Japanese auto giant Suzuki Motor Corporation plans to invest Rs.8,000 crore in Gujarat by setting up three manufacturing units with a total capacity of 7.50 lakh vehicles annually, Maruti Suzuki India Chairman R. C. Bhargava said here on Wednesday.
After much delay, the company’s manufacturing activity gets a head-start with the laying of the foundation of its first manufacturing unit here. Spread over 640 acres, the first manufacturing plant, having a capacity of 2.50 lakh vehicles annually, will be set up with an investment of Rs.3,000 crore. It is scheduled to start production in mid-2017.
“Of the 640 acres, around 500 acres will reserved for the production area, and the balance for a vendor park. The plant is expected to provide direct employment to 3,000 people,” Mr. Bhargava told media persons.
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The plant was initially proposed to be set up by Suzuki’s Indian arm Maruti Suzuki India Ltd. (MSIL).
In June, 2012, the Gujarat Government had signed a State Support Agreement with MSIL and allocated 700 acres. Locals opposed the plant over land compensation, leading to a stand-off between MSI and the villagers. The new unit will now be set up by the Suzuki group, which will make the total investments. The vehicles manufactured at the facility will be supplied exclusively to MSI.
Chief Minister Anandiben Patel, who laid the foundation stone, urged the locals to train their children in the technical training institutes to benefit from the manufacturing facility.
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Seeking to allay concerns of the villagers, she said agriculture growth and social service were part of the development goals of Prime Minister Narendra Modi. Suzuki Motor Corporation Chairman and CEO Osamu Suzuki said the manufacturing plant was being set up with the support of the Gujarat Government, and would be part of Mr. Modi’s ‘Make in India’ campaign.
“For the Suzuki group, this new manufacturing facility in Gujarat is the start of a new era. We want to supply in India and abroad. We want to excel on the parameters of productivity and efficiency. Japanese people will come to India in large numbers to help in the smooth functioning of the plant. This will strengthen the ties between India and Japan,” he said.
Japanese Ambassador to India Takeshi Yagi hoped that the Japanese companies in Gujarat would rise to 100 from 26 now.