Maruti Suzuki Confirms New Plant in Gujarat

[visran]

Maruti Suzuki India Ltd (MSIL) has signed a State Support Agreement (SSA) with the government of Gujarat for purchase of land near Mehsana to set up an all-new manufacturing facility. This is in line with its expansion programme announced earlier this year. The new plant will be located around 100km from Ahmedabad and around 300km from the Mundra port, providing good logistical support to the carmaker’s export programme. As per the SSA, MSIL will set up two units in two phases in the backward taluka of Mandal-Becharaji Amadavad district. The first unit (first phase) will be near the historical town of Becharaji and the second unit (second phase) will come up at a location of around 25km from Becharaji.

The agreement was signed by Shinzo Nakanishi, MD and CEO, Maruti Suzuki, and Maheshwar Sahu, principal secretary (Industry and Mines), government of Gujarat, in the presence of Gujarat chief minister, Narendra Modi.

The expected investment in the plant is estimated to be around Rs 4,000 crore in the first phase. The facility, which will be commissioned by FY 2015-16, will have an initial annual capacity of 250,000 units. Along with Maruti’s existing plants at Gurgaon and Manesar, which have a capacity of 17.5 lakh units, the Mehsana plant will take total manufacturing capacity to 20 lakh units by 2015-16.

Maruti expects to generate direct employment for over 2,000 people at the Gujarat facility while the ancillary units in the vicinity and a supplier park will generate additional employment. The company’s component vendors and ancillary suppliers are expected to invest in Gujarat at matching levels. Meanwhile, Maruti plans to continue to increase its production at the Manesar facility where a third assembly line (Manesar C plant, 2.5 lakh units annually) is expected to go on stream by the middle of 2013-14.

Gujarat: a growing auto powerhouse

From Gujarat’s perspective, Maruti’s plan to set up a plant in Mehsana is yet another affirmation of the growing status of the state as a fast-growing automotive hub and an industrial powerhouse.

Gujarat’s profile as an automotive hub first came into focus when Tata Motors made the now-famous transition from Singur to Sanand. Ford India followed with its own plans for an integrated plant, Peugeot then announced its India plant there as a preferred location and now Maruti has announced its Mehsana gameplan.

The manufacturing and engineering sector in Gujarat contributes over 27 percent to the state’s GSDP and contributes nine percent overall to the national engineering output, According to chief minister Narendra Modi, at present there are more than 30 engineering clusters and new ones emerging at Sanand-Viramgam, Mandal-Becharaji, Halol-Savli, Anjar and Santhalpur. There is also considerable focus on manpower and skill-set development – there are 54 engineering, 106 diploma colleges with over 82,000 seats and 253 ITI institutes. The state has also initiated a model of skill formation training with industries.

Source:
Autocar Professional

 

[visran]

Re: Maruti confirms new plant in Gujarat.

Gujarat will seek to fortify its association with Maruti Suzuki by setting up a special investment region near the carmaker's proposed facility, an agreement for which was signed on Saturday. The move is expected to catalyse industrial and economic development in the Mandal-Bechraji area of north Gujarat.

"The SIR will mainly focus on engineering sector, particularly the auto component manufacturers. We want the region to come up the way Gurgaon and Manesar have developed because of Maruti," Maheshwar Sahu, principal secretary in the state Industries department told ET.

Gujarat Industrial Development Corporation, the nodal agency of the state government to create industrial infrastructure, will set up an industrial estate in the proposed SIR that will also have a knowledge zone to promote interaction between the academia and the industry. It will also have an entertainment zone for recreation.

Most industries in Gujarat are in the Ahmedabad-Vapi belt. While Kutch too has seen development, North Gujarat has fewer industries. Of late, Charanka in Patan district of north Gujarat came into limelight with setting up of a 600 MW solar energy park. Now the region will now pin hopes on Maruti Suzuki facility for a developmental push.

The state government wants increased participation of Japanese companies in the region and has plans to set up a 'Japanese Zone' dedicated to Japanese companies. The SIR falls in the Delhi Mumbai Industrial Corridor ( DMIC) belt being developed in partnership Japanese government and Japanese companies.

Of late the focus of the state government is to promote engineering industries in Gujarat, known for chemicals, petro-chemicals and pharmaceutical industries.

