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Suzuki Motor Corporation (SMC) confirmed that Maruti Suzuki India Limited (MSIL) resolved to merge with SMG during its Board of Directors meeting on October 29, 2024.
At present, both MSIL and SMG manufacture vehicles and components in India. SMG supplies its production output to MSIL, which then distributes the vehicles through its dealership network.
The merger is intended to unify these operations under MSIL, aiming to improve efficiency, accelerate decision-making, reduce administrative expenses, and optimise resource management.
This merger will be executed as an absorption-type amalgamation, with MSIL as the surviving entity and SMG ceasing to exist as a separate organisation. Since MSIL already owns 100% of SMG, no shares, cash, or other assets will be exchanged in the process.
As of September 30, 2024, MSIL had a capital base of ₹157.2 crore, whereas SMG’s capital stood at ₹12.84 thousand crore. MSIL’s key shareholders included Suzuki Motor Corporation with a 58.19% ownership stake and Life Insurance Corporation of India holding 2.47%.
