Global News

April 13 2006

Maruti Suzuki Automobile India Ltd. (MSAIL) to merge into Maruti Udyog, Ltd. (MUL)

Suzuki decided that Maruti Suzuki Automobile India Limited (MSAIL) will merge into Suzuki’s Indian Automobile production and distribution subsidiary Maruti Udyog, Ltd (MUL).

MUL will buy out the entire stake held by SMC in MSAIL to make MSAIL 100% subsidiary of MUL, so that MSAL merges into MUL later. The price will be decided through discussions between SMC and MUL.

MSAIL was established in 2005 with the investment of 30% of Suzuki and 70% of MUL, to respond to the increasing Indian market with the aim of the start of operation in October 2006.

It has been always meant to be only a automobile manufacturing company, with its other functions like sales and marketing, procurement and R & D entrusted to MUL.
For further efficiency drive, MUL will absorb MSAIL for a flexible management by introducing profit center approach.

By this merger, MSAIL will be run as a MUL’s Manesar plant. The capacity of the plant will initially be 100,000 cars per annum, with a plan to scale it up to 250,000 cars per annum later than the fiscal year 2008.

The outline of MUL

Company Name Maruti Udyog, Ltd.
Located in New Delhi
Representative Mr. Jagdish Khattar, Managing Director
Capital Rs. 1,444,550,000 (Approx. US$ 32.5million)
Suzuki’s share: 54.2%

The outline of MSAIL

Company Name: Maruti Suzuki Automobiles India, Ltd.
Located in New Delhi
Representative Mr. Tsuneo Kobayashi
Capital Rs. 400,000,000 (Approx. US$9.0million)
MUL’s share: 70% SMC’s share: 30%