Swot Analysis Of Mala

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1981 Maruti Udyog Limited (MUL) was created as a public sector enterprise. 1983 MUL entered into a license and joint-venture agreement with Suzuki Motor Co. Japan, which acquired 26% equity and brought in technology and management systems. MUL began production in 1984 at the mother plant of the company at Gurgaon, Haryana. 1987 Suzuki raised its equity stake in MUL to 40%. 1992 Suzuki was allowed through a shareholder agreement to raise its equity to 50%, following which MUL ceased to be a public sector enterprise. 2002 MUL was privatized, with the government selling the controlling interest to Suzuki. 2003 Maruti was listed on the stock exchange. 2006 Second plant at Manesar set up. 2007 MUL changed its name to Maruti Suzuki India Limited (MSIL).

MSIL’s corporate structure is in tight control of Suzuki Motor Co. in Japan. Suzuki’s majority shareholding (54.3%) essentially enables it to dictate management decision-making, with relatively little accountability to other stakeholders in India. the vast majority of shares held by others in the company are by short-term investors who rarely exercise their voting rights. No other shareholder group is represented on the Board of the company. It is also striking that the “value added” declined from 36% in 2001-02 (year just preceding privatization) to 27% in 2011-12. The reduction is attributed to one or both of following factors: greater outsourcing of production, and/or greater proportion of purchased components in

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