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MACHINIST - Maruti Suzuki expects to emerge stronger by the time the slowdown ends

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Maruti Suzuki expects to emerge stronger by the time the slowdown ends
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Written by Vijay   
Friday, 04 September 2009

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New Delhi: Maruti Suzuki Chairman R C Bhargava, while addressing shareholders at the company’s 28th Annual General Meeting on Wednesday, said that the company has learnt many lessons from the worldwide recession which started in 2008. The company expects to emerge as an even stronger company by the time the economic slowdown ends.

"The recession has taught us many lessons and also confirmed the validity of our strategies. As a consequence, following the policies based on a good value system, we have weathered the recession much better than others. We are debt free and have a healthy cash balance," he said.

"We have financed all growth from internal resources. Our continuous efforts at cost cutting and improving productivity, even in the good times, helped us in making reasonable profits despite the impact of higher commodity prices and a weaker rupee", Mr. Bhargava said.

While thanking customers for their consistent support and sharing credit with them for Maruti Suzuki’s market share of over 55% in cars and vans, he said, "The future is bright and full of promise". He elaborated “Indian automobile industry has huge growth potential and Maruti Suzuki has to find and implement ways by which it can continue to be a major participant in realizing this potential”.

On developing R&D capability at Maruti Suzuki he said, "With strong support from parent, Suzuki Motor Corporation, Japan, the company is on course to develop its ability to design compact cars. Maruti Suzuki is also building a modern R&D facility, complete with test tracks and crash test facilities at Rohtak." Giving account of strong R&D focus of the company, he added, "The company is rapidly increasing its engineering manpower, simultaneously persuading all its suppliers to also create the ability to design and develop new products in India, and to continuously upgrade component quality."

Crediting the employees and the business associates for the company’s good performance during the downturn, Mr. Bhargava said, "The workers, supervisors, engineers and managers all work as a single team for the growth and prosperity of the company. Strong employees, dealers and vendors mean a strong Maruti Suzuki."

 
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