Maruti Suzuki India to invest Rs. 3,500 crore

Maruti Suzuki India, country's largest car manufacturer seems to be aggressive with its strategies, announced to invest about Rs. 3,500 crore. The company aims to strengthen its market leadership in the Indian car market. Currently, the firm accounts for nearly 40 per cent of sales in India, and will be responsible for the export markets of Africa, the Middle East and neighboring countries.

"The capital investment proposed this year is approximately Rs 3,500 crore. And this will only increase as we go ahead," Maruti Suzuki India Chairman R C Bhargava said. While addressing shareholders in the company's annual report for last fiscal (2012-13), he said, the company is regularly working on its planned investments to enhance production capacity and will introduce new vehicles from time to time.

"Work on the Gujarat site has commenced and we expect to start production by the end of 2015-16. The Manesar 3rd line will be commissioned soon, as also Phase I of the diesel engine line in Gurgaon," Bhargava said. "We are also investing in strengthening our sales and service facilities all over the country", he further added. Commenting on the export strategy, Bhargava said: "Suzuki Japan has decided that India will now be responsible for the export markets of Africa, the Middle East and our neighboring countries."

"We also have to determine the products to be manufactured for these markets and, if necessary, establish assembly plants overseas. This decision will greatly help the growth of our exports," he said. The company is working to reduce costs, and localise inner parts. Last fiscal (2012-13), Maruti Suzuki India registered a net profit of Rs. 2,392 crore from Rs. 1,635 crore in the previous fiscal, while in terms of sales, MSI posted 3.3 per cent growth with 11,71,434 units sold from 11,33,695 units in preceding fiscal.

Source : PTI

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