Voting By Maruti’s Minority Shareholders On Guj Plant Likely To Be Held In November

The voting by minority shareholders of Maruti Suzuki India Ltd (MSIL) on Gujarat plant may be held in November; earlier it was scheduled to be held in October.
RC Bhargava, Chairman of the country’s largest car manufacturer said, “We have not finalized as of now. October will not be possible because time is not adequate for that. The earliest it can happen is in November”. Bhargava made the announcement while addressing an interactive session on Asia Monozukuri Conference 2014 organized by ASSOCHAM.
Following the violent protests at the Maruti’s primary plant in Manesar, that also claimed the life of a senior official, the company was under tremendous pressure from its institutional investors regarding the structure of the plant. Hence, the auto manufacturer decided to seek approval from minority shareholders after making a few changes in the earlier Gujarat plant proposal.
Reports suggested that as per the revised plan Suzuki Motor will make investments in the project through its wholly owned subsidiary, MSIL, through depreciation and the equity brought in without ‘mark-up’ on cost of production.
Earlier in 2012, the 1st phase of the plant was expected to be commissioned with a total anticipated investment of about Rs 4000 crore. The 1st phase in its full capacity would have rolled out 7,50,000 vehicles per year. However, once the plant becomes fully operational, it is expected to churn out 3 million units against the 1.5 million from Gurgaon and Manesar plants of the company.
The plant is setting up two units—one in Mandal-Becharaji Amadavad district and the second in a place around 25 kms away from Becharaji .