Maruti Suzuki expected to soon start construction work at Gujarat unit

Friday 15 March 2013, 10:10 AM by

The country’s largest passenger car maker, Maruti Suzuki India Limited (MSIL) is expected to start the construction process at its Gujarat unit in the first quarter of fiscal 2014. Reportedly, the auto maker has been waiting for the final nod, which is expected to happen in the upcoming meeting of board members in April 2013. As per sources, the auto maker will start the work at its Hansalpur site, somewhere around June 2013.

Interestingly, the auto maker has been looking for the water connection at its new location and the Gujarat Industrial Development Corporation (GIDC) has issued tenders for the same. Source close to the development process said that all these activities are anticipated to be settled any time soon. When asked the same to the Chairman of Maruti Suzuki India, R C Bhargava, he was quoted as saying, “A decision will be taken during the board meeting in April.”

However, he did not declared the exact time that when the construction process will be started; however two senior officials of Maruti Suzuki confirmed, without revealing their identity, that work will start somewhere in the first quarter of fiscal 2014. On the new plant of Maruti Suzuki, industry experts are of a view that the plant will become operational in a couple of years. It must be noted that the company also has a second piece of land, which is somewhere around 600 acres, near the original location at Hansalpur (around 640 acres). Maruti Suzuki is now planning to maintain a net installed production potential of close to 1.5 million vehicles each year from Gujarat in different phases.

Reportedly, Maruti Suzuki is looking forward to set up three manufacturing or assemble units at the first site with a combined production capacity of 750000 units each year. Bhargava told to Business Standard, “After we exhaust capacity at the first site, we will move on to the second site, which has been privately acquired by us.” Further, the auto maker is planning to concentrate on its exports from the Gujarat unit, owing to its vicinity to the Mundra Port, wherein Maruti Suzuki has a separate terminal. This move will facilitate the auto maker to save around Rs. 5000-6000 on every car. As Maruti Suzuki’s domestic sales reduced by 9.01 per cent amounting to 97,955 units, during February 2013, its exports expanded by 2.8 per cent with figures standing at 11,612 units.

Sources said that around 3-4 suppliers of Maruti Suzuki, who have maintained joint ventures with the auto maker will be included in its new Hansalpur plant, whereas other will establish their units at separate auto parks, which will soon come up in the region. Some of the prominent auto makers are Jai Bharat Maruti, a JBM Group company, which supplies seat belts to Suzuki, Caparo Maruti and Futaba, which is engaged in offering exhaust systems to the auto maker.

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