[TusharK]

Maruti Suzuki - India's largest carmaker by volume, plans to set up a new manufacturing facility in Haryana. The company has earmarked Rs. 18,000 crore for this project.



The factory will be spread over 700-1,000 acres and is expected to have a production capacity of 7.5 lakh to 10 lakh units per annum.

The new factory is being built as a replacement for the Gurgaon plant. The latter is spread over 300 acres and is facing space constraints. The facility is located in the heart of the city and is surrounded by residential areas.

Maruti Suzuki had hoped to get the new factory up and running as quickly as possible, but the plan was delayed due to the outbreak of the coronavirus pandemic.

Source: ET Auto

Link to Team-BHP News

[2000rpm]

Originally Posted by TusharK

The new factory is being built as a replacement for the Gurgaon plant. The latter is spread over 300 acres and is facing space constraints. The facility is located in the heart of the city and is surrounded by residential areas.

I can only imagine the value of the 300 acre parcel of land in Maruti! I think the expansion plans with the One-time PnL impact of land makes me think that I should be buying this stock on dips!!

[AutoNoob]

Originally Posted by TusharK

Maruti Suzuki - India's largest carmaker by volume, plans to set up a new manufacturing facility in Haryana. The company has earmarked Rs. 18,000 crore for this project.

I think this is a strategic leak by company to make state government to re-think on the employment policy. No where in the article its mentioned that the agreement has been done.

Quoting from the article :

but the company is wary of the state’s new policy that has mandated 75% job reservation for the locals in business and factory establishments...

He said the issue had already been raised by top industry chambers, including CII. “This (75% reservation for the locals) is not a step which will promote investments or competitiveness. The entire industry feels this way, and has spoken about it. Discussions are on with the state government.”...

It is understood that the company has also been approached by some other states for the large investment. But Maruti is keen to invest in Haryana, unless the local reservation issue plays a spoiler.

[Dhillon]

Originally Posted by 2000rpm

I can only imagine the value of the 300 acre parcel of land in Maruti! I think the expansion plans with the One-time PnL impact of land makes me think that I should be buying this stock on dips!!

Going by the per square yard rates in the areas nearby, 1 acre comes to around ₹45 Crores. So 300 acre comes to around ~13000 crores

So all in all, Maruti Suzuki will get 3 times the factory size at half the cost (If they plan to sell the 300 acres).

[Lalvaz]

Originally Posted by 2000rpm

I can only imagine the value of the 300 acre parcel of land in Maruti! I think the expansion plans with the One-time PnL impact of land makes me think that I should be buying this stock on dips!!

IF that happens, the stock price is gonna zoom, unless they find a way to siphon off the funds to the parent company somehow, leaving very little profit to the Indian listed entity. Remember, Maruti's corporate shenanigans haven't inspired much investor confidence in recent years. Infact they have a history of shortchanging Maruti shareholders as can be seen in the Moneylife article. So I wouldn't jump into buy Maruti shares just yet.


https://www.moneylife.in/article/mar...uki/36155.html

https://www.businesstoday.in/magazin...298-2014-03-13

[Turbanator]

Originally Posted by 2000rpm

I can only imagine the value of the 300 acre parcel of land in Maruti! I think the expansion plans with the One-time PnL impact of land makes me think that I should be buying this stock on dips!!

There plant is old except the newer engine shops and is a pain for them to manage movement of finished cars. They must pay high charges for parking of trucks as there is not enough space inside the plant.

Regarding the land value, Government may not so easily give them CLU as the original allotment was for the manufacturing plant. It will be better if they make their own resident colony & a larger R&D centre which currently is in Rohtak. They can certainly have more talent in NCR. But all this will be beyond anybody's guess. We will know only when things start moving.

Reservation policy is for new units, if they simply transfer the staff, I don't think this will be applicable.

[volkman10]

More details on the investment plans:

- First new Maruti Suzuki unit in Haryana can make 250,000 cars a year.

- The investment for the first unit would be to the tune of Rs 5,000-Rs 7,000 crore

- Will take two-and-a-half to three years to set up its first unit in a new factory location in Haryana from the day of land acquistion.

- Plans to add a new unit (of 250,000 per annum) after every two years and is looking at a final capacity ranging from 750,000 per annum to 1 million at the end.

- To complete the process of investment in an eight to ten year time frame.

- The new plant will primarily re*pl*ace its Gurugram plant (which has a capacity of 600,000 cars per annum) and also cater to new demand in the future.

- First unit will always take the maximum investment as it includes the cost of land and building the infrastructure

-Investment will be undertaken by Maruti Suzuki and not through Suzuki’s 100 per cent subsidiary, Suzuki Motor Gujarat

- The Gujarat plant already has invested in three units which was the initial plan with no fresh investments planned.