"So far, Gujarat is known for its chemical and pharma industry, which are polluting. We plan to set up auto clusters as well as clusters for engineering units, which are non-polluting," said Narendra Modi, state chief minister during the ceremony of signing of State Support Agreement between Gujarat government and Maruti Suzuki India Limited (MSIL) on Saturday in Gandhinagar.

Maruti will set up a manufacturing facility for 2.5 lakh cars per annum near Bechraji in north Gujarat, 100 km from Ahmedabad, with an initial investment of Rs 4,000 crore. The plant coming up over 700 acres will be commissioned in 2015-16 and create 2,000 direct jobs. The company plans to raise the capacity of 15 lakh in a phased manner in 14 years.

The manufacturing and engineering sector in Gujarat contributes over 27% to state GSDP and contributes overall 9 % to the national engineering output. Gujarat has over 30 engineering clusters and more are coming up in Sanand- Viramgam, Mandal-Becharaji, Halol-savli, Anjar and Santhalpur (north Gujarat) belts.

Engineering SIR to come up near Maruti facility in Gujarat - The Economic Times

 

[Fazer]

Very informative, Visran.
Hope Maruti Suzuki has taken the right step and a successful step.

 

[visran]

Very informative, Visran.
Hope Maruti Suzuki has taken the right step and a successful step.

Thanks,

I feel it's a good move as their current capacity was not satisfying the market demand they needed another plant which also helps their export ambitions, Since they wanted to clear the manufacturing bottleneck what better place than Gujrat, Modi seems to give a better deal than other's.

 

[Fazer]

Modi seems to give a better deal than other's.

Gujrat seems to be going northwards in TARAKKI!

 

[visran]

Gujrat seems to be going northwards in TARAKKI!

That's right, Chennai had a complete monopoly over this industry few year's back but the Nano plant turned around thing's for Gujrat(If not for Tata Motor's)

 

[Fazer]

A NANO plant was also being set up in Uttrakhand but the people living there strictly refused for it! Mad people!

 

[S Class]

Modi rocks buddy, rest are all rotten head CMs, PM is the biggest one, who has donated his brain at 10 Janpath.

 

[visran]

Maruti Suzuki seeks more land in Gujarat.

The largest passenger car maker Maruti Suzuki India Ltd (MSIL) had signed an agreement with Gujarat government for land purchase for a new plant to take manufacturing capability to 2 million units by 2015-16 on June 2and now news reports are suggesting that MSIL has sought for more land from the state government for phase two of the project. It has been allotted 700 acres of land at the site located around 100 kilometers from Ahmedabad.
According to a report in Business Standard, a Gujarat government official stated "Yes, Maruti is looking for another land parcel of around 300 acres for phase two of the project. It could be used to house the company's vendors or for the company's own capacity expansion plans." The land would not be exactly adjacent to the plot allotted to the company in Hansalpur, but is likely to be around 10-12 km away from the site, the official added.

Earlier, MSIL had signed a state support agreement (SSA) with the state government for purchase of land near Mehsana. The company said that it would invest Rs 4,000 crore in the first phase to set up a 250,000 units per annum plant by 2015-16. The new facility will take MSIL's combined capacity to two million units in three to four year's time. The company's Gurgaon and Manesar plants will have a net installed capacity of 17.5 lakh units per anuum once a third assembly line (Manesar C plant with 2.5 lakh units annually) goes onstream by mid-2013-14.

Maruti Suzuki seeks more land in Gujarat | WheelsUnplugged

 

[visran]

Taking a step ahead in its Gujarat plans, Maruti Suzuki India Ltd now has been allotted the second land parcel it had sought from the Gujarat government,sources in the state government said.

The company had sought for more land from the state government earlier in June this year for the second phase of the proposed manufacturing plant in Gujarat. Maruti was allotted around 700 acres of land at Hansalpur near Mehsana, around 100 kilometers from Ahmedabad in June. Around two weeks after signing the state support agreement (SSA) with the state government for purchase of land near Mehsana on June 2, the company had approached the state government for another land parcel of around 300 acres near the existing plant site.

