The Telegraph
Since 1st March, 1999
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Twin Maruti units in fast lane

New Delhi, April 6: Maruti Udyog Limited will invest Rs 3,272 crore in a new car plant and an engine and transmission facility at Manesar in Haryana.

The investment decision was cleared by Maruti's board of directors at a meeting held in Hamamatsu, Japan, today.

The car manufacturing plant will be established under a joint venture company called Maruti Suzuki Automobiles India Limited (MSAIL).

As decided earlier, Maruti will hold 70 per cent equity in MSAIL, while Suzuki Motor Corporation, Japan, will hold the remaining 30 per cent. The investment in this plant will be Rs 1,524.2 crore.

The initial capacity of the plant ' designed to manufacture larger vehicles ' will be 100,000 units a year, with an aim to scale it up to 2,50,000 units a year.

The plant will begin commercial operations by the end of 2006. There are also plans to roll out the first fully-indigenous car by 2007. The new car will be developed by the company's research and development department and will be ready in the next three years. Until now, the company has developed only cars made by parent Suzuki Motor Corp.

The new engine and transmission facility will manufacture diesel engines for cars. The directors decided today that it would also manufacture petrol engines and transmission assemblies.

The engine plant, which will start commercial operations by end 2006, will involve an investment of Rs 1,747.7 crore.

The total plant capacity of this facility will be 3,00,000 diesel engines per annum, which will be developed in phases.

'Annually, the initial production capacity will be 1,00,000 diesel engines, 20,000 petrol engines and 1,40,000 transmission assemblies. It would be gradually expanded in line with the market demand,' said the company.

The facility will be formed under a joint venture company, renamed as Suzuki Powertrain India Limited (earlier called Suzuki Metal India Limited or SMIL).

Initially, Maruti Udyog had planned to invest only Rs 350 crore in the diesel engine plant. But this was scaled up after it was decided that the plant would feed Suzuki's Asian and EU operations also.

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