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Home arrow News arrow Automotive arrow Maruti Suzuki invests Rs 1,700 Crore in new facility for capacity expansion
Maruti Suzuki invests Rs 1,700 Crore in new facility for capacity expansion Print E-mail
Written by Vijay   
Thursday, 25 March 2010
Manesar: Maruti Suzuki India Limited has set the foundation stone for capacity expansion at its Manesar plant by 2.5 lakh units annually. This initiative will help the company scale up the Manesar plant’s capacity from 300,000 units per annum to 550,000 units per annum over the next two years.

Maruti Suzuki will invest about Rs 1,700 Crore (or Rs 17,000 million) for this expansion. Maruti Suzuki’s present production facilities are located at Gurgaon with a capacity of 7 lakh (0.7 million) units and Manesar with capacity of 3 lakh (0.3 million) units.

Maruti Suzuki is manufacturing India-specific K-series engines at its plant in Gurgaon near Delhi. Over the next 2 years, the company will expand engine capacity to 7,00,000 units from the current level of 5,00,000 units.

Suzuki will invest 25.147 billion Indian rupees (553.8 million U.S. dollars), over the next 2 years, to expand engine capacity and on research and development in India. 

Maruti Suzuki India Limited, today joined a select club of global automobile makers, when it became the first automobile company in India to produce one million (10 lakh) cars in a year.

Maruti Suzuki manufactures 10 lakh units in 2009-10.

On the occasion, Maruti Suzuki Chairman, R. C. Bhargava said, “The landmark attained by Maruti Suzuki fully establishes the validity of the late Prime Minister Smt. Indira Gandhi’s vision when she decided to create Maruti Udyog. This vision has been fulfilled because of outstanding entrepreneurship of Mr. O. Suzuki, the excellent cooperation which existed between the Government of India and Suzuki Motor Corporation, and the enormous dedication, hard work and commitment of all Maruti Suzuki employees over more than 26 years. The future beckons and Maruti Suzuki will not be found wanting.”

Dedicating the one millionth car to Maruti Suzuki employees, Shinzo Nakanishi, Managing Director and CEO, Maruti Suzuki, said, “Maruti Suzuki will continue to address the country’s need for affordable personal transport. India needs affordable commuting solutions across its cities, towns and villages. Team Maruti Suzuki stands resolved with me to meet this need of the customers through exciting, contemporary and yet affordable cars. This belief is the cornerstone of the Maruti Suzuki’s business philosophy and derives inspiration from Suzuki Motor Corporation, Japan, our parent and global leader in compact cars.”

The millionth car manufactured in 2009-10, a glistening red Maruti Suzuki Swift, rolled out from the company’s Manesar plant, in the presence of Mr. Bhupinder Singh Hooda, Chief Minister, Haryana and Mr. Vilasrao Deshmukh, Union Minister of Heavy Industries & Public Enterprises. Amongst the dignitaries who graced the occasion was Mr. Hideaki Domichi, Ambassador of Japan o India. Mr. Osamu Suzuki, Chairman and CEO, Suzuki Motor Corporation, Japan, joined the company’s senior management at the occasion. Senior officials of Central and State government and company’s business associates were also present at the ceremony.

Maruti Suzuki sales in 2009-10 (April 2009 to February 2010) is 923,242 units (791,260 in Domestic market and 131,982 in exports). The company clocked its highest ever monthly sales in February 2010 with a total of 96,650 units (a record number of 84,765 units in domestic and 11,885 units for exports).

Considering the large number of auto companies penetrating the Indian market, Osamu Suzuki said that reaching the 2 million mark is going to be a tough journey.

Last Updated ( Thursday, 25 March 2010 )
 
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