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Maruti Management Setup

In: Business and Management

Submitted By Gluck7777
Words 366
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In a comprehensive management restructuring, Maruti Suzuki India Ltd (MSIL) has brought the key functions of finance and human resource directly under the purview of the managing director and the joint managing director of the country’s biggest carmaker.
Kenichi Ayukawa is the company’s MD and Toshiaki Hasuike is the joint MD, who joined MSIL in April 2013 alongwith Toshio Ozawa, was appointed adviser for human resources. In the process, three Indians in the top management have seen their roles being redefined and restricted.

The changes come close on the heels of parent Suzuki Motor Corporation (SMC) announcing plans to set up a wholly-owned subsidiary to manufacture vehicles in Gujarat, a move that had to subsequently shelved in the wake of dissent by minority shareholders. On the new management restructuring, though, the head of investment with a leading fund house that is a minority shareholder in MSIL, said that it does not seem to directly impact the shareholders’ return and therefore is unlikely to be raised as an issue by the domestic institutional investors. However, if at a later date the change in management were to impact the company’s performance or investors return, there is the possibility that the institutional investors could take a view on it, he added.
While the administration function has been dismantled and hived off, all of the other five verticals — marketing and sales, quality, production, supply chain, engineering and research & development — continue to exist after the restructuring. Along with this, MSIL has also set-up a ‘special group’ to coordinate new projects and streamline cost structures and deputed the three chief operating officers (COO) to this group.
This group comprises the former COO (administration) SY Siddiqui, COO (supply chain), Sudham Maitra and COO (production) MM Singh, who have now been re-designated as ‘Chief...

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