Gujarat could be bigger home for Maruti by 2020
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 — 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
