Maruti Suzuki India Limited is facing a capacity crunch and is finding it difficult to meet the increasing demand for its vehicles. Maruti has initiated a new program with its vendors to assess their present capacity and initiate fresh investments to increase manufacturing. “We have been talking to vendors and telling them that it is time they looked at capacity in a somewhat proactive manner and invested earlier,” said a senior Maruti official.
The new program includes identifying fund-raising problems, plan capacity schedules and chalk out new investments. This will enable vendors to plan for such fresh investments that could increase their present capacities.
The Maruti Chairman, RC Bhargava stated to its vendors that if they do not invest right now, they will be in trouble as the market is booming. This in turn means that Maruti will be in trouble in the long run. Maruti’s programme looks at both the vendor balance sheet as well as their factory lines.
