Gujarat could be bigger home for Maruti by 2020
- Navjot Sidhu: Quit RS because I was told to stay away from Punjab
- Chinkara poaching case: Salman Khan acquitted by Rajasthan High Court
- SC issues notice to Vijay Mallya on bank plea seeking contempt proceedings
- Journalists' visa issue: Chinese media warns India of repercussions
- Parliament LIVE: Speaker Mahajan advises Mann not to attend proceedings till decision arrived at
Haryana may be Maruti Suzuki's first home, but Gujarat could become its main production base some eight years down the line. By then, its new facility in the state would have surpassed the older ones in terms of investments as well as volumes.
Once the facility gets fully commissioned by 2020, total investments made by the company in Gujarat would be around R20,000 crore, including around R6,000 crore invested by vendors. This would be higher than R16,000 crore invested by them in two plants in Haryana ó Gurgaon and Manesar.
By 2020, production capacity at the Gujarat facility would hit 15 lakh units annually compared with the combined capacity of Gurgaon and Manesar plants at 12.5 lakh units.
There will be two plants in Gujarat. The first site of 640 acres has already been acquired from the state government for about R150 crore, while negotiations are on to acquire another 600-700 acres for the second site some 30 km away. The first plant, with an annual capacity of 2.5 lakh units, should be up and running by 2015-16.
"In Haryana, each production line cost us about R1,200 crore. In Gujarat, investment in each line would be about R2,000 crore and there would be a total of six. There is a little bit left in terms of acquiring land at the second site. The layout is almost finalised, so ground-breaking should happen in early-2013," Maruti Suzuki chairman RC Bhargava told FE.
Maruti's parent firm Suzuki Motor is planning to shift production of its small cars to this centre later, as part of its effort to make India its export hub. Apart from being an investor-friendly destination with good infrastructure, Gujarat has several public and privately-operated ports. Maruti already uses the Mundra port for its car exports.
In March, Maruti had subtly hinted that its hub would shift from Haryana to Gujarat when its officials had said that while Manesar will see addition of a third production line in September, 2013, capacity at the Gurgaon plant would be successively reduced as part of a de-congestion plan due to the heavy traffic in the area.
- BJP was not dependent on Dalits to win Gujarat. But the apathy may cost in other states
- Jayalalithaa and Mamata defend Mayawati, recast politics on gender lines
- The Worship of False Gods
- As Trump’s support cuts across traditional lines, Hillary Clinton has a tough task
- SH Raza He was the last of Progressive Artists’ Group titans. Only the Bindu remains
- The recent violence against Dalits in Gujarat is a fallout of the Sangh Parivar’s diktats on food