Maruti’s third plant pumps in more investment

The country’s largest carmaker has started its third manufacturing unit in Manesar near Gurgaon, Harayana. The car maker that sells the country’s most popular models like Maruti Alto, Maruti Wagon R, Maruti Zen Estilo, Maruti A-Star et al is all set to pump in a lot of money. Maruti Suzuki India's investments will now be to the tune of Rs 6,125 crore during the 2010-13 period. The third plant at Manesar comes at a cost of Rs 1,925 crore.

Company’s cars like Maruti Swift, Maruti Swift Dzire etc are among the highest selling models and the company has waiting period for their models.

According to Suzuki Motor Corp Chairman Osamu Suzuki, "With this plant, total output from MSI will be at 1.75 million units," Suzuki said. Currently, MSI has a total annual total output of 1.2 million units per year.”

The Manesar plant’s annual production capacity would be around 2.5 lakh units after an investment of 35 billion yen. The third plant at Manesar is likely to be ready by the end of the 2012 fiscal or early 2013.

But the plant is not the only investment the company is making. MSI is putting Rs 2,500 crore on an engine plant and research centre in Rohtak. All the investments of MSI totalled up come upto Rs 6,125 crore for the 2012-13 period.

The two existing plants produce – 8,50,000 units at Gurgaon and 3,50,000 units at first Manesar plant annually. This takes the total figure to 12,00,000 units per year. But the booming Indian car market has compelled the carmaker to come up with a new plant to meet the demand for its products. According to Osamu Suzuki, "Some of our models, we have not been able to properly supply, as we have lot of production issues. We have not estimated the demand for cars at which it has grown.”