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Maruti Suzuki to invest Rs 5,000cr in India

April 28, 2018, 11:49 PM IST by Omkar Thakur
Maruti Suzuki to invest Rs 5,000cr in India

- Rs 1,000cr to buy land parcels for new dealerships

- Capex on maintenance, engineering, new product development, land acquisition

- Announces a Rs 2,416.6cr dividend for shareholders

After a record sales year in 2017-18, Maruti Suzuki is investing more money to strengthen its hold on the Indian car market. The Indian car maker has now earmarked Rs 5,000cr for capital expenditure during this fiscal for maintenance and engineering of the plants and the network.

With double-digit growth expected in 2018-19, Maruti Suzuki India is preparing for record production and distribution through one of the biggest automotive networks in the country. 

A sum of Rs 1,000cr has also been earmarked for buying land parcels, especially in the prime metro cities. With real estate prices going through the roof, the profitability of dealerships in prime areas is severely affected. To address these issues, MSIL has decided to acquire land and build a dealership and lease it out to select dealers for operations. MSIL has already bought over 60 parcels with an expenditure of close to Rs 800cr in the last fiscal.

With cash reserves of over Rs 34,000 crores, MSIL has declared a dividend of Rs 80 per share for the previous fiscal, amounting to Rs 2,416.6cr, to be paid out.

Tags:Maruti Suzuki,Swift,Maruti Suzuki Swift
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