Question
Maruti to invest Rs 11,000 cr to set up largest facility
at 800-acre site in which of the following states?Solution
Maruti started looking for a site to set up a new plant in 2018 as the automaker’s Gurugram factory—its oldest manufacturing unit—has had to cut production due to road congestion. The company will invest over Rs 11,000 crore to set up the first unit spread across 800 acres at IMT Kharkhoda in Sonepat (Haryana). Maruti, which on an average sells one in every two cars on Indian roads, on Friday completed the land allotment process with Haryana State Industrial and Infrastructure Development Corporation Limited (HSIIDC). The company currently produces its cars at Gurugram and Manesar facilities with capacity of 880,000 and 700,000 units. The entire capital investment for the new plant will be through Maruti Suzuki’s internal accruals for which the company will make provision in its capex over the next three years. The company has announced a capex of Rs 5,000 crore for FY23.
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