Accordingly a piece of land was short-listed by the state industries department, around 10-15 kilometers away from the present site at Hansalpur. The company has also been allotted the land recently, informed a senior state government official. "It is not Gujarat Industrial Development Corporation (GIDC) land. The state government has allotted land from its own land bank. Even the first plot of 700 acres is not GIDC land", the official informed on grounds of anonymity.

The company could not be reached for a comment on the same.
Maruti is all set to invest Rs 4,000 crore in Gujarat to build a 250,000 units per annum plant by 2015-16. The company is likely to begin work on its upcoming plant within the next three months, informed a state industries department official.

Post Gujarat chief minister Narendra Modi's Japan visit where he had met Suzuki Motors chief Osamu Suzuki at Hamamatsu, Maheswar Sahu, principal secretary, industries and mines,government of Gujarat, had said, "Maruti Suzuki is working on designs, they are very serious about implementing the project in Gujarat, and they will start production from the Gujarat plant by 2015.The phase two of the project would be developed depending on market conditions."

The Gujarat plant would be Maruti's third plant in India and the first one outside Haryana. Maurti's Manesar plant was hit by a riot on July 18, resulting in the death of a senior manager and injured more than 100 people as over 3,000 workers ransacked the factory premises. The plant has remained shut ever since.

Speculations were rife as Narendra Modi went on a four-day Japan trip, which included meeting the Suzuki chief at its headquarters at Hamamatsu, that the Gujarat chief minister would try to woo Maruti Suzuki to scale up its proposed operations in the state in the wake of labour issues at Haryana. The state government has, however, clarified that no such attempts have been made to encash on the labour issues troubling Maruti Suzuki's Manesar plant.

Meanwhile, Gujarat is planning to build a 600 hectare township at a 15 minutes drive distance from Maruti's upcoming plant at Hansalpur in collaboration with Japan External Trade Organisation (JETRO).

Maruti gets second land parcel

 

[Umang]

well its great news for maruti. its better for them to pack bags from manesar and goto gujrat if they want to cater their looooong waitlists fast!

 

[visran]

Suzuki Motor Corp to train 500 Maruti Suzuki workers in Japan

The Japanese autombile maker Suzuki Motor Corporation plans to train around 500 Indians at its headquarters in Japan for deployment at their proposed manufacturing plant at Hansalpur in Gujarat, according to R.C. Bhargava, Chairman, Maruti Suzuki India Ltd (MSIL).
It was reported in The Business Line that Bhargava said the company will train this staff before the plant begins production in 2015-16. MSIL will invest Rs 4,000 crore in the plant in the first phase to manufacture 2.5 lakh vehicles. It will also set up an institute at Hansalpur, MSIL’s first plant outside Haryana, for continuing employees’ training. Modi has assured the Suzuki team that the State Government would create adequate infrastructure for the automobile industry in Gujarat, he said.

Suzuki Motor Corp chairman Osamu Suzuki visited the Gujarat Chief Minister Narendra Modi. A number of Japanese companies, mainly engaged in manufacturing auto parts, could now invest in Gujarat, he said. Bhargava said work on the project will commence a few months from now after the board approves a detailed project report.

Suzuki Motor Corp to train 500 Maruti Suzuki workers in Japan | WheelsUnplugged

 

[visran]

Maruti may double capacity at its planned Gujarat plant: Report

Japanese-owned Maruti Suzuki may double capacity at its planned car plant in Gujarat, a report says, as it reviews strategy following deadly labour unrest at another major factory.
The Gujarat plant - due to open 2015-16 - will be the first for the country's biggest carmaker outside of Haryana, where a riot by workers last month at its Manesar factory led to the death of a manager and injury to 96 supervisors.

Dow Jones Newswires, quoting an unnamed senior Gujarat state official, said initial capacity of the new plant could be as high as half a million cars per year -- twice what Maruti originally envisioned. Maruti is investing Rs 4,000 crore ($727 million) to build the factory. The report late Friday came as Suzuki Motor Chairman Osamu Suzuki travelled to Gujarat to meet chief minister Narendra Modi.

Suzuki is on a week-long visit to India to take stock of the situation at Maruti, which is crucial to the Japanese firm's fortunes because it contributes one-third of its pre-tax profit and accounts for half of its production outside Japan.

