Maruti voting to allow Suzuki to own Gujarat plant likely in November
Maruti Suzuki India on Thursday said voting by minority shareholders over its move to let parent Suzuki Motor Corp own and invest in Gujarat plant will likely happen in November instead of October as earlier envisaged.business Updated: Sep 18, 2014 15:28 IST
Maruti Suzuki India on Thursday said voting by minority shareholders over its move to let parent Suzuki Motor Corp own and invest in Gujarat plant will likely happen in November instead of October as earlier envisaged.
"It is a long procedure and we have not been able to put all the things in place. So we won't be able to do it in October. It is highly probable that the voting will be in November," Maruti Suzuki India chairman RC Bhargava said on the sidelines of a conference on Public Affairs.
Earlier, at an Assocham conference, when asked about the shareholders nod in this regard Bhargava said: "We have not finalised that. October will not be possible. Time is not adequate for that".
In March, under pressure from institutional investors, Maruti had decided to seek minority shareholders' approval after tweaking some of the earlier proposals for the controversial Gujarat plant.
The company needs 3/4th of the minority shareholders, who hold 44% stake, to approve the proposal through a special resolution.
Responding to a question on resignation of Mayank Pareek at the Assocham event, the chief operating officer (marketing and sales) of Maruti Suzuki India (MSIL), Bhargava said: "I am not sure why it is such a newsworthy story because senior colleagues have been leaving the company all the time? This is part of the way what happens in all companies".
Regarding the impact of Pareek's resignation on Maruti's shareholders, Bhargava said: "I think Maruti is not a company which is run by individuals. It is a company which is run by systems and processes.
"It certainly would be incorrect to believe that shareholders invest because of persons. I think they invest because of what a company is and how it is run and what the systems are".
When asked on Pareek's replacement, Bhargava said: "I am sure the management will be looking for a replacement. I am not in the management. On Pareek's new assignment, he said: I don't know where Mr Pareek is going he has not told us about his new job".
Maruti Suzuki India's marketing and sales head Mayank Pareek on Wednesday quit the company after nearly 20 years of service at the country's largest carmaker.
Meanwhile, Heavy Industries minister Anant Geete who was also present at the Assocham event, assured his government's full support to the automotive industry and asked the sector to take advantage of Japan's technological expertise, especially in view of stronger Indo-Japan relations after Prime Minister Narendra Modi's recent visit to that country.