Ahmedabad, 24 August 2012

A 15-member delegation of Japan’s world-famous automaker Suzuki Corporation, led by the company’s Chairman Osamu Suzuki, paid courtesy visit to Chief Minister Narendra Modi today and thanked for the State government’s cooperation in setting up of the company’s expansion plant in Bahucharaji in north Gujarat.

Mr. Suzuki lauded the Gujarat government’s commitment in extending support to the company in developing world-class infrastructural facilities in accordance with the state policies.

He said that Suzuki will call about 500 young engineers from its Gujarat plant for automobile engineering training in Japan. Suzuki is also interested in setting up of an automobile engineering institute in Gujarat, he said.

Mr. Suzuki mentioned the Chief Minister Narendra Modi’s recent successful Japan visit. He also mentioned the unprecedented success of the investment seminar which was held in Hamamatsu during Mr. Modi’s Japan visit, in which around 430 Japanese auto vender companies participated, highest participation ever. “This will create a great scope of investment and partnership between the companies of Gujarat and Japan”, Mr. Suzuki said. Mr. Modi’s Japan visit has become instrumental in strengthening the ties between Gujarat and Japan, he added.

The Chief Minister asked to create a Japanese venders’ zone at the company’s expansion plant in Bahucharaji. He said that a high-power committee of secretaries will discuss various aspects of the company’s Gujarat project with Mr. Suzuki and his delegation.

Considering the likelihood of trade ties between the companies of Japan and Gujarat on grand scale the Chief Minister expressed interest in developing township, restaurants and other ancillary services on the lines of Japanese culture in inclusion with the company’s expansion project.

It is noteworthy that Suzuki Corporation will develop a state-of-the-art infrastructure model as a part of its expansion project with the estimated investment of Rs.4000 crore on 650 hectare land in Bahucharaji. Suzuki’s presence in Gujarat is considered to create a great scope for skill development in auto sector.

Gujarat government is committed to developing Japanese township in the State. Mitsubishi has undertaken the constructing of ‘Smart City’ in Gujarat.

Principal Secretary M Sahu, Secretary to Chief Minister A K Sharma, Chief Resident Commissioner at Delhi Bharat Lal and the CEO of Maruti Suzuki’s Manesar plant Mr. Bhargav was present on the occasion.

Suzuki in his meeting with Modi conveyed him a plan to set up a skill development centre in Gujarat.

“I came to thank Mr Modi because he visited me in Japan, and I came (to India) to attend AGM of Maruti,” Suzuki told reporters after the meeting.

Briefing media about what transpired in the meeting, Bhargava said Suzuki had informed Modi about MSI’s plans to set up a skill development centre in Gujarat and 500 people would initially go to Japan for training so that they get accustomed to the Japanese culture of working.

“Skill development is another area necessary for the establishment of a new industrial empire… Mr. Suzuki has mentioned about making a scheme by which up to 500 technicians, supervisors can be trained before we start production here,” Bhargava said.

An institute would also be set up in Gujarat so that people are trained on how to work in an industrial culture, he said.

Besides, a centre to train trainers would be established before starting production at the new plant near Mehsana.

Bhargava further said Suzuki also informed Modi about interest from a lot of vendors in Hamamatsu (Japan) for setting up factory in Gujarat after an investment seminar conducted by the Chief Minister there last month which was attended by about 430 people.

“They would be coming to Gujarat and seek your help,” Bhargava said quoting Suzuki.

In June this year, MSI had announced plans to invest Rs 4,000 crore, its biggest ever outside Haryana, to set up a new production facility in Gujarat by 2015-16.

Commenting on the commissioning of the plant, Bhargava said: “The start of production would primarily depend on market conditions. Unless the market in India continues to grow steadily, there is no point in expanding because we need to have customers to sell cars”.

Suzuki will visit the 700-acre site near Mehsana tomorrow. The overall capacity in the first phase will be 2.5 lakh units.

Bhargava further said the infrastructure should be set in accordance to Japanese standards and Suzuki has requested Modi to get those standards and specifications.

Besides, components suppliers of the company are also likely to make an equal amount of investment to set up their respective plants at the location.

The Gujarat unit will be the company’s seventh production plant and its biggest ever investment outside Haryana, where it has been based since its inception in 1983.

MSI’s announcement to set up its facility in Gujarat is among the big investments announced by auto firms, including Tata Motors’ Nano plant at Sanand and Ford’s second plant.

The plant in Gujarat will generate direct employment for over 2,000 people, MSI had said.