PESB asked to select Maruti Udyog finance director

Rupali Mukherjee

New Delhi, Sept 12: Maruti Udyog Ltd’s (MUL) post of director, finance, has fallen vacant with AR Halasyam having retired on September 7. It is understood that the Government has asked the public enterprises selection board (PESB) for the policy to be followed in the case of MUL, as it is not a public sector unit.

Sources said the Government was also filling up the post of director, materials, which had been pending for quite sometime, and that Heavy Industries Minister Manohar Joshi was expected to clear the recommendation soon. This post has been lying vacant since K Kumar retired a few months back.

Mr Halasyam served MUL for 16 years, including 10 years as the finance director. Sources said there might be a proposal to retain him in the capacity of an advisor.

Mr Halasyam was the Government nominee on the MUL board. The Government has the right to appoint three nominees on the MUL board.

In a departure from the selection process of PSU personnel, the PESB is expected to issue ads inviting applications for the MUL post. The board will conduct interviews and then shortlist suitable candidates. The list of the candidates shortlisted will be forwarded to the heavy industries ministry. The minister will then select the candidate and recommend his name to the appointments committee of the cabinet.

The name of the selected candidate has to be passed by the MUL board as well. The appointment of the finance director comes at a time when the largest car manufacturer is facing a tough time.

Though MUL has been losing its market- share since 1999-2000, it continues to be a dominant player with around 60 per cent, down from 82 per cent of 1997-98. It is trying hard to turn black this fiscal after reporting losses for the past two years. MUL reported a loss of around Rs 250 crore on a turnover of Rs 9,250 crore during the past fiscal.

MUL has set a target of cutting costs to the tune of Rs 300 crore this year through various measures, like higher level of indigenisation of components and value engineering.

It’s equity capital of Rs 132.29 crore and its shareholding has remained unchanged since 1992, with Suzuki Motor Corp holding 50 per cent, the Government 49.74 per cent and the MUL employees mutual benefit fund having 0.26 per cent.