- Investment that are being made is to replace the capacity in Maruti Suzuki’s Gurugram plant and plan for Maruti’s expansion.

Link

[volkman10]

Maruti plans new plant after 15 years; sets aside Rs 2,200 cr for FY22 capex.

The investment is part of Maruti’s 10-year, Rs 18,000 crore investment plan, which envisages annual capacity creation of 1 million units. This new plant will come up in Haryana, home to Maruti Suzuki since its birth in 1983

The Rs 2,200 crore investment plan is part of the company’s 10-year, Rs 17,000-18,000 crore investment plan, which envisages capacity creation of 1 million units per annum.

The company did not indicate if the new plant would only produce models powered by internal combustion engines (petrol, diesel and CNG) or if it would also handle production of electric vehicles (EV).

Link

[volkman10]

Maruti Suzuki to finalise plans for new Haryana unit by 2021-end.

Car market leader Maruti Suzuki India Ltd (MSIL) will go ahead and finalise plans to set up of a Rs 18,000 crore new manufacturing facility in Haryana before the end of this calendar year with the state government reducing the gross salary cap to Rs 30,000 per month in its 75 per cent job reservation policy for locals.

Last week, the Haryana government had notified that a law that provides for 75 per cent reservation in the private sector to job seekers from the state will come into force from January 15, 2022, under the Haryana State Employment of Local Candidates Act, 2020.

At the same time, the upper limit of gross monthly salary or wages under the Act was reduced from the earlier envisaged Rs 50,000 to Rs 30,000.

Link

[AutoNoob]

Originally Posted by AutoNoob

I think this is a strategic leak by company to make state government to re-think on the employment policy. No where in the article its mentioned that the agreement has been done.

Originally Posted by volkman10

Maruti Suzuki to finalise plans for new Haryana unit by 2021-end.

with the state government reducing the gross salary cap to Rs 30,000 per month in its 75 per cent job reservation policy for locals.

Link

And the strategic leak worked, though partially.

[AutoNoob]

DPR Haryana (@DiprHaryana) tweeted :

Chairing the meeting of the HEPC, CM, Sh. Manohar Lal said that clearance has been given for setting up a new Maruti plant on about 900 acres of land at Kharkhoda. This would further increase the production of Maruti, which would give a boost to the automobile sector in the state.

Source : Twitter

[AutoNoob]

Maruti Suzuki gets clearance for new plant in Sonipat: Haryana CM

Source : Economic Times

Haryana Chief Minister Manohar Lal Khattar on Saturday said a clearance has been given to auto major Maruti Suzuki for setting up a new plant over 900 acres of land at Kharkhoda in Sonipat district of the state. Khattar stated this as he chaired the meeting of the Haryana Enterprises Promotion Center here.

Along with this, the company has been given SGST (State goods and services tax) reimbursement for 15 years by the government.

SGST @ 9% is significant (included in Ex-showroom price). So, it's really good preposition for Maruti. How much of that is passed to customers has to be seen. Though won't be declared in public domain.

Moreover, with Hyundai is also looking to setup plant in Haryana, they'll also be offered similar concession by government.

[volkman10]

Maruti Suzuki to make Sonipat unit its largest production base in India.

construction work will begin soon at the unit, which will be commissioned by 2025

Unlike Gurugram and Manesar, there is land available to set up a fourth assembly line at Sonipat

Demand in the local market has revived on a fast clip post the second wave of covid, however, supply shortage of semiconductors continue to affect production across automakers. In the first nine months of the ongoing financial year, Maruti Suzuki's sales rose 20.5% to 1,163,823 units.

The company, in fact, has readied its biggest product onslaught of nearly half a dozen models this year.


Link

[volkman10]

Maruti Suzuki to set up new plant in Haryana, invest ₹11,000 cr in first phase.

India's leading carmaker Maruti Suzuki will invest ₹11,000 crore as it finalised a land site for new manufacturing plant in Haryana.

The new plant will enable Maruti Suzuki India to have a manufacturing capacity of around 2.25 million vehicles per annum.

The process of allotment of an 800 acres site at IMT Kharkhoda in District Sonipat with HSIIDC (Haryana State Industrial and Infrastructure Development Corporation Limited) was completed today.

The first plant with a capacity to produce 250,000 vehicles per annum will be commissioned by 2025 subject to administrative approvals. The site has space to set-up more manufacturing plants in the future.

At present, the company can manufacture over 2 million units per annum through its two plants at Gurgaon and Manesar in Haryana which have a combined manufacturing capacity of 1,580,000 units, while Suzuki Motor’s Gujarat plant can produce 500,000 vehicles per annum.


Link