Maruti to pump in $1.8 bn; announces top management rejig

Maruti to pump in $1.8 bn; announces top management rejig
PTI
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First Published: Mon, Oct 29 2007. 05 43 PM IST
Updated: Mon, Oct 29 2007. 05 43 PM IST
New Delhi: Stressing on the need for maintaining its supremacy in India, Japanese auto major Suzuki Motor Corp today said its subsidiary Maruti Suzuki will invest $1.8 billion on R&D, marketing and capacity expansion while announcing a top management rejig.
“We have expanded our production capacity at Manesar. Hereafter, Maruti Suzuki will have to invest in sales and research and development. Therefore, the focus will shift on R&D and marketing,” Suzuki Motor Corp Chairman Osamu Suzuki told reporters here.
He said with many of the major international manufacturers increasing their share in India, MSIL could not afford to be working on at the current pace.
“There has to be a strong link between SMC and MSIL in terms of product pipeline and R&D and we should be able to develop more and more products in India,” Suzuki added.
He said overall Maruti Suzuki India Ltd (MSIL) will invest $1.7-1.8 billion, which would be equally distributed on setting up a R&D facility and marketing, and expanding the capacity of its Manesar plant where it manufactures new models like Swift and the SX4.
“We have already sought 500 acres of land from the Haryana government for setting up of the R&D facility,” he added.
The R&D facility in India will be the second largest facility for SMC after Japan and it will be used to develop products not only for the India but also for Suzuki’s global markets.
MSIL also announced a top management rejig with its current Managing Director Jagdish Khattar to retire on 18 December and S Nakanishi, the incumbent Joint Managing Director succeeding Khattar, while RC Bhargava will take over as the Chairman.
“We have to think of promoting more Indians in higher positions in core areas of administration, marketing, production and engineering hereafter,” Suzuki said.
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First Published: Mon, Oct 29 2007. 05 43 PM IST