Maruti buys out Suzuki's stake in Maruti Suzuki Automobile India
05 July 2006
This makes the former joint venture company in to a wholly owned subsidiary of MUL, which had earlier held a 70-per cent stake in MSAIL.
In September 2004, MSAIL was set up as a subsidiary to operate the new car plant in Manesar and was meant to be only a manufacturing company, with its other functions like sales and marketing, procurement of materials and R & D entrusted to MUL.
MUL had said that the purpose of setting up MSAIL was to start operations with a fresh approach in the new plant.
In April, the MUL board had decided to merge MSAIL with Maruti Udyog, in a bid to "add value for shareholders and eliminate all potential issues relating to inter-company transactions."