A Maruti spokesman would not comment when asked about plans to enlarge the initial planned capacity of the Gujarat plant at Mehsana, 100 kilometres (60 miles) from Ahmedabad.

July’s violence at the Manesar plant, near New Delhi, was the worst since Maruti cars started rolling off assembly lines in India in 1983. Maruti's other factory is located in Gurgaon.

The unit, the country's largest carmaker by sales, lost $9 million a day during a subsequent 21-day plant shutdown, which ended earlier in the week, analysts estimate.

Gujarat, with its long coastline allowing easy exports, has emerged as a popular centre for car production with US giants General Motors and Ford also setting up factories there.

Maruti may double capacity at its planned Gujarat plant: Report| ZigWheels.com

 

[visran]

Maruti Suzuki puts Gujarat plan in fast lane

Eschewing doubts of Maruti Suzuki India Limited (MSIL) keeping its Gujarat plans on hold, the company sped up its journey from Hamamatsu to Hansalpur via Haryana. Sources suggest that the company decided to change gear after its board approved fast-tracking the Gujarat plant, where the company will invest close to Rs 4,000 crore.

Chief minister Narendra Modi too, during his Japan visit, pitched scaling up capacity at the Gujarat plant and putting the project on the fast track, to the top brass of Suzuki Motor Corp.

In August this year, MSIL paid the first installment of Rs 22 crore for the 640 acres of land allotted to them at Hansalpur in Ahmedabad. The land has been allotted at Rs 673 per square metre and payment will be made in eight installments totaling around Rs 175 crore.

MSIL has already awarded a contract for building the outer wall of the earmarked area for the plant with an annual capacity of 2.5 lakh cars. "To start with we are working on the boundary wall with L&T. Details of the project are still being worked out," said M M Singh, chief operating officer (production), MSIL. When contacted, L&T officials refused to divulge details of the contract.

Chief operating officer (administration) S Y Siddiqui on Wednesday said the company will start constructing the plant next year. Earlier, senior MSIL officials, including chairman R C Bhargava, suggested that looking at the market conditions, the plant would not begin operations before 2016.

Company sources said the MSIL board is mulling rolling out its all new diesel engines from Gujarat. "Work to develop a small two-cylinder 800cc diesel engine is underway in Japan. Once the development is completed, there the project will come to India. The MSIL board is yet to decide on whether they will begin commercial production of the engine from the new facility or the one at Manesar," said a source.

Maruti Suzuki puts Gujarat plan in fast lane - The Economic Times

 

[visran]

Slowdown hurts Maruti, may defer Gujarat plant opening to 2015-16

Maruti Suzuki may defer opening its Gujarat plant to 2015-16 due to the economic slowdown that has affected car sales in India.

India's largest carmaker saw sales grow 3.9% in December to 95145 units, largely due to increased sales of its utility vehilces Gypsy, Ertiga and Grand Vitara. The company has seen sales of its small cars such as Maruti Alto 800 by 15% during the month as customers shied away from buying cars in the last month of the year, despite cash discounts.

In December, the Society of Indian Automobile Manufactuers revised its growth forecast for the year to to 1-3% as against 11-13% it announced in April.

"The projected growth rate of 14% for the auto industry has slowed down to 4-5% in the current fiscal. This has created a bit of confusion about our Gujarat plans. It is likely to start in mid 2015-16. Our board meeting in January end will take a decision on it," S Y Siddiqui, COO of Maruti Suzuki India was quoted as saying by Economic Times.

Maruti, which owns 40% market share in India has cut its forecast of the Indian car market by a fifth to four million units in 2015-16 blaming political indecisions and tough economic conditions. Maruti, the jewel in the crown of its Japanese parent Suzuki, expected the Indian car market to be five million by then.

Maruti has already outlined an investment of Rs 4,000 crore for its Bechraji unit in north Gujarat. The greenfield unit will have an installed capacity of 2.5 lakh units per annum.

As global car makers are looking at India and other emerging markets as a base to sell cars, Maruti has already begun the process to acquire land in Gujarat for its second plant and use this as a hub to export cars to Africa.

Slowdown hurts Maruti, may defer Gujarat plant opening to 2015-16 | wheelsunplugged.com