Unfazed by labour unrest, Maruti to stay in Haryana
Notwithstanding the rising instances of labour unrest in the Gurgaon factory, Japanese auto major Suzuki Motor Corporation plans to invest more in the state, CM Bhupinder Singh Hooda told Hindustan Times. Anupama Airy & Sumant Banerji report. Milestones on the Indian autobahnautos Updated: Sep 12, 2011 01:39 IST
Notwithstanding the rising instances of labour unrest in the Gurgaon-Manesar automotive hub of Haryana, Japanese auto major Suzuki Motor Corporation plans to invest more in the state, chief minister Bhupinder Singh Hooda told Hindustan Times.
Suzuki owns more than 50% of India's largest car maker Maruti Suzuki India Ltd, which suffered its first worker's strike in 10 years at its Manesar factory in June. The 13-day strike was followed by low production in the plant since August 29, when the company insisted on workers signing a bond of good conduct before entering the factory premises.
Maruti is also in talks to set up a 1-million-unit plant in Gujarat in what would be its first factory outside Haryana. However, in a clear indication that it does not hold the labour problems against the state, the car maker plans to set up a cluster of new ancillary units that will supply essential auto components and parts for its cars being produced at Maruti's Manesar plant.The new ancillary cluster will come up adjacent to Maruti Suzuki's under development research and development facility at Rs ohtak, spread over 600 acres, at an investment of Rs 1,000 crore. Suzuki has also sought land allocation from the state for setting up of another Rs &D centre for two-wheelers.
"The chairman of Japan's Suzuki Motor Corporation, Osamo Suzuki met me and sought allocation of 100 acres of land (in addition to the 600 acres already allotted to them for an Rs &D centre) for developing a new ancillary cluster at Rs ohtak," Haryana chief minister Bhupinder Singh Hooda told HT in an exclusive interview in Tokyo on the sidelines of the India-Japan global partnership summit.
"They (Maruti-Suzuki), after getting an assurance on land allocation, will now give it to their vendors," he said. "On an average the investment would be around Rs 15-25 crore per acres and for 100 acres it will be around Rs 1,500-2,500 crore or even more. But more than the investment, it is the huge employment that this facility will generate."
At present, Maruti has four plants in Haryana — three in Gurgaon and one in Manesar — which together produce around 1.2 million cars per annum.