Maruti Sujii Case Study

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SUZUKI IN INDIA Background Business expansion through Joint ventures in Automobile Industry in global scenario have short lived conventionally and not always been a long drawn success story. Joint venture enterprise of Suzuki Motors of Japan and Govt of India in early 80’s is of astounding success and brought prosperity to the regions and win-win endeavour to all stakeholders. After establishing the affordable small car culture in the low income large target consumer base in India, the venture brought substantial revamp in living standard and speed up growth in the developing economy. The credit of successful JV not only goes to the disciplined quality and technological excellence apt for the segment by foreign partner M/s Suzuki but the Govt…show more content…
It was launched as “Maruti Udyog Limited” – MUL. The joint venture was the perfect blend of high end innovative technologically and manufacturing techniques from Japan and the exposure to a high potential market like India that started the revolution in Indian automotive industry. Decades later to its inception, Maruti Suzuki still is the leader in automotive market in India holding 70% market share of passenger cars…show more content…
Suzuki’s share eventually increased to 40% in 1987. They gained a 50% share by the year 1992.In June 2003, Government decided to sell off a 27.5% stake to the public at the rate of 125 INR thereby generating 9.93 billion INR. In May 2007, the government decided to sell its share to Indian financial institutions thus leaving no stake anymore in Maruti Udyog. The current shareholding pattern of Maruti Suzuki India limited can be depicted as below (Table snapshot from the National stock Exchange website) Shareholding Pattern Category 30 Sep 2003 30 June 2012 Promoter & Promoter Group 72.49

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