Maruti Udyog has acquired 100 acres (40.46 hectares) of additional land in Gurgaon for its new plant.
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This is in addition to the 500 acres (202.34 hectares) already allotted for the site. The company has not announced any plans for the additional land though it is expected it will be used to add a gearbox facility.
The new plant will have a capacity of 250,000 units a year, adding to the existing 600,000 units. The Indian market is growing at more than 20% and Maruti is already working at near full capacity.
The expansion plans, spread over three years, will see about INR6.0 billion invested, including INR 1.0 billion for the diesel engine plant announced late last year.
Maruti will manufacture 300,000 engines a year at the plant, beginning with the Fiat 1.3-litre Multijet.
The Indian diesel sector is growing fast and presently accounts for about a fifth of total sales yet Maruti has no contender.
Deepesh Rathore / Tilak Swarup
