Maruti Suzuki India has received the board approval for the acquisition of land, which will be utilised for expanding its production capacity. The company will expand production at the Khoraj Industrial Estate from the Gujarat Industrial Development Corporation. The board’s nod for land acquisition for the same involves total investment aggregating to Rs 4,960 crore.
Maruti Suzuki India: Key details about acquisition
The Maruti board has said that the proposed capacity addition is up to 1 million units and the timeline for carrying out the capacity addition is yet to be finalised and approved. The decision would be taken while framing the phases of installation of capacity, it added.
As for financing these investments, Maruti Suzuki India will opt for a combination of internal accruals and external borrowings. The rationale provided for this capital expenditure is to support growth in market demand, including exports.
Maruti Suzuki ties up with IOCL for vehicle service facilities
In other related developments by the company, Maruti Suzuki India and Indian Oil Corporation (IOCL) have joined hands for the establishment of vehicle service facilities at IOCL retail outlets, the company said in its regulatory filing.
The company announced that it has signed a memorandum of understanding (MoU) with IOCL to establish several service facilities across the country. Under this collaboration, customers can get routine maintenance, minor repairs, and even major services at several IOCL facilities across the country.
“The initiative will further strengthen Maruti Suzuki’s service network, which already spans over 5,780 service touchpoints across 2,882 cities in India,” the company added.
Commenting on this collaboration, Ram Suresh Akella, Executive Officer (Service), Maruti Suzuki India, said, “This collaboration marks a significant step to bring the mobility and energy sectors together and deliver a superior customer care experience. We are committed to enhancing accessibility, delivering unmatched convenience, and ensuring complete peace of mind in the car ownership journey for our customers.”
Further, IOCL’s Marketing Director, Saumitra P. Srivastava, said, “By partnering with Maruti Suzuki, we are integrating world-class automotive maintenance along with our energy offerings.”
Maruti, IOCL share price performance
The Maruti Suzuki rose marginally in the intraday session. Over the past five trading sessions, the company’s stock has declined by nearly 4%.
IOCL’s share price was trending flat in the intraday session, while the company’s stock has declined by 4% over the past five trading sessions.