Maruti Suzuki India said it will acquire the Gujarat-based production facility of its parent firm Suzuki Motor Corporation to reduce complexity and bring all manufacturing-related activities in the country under one entity.
India’s largest passenger vehicle maker, which saw its consolidated net profit jump over two-fold to Rs 2,525 crore in the April-June quarter riding on better realisation from the sale of bigger cars, said its board has approved the termination of the contract manufacturing agreement with Suzuki Motor Gujarat, a wholly owned subsidiary of Japanese Suzuki Motor Corp (SMC).
Suzuki Motor Gujarat (SMG) supplies its entire production exclusively to Maruti Suzuki India.
The company’s board also approved to exercise the option to acquire SMG stake from SMC subject to all legal and regulatory compliances including minority shareholders’ approval.