Maruti Suzuki has recently partnered with AgVA Healthcare to supply ventilators soon. AgVA Healthcare happens to be an existing approved manufacturer of ventilators. The first order of 10,000 ventilators will be completed by the end of May and the medical equipment will be handed over to the Central Government. The first ventilator under the partnership was made on 11th April and Maruti Suzuki was approached by the Government for help in making ventilators. As Maruti Suzuki doesn’t have the know-how to make ventilators, it approached AgVA Healthcare, a company that is not even two years old and has quite a small production capacity. The Government wanted ventilators in the months of April, May and June.
The Memorandum of Understanding (MoU) was signed between the two firms on 30th March. Till now, under the said partnership, 1250 ventilators have been produced. Maruti Suzuki says that the daily production rate of ventilators is going up and around 250-300 ventilators are being made on a daily basis. The two firms are planning to ramp up the production to 400 ventilators a day. The company says that the first order of 10,000 ventilators will be completed by the end of May and if the Government wants more, the partnership will provide 10,000 more units in June 2020.
Under the said partnership, AgVA Healthcare is responsible for taking care of the technology and performance-related aspects of the ventilators. On the other hand, Maruti Suzuki is using its supplier base to make the required components, upgrading systems for enhanced production and taking care of the quality while generating higher volumes. Upon asking if MSIL would be importing ventilators, the company said that it now wants AgVA Healthcare to become a major ventilator manufacturer as it produces good quality products. As there is a sizeable demand of ventilators outside India at the moment, Maruti Suzuki believes that AgVA Healthcare should develop the capacity of making ventilators on a larger scale.
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