Maruti Suzuki’s Board has granted approval to acquire land for production capacity expansion at Khoraj Industrial Estate. The proposed capacity addition is up to 1 million units. The company’s existing capacity is around 24 Lac units per annum. The investment required and the period for adding the proposed capacity will be finalized and approved by the board.
Capacity Expansion Plan
The Board has approved a plan to acquire land for expanding production capacity at Khoraj Industrial Estate. The information has been provided as per the SEBI Listing Regulations.
Existing Capacity
The total existing capacity is around 24 Lac units per annum in Gurugram, Manesar, Kharkhoda and Hansalpur, with a capability to produce 26 lac units per annum. This includes the units produced at erstwhile Suzuki Motor Gujarat Private Limited, which has been amalgamated with the Company. The existing capacity is fully utilized.
Proposed Capacity Addition
The proposed capacity addition is up to 1 million units.
Investment and Timeline
The period within which the proposed capacity is to be added, and the required investment, will be finalized and approved by the Board while framing the phases of installation of capacity. The cost of land acquisition, development, and preparatory activities approved by the board is Rs 4960 crores.
Mode of Financing and Rationale
The financing will be a combination of Internal Accruals & External Borrowings. The rationale is growth in market demand, including exports.
Source: BSE
