Maruti Suzuki to acquire Suzuki Motor Corporation's Gujarat plant

Suzuki Motor Gujarat Pvt Ltd is a wholly-owned subsidiary of Japan-based Suzuki Motor Corporation.

Maruti Suzuki India Ltd (MSIL) has decided to terminate its contract manufacturing agreement with Suzuki Motor Gujarat Pvt Ltd (SMG). MSIL will also acquire the shares of SMG, which is a wholly-owned subsidiary of Japan-based Suzuki Motor Corporation (SMC).

The termination of the contract agreement has been approved by the Maruti Suzuki Board of Directors. However, the acquisition of SMG is expected to be completed by the end of FY2024, subject to legal and regulatory compliances, including minority shareholders' approval.

According to RC Bhargava, Chairman of MSIL, the company will take over EV production from Suzuki Motor Corporation. MSIL is also open to purchasing the battery plant, but for now, it will remain separate from this transaction.

"We Have not arrived at any valuation of Suzuki's stake; it depends on the book value. Once we take over the plant, employees of the Gujarat facility will be now part of MSIL's workforce," Bhargava added.

Source: Money Control