Maruti Suzuki's Hansalpur plant to focus on exports

At its plant at Hansalpur near Mehsana in Gujarat, Maruti Suzuki India, the country’s largest passenger car maker, would primarily focus on exports, owing to the facility’s proximity to the Mundra port. The company would also bring vendors with whom it has joint ventures to the site.

M M Singh, chief operating officer (production), Maruti Suzuki India, said, “We are planning to focus on exports from the Gujarat plant, as its proximity to the Mundra port, where we have a dedicated terminal, would enable us to save Rs 5,000-6,000 a car. Also, we would be looking at serving the western Indian market, including Maharashtra and Rajasthan, from the Gujarat unit, as this would result in a significant logistics benefit.”

The company is expected to start work at the facility from March and roll out the first car from there in 2015-16. The initial capacity of the plant would be about 2,50,000 units a year. Singh said, while Maruti would have an engine assembly line in Gujarat, it could bring engines from Manesar and carry out the machining and tooling jobs here.

Maruti Suzuki also plans to bring three or four vendors with whom it has joint ventures to the Hansalpur site; other vendors would have to set up facilities at the automobile parks the Gujarat Industrial Development Corporation would develop in the region.

Companies such as Jai Bharat Maruti Caparo Maruti and Futaba would be present at the Hansalpur site.

Also, around 500 hectares of land lose to the Maruti Suzuki proposed plant site has been earmarked by the state government for Japan-based companies to set up shop there. The aim is to draw mid-sized Japanese companies into the country-specific industrial park or cluster being developed.

The Japan External Trade Organisation (JETRO) is playing a crucial role in attracting investment into the cluster.

Further, the area around Maruti Suzuki's plant, comprising over 44 villages is getting developed as a special investment region.

A separate body called the Mandal-Becharaji Development Authority has been incorporated which is working on a detailed development plan for the investment region.