The board of directors of Maruti Udyog (MUL), which met today, approved a proposal to merge the subsidiary, Maruti Suzuki Automobile India (MSAIL), with the company.According to a release issued by Maruti to the BSE today, the company holds 70% stake in MSAIL while Suzuki Motor Corporation (SMC), Japan, holds the remaining 30%. "The company will buy out the entire 30% stake held by SMC in MSAIL," the release added.In the original arrangement finalised in September 2004, MSAIL was set up as a subsidiary to operate the new car plant in Manesar. "MSAIL was always meant to be only a manufacturing company with other functions like sales and marketing, procurement of materials and R & D entrusted to MUL," the release said.The new plant is coming up with an investment of Rs 1,524 crore. The capacity of the plant will initially be 1,00,000 cars per annum with a plan to scale it up to 2,50,000 cars per annum by 2008-09. "The new plant will begin commercial production on schedule by the end of 2006," the release said.
