Financial Daily from THE HINDU group of publications
Friday, May 31, 2002

Port Info

Group Sites

Industry & Economy - Disinvestment
Corporate - Rights Issues

Suzuki in driver's seat at Maruti

Our Bureau


JAPAN'S Suzuki Motor Corp on Thursday officially took management control of the country's largest carmaker Maruti Udyog Ltd, for which it handed over a cheque of Rs 1,000 crore to its partner, the Indian Government.

With this, the second stage of the Government's plan to exit from Maruti has been flagged off in which Suzuki's stake will initially rise to about 54.20 per cent through a Rs 400-crore rights issue, which the Government will renounce.

The first round of public issue may come in the third quarter of the calendar year, after which the Government stake will fall to 25 per cent. The Government plans to exit from the company entirely by 2004.

The exact timing of the book-building-route public issue will depend a lot on the "prevailing market conditions," Government sources said. "We are looking around September-November time period, around Deepavali," they said. The Suzuki Motor Chairman and Chief Executive Officer, Mr Osamu Suzuki, handed over the cheque to the Heavy Industries Minister, Mr Suresh Prabhu, here. An extraordinary general meeting of the company shareholders met here on Thursday after the handing over of the cheque to ratify the new joint venture agreement signed between the two shareholders.

At the meeting, Mr Suzuki renamed the present incumbent, Mr Jagdish Khattar, as the Managing Director.

Aluminium cast plant

Addressing a press conference here, Mr Suzuki said Maruti would invest about Rs 200-250 crore in setting up an aluminium foundry plant at Manesar, near the company's existing factory at Gurgaon at Haryana.

Mr Suzuki said preparatory work for the project had been done already and the company is hopeful of completing the project in 12 months. "This will give us an advantage, wherein the localisation level of new models (to be launched in the future) will be higher to start with," he said.

Mr Suzuki skirted a question on whether the Japanese company would now transfer the gearbox technology to India, which became a bone of contention between the two partners five years ago.

`We are already 70 per cent indigenised on the gearbox. I don't know what technology you are talking about," he said.

Send this article to Friends by E-Mail

Stories in this Section
Imports of polyester staple fibre -- HC dismisses plea against dumping duty

Fiscal deficit set to end closer to 6 pc -- Rs 10,000-cr revenue shortfall seen
AP: Move to strengthen SHGs with banking sector aid
Centre drawing up code of ethics for engineers
Weighed down
Meet on disposal of solid waste
High-level FICCI team for Kazakh
TN plastic makers to collect, recycle scrap
Kota plant gets CEA nod for expansion
Incentive component for power units
Sharp rise in domestic prices -- Tyre makers seen importing rubber
Privilege fees, deposit hike hit TN liquor retailers
Karnataka: Spice Tele facility for SSLC results
`Foreign cos too keen on Calcutta Leather Complex'
William Penn to organise demo on paper-making
India able to produce high-purity helium
Law to cover electronic, print media urged
Suzuki in driver's seat at Maruti
Hindustan Newsprint sell-off by Feb 2003
Ministry seeks security clearance of SCI bidders
Reckitt Benckiser, Toyota FDI proposals cleared
FICCI seeks more time on industrial tariff norms
Task force on job plan meets
How Leyland finds those drivers at the top
Nurses offended by Kerala Govt move
OECD seminar to focus on shareholders' rights
2-day knitwear expo in Mumbai from tomorrow
Hyderabad Engagements
Workshop on object orientation
Chennai Engagements
KSIDC in pact to build global tourist village
`Special focus on high-budget tourism needed'
Kerala: Special project to co-ordinate tourism

The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription
Group Sites: The Hindu | Business Line | The Sportstar | Frontline | Home |

Copyright 2002, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line