Work on Maruti Suzukis new Gujarat facility on schedule

Tuesday 30 April 2013, 12:07 PM by

Work on the new Maruti Suzuki plant in Gujarat appears to be on schedule, as the same was discussed during a meeting between Suzuki Moto Corp. President Osamu Suzuki and state Chief Minister Narendra Modi. Top Maruti officials are expected to undertake an inspection of the plant site in Hansalpur, which is located in Mehsana district of Gujarat. As per the schedule, manufacturing from the plant would commence in 2015-16.

After the meeting with Narendra Modi, this is what Maruti Suzuki India Chairman R.C. Bhargava had to say, “This morning we had a meeting of the company's board in New Delhi. The board decided that we should begin the work at Becharaji in Gujarat. We have come here to inform about this decision to the Chief Minister and also give a courtesy call to him.” Following the meeting, Modi said that with the implementation of this project, Becharaji would soon become a favoured automobile hub. R.C. Bhargava also added that a visit to the site is on the cards, to understand the nature of villages around and the approach to them. He further declared that no formal inauguration ceremony would be held near the Hansalpur plant, but work will start as per schedule.

The new plant will be able to produce 2.5 lakh units per year and 600 acres of land has been purchased near Hansalpur, on which Maruti and its vendors would be setting up their units. Interestingly, 500 to 600 acres of land has also been acquired in Vitthalpur for the company’s second plant in Gujarat. Vitthalpur is located 40 km away from the first site.

An investment of Rs. 2,000- Rs. 2,200 crore will be made to initiate the Hansalpur production facility in July 2013. Key vendors who would be joining hands with Maruti in this area would be Caparo Maruti, Futaba and Jai Bharat Maruti. Many more auto parks would also come up in this region, where other vendors would be setting up their bases. Osamu Suzuki visited the construction site and also met with local villagers. He also had a brief chat to understand the views of these villagers.

Increase in production of Maruti vehicles would actually depend on market demand. If the Indian auto makers recover from the current slump, then the current expansion is surely on the cards, or else it may not be required. In fact, at present, many automotive plants across the country are operating at 60-65 per cent of their complete capacity.

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