Remove factors that don't add value, says Maruti Suzuki India Chairman RC Bhargava

Budget provisions have to be consistent with the objective of making manufacturing more competitive and removing factors that add to cost without adding value, says R.C. Bhargava, Chairman of Maruti Suzuki India.

Bhargava tells Business Today in an email interaction that products should be produced competitively in India as compared to other countries for 'Make in India' to be a success.

"There are many factors today that add to costs of production, compared to other countries. I believe the government is aware of these and is taking the required steps to make manufacturing in India competitive," he elaborates.

Though he was not around during the construction of the company's Manesar plant, he says there had been "an absolutely huge escalation in the land cost and that matter is still under discussion with the government of Haryana".

At Hansalpur in Gujarat, Suzuki Motor Corporation (SMC) is setting up three plants with a manufacturing capacity of 750,000 vehicles a year at a cost of Rs 8,500 crore.

The first plant is slated to commission by mid-2017 with an initial production of 250,000 units a year. This would be the Japanese auto major's third plant in the country and the first one outside Haryana.

"Gujarat was chosen as it was not possible to expand capacity further in Gurgaon or Manesar (the existing plant locations). The nearness of the port and better availability of infrastructure were reasons for choosing Gujarat. Our experience has been good in Gujarat," he adds.

He is confident that Prime Minister Narendra Modi will make manufacturing in India as competitive as in any other part of the world.

Maruti Suzuki is doing 'Make in India' for the past 30 years, Bhargava said recently at Hansalpur after the foundation stone laying ceremony. "We are the original 'Make in India' in the automobile industry. Maruti cars are 95-97 per cent 'Made in India'. We had started exports 25 years back. This year we will export about 1,20,000 vehicles."