Maruti Suzuki Invests Rs 4,960 Crore in Gujarat Expansion

Maruti Suzuki India Limited is set to purchase land in Gujarat's Khoraj Industrial Estate for expansion. With a Rs 4,960 crore investment, the automaker plans to address rising market demand by boosting its production capacity by up to 1 million units. The timeline for completion is yet to be finalized.

Maruti Suzuki India Limited (MSIL) has announced its plan to expand production capabilities by acquiring land at the Khoraj Industrial Estate in Gujarat. The company's Board of Directors approved the acquisition, enabling an initial investment of Rs 4,960 crore, as detailed in a regulatory filing revealed on Monday.

This investment will fund the cost associated with land acquisition, development, and preparatory activities. Aimed at addressing the growing market demands in domestic and export sectors, the proposed expansion plans seek to add up to 1 million units to the company's capacity. Currently, Maruti Suzuki boasts an existing production capacity of approximately 24 lakh units annually across its various facilities.

Following the complete utilization of its production facilities, Maruti Suzuki's decision for expansion also accounts for the recently amalgamated Suzuki Motor Gujarat Private Limited, contributing to a capability of producing 26 lakh units per annum. The specific timeline for the new capacity installation remains under discussion, with the Board set to finalize and approve the phases. The company plans to finance this expansion through a combination of internal accruals and external borrowings, highlighting its commitment to meet growing demand, including exports. (ANI)

(With inputs from agencies.)