Maruti Suzuki sees 3-mn annual sales with Gujarat plant on stream by 2017
03 September 2014
Suzuki Motor Corp on Tuesday said its third manufacturing facility in India, to be set up in Gujarat, will be operational in 2017, which will take the company's line-up to 25 models and annual sales of 3 million units.
''The company has selected Gujarat for its new facility because it has good infrastructure of roads and has abundant power supply,'' Suzuki Motor chairman & CEO Osamu Suzuki said, adding that the state has been selected for the investment for its good power and infrastructure.
Suzuki announced this while addressing a business symposium during Prime Minister Narendra Modi's visit to Japan.
Osamu Suzuki said with the third manufacturing facility likely to be operational by 2017, Maruti is trying to double its current output to 3 million units.
Apart from the Gujarat's upcoming new facility, Suzuki has two fully operational facilities at Gurgaon and Manesar plants producing 1.5 million units annually. The new manufacturing facility will definitely help the automaker to reach desired results.
"The company has selected Gujarat for its new facility because it has good infrastructure of roads and has abundant power supply," Suzuki Motor Corporation Chairman and CEO Osamu Suzuki said.
"We have decided to expand capacity of our plant in Gujarat. It is to be completed in 2017. We are happy to make investments in India. We have selected Gujarat because it has best power situation."
Praising Modi, Suzuki said, his company's decision to set up a plant in Gujarat was dictated by the availability of power and other necessary infrastructure. "Modi focused on this issue (infrastructure and power) and he turned it (Gujarat) into a good power state. Modi is a friend and we would like to be in touch with you (Modi)," he said.
Maruti Suzuki India in the process of getting minority shareholders' nod to let its parent Suzuki Motor Corp own and invest in its Gujarat facility.
In March, under pressure from institutional investors, MSIL had decided to seek minority shareholders' approval after tweaking some of the earlier proposals for the Gujarat plant.
As per the revised plan for Gujarat project, Suzuki Motor Corp, through its wholly-owned subsidiary, would make the investment through depreciation and the equity brought in by the parent without 'mark-up' on cost of production.
In case of termination of the contract manufacturing agreement between them, the facilities of the Gujarat subsidiary would be transferred to MSIL at book value and not at fair value as was envisaged before.