 per cent of total industry sales. It offers 10 models, ranging from the people's car Maruti 800 to the stylish hatch-back Swift, SX4 Sedan and luxury SUV Grand Vitara.

Listed on the BSE and NSE, the company had a net sales turnover of $3.25 billion and net profit of $347 million 2006-07.

Mundra Port and SEZ is India's largest private sector port and SEZ, having handled over 20 million tonnes of wide range of cargo including bulk, break bulk, liquid, containers as well as automobiles during first nine months of 2007-2008. The SEZ which is planned over 32,000 acres of land will be self-contained with power, water, social infrastructure, airport, railway line, banking services etc and will house variety of manufacturing and servicing units.