Maruti board approves Gujarat plant as strike dents Q2 net by almost 60 %
29 October 2011
Stung by labour trouble and prolonged shut-down at its existing facility, Maruti Suzuki (India) Ltd, the country's top car maker, is planning to set up a manufacturing facility in Mehsana district of Gujarat.
The board of directors of Maruti Suzuki India Limited (MSIL) today approved plans to purchase land in Mehsana district of Gujarat for future expansion of the company's manufacturing facilities.
The acquisition of land would, however, be subject to completion of negotiations on price and all legal formalities, the company said in a release.
The move comes after prolonged strike at its Manesar facility over the past two months that caused heavy loss to the country's leading car maker.
Maruti Suzuki's net profit during the second quarter of 2011-12 (July-September 2011) stood at Rs240.4 crore, a fall of 59.8-per cent over the same period last year.
Net sales (net of excise) of the company during the quarter stood at Rs7,537.5 crore, a drop of 15.7 per cent over the same period last year.