Maruti Suzuki India Limited has informed the Exchange about Board Approval for Land acquisition for Capacity Expansion
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Awaiting price reaction for this filing.
Maruti Suzuki's board has approved acquiring land from Gujarat Industrial Development Corporation at Khoraj Industrial Estate to add up to 1 million units of annual production capacity. The company's existing facilities at Gurugram, Manesar, Kharkhoda, and Hansalpur are running at full capacity of about 24 lakh units per year (capability of 26 lakh). The approved cost for land acquisition, development, and preparatory activities is Rs 4,960 crores, to be funded through internal accruals and external borrowings. The total project investment and timeline are yet to be finalised by the board in subsequent phases. The expansion is driven by growing domestic and export market demand.
Positive long-term signal — this is a significant capacity expansion (~42% increase over current capacity) addressing full utilization of existing plants. Short-term, the Rs 4,960 crore land outlay plus future capex may pressure cash flows and increase debt, but supports future growth in volumes and revenue.