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Maruti Suzuki Invests Rs 4,960 Crore in Gujarat for 1 Million Unit Expansion

Maruti Suzuki India's board has approved the acquisition of land at Gujarat's Khoraj Industrial Estate for a major production capacity expansion. The initial investment of Rs 4,960 crore will cover land costs and preparatory work for the new facility. The expansion aims to add capacity for up to 1 million units to address growing domestic and export market demand. The final timeline and total project investment will be detailed as the board finalizes the installation phases.

Key Points: Maruti Suzuki's Rs 4,960 Crore Gujarat Land Deal for Expansion

  • Rs 4,960 crore initial investment
  • Land acquisition in Khoraj, Gujarat
  • Target of up to 1 million unit capacity addition
  • Funding via internal accruals and borrowings
  • Expansion to meet domestic and export demand
2 min read

Maruti to acquire land for expansion of production capacity at Khoraj Industrial Estate with investment of Rs 4960 crore

Maruti Suzuki to acquire land in Gujarat's Khoraj Industrial Estate with a Rs 4,960 crore investment to expand production capacity by up to 1 million units.

"growth in market demand including exports - Maruti Suzuki regulatory filing"

New Delhi, January 12

Maruti Suzuki India Limited announced on Monday that its Board of Directors approved the acquisition of land at the Khoraj Industrial Estate in Gujarat for the expansion of its production capacity. The company intends to acquire the land from the Gujarat Industrial Development Corporation with an initial investment of Rs 4,960 crore, according to a regulatory filing. This investment covers the cost of land acquisition, development, and preparatory activities as the automaker seeks to address growing market demand in both domestic and export sectors.

The regulatory filing indicates that the proposed capacity addition aims for up to 1 million units. Currently, the company's existing production capacity stands at approximately 24 lakh units per annum across its facilities in Gurugram, Manesar, Kharkhoda, and Hansalpur.

The company noted that it maintains a capability to produce 26 lakh units per annum, a figure that includes units produced at the erstwhile Suzuki Motor Gujarat Private Limited, which recently amalgamated with the company.

The decision to expand follows the full utilization of Maruti Suzuki's current production facilities. While the Board approved the land acquisition and the associated preliminary costs, the specific timeline for the installation of the new capacity remains under finalization. The filing stated that the period within which the proposed capacity is to be added will be "finalised and approved by the Board while framing the phases of installation of capacity."

To fund the expansion, the company plans to utilize a "combination of Internal Accruals & External Borrowings." The total investment required for the project will be further detailed as the Board outlines the specific phases of the capacity installation. The rationale provided for this capital expenditure is to support "growth in market demand including exports."

- ANI

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Reader Comments

P
Priya S
Nearly 5000 crore investment is huge! It's good to see a homegrown giant expanding capacity to meet demand. But I hope they also invest in better safety features across all models, not just for exports.
R
Rohit P
Another plant in Gujarat? What about spreading development to other states like Bihar or Odisha where industrial growth is needed? Always the same developed states get the investments.
S
Sarah B
As an expat living in Ahmedabad, this is exciting. The Khoraj Industrial Estate is becoming a major hub. This will boost local businesses and infrastructure. Good move by Maruti!
V
Vikram M
1 million units capacity addition! That's massive. Maruti truly is the king of Indian roads. Hope this means shorter waiting periods for popular models like Brezza and Fronx.
K
Karthik V
While expansion is good, I'm concerned about the environmental impact. Industrial estates need strict compliance. Hope GIDC ensures proper waste management and green norms are followed.

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