Suzuki Motor Corporation (SMC) has unveiled a significant move to streamline its operations in India. The board of Maruti Suzuki India Limited (MSIL), SMC’s primary Indian subsidiary, has approved a plan to merge with Suzuki Motor Gujarat Private Limited (SMG), MSIL’s own subsidiary. The decision was reached in a Board of Directors meeting held on October 29, 2024.
Why the Merger?
Currently, Maruti Suzuki and Suzuki Motor Gujarat work in tandem to manufacture and market Suzuki vehicles across India. SMG produces vehicles that it then sells to MSIL, which subsequently markets them through an established dealer network. This merger aims to consolidate these operations under MSIL, enhancing operational efficiency, accelerating decision-making, reducing administrative costs, and better utilizing management resources.
Key Details of the Merger
- Timeline: The merger process will span the upcoming months, with the completion of amalgamation procedures expected by September 30, 2025. Approval from MSIL shareholders is anticipated at a general meeting scheduled for late April 2025.
- Structure: This will be an absorption-type merger, where MSIL will be the surviving entity, while SMG will cease to exist as a separate company.
- Share Allotment: Since SMG is a fully owned subsidiary of MSIL, no stock or financial allotments will be necessary as part of the merger process.
Looking Ahead
Post-merger, MSIL will continue operations without changes to its name, address, business activities, or leadership. SMC has stated that the merger’s impact on consolidated results will be minimal, given the existing consolidated relationship between MSIL and SMG. By merging SMG into MSIL, Suzuki Motor Corporation aims to further strengthen its foothold in India, aligning more seamlessly with market demands and optimizing resources.
Profiles of parties to the amalgamation (as of September 30, 2024)
| Surviving company | Extinction company | |
|---|---|---|
| Name | Maruti Suzuki India Limited | Suzuki Motor Gujarat Private Limited |
| Address | Plot No. 1, Nelson Mandela Road, Vasant Kunj, New Delhi -110070 | Block No. 334 and 335, Hansalpur, Near Village Becharaji, Mandal Hansalpur Ahmedabad, Gujarat – 382130 |
| Representative | Hisashi Takeuchi | Tetsuharu Hayasaka |
| Description of Businesses | Automobile production and sales | Automobile production and sales |
| Capital | INR 1.572 billion | INR 128.411 billion |
| Major shareholders and shareholding ratio | Suzuki Motor Corporation: 58.19% Life Insurance Corporation of India: 2.47% | Maruti Suzuki India Limited: 100% |
