Monday, June 04, 2012
By Manoj Kumawat
Maruti zeros in on Mehsana for its new manufacturing facility
India’s largest car maker Maruti Suzuki India has signed a State Support Agreement (SSA) with Gujarat government for the purchase of land in Gujarat for setting up its manufacturing facility there. Maruti Suzuki India will buy land near Mehsana where it will set up its manufacturing unit. Mr. Shinzo Nankanishi, the managing director of and CEO of MSI and Mr. Maheshwar Sahu, Principal Secretary (Industry and Mines), Government of Gujarat signed the agreement in the presence of Mr. Narendra Modi, the Chief Minister of Gujarat.
The new facility of the company will have an initial manufacturing capacity of 250,000 units, however the production capacity can be raised if the demand surges. MSI will apparently invest a staggering amount of Rs 4,000 crores in the first phase for the land and construction of plant. This new unit in Gujarat will be a complete production plant.
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Maruti Suzuki India has been allocated 700 acres of land by the government of Gujarat for its new production unit. The new manufacturing facility is being built as a step towards expanding Maruti Suzuki India’s production units in India in order to suffice the future market demand. Currently, the company has its manufacturing units located in Gurgaon and Manesar in Haryana and Mahesna unit will be a new addition to the company’s production units in India.
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The new production facility will take the combined production capacity of MSI to 2 million by the year 2015-2016. This new facility will enable employment opportunities for more than 2000 people. Along with MSI, company’s vendors and ancillary suppliers are likely to invest in the state at the equivalent levels. The new facility of Maruti Suzuki India will be located around 100 km from the heart of Gujarat, Ahmedabad. The manufacturing plant will be located at a distance of 300 km from the Mundra port and it would be viable for the company’s export initiatives.
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However, the new facility would not top the company from expanding its production capacity at Manesar unit, where the company plans to set up a third assembly line. This new line will be known as Manesar C plant and will have a manufacturing capacity of 2.5 lakh units per year. Manesar C plant is expected to go on floors by the year 2013-2014.