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MUL to invest Rs 3,500 mn in new diesel facility

MUL to invest Rs 3,500 mn in new diesel facility

Author | exchange4media Mumbai Bureau | Wednesday, May 19,2004 7:01 AM

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MUL to invest Rs 3,500 mn in new diesel facility

Suzuki Motor Corporation, the parent company of Maruti Udyog Limited (MUL), has recently entered into a product license agreement with Fiat Auto and Adam Opel, Europe to obtain technology for the manufacture of a 1.3 litre, state-of-the-art diesel engine based on common rail injection system. This measure has been undertaken to meet the growing demand for diesel engine cars in the Indian market.

Following the agreement, MUL announced that it would invest Rs 3,500 million to set up a new facility to manufacture diesel engines for cars. The new facility will have capacity to manufacture 100,000 diesel engines annually. It will begin production in 2006. The decision to invest was taken by Maruti's Board of Directors here on Tuesday.

Announcing the investment, Jagdish Khattar, Managing Director, MUL, said: "Our decision to invest in a new facility to manufacture diesel engines underlines our parent, Suzuki Motor Corporation's continued commitment to India. It is in keeping with Maruti's strategy of providing suitable products for diverse segments of customers. We are confident that by setting up an advanced facility to manufacture state-of-the-art diesel engines, we will be able to meet this demand of customers as well."

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