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Maruti weighs setting up plant in Gujarat

Maruti's manufacturing has so far been concentrated in Haryana with two production facilities in Gurgaon and Manesar, besides an upcoming research centre in Rohtak.

twitter-logoPTI | May 27, 2011 | Updated 20:31 IST

The country's largest car maker Maruti Suzuki India is understood to be scouting for location to set up a manufacturing unit in Gujarat, which could be its first plant outside Haryana where it has been based since its inception in 1983.

According to official sources in Gujarat, senior MSI executives met the state government representatives during the first week of May in the state capital.

"So far three rounds of talks have taken place between the two parties. We have offered them land at three different locations in the state," a senior government official said.

The state government has offered the MSI executives options at Sanand, Halol and Dholera localities, he added.

"The company has not yet finalised any location," the source said.

When contacted, a MSI spokesperson declined to comment.

Industry sources, however, said the company is at a very early exploratory stage for a possible plant at Gujarat.

Meanwhile, the Haryana government has said it is unaware of any possible moves by the company to invest outside of the state for future expansion.

"It (Maruti investing in Gujarat) is not in my knowledge and the business plan of the company is decided by the company (itself) and I cannot comment on that," Haryana Industries Minister Randeep Singh Surjewala said.

MSI's manufacturing has so far been concentrated in Haryana with two production facilities in Gurgaon and Manesar, besides an upcoming research centre in Rohtak.

Last month, MSI Chairman RC Bhargava had said the company may have to look for new manufacturing plant if it ran out of capacities while trying to meet its aim of selling up to 30 lakh units every year by 2015-16 from 12.71 lakh units in last fiscal.

"If we run out of capacities, then we will have to look for something else. But it all depends on how the existing and upcoming capacities will be utilised, which will go on till 2013," Bhargava had said.

He had further said that any decision to set up a new unit will be taken in consultation with parent Suzuki Motor Corp.


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