Maruti Suzuki to establish new plant at Manesar

NEW DELHI: India’s leading car maker Maruti Suzuki India Limited (MSIL) held its 29th Annual General Meeting here today. At the meeting O Suzuki, Chairman and CEO, Suzuki Motor Corporation, Japan, (majority stakeholder in MSIL), made wide ranging announcements. These included: Outline on current production capacity: •Annual Capacity at Maruti Suzuki Gurgaon is: 850,000 units • Annual Capacity at Maruti Suzuki Manesar is: 350,000 units • Total capacity : 12,00,000 units (1.2 million units) • To keep pace with growth (which has been as high as 27% in this fiscal), Maruti Suzuki needs more capacity Capacity announcements (subject to Board approval) • Maruti Suzuki will establish “Plant C” at Manesar. * Plant C will be constructed concurrently with the Plant B at Manesar. * Plant C to have an installed capacity of 250,000 units per annum. * Plant C is likely to be ready by end of fiscal 2012 / early 2013 • Plant B (announced earlier in Feb2010) at Manesar, will be ready by Jan 2012 and will bring an additional capacity of 250,000 units per annum • Total Capacity: * Present facilities : 12,00,000 units per annum * Plant B (Manesar) : 2,50,000 units per annum by Jan 2012 * Plant C (Manesar) : 2,50,000 units per annum likely in fiscal 2012-13 Total Capacity: 17,50,000 units per annum by end of fiscal 2012-13 (including productivity enhancements) Investment update (subject to Board approval) • The investment to construct Plant C at Manesar is estimated at 35 Billion Japanese Yen (approx Rs. 1,925 crores @ Yen 1= 0.55 Rs). This investment will be funded by internal accruals of Maruti Suzuki. Medium term investment: Rs 6,000 Crores (or $ 1.3 billion) during the period 2010-2013. a. Rs 1700 Cr (Manesar plant B) announced earlier in March 2010 b. Rs 2500 Cr (Engine plant & R&D) announced earlier in March 2010 c. Rs 1925 Cr (Manesar plant C) announced at AGM-2010 (7 Sept 2010) Other projects to be undertaken in Medium term: • Commence construction of test course at R&D Centre at Rohtak • We would also look at constructing Regional Offices at 16 locations. • SMC and MSIL will have an integrated approach towards these developments. • The timelines for all these projects will be evolved post board approval.