Maruti Holds The Mirror!

Maruti is officially now bigger than its parent. No kidding given that the market value of the off spring has out grown that of the parent. Maruti has been a remarkable journey! The success story holds several lessons. First and foremost, being fussy about ownership issues does not pay. Losing steam in between, Maruti staved off competition only when government allowed Suzuki to take controlling stake. Second, is the credibility Maruti story lends to Modi government ambition to make India a global manufacturing hub. Third, is the learning about leadership debate over institution versus the individual? Despite change of ownership, Suzuki continues to invest utmost faith in one man, R C Bhargava, enabling him to steer the company. Last but not the least is the issue of whether or not there is a case for sibling buying out its parent? Any takers?

Pic Courtesy: The Hindu Business Line
Pic Courtesy: The Hindu Business Line

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