Maruti Suzuki to establish new plant at Manesar
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Maruti Suzuki to establish new plant at Manesar

Sep 07, 2010
 
 
Fresh investment of Rs 1,925 Cr to take annual production capacity to 1.75 million units
 
India's leading car maker Maruti Suzuki India Limited (MSIL) today held its 29th Annual General Meeting here today. At the meeting Mr. O Suzuki, Chairman and CEO, Suzuki Motor Corporation, Japan, (majority stakeholder in MSIL), made wide ranging announcements.

Following points are for your reference:

Outline on current production capacity:
  Annual Capacity at Maruti Suzuki Gurgaon is: 850,000 units
  Annual Capacity at Maruti Suzuki Manesar is: 350,000 units
  Total capacity : 12,00,000 units (1.2 million units)
  To keep pace with growth (which has been as high as 27% in this fiscal), Maruti Suzuki needs more capacity
 
Capacity announcements (subject to Board approval)
  Maruti Suzuki will establish "Plant C" at Manesar.
   
  Plant C will be constructed concurrently with the Plant B at Manesar.
  Plant C to have an installed capacity of 250,000 units per annum.
  Plant C is likely to be ready by end of fiscal 2012 / early 2013
     
  Plant B (announced earlier in Feb2010) at Manesar, will be ready by Jan 2012 and will bring an additional capacity of 250,000 units per annum
     
  Plush two-tone interiors and an all-new 3-spoke steering wheel. These are aided by
   
  Present facilities : 12,00,000 units per annum
  Plant B (Manesar) : 2,50,000 units per annum by Jan 2012
  Plant C (Manesar) : 2,50,000 units per annum likely in fiscal 2012-13
     
Total Capacity: 17,50,000 units per annum by end of fiscal 2012-13 (including productivity enhancements)
Investment update (subject to Board approval)
   
  The investment to construct Plant C at Manesar is estimated at 35 Billion Japanese Yen (approx Rs. 1,925 crores @ Yen 1= 0.55 Rs). This investment will be funded by internal accruals of Maruti Suzuki.
     
Medium term investment: Rs 6,000 Crores (or $ 1.3 billion) during the period 2010-2013.
   
  Rs 1700 Cr (Manesar plant B) announced earlier in March 2010
  Rs 2500 Cr (Engine plant & R&D) announced earlier in March 2010
  Rs 1925 Cr (Manesar plant C) announced at AGM-2010 (7 Sept 2010)
     
Other projects to be undertaken in Medium term:
   
  Commence construction of test course at R&D Centre at Rohtak
  We would also look at constructing Regional Offices at 16 locations.
  SMC and MSIL will have an integrated approach towards these developments.
  The timelines for all these projects will be evolved post board approval.