Suzuki to invest Rs 85 bn in three Gujarat units

Tuesday 03rd February 2015 05:59 EST

The Japanese auto giant Suzuki Group plans to invest around Rs 85 billion over the next few years to set up three plants at Hansalpur, Gujarat, with a total annual capacity of 7,50,000 vehicles. The first plant will commence production by mid-2017, which is being set up at an investment of about Rs 30 billion and will have an annual capacity of 2,50,000 units. The vehicles manufactured at these facilities will be supplied exclusively to Maruti Suzuki India Ltd (MSIL) and support its objective of reaching annual sales of two million units in the medium term.

Gujarat CM Anandiben Patel laid the foundation stone for Suzuki’s Hansalpur manufacturing facility in the presence of Takeshi Yagi, ambassador of Japan to India, Rajnikant Patel, home minister, government of Gujarat, Osamu Suzuki, chairman and CEO Suzuki Motor Corporation (SMC), Japan, R C Bhargava, chairman, MSIL and Kenichi Ayukawa, managing director, MSIL.

Speaking at the ceremony Bhargava said, “The company has acquired 640 acres of land for the plant, of which around 140 acre will be used to set up vendor park. Apart from this, Japan External Trade Organization (JETRO) is also in the process of setting up an industrial park in the vicinity where some of the Japanese vendors may set up their units.”

“This is SMC's second project in India,” said Osamu Suzuki while terming the project as the beginning of new era for the company. “The company expects to export 10-15% of its production from Gujarat plant. The company has also privately acquired land in Vithalapur for further expansion,” added Bhargava. When asked about the state support agreement with the Gujarat government, Bhargava saw no difficulties with regard to the agreement in the back drop of parent company building the plant. The number of Japanese companies have doubled in last one year in Gujarat. “In 2002, there was only one Japanese firm and today there are 26. Japan will invest around $35 billion in next five years in India for various projects, including infrastructure development,” said Takeshi Yagi, ambassador of Japan to India.

comments powered by Disqus

to the free, weekly Asian Voice email newsletter