The board of Maruti Suzuki India (MSIL), has approved a contract manufacturing agreement with Suzuki Motor Gujarat (SMG), a wholly-owned subsidiary of Suzuki Motor, for the upcoming plant in Gujarat. The proposed agreement which is subject to regulatory and minority shareholder’s approvals is for a period of up to 30 years.
The Gujarat plant with a total installed capacity of 7.5 lakh unit annually and is expected to be operational by May 2017.
Under the new agreement, SMG shall operate on a no-profit and no-loss principle and will manufacture and sell the products only to MSIL.
More Project Info:Passenger Cars (Mahesana) Project- Phase I