Maruti board clears Rs 3,272cr capex

The board of directors of Maruti Udyog have cleared proposals to invest Rs 3,271.90 crore for the new car manufacturing plant and the new engine and transmission plant in Manesar, Haryana.

This was announced in a release issued by the company to the BSE today.

The new car manufacturing plant will be under a joint venture company called Maruti Suzuki Automobiles India. "The company will hold 70% equity in Maruti Suzuki Automobiles India while Suzuki Motor Corporation, Japan, will hold the remaining 30%," the release added.

"The investment in the new plant will be Rs 1,524.20 crore. The plant will have an initial capacity of 1,00,000 cars per annum with scope to scale it up to 2,50,000 cars per annum," the release said.

Commercial production is expected to commence by the end of 2006, the release added.

The new engine and transmission facility will manufacture petrol and diesel engines and transmission assemblies.

"Total plant capacity would be 3,00,000 diesel engines per annum to be developed in phases. The initial annual capacity will be 1,00,000 diesel engines, 20,000 petrol engines and 1,40,000 transmission assemblies. It would be gradually expanded in line with demand," the release said.

The facility will be under a joint venture company named Suzuki Powertrain India. While Suzuki Motor Corporation will hold 51% stake in Suzuki Powertrain India, Maruti will hold the remaining 49%.

Investment in the facility will be Rs 1,747.70 crore, the release added.