Maruti Plans Expansion, Appoints ‘Nakanishi’ As New MD
New Delhi: The Japanese major, Maruti Suzuki has decided to revamp its organizational structure, alter its investment plans and keyed out new growth features for the Indian sector.
Besides a major organizational revamp, Maruti is all set to invest an additional Rs 7,200 crore for making Maruti Suzuki’s operations more convenient and faster.
The fresh investment of Rs 7200 crore will be made in addition to the Rs 9,000 crore, already reserved for improving and amplifying Indian manufacturing plants.
All these changes and investments will help the company to achieve one million unit production mark by next three years (2010).
SMC chairman Osamu Suzuki said, “Maruti cannot afford to work at the pace it has been working at till now because global automakers’ share in the Indian market is increasing…. We need to build spare parts depots, vehicle stockyards and display showrooms for the million units that will be produced in India. Even the R&D and engineering functions have to be upgraded — we need to install testing and product development facilities similar to what Suzuki has in the home market of Japan.”
He also that Maruti Suzuki India Ltd would invest $1.8 billion to establish a research and development facility in Haryana plus marketing and production expansion.
Mr. Suzuki assailed the information that the Indian functioning had exceeded SMC’s output.
He said that SMC production stood at 1.2 million units, whereas Maruti’s Indian output is yet to achieve one million mark.
“In our global ranking, North America, Europe, Asia and China precede India,” he said.
The company also announced the appointment of Mr. S. Nakanishi as Managing Director, as Mr Jagdish Khattar is completing his tenure on December 18.
The company has appointed Mr. Shinzo Nakanishi as company’s new MD, as Mr. Jagdish Khattar will retire on December 18. On the other hand, R C Bhargava, company’s director, has been names the company’s new chairman.
The company’s directors had approved the recent changes at a meeting held on Monday.