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Company (SMC) and MUL called Suzuki Powertrain India Limited
(SPIL) and SMC's two-wheeler plant under Suzuki Motorcycle India Private Limited
(SMIPL) were also inaugurated.
Together, SMC and MUL have drawn up an investment plan of Rs 9,000 crore in India by 2010. This includes investment to go in the fourth car assembly plant, the diesel engine and transmission plant, launch of new models and upgradation of MUL's older facilities in Gurgaon.
MUL is gearing up to take on competition which is knocking on its doors from several quarters. A number of automobile majors, from GM to Toyota to Tata and Honda, are preparing to take on Maruti on its own turf by launching compact car models in order to notch up volumes.
Jagdish Khattar, Maruti's CEO and managing director, steps down upon retirement later this year. He is quite keen to see through a number of initiatives before that and has approached the government for the same.
The company has requested the government for extension of CNG/LPG pipeline from Gurgaon to Manesar (a distance of about 25 km) to enable its new plants use the fuels for power. The MUL plants currently use high power diesel for power generation and limited amount of LPG in the painting booth.
According to sources, the government had the opinion from the Gas Authority of India Limited (GAIL) in this regard and it has shown inclination to extend the pipeline subject to it being able to procure more gas.
MUL has similarly petitioned the government for support on industrial water supply by extending the canal water line from Gurgaon to Manesar and supply of stable and inexpensive power.
Above all, it has sought upgradation and improvements in ports and even development of a new port on the Western shores for easier exports. Put together, Suzuki and MUL's exports are projected to go up to 2 lakh units per year by the second half of 2008. This is almost four times than MUL's total exports of 50,000 so far.
Besides, it has sought some improvements in the rail and road infrastructure for transportation of the vehicles from the plants to ports and also within the country as the company is hopeful of substantial growth in domestic sales too.
by http://economictimes.indiatimes.com
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