Investor Presentaiton
BACKGROUND
■ In 2014, Maruti Suzuki (MSIL) made a proposal to shareholders that Suzuki Motor Corporation, instead of MSIL,
would finance and implement the creation of new production capacity in Gujarat.
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■ The main reason was to enable MSIL to use its managerial and financial resources for strengthening its
infrastructure for marketing, sales and service, instead of diverting it to create production capacity in Gujarat. This
was necessary as at that time MSIL had lost market share and needed to expand sales. The proposed
arrangement would also result in an increase in the profits of MSIL since it would not be using its own cash to
establish the production facilities and could earn interest on this money.
■ SMC would execute the Gujarat project by creating a wholly owned subsidiary, Suzuki Motor Gujarat (SMG) and
finance the project by bringing the required capital in the form of equity from Japan. This was done by SMC.View entire presentation