Automotive

Parent Suzuki, not Maruti, will build Gujarat plant; 90% of shareholders approved the deal

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Maruti Suzuki has won the voting related to its Gujarat Parent plant of Suzuki for making upcoming factory there. It has got around 90 percent of the shareholders voted in the yes deal. Some of the minority stake holders who has earlier protested against this has called it  as unfair transaction.  The Gujarat factory will be starting its cars from the early  2017 as it will be investing an amount of Rs 18,500 crore in this parent factory project. Maruti is hoping to get a additional capacity of the 15 lakh cars in the year segment on the plant. at present it has 14 lakh cars in its two of the plants in Haryana.

As per the new company law almost 50 percent of the share holders has to approve for the deal to gain their control on the plant that was earlier 75 percent . But with almost 6.5 crore of the 13 crore shares that has abstained from the voting has eventually sealed the deal in its favour. Under this agreement, Suzuki’s subsidiary in Gujarat will do contract manufacturing for Maruti. On the other hand, Maruti will lease the nearly 1,000-acre land at Becharji, on the outskirts of Ahmedabad, to Suzuki. 

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