With its Gujarat plant slated to begin production towards the end of 2016-17, Maruti Suzuki is actively working on expanding and strengthening its distribution channel.
It will focus on land acquisitions to set up its own regional offices, warehouses and transit vehicle parking stockyards. It is also identifying locations in metro and sub-metro cities to set up showrooms.
At present, Maruti has 16 regional offices, of which only about a quarter are owned by it while the rest are on leased properties. Accordingly, the setting up of company-owned offices as well as having showrooms on land owned by the company, is aimed at saving rental outgoings.
The regional transit vehicle parking stockyards are being set up to reduce transit time for vehicles from the manufacturing plants to various states. While two transit stockyards have become operational at Bengaluru and Nagpur each, other regions are now being explored.
Of the Rs 4,400 crore capex planned for 2016-17, the company has earmarked Rs 800 crore for investment in real estate in the country.