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Sunday, Sep 06, 2009
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Business Daily from THE HINDU group of publications Sunday, Sep 06, 2009 ePaper | Mobile/PDA Version | Audio | Blogs |
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Cars Corporate - Outlook
Our Bureau Chennai, Sept. 5 Maruti Suzuki India has said that it will shift production from one plant at the Gurgaon factory in Haryana, to the factory at Manesar, 25 km to the south, also in the same State. The plant at the Gurgaon facility will be gradually changed to a base for engine assembly and machining, while the automobile assembly will be integrated at Manesar, according to a company press release. The release said on Saturday that the Gurgaon Plant I was constructed in the early 1970s and refurbished and modified before Maruti Udyog (as the company was called before Suzuki Motor Corporation acquired a majority stake) began production in 1983. The almost 40-year-old building and equipment have been depreciated to a large extent. “It is necessary to reconstruct the building and modernise the production facilities,” the release said. It said that since the land at the Gurgaon campus was fully used-up, the company decided “that facilities from Plant I in Gurgaon should be added and shifted to Manesar plant in a phased manner.” As the shifting of production facilities will result in increased production volumes at Manesar, the company has sought further support from the Haryana Government so that the railway siding at Manesar can be completed at the earliest. Plant I has a capacity of over 2.50 lakh units a year and rolls out the Maruti 800, the Omni, the Versa, the Gypsy, the Ritz and the Alto. The Alto is made in all the three plants at Gurgaon, according to company sources. Production capacitySuzuki Motor Corporation’s Chairman and CEO, Mr Osamu Suzuki, who was in India earlier this week, reviewed the production facilities of Maruti Suzuki. Agency reports from Japan quoted Mr Suzuki as saying that shifting the production facilities would not change Maruti Suzuki’s overall annual production capacity of one million units. Maruti’s three plants at Gurgaon were commissioned in 1983, 1994 and 1999 respectively. Together, they have a capacity of seven lakh units a year. At the Manesar facility, inaugurated in February 2007, the company makes the Swift, the DZire, the SX4 and the A-star. The company recently increased production capacity from 1.30 lakh units to three lakh units at Manesar following a strong demand for these models. Maruti will invest Rs 1,000-1,500 crore in a research and development centre at Rohtak, for which the Haryana Government recently allotted 700 acres. The first phase of the centre will be ready by 2012 and the second by 2015. Maruti will be the global R&D hub for Suzuki Motor Corporation. It will also design and develop a car and launch a “Made in India” car by 2012. In an interview published in the company’s 2008-09 annual report, Mr S. Nakanishi, Managing Director and CEO, Marutu Suzuki, said the company is working on a direct railway link from its Manesar assembly line (in Haryana) to the roll-on, roll-off terminal at the Mundra port in Gujarat, from where its cars are exported. Maruti to decide on expansion at Manesar in the next few days Maruti ramps up capacity at Manesar More Stories on : Cars | Outlook | Maruti Udyog Ltd | Automobile Components
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