By IANS,
New Delhi : Car market leader Maruti Suzuki Tuesday said it is planning to invest Rs.1,925 crore to set up a new plant in Manesar, Haryana, to expand its annual production capacity from the current 1.2 million units to 1.75 million units by end of fiscal 2012-13.
The investments for the Manesar plant was announced by O. Suzuki, chairman and chief executive, Suzuki Motor Corporation, on the sidelines of the Maruti Suzuki India’s 29th Annual General Meeting (AGM) here.
Suzuki Motor holds 54.2 per cent in Maruti Suzuki India.
Currently, Maruti Suzuki India produces 1.2 million units annualy at its two plants in Gurgaon (850,000 units) and Manesar plant (350,000 units).
“The investment to construct Plant C at Manesar is estimated at 35 billion Yen (Rs.1,925 crore). This investment will be funded by internal accruals of Maruti Suzuki,” said the company in a statement.
The company said capacity expansion had become necessary to meet the ever growing demand in the domestic automobile sector.
With Tuesday’s announcement of an additional Rs.1,925 crore investment, the company’s total planned investment in the 2010-13 period now stands at Rs.6,125 crore.