The Hindu Business Line : Maruti to invest Rs 3,271 cr in 2 new plants

MARUTI Udyog Ltd said on Wednesday that its board had approved an investment of Rs 3,271.90 crore in setting up two ventures — a car-making plant and an engine plant. The car-making plant will be under a new joint venture, called Maruti Suzuki Automobiles India Ltd, in which Maruti will hold a 70 per cent stake while Suzuki Motor Corporation will hold the balance. The plant's capacity will be 1-lakh cars per year, which can be scaled up to 2.5-lakh.

The two firms had decided last year that they would set up a separate joint venture for the car-making plant rather than expand capacity at the existing Maruti unit as it was more than 20-years old and not suited to make a new generation of vehicles. The proposed plant, which will receive an investment of Rs 1,524.20 crore, will begin production by the end of 2006.

The engine plant will have a capacity of 3-lakh diesel engines and 20,000 petrol engines. It will also make up to 1,40,000 transmission assemblies. The plant will be managed by an existing joint venture company, which will be renamed Suzuki Powertrain India Ltd, in which Maruti will hold 49 per cent stake. This plant, which will be set up at a cost of Rs 1,747.70 crore, will also begin production by the end of 2006. Both the new plants are coming up at Manesar, in Haryana.

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