Maruti’s Rs.4,000 crore plant to come up in Gujarat

Gandhinagar : Passenger car major Maruti Suzuki India Ltd Saturday signed a pact with the Gujarat government for setting up a Rs.4,000-crore vehicle manufacturing facility.

Maruti Managing Director and CEO Shinzo Nakanishi and Gujarat Principal Secretary for Industry Maheshwar Sahu signed the agreement for purchasing land near Mehsana, an official statement said.

Chief Minister Narendra Modi was present on the occasion.

The statement said MSIL will invest around Rs.4,000-crore in the first phase for land and construction of the plant, to be situated around 100 km from Ahmedabad.

By 2015-16, MSIL plans to roll out around 250,000 vehicles from the plant and plan future capacity expansion based on market conditions, what will be a complete vehicle manufacturing facility.

MSIL has been allocated around 700 acres land for the new facility. Maruti will become the second major vehicle manufacturer after Tata to set up a plant in Gujarat.

Along with the Maruti’s existing facilities at Gurgaon and Manesar in Haryana which presently manufacture around 1.75 million vehicles, the Mehsana plant with an initial capacity of 250,000 units will hike the company’s combined manufacturing capability to two million units by 2015-16.

The company expects that the Mehsana facility will generate direct employment for over 2,000 people, besides additional employment generation potential in the ancillary units and a supplier park in the vicinity.

Besides, MSIL hopes that its vendors and ancillary suppliers would invest at matching levels in Gujarat.

In the meanwhile, MSIL will continue to increase its production at Manesar where a third assembly line with a capacity of 250,000 units is expected to be operational by 2013-14.