Maruti Suzuki lines up Rs5,000 crore capex for FY191 min read . Updated: 27 Apr 2018, 07:59 PM IST
Maruti Suzuki says it plans to invest in various activities including new product development, engineering, maintenance of plants and network
New Delhi: Country’s largest carmaker Maruti Suzuki India (MSI) on Friday said it has earmarked Rs5,000 crore for capex in the current fiscal. It plans to invest in various activities including new product development, engineering, maintenance of plants and network.
MSI has also earmarked close to Rs1,000 crore in 2018-19 to buy land parcels for new dealerships.
“We have earmarked Rs5,000 crore capex for the current fiscal," MSI chairman R.C. Bhargava told reporters in New Delhi. If needed, the company can invest even more on buying land parcels in the current fiscal, he added.
MSI invested around Rs790 crore for buying land parcels last fiscal. As part of its network expansion strategy, the company plans to buy land parcels, build dealerships and then lease them to selected dealers.
The trigger for the land purchase is the increasing prices across the country, especially in high-potential belts, which impacted profitability of dealerships At the end of 2017-18, the company had 67 land parcels across the country.
MSI’s bid to enhance sales network comes at time when it has set a target to sell 20 lakh units per annum by 2020. The company is flush with funds with cash reserve of around Rs34,000 crore.