The
board of Maruti Suzuki India is likely to take a decision on setting up
a new manufacturing unit in Gujarat by end-October, chairman RC
Bhargava has said.
“In the next two days, we will acquire more information to understand the risk factors of the probable sites. Only the board has the authority to take the decision,” Bhargava told reporters in Gandhinagar on Thursday after he and Suzuki Motor president Osamu Suzuki met chief minister Narendra Modi at his residence.
The country’s top car maker, which is facing labour unrest at its Manesar plant for the second time in three months, has said it needs another plant in India for its future requirements. It would be the car maker’s first facility outside Haryana.
Suzuki said it was his first visit to Gujarat and the chief minister assured all help to the company.
On Thursday, Maruti produced 340 units of Swift, its best-selling vehicle whose sales have been pummeled by the standoff that has entered its 11th day. The company’s Gurgaon facility rolled out 90 units, while another 250 were manufactured at the Manesar plant.
The company is looking at a cumulative production of about 500 cars daily from both facilities. The cars would be partially manufactured at Manesar and then transferred to the Gurgaon unit for final assembly. “The company has decided to speed up delivery of Swift hatchbacks, which have a long waiting period and a cumulative booking of 90,000 units. As the company is working with less manpower at Manesar, the decision to make Swift both at Manesar and Gurgaon will help in raising the volume of Swift models,” Maruti’s spokesperson said. The strike began on August 29 after the company asked workers to sign a good conduct bond. Maruti is seeking 1,000 acres of land from its proposed new plant, of which 500 acres would be for vendors.
The Gujarat state government has suggested land in Hansalpur village in Ahmedabad district. The site borders Mehsana district in north Gujarat along the Viramgam-Mehsana state highway.
Company officials, however, didnot disclose the site for the proposed plant. Maruti already has a car terminal at Mundra port, in Kutch, from where it exports its A-star hatchback. Mundra could be another option for the company.
“Once we have the land, we will conduct studies on the basis of market conditions and then decide when to start production. It may be 2014, 2015 or 2016. But this is sure that we need an additional manufacturing facility in India,” Bhargava said.
Maruti Suzuki India has manufacturing facilities at Gurgaon and Manesar in Haryana. The proposed facility in Gujarat, the first outside Haryana, will have the capacity to produce 2 million cars every year.
The company plans to invest Rs 12,000 crore in two phases and expects another Rs 6,000 crore from vendors.
‘Manesar Unrest a
Political Issue’ NEW DELHI Maruti Suzuki has termed the ongoing labour unrest at its Manesar plant a “political issue” and said it will not compromise on its principles of industrial relations. “My understanding is that the Manesar labour problem is essentially a political issue and not a problem which involves any significant demand from the workers,” chairman RC Bhargava said, addressing the company’s AGM here. Suzuki group chairman Osamu Suzuki was also present. Production of Maruti’s Swift hatchback, has taken a severe hit, since August 29 when the management said it would not let workers enter the plant unless they sign a “good conduct bond”.
“In the next two days, we will acquire more information to understand the risk factors of the probable sites. Only the board has the authority to take the decision,” Bhargava told reporters in Gandhinagar on Thursday after he and Suzuki Motor president Osamu Suzuki met chief minister Narendra Modi at his residence.
The country’s top car maker, which is facing labour unrest at its Manesar plant for the second time in three months, has said it needs another plant in India for its future requirements. It would be the car maker’s first facility outside Haryana.
Suzuki said it was his first visit to Gujarat and the chief minister assured all help to the company.
On Thursday, Maruti produced 340 units of Swift, its best-selling vehicle whose sales have been pummeled by the standoff that has entered its 11th day. The company’s Gurgaon facility rolled out 90 units, while another 250 were manufactured at the Manesar plant.
The company is looking at a cumulative production of about 500 cars daily from both facilities. The cars would be partially manufactured at Manesar and then transferred to the Gurgaon unit for final assembly. “The company has decided to speed up delivery of Swift hatchbacks, which have a long waiting period and a cumulative booking of 90,000 units. As the company is working with less manpower at Manesar, the decision to make Swift both at Manesar and Gurgaon will help in raising the volume of Swift models,” Maruti’s spokesperson said. The strike began on August 29 after the company asked workers to sign a good conduct bond. Maruti is seeking 1,000 acres of land from its proposed new plant, of which 500 acres would be for vendors.
The Gujarat state government has suggested land in Hansalpur village in Ahmedabad district. The site borders Mehsana district in north Gujarat along the Viramgam-Mehsana state highway.
Company officials, however, didnot disclose the site for the proposed plant. Maruti already has a car terminal at Mundra port, in Kutch, from where it exports its A-star hatchback. Mundra could be another option for the company.
“Once we have the land, we will conduct studies on the basis of market conditions and then decide when to start production. It may be 2014, 2015 or 2016. But this is sure that we need an additional manufacturing facility in India,” Bhargava said.
Maruti Suzuki India has manufacturing facilities at Gurgaon and Manesar in Haryana. The proposed facility in Gujarat, the first outside Haryana, will have the capacity to produce 2 million cars every year.
The company plans to invest Rs 12,000 crore in two phases and expects another Rs 6,000 crore from vendors.
‘Manesar Unrest a
Political Issue’ NEW DELHI Maruti Suzuki has termed the ongoing labour unrest at its Manesar plant a “political issue” and said it will not compromise on its principles of industrial relations. “My understanding is that the Manesar labour problem is essentially a political issue and not a problem which involves any significant demand from the workers,” chairman RC Bhargava said, addressing the company’s AGM here. Suzuki group chairman Osamu Suzuki was also present. Production of Maruti’s Swift hatchback, has taken a severe hit, since August 29 when the management said it would not let workers enter the plant unless they sign a “good conduct bond”.
Maruti chairman RC Bhargava
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