Financial Daily from THE HINDU group of publications
Wednesday, May 21, 2003
Financial Daily from THE HINDU group of publications Wednesday, May 21, 2003 |
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Corporate
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Research & Development Maruti to be Suzuki's Asian R&D centre Our Bureau
NEW DELHI, May 20 SUZUKI Motor Corporation intends to make Maruti Udyog as a research and development (R&D) centre for its cars for the Asian market excluding Japan, according to the draft prospects filed by Maruti for its forthcoming initial public offer. Maruti is also expected to have a full model change capability by 2006-07, while its R&D centre will play an important role in localisation and development of components. The strategy forward of Maruti is to introduce new models with a minimum of 75 per cent localisation level and increase it to at least 90 per cent within three years of introduction of a new model. Maruti has recently started sending its engineers to Suzuki facilities in Japan for long-term training as a prelude to increasing localisation and upgrading the R&D facilities. India's largest carmaker is planning to go public early next month by offering 25 per cent of the Government's equity in the company through book building route. After the public issue, the Government's holding in Maruti will come down to about 20 per cent from the current 45.54 per cent. Suzuki, which has underwritten the issue at Rs 2,300 for an Rs 100 share, is already the largest shareholder in the company with management control. The Government is offloading its stake in Maruti as part of its disinvestment programme.
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