This strategic move aims to consolidate Maruti’s control over the unit and enhance operational efficiency.
The Gujarat unit, established in 2014, has been supplying vehicles exclusively to Maruti Suzuki, and this move will further solidify the symbiotic relationship between the two companies.
Source:- the times of India
The preferential share issue will involve issuing new shares to a select group of investors, providing Maruti with the necessary capital for the acquisition while maintaining Suzuki’s stake in the company.
Source:- business standard
By acquiring the Gujarat unit outright, Maruti aims to streamline its supply chain, reduce costs, and optimize production processes.
This aligns with the company’s long-term vision of maintaining a strong presence in the highly competitive Indian automobile market.
The success of this preferential share issue and subsequent acquisition could position Maruti Suzuki for continued growth and innovation, enabling them to deliver high-quality vehicles to consumers while maintaining their reputation as a market leader
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