Maruti?s market share has declined over the years. Is the number important to you, given that at the end of the day your volumes are still increasing?
I think the peak was 83% in 1997-98. It?s a number, but as an organisation you should have some targets and goals for your employees. Maintaining market share is one such goal that you have to set. The moment you focus on market share, it means that you have to be constantly on the ball in terms of ensuring that you keep producing good products, you keep adding capacities and you keep expanding your network. The big danger for any company that has been no. 1 for so long is to fall into a sense of complacency and self-satisfaction.
So you keep innovating?
We have the means to do it in the sense that money is not a problem. We are generating more than enough money required to expand. Technology is not a problem because Suzuki is the leader in small- car technology. We are setting up our own research and development centre. In India, manpower is not a problem. So where is the obstacle to trying to maintain market share? Today we have a problem because we don?t have enough production capacity.
Do you see Maruti buying out Suzuki?s equity share in the company?
Suzuki has 54% of the equity of Maruti Suzuki; the remaining is held by shareholders. What sense does it make for Maruti to buy out Suzuki?s stake, because Suzuki already owns this company?
But Maruti has contributed more than 50% to Suzuki?s sales worldwide?
This year is the highest. But last year also it was substantial. This year, almost 100% of consolidated profit has come from their Maruti share. But it won?t remain like that because as the global markets and the Japanese market revive, Suzuki?s profits will go up.
You retired from Maruti in 1997 and then joined the company board again in 2003. What happened in the interim?
After I retired in 1997, there was one car company that chased me a lot?to the extent that a senior executive followed me to New York, where I had gone for medical treatment. I have prostrate cancer. But at that time I didn?t want anything to do with any car company because I thought however lucrative, it would be a conflict of interest. Even though I had not retained any position in Maruti, I thought it would still not be ethical. I knew so much about Maruti; to immediately join another car company did not fit into my frame of what is right.
What after Maruti?
In 1997-98, after I retired, I decided that I would not take up any full-time employment with anybody. And I stuck to advisory work, consultancies, some boards as director and that has remained unchanged basically.
But you are still very much involved with Maruti?
In 2003, when I came to the board of Maruti Suzuki, they said that in addition to attending board meetings they also wanted me to attend all the monthly review meetings. They said don?t get involved on a daily basis, but in a broader sense in the monthly review to see what was happening and give guidance. That continued till 2007. In 2007, Jagdish Khattar was retiring and there were changes taking place, and then they asked me to become chairman. Suzuki wanted me to do more, they wanted me to work full-time. I said I am not doing anything full-time.
When did you think of writing your book?
I first thought of writing the book many years ago. The writing happened post-retirement, and took three years. A lot of it was written on flights. It was not difficult to pen down at all. The problem was of getting old records to make sure you were not forgetful or inaccurate in what you were saying. Old records don?t just come easily. Many never came. Basically, I hunted at Maruti, and for old government records, but government is a total blank. Maruti has maintained some records.
I think we are very bad at record keeping.
What is your vision for Maruti?
Maruti would really be messing up if we didn?t remain market leaders in India for a long, long time. In the course of time, we may have to look at whether we want to remain car makers, or do we get into any other form of transportation business? If so, what? So far we have just focused on cars and not looked left, right or centre. And this despite the fact that we have no debt. Obviously, raising funds for us is not a problem. We have over Rs 6,000 crore of cash. Diversification is not constrained by money, but our assessment of what would be good business for us.