Maruti Board clears Rs.3.271.9 crore investment for two ventures
By Our Corporate Bureau | 07 Apr 2005
Chennai: The Indian car giant Maruti Udyog Limited has finalised its two mega investment plans — a new car plant and an engine and transmission manufacturing plant. Both the projects will be implemented by two different companies.
At its meeting the company's board approved a total investment of Rs3,271.9 crore for these two ventures, which will be located in Haryana.
The new car manufacturing company, called Maruti Suzuki Automobiles India Limited, will be a joint venture between Maruti Udyog and Suzuki Motor Corporation holding a 70 per cent and 30 per cent stake respectively.
The Rs1,524.2 crore plant will have a capacity to roll out 1 lakh cars per year with a capacity to scale up to 2.5 lakh units per annum. The new car manufacturing plant will begin commercial production by the end of 2006.
The engine and the transmission plant will be owned by Suzuki Powertrain India Limited in which Suzuki Motor Corporation would hold 51 per cent stake and Maruti Udyog holding the balance.
The ultimate total plant capacity would be three lakh diesel engines. However, the initial production would be 1 lakh diesel engines, 20,000 petrol engines and 1.4 lakh transmission assemblies.
Investment in this facility will be Rs.1,747.7 crore. The commercial production will start by the end of 2006.