Maruti plans new unit in Haryana

Maruti Udyog Ltd (MUL), the country's biggest car maker, is exploring the possibility of setting up a greenfield car manufacturing facility in Haryana.

The matter had been taken up with the Haryana government to ascertain the availability of land and related infrastructure, the company said here today.

"Once details of the state government's response are available, a proposal will be placed before the company's board of directors for consideration," it added.

The Haryana government yesterday said it had sanctioned 600 acres of land to MUL for a "second project".

"The second project of MUL will come up over 600 acres of land involving an investment of Rs 1,800 crore, as the Haryana government has given its sanction in this regard," an official release said.

Quoting Chief Minister Om Prakash Chautala, the release said the project would generate employment opportunities as well as revenue for the state, which would be used for development works.

In a clarification sent to the Bombay Stock Exchange (BSE), MUL said the company's management had been exploring the possibilities of setting up a greenfield facility. As the company was awaiting the state government's response, it was premature for the company to inform the BSE about it, the company said.

Maruti's plant is based at Gurgaon in Haryana. Of the three units, two are running full stream. The third unit has been pressed into operation following the growing demand for the company's vehicles in the domestic as well as foreign markets.

In the April-January, 2003-04, sales of passenger vehicles in the domestic car market went up 26.78 per cent from 570,000 vehicles to 720,000 year-on-year.

In the same period, sales of cars went up by 27.42 per cent from 440,000 units to 560,000 units. Of the 377,159 vehicles sold by the company, 337,288 cars were bought in the domestic market, marking an increase of 27.6 per cent.

According to company sources, production is likely to cross 460,000 units this year, a fact which was not confirmed by the company.