Maruti Can Take Faster Decisions

Updated: May 31 2002, 05:30am hrs
What are your plans for Maruti Udyog Ltd after making it a subsidiary What will be your strategy
Maruti is an Indian company and successful because of it. We do not feel any need to change Maruti immediately. Only thing I can say today is that Maruti board can take faster decisions and immediate reaction to various market requirements.

Now that Maruti Udyog has been turned around, how will it continue to remain profitable
Although 2000-01 was a special year for Maruti in terms of absorbing much depreciation for many new models introduced at once, there was huge effort by the Maruti workforce to reduce the cost and improve customer satisfaction. Now I hope Maruti will continue as a profitable market leader.

What are the segments in the Indian car market that SMC would concentrate on
India is, according to our understanding, one of the markets where the small cars are sold well. Fortunately, Suzukis strength is to make small cars which require special know-how to make them a success in terms of safety and cost.

What kind of investments will the Japanese company make in its subsidiary and by when
Investment is the matter for the Maruti board to decide. But I have no objection to continue investments in India because India has a great future.

Is Suzuki also planning to realign the organisational structure
Maruti has been developed by Indian government, Indian management and employees with Suzukis technical support. Accordingly, Maruti can survive only as an Indian company and under Indian management. We appreciated Mr Khattars professional ability and asked him to continue as Managing Director.

How much of Suzukis turnover/revenue is expected to be contributed by the Indian subsidiary
We cannot talk of the percentage of contribution as it is a matter of the future.

Will the Indian subsidiary explore synergy with General Motors India as GM already has a stake of 20 per cent in SMC
We do not see any synergy at present.

Are there plans of a common sourcing of components between various Suzuki subsidiaries
We are working on a component exchange programme between various Suzuki subsidiaries in Malaysia, Vietnam, Indonesia and other countries.

(As told to Rupali Mukherjee)