Maruti Suzuki and Suzuki Motor Gujarat to Merge
Maruti Suzuki has officially set April 1, 2025, as the date for its merger with Suzuki Motor Gujarat (SMG). The move, first approved by the Board of Directors on October 29, 2024, is aimed at streamlining operations, improving efficiency, cutting administrative costs, and optimizing resources.
Currently, SMG manufactures vehicles and supplies them to Maruti Suzuki, which then sells them through its dealership network. With this merger, all manufacturing will come directly under Maruti Suzuki India Limited (MSIL), simplifying processes and accelerating decision-making.
The merger will be an absorption-type amalgamation, meaning SMG will cease to exist as a separate entity, and MSIL will be the sole surviving company. Since Maruti Suzuki already owns 100% of SMG, there will be no exchange of shares, cash, or assets.
As of September 30, 2024, MSIL had a capital base of ₹157.2 crore, while SMG’s capital stood at ₹12.84 thousand crore. Suzuki Motor Corporation holds a 58.19% stake in Maruti Suzuki, with Life Insurance Corporation of India (LIC) owning 2.47%.