Maruti Udyog to acquire Suzuki’s stake in Maruti Suzuki Automobile India Ltd

Maruti Udyog to acquire Suzuki’s stake in Maruti Suzuki Automobile India Ltd

Maruti Udyog Ltd has said today that they would be acquiring Suzuki’s stake in its joint venture Maruti Suzuki Automobile India Ltd (MSAIL). This independent venture is setting up a second car manufacturing facility in Haryana.

Maruti Udyog would be merging this company with itself to synergise operations and management. However, they have not disclosed the financial details of this transaction, which sees them acquiring the 30 per cent stake of its parent in MSAIL.

Maruti’s Managing Director Jagdish Khattar said in a statement that this merger would be completed by September. This new plant is scheduled to open by the end of the year and would have a production capacity of 1,00,000 units. This would be further scaled to 2,50,000 units by 2008-09.

MUL Chairman S Nakanishi added: “The merger of MSAIL and MUL will create value for all stakeholders. It will retain all the benefits of the earlier arrangement and enable the management to focus on critical issues of business operation.”