- 16 May 2022
- ICICIdirect Research
MARUTI SUZUKI INDIA PLANS TO SET UP NEW PLANT IN HARYANA
MARUTI - 11280 Change: -38.15 (-0.34 %)News: In a notification to stock exchanges, Maruti Suzuki has announced a fresh capex amounting to Rs. 11,000 crore for setting up a new car manufacturing plant in Sonipat, Haryana. In first phase it will have a manufacturing capacity of 2.5 lakh units per annum & is expected to be commissioned by 2025. Media reports suggest the site will have a total manufacturing capacity of 1 million vehicles when fully utilised
Views: This comes as surprise as earlier media reports reported Maruti was planning to shift existing plant due to space constrains. Its current capacity is pegged at 22.5 lakh units annually (15 lakh units owned and 7.5 lakh unit leased by SMG, Gujarat) with annual sales of ~16.5 lakhs in FY22. This site is some 80-100 km away from the existing set up of Maruti as well its associated ancillaries in the state of Haryana and hence looks inappropriate to us
Impact: Neutral