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MACHINIST - Maruti Suzuki's Nakanishi & R C Bhargava meet Gujarat CM for proposed plant

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Home arrow Automotive arrow Maruti Suzuki's Nakanishi & R C Bhargava meet Gujarat CM for proposed plant

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Maruti Suzuki's Nakanishi & R C Bhargava meet Gujarat CM for proposed plant
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Written by Viswanath   
Wednesday, 01 June 2011

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Ahmedabad: Maruti Suzuki is planning to set up a manufacturing plant in Gujarat. The company's chairman R C Bhargava and managing director Shinzo Nakanishi met chief minister Narendra Modi today to discuss the possibility of setting up a manufacturing base in the state.

Maruti Suzuki proposes to set up a manufacturing plant with a production capacity of 10 lakh units per annum, expandable up to 20 lakh units per annum. The plant is expected to generate employment for nearly 1.50 lakh people.

According to Bhargava, the company will invest Rs 6,000 crore and the plant will have a production capacity of 1 million cars in the first phase. Maruti Suzuki will get all the vendors, suppliers to the state and their investments would also be of the order of about Rs6,000 odd crore.

He clarified that the company had not finalized plans yet and that he had come to explore the possibilities of setting up operations in the future in Gujarat.

He said that proximity to the Mundra port was a strong reason for considering Gujarat as a strong probability for Maruti Suzuki's future selection for expansion. Maruti Suzuki already exports its cars from Mundra port in Gujarat.

The state government has agreed to provide 500 acres of land to MSIL. The incentives by the state government are yet to be finalised.

The company is understood to have zeroed in on a location near Sanand out of three potential sites -- Sanand, Halol and Dholera. Once the decision is finalised, it will be the first major investment by Maruti outside Haryana.

General Motors has a plant in Halol, while Tata Motors has a plant in Sanand.

Maruti Suzuki is setting up two new units having an annual installed capacity of 2.5 lakh units each at Manesar at a total investment of Rs3,625 crore. These units are expected to be operational by 2012-13. This will take the total production capacity of the company from  12 lakh units per year to 17 lakh units per year.

 
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