Suzuki's 100 percent Gujarat subsidiary is a win-win for all

Jan 29, 2014    

Suzuki Motor Corporation's decision to run its Gujarat plant as a 100 percent owned subsidiary rather than as a unit of its majority-owned (56 percent) listed entity, Maruti Suzuki Ltd, has jolted the markets. The share prices headed straight south yesterday (28 January) when it was announced that Suzuki would make the cars in Gujarat under a new company, Suzuki Motors Gujarat Pvt Ltd. The idea is to sell the cars at cost price plus royalty to the listed company to market. The listed company will thus make only marketing margins.Several questions loom. Is this good news or bad news for Maruti ...

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