Maruti Confident Of Getting Shareholders’ Go-Ahead On Gujarat Plant

Maruti Suzuki has expressed confidence of getting minority shareholders' go-ahead to allow Suzuki Motor Corp own and invest in its Gujarat plant. It has also said that it has no plan B in place.

Maruti Suzuki India Chairman RC Bhargava said in an interview to a leading news agency that the voting could be held in October. He said he was sure of the minority shareholders' nod and hence, he did not have any plan B. He also said that the management explained the company’s position to the investors and they were convinced about it.

The company requires the support of 3/4th of the minority shareholders, who have 44% stake.

"By bringing in that money (Suzuki's) here we get a very low cost money instead of putting our money. So I get the benefit of low cost money and we get a benefit of having more liquidity, money that I can use without much concern about straining my balance sheet," he said.

The Gujarat facility is likely to be commissioned by 2017. After becoming fully functional, Maruti's annual capacity will reach three million, which is presently 1.5 million from the Gurgaon and Manesar plants.