Maruti Suzuki to Invest Rs. 800 Crore in Real Estate in India

As of end March 2016 the Indo Japanese company holds a cash reserves of around Rs. 17000 crore


Maruti Suzuki, India’s most trusted and most popular automaker brand is exploring the possibilities of investing in real estate sector in India. For that the Indo Japanese automaker has already allocated Rs. 800 crore, which the company can take up further if needed. As the Maruti Suzuki’s Chairman RC Bhargava states, the company is planning to invest in real estate to develop their sales and marketing infrastructure in the country. The company is also evaluating the possibilities of setting up an assembly plant in Africa.

To step into the real estate investment, the company has already formed a team for land acquiring. The lands it will acquire will be leased out for future dealerships. As of end of March 2016, the company has a cash reserves of around Rs. 17000 crore. It has over 1800 outlets and workshops in 1450 cities and towns, which is a dealership and service network worth more than Rs. 11000 crore. The company is targeting to expand its dealership network up to 4000 outlets, as the automaker has already set a target to reach 2 million units of sell by the end of 2020.

Maruti Suzuki Nexa ExperienceShowroom

Maruti Suzuki manufactures and markets cars for the African, West Asian and South Asian countries. The company has started evaluating the possibility to set up an assembling plant in Africa. In Indian market Maruti Suzuki is the biggest automaker in terms of sales. The automaker is also the most popular and most trusted brand in the country. The company now exports several vehicles to the overseas markets. In the last fiscal year 2015 – 2016 the automaker exported 123897 cars to foreign markets. Around 8% – 10% of this was exported to Africa only.

Now the automaker has a plan to invest in real estate to expand its business. According to this plan the automaker will not spend its cash reserve in spending on manufacturing facilities, but it will use the cash to expand their sales and service network, which will ultimately help the company to grow more.

Source: ET Auto

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