Maruti Suzuki India (MSIL) on Tuesday announced a dividend of ₹90 per share, the highest-ever in the history of its operations in the last 40 years, and said that the company will add two million units in the next eight years, while also more than doubling the turnover as part of its third phase of journey.

“The era before us is going to be a very uncertain era, a very challenging era. Putting up these two million cars itself will cost us something close to ₹45,000 crore. It depends how inflation goes, but at the moment we estimate the cost at about ₹45,000 crore for two million cars,” RC Bhargava, Chairman, MSIL, said while addressing the shareholders in the company’s AGM.

He said the company has reached two-million production and sales in 40 years and is now the aim is to reach two million units in the next eight years.

Under ‘Maruti 3.0’, MSIL targets about 28 different models in the market by FY2030-31.

EV segment

Responding to a query on late plans for electric vehicles (EVs), he said, “Yes, we are behind some companies in launching EV, but that does not mean that we are late in the market or that when we are coming in 2024-25, we will have in any way damaged our ability to get an adequate market share.”

He added that MSIL’s management and all its employees and Suzuki Japan have carefully assessed the total environment for EVs in India and have planned production of six models between 2024-25 and 2030-31, which will “give us a very good position in the market”.

Responding to a query by a shareholder on stock split, Bhargava said, “We will again take it up in the Board. I accept that it will certainly increase the ability of people to trade in shares because the price of the share is around ₹10,000.” However, he also added that as far as performance of the company and return to the shareholders is concerned, a split in shares will not make a significant difference.

New CFO

Meanwhile, the company also announced that its board has approved the appointment of Arnab