Suzuki Motor Chairman Osamu Suzuki & Maruti Suzuki Chairman R C Bhargava
Maruti Suzuki, the country's largest car maker, on Tuesday took the market and shareholders by surprise when it announced its proposed passenger car facility in Gujarat would not be operated by it but its parent, Japan's Suzuki Motor Corporation (SMC).
A new firm, Suzuki Motor Gujarat Pvt Ltd, to be registered by April, will exclusively contract-manufacture and sell vehicles to Maruti Suzuki India Ltd (MSIL), which will only market those vehicles in India and abroad.
Many analysts, including research & analysis firm InGovern, raised questions on "corporate governance&" issues and said minority shareholders should challenge the deal, as their interests would be adversely affected.
The equity market panned the proposed move, pulling down the Maruti Suzuki stock. On BSE, the scrip tumbled 8.12 per cent, the most since November last year. This was despite the company repor