Citing better planning and inventory management, timely delivery and cost synergies, General Motors (GM) India, the wholly-owned subsidiary of the world’s largest automobile maker, the US-based General Motors Corporation, has formed a new sales and distribution entity called General Motors (India) Marketing Pvt Ltd.
As a part of this restructuring exercise, GM India is transferring its sales, marketing and distribution activities to the new company, while all manufacturing activities will remain with General Motors (India) Pvt Ltd. “Since GM India’s operations have become much bigger now, it is important to have a robust distribution network in place,” said P Balendran, VP, GM India while talking to FE.
The realignment in the company’s corporate structure will improve planning and result in better inventory and transport management apart from enabling cost synergies, he added.
Regarding the structure of the new company, which will be operational in some time, Balendran said that Ankush Arora, currently the vice president marketing for GM India, will continue to head the marketing business of the company. “GM India has four directors, some of them will also be on the board of the new company,? he said.
The restructuring exercise will also involve transfer of some employees, currently involved in the company’s sales, marketing and distribution activities to the new entity. However, Balendran refused to share the exact number of the employees who will be shifted.
The spin off comes close on the heels of the US car major stepping up its investment in India. The company plans to pump in $200 million at its plant at Talegaon in Maharashtra to set up a powertrain facility.
GM India is also expanding its sales points to 145 and service outlets to 160 by the end of this year. At present, it has a network of 122 sales points and 129 service outlets across the country.