Maruti Suzuki India acquires more land in Gujarat: Moving out of Haryana for good?
In addition to their existing plant site at Mehsana, Gujarat, Maruti Suzuki India have bought another 600 acres of land, 40 kms from the first plant site. The first MSI plant in Gujarat will be spread over an area of 700 acres and will be ready for car production by 2015-16. With a total investment of Rs 8,000 crores allocated for their plants in Gujarat, MSI expects to churn out 1.5 million cars annually once both are ready. Currently, L&T is constructing fence around their site in Gujarat. Ground breaking ceremony is scheduled for next year.
R C Bhargava, Chairman, MSI, says, “We have land at two locations in Gujarat. The first one is offered by the government and the second one is a private land that is directly acquired by us with some negotiations by the government. The second location is for our future expansion. Once we exhaust the capacity at the first site, we will move to the second one.”
Surely, this increase in activity by MSI in Gujarat, has raised one eminent question, are they going to wrap their business in Manesar for good, especially after the unceremonious events. Speaking about the same, Mr Bhargava says, “We are not moving away from Haryana. We have two plants in the state and going to Gujarat after utilising the capacity completely at Gurgaon and Manesar. We will do the same once we exhaust the capacity in Gujarat also.”
Commenting on their expectations from 2013, he said, “We hope to grow 6-7 per cent growth at best in next fiscal, which is going to be the election year and so we don’t expect anything drastic happening.”
Maruti Suzuki has experienced decline in car exports this year, mainly due to unstable economic conditions in Europe. Commenting on exports, Shinzo Nakanishi, MD & CEO, MSI, said, “Last year we had a total export of 1.27 lakh units. This year we may be a little less than that because of the slowdown in Europe, which used to be our biggest overseas market.”