19 September, 2020

Pressure Tactics

The Government attempts to pull its weight in MUL's management

Pressure Tactics

THE one-paragraph press note issued by the Press Information Bureau on June 13 hid more than it disclosed,merely stating that the Government—well within its rights—had replaced its nominees on the Board of the Rs 6,673-crore Maruti Udyog Limited (MUL). But what the Government actually achieved with this one move was to score major points in its running battle with joint venture partner Suzuki Motor Corporation and its nominee as Managing Director, R.C. Bhargava.

The Government nominated E.A.S. Sarma, additional secretary and financial adviser, Ministry of Industry, and Anup Mukherji, joint secretary, Department of Heavy Industry, in place of Jagdish Khattar, director (marketing), and Dr Krishna Kumar, director (engineering). The new appointees are part-time directors and though the two sacked directors are expected to remain as chiefs of their respective departments, they will have to forego their places on the Maruti Board.

But Khattar and Kumar are merely pawns in a much larger game. Though the reasons for their dismissal...



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