Gujarat woos Maruti India to set up a plant in Gujarat
Maruti India might set up a new plant in Gujarat after the auto major's over 30 years presence in Haryana. Maruti Suzuki Inida's workers' strike had forced the company in considering Gujarat as another option. Gujarat is on the verge of becoming a next major auto hub after Tamilnadu, Maharashtra and Haryana. Gujarat Government had managed to make the French automaker Peugeot to invest Rs 4,000 crore in Sanand, Gujarat and Ford Motors is already in the process of setting up a plant in Gujarat.
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Osamu Suzuki, chairman of Maruti Suzuki Motor Corp., Mr R.C. Bhargawa, the Chairman of Maruti India and the MD S Nakanishi are said to be involved in the discussions with Gujarat Chief Minister Narendra Modi in the capital, Gandhinagar on Thursday. This meeting holds great importance due to the continuous strikes in the MSI's Manesar plant in the last three months, which led to a huge production loss and a low sales of its best selling model Maruti Swift.
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The MSI's decision to sign the good conduct bond on August 29th has triggered the strike in the factory to an extent where the company had to stop accepting the bookings for its Maruti Swift hatchback. Though MSI hasn't revealed its intentions about signing any agreement, the visit could be a lead to its probable plan to acquire 1000 acres land in Hansalpur in Ahemedabad. The site is strategically located and well-connected with Mundra, Kandla and Pipavav ports. Maruti India is already in agreement with the Mundra Port in 2010 for setting up a car terminal for the export purposes.
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An official source confirms that 650 acres of land has already been acquired by Maruti, the acquisition of the rest should not pose as a problem, being a waste land. Bhargava is also reported to add that they are going to pay a visit to the Gujarat site and consider various options as to utilization of the existing capacities towards future growth.