Maruti Udyog Ltd has helped its Japanese parent, Suzuki Motor Corporation, post its highest ever operating profit in the year ended March 31, 2003.
Taking Maruti's profitability into account, the operating profit of the Suzuki Group, which includes two-wheeler sales, grew 27 per cent to $634 million, or 74.2 billion yen, in 2002-03 over the previous year. This, however, does not include motorcycle sales since Suzuki parted ways with its Indian partner, TVS Motor, in 2001-02.
Excluding Maruti's profits, the operating profit of Suzuki would have grown 22 per cent year-on-year, the company's management said in Japan on Tuesday. The company also reported growth in Pakistan, Thailand, Indonesia and China.
Suzuki Motor said its net profit, which grew 39 per cent to 31.02 billion yen in 2002-03 over the previous year, was not affected by Maruti's consolidation. In 2001-02, Maruti posted a net profit of Rs 104 crore (Rs 1.04 billion), after having registered losses in 2000-01.
Maruti, India's largest car maker, became a subsidiary of Suzuki Motor through the first phase of divestment of government shareholding in 2002. As a result, its accounts are now consolidated into its parent's accounts.
The company is also preparing for its initial public offer, which is expected in the first week of June.
After taking control of Maruti, which has a more than 50 per cent share of the car market in India, Suzuki has decided it will make the Indian arm its research and development centre for Asia, outside Japan.
Maruti is also likely to achieve full model change capability by 2006-07.
Suzuki is likely to launch motorcycles in India by setting up a wholly owned subsidiary in 2003-04.
Work has started on the company's greenfield plant in Gurgaon, which is close to Maruti's manufacturing plants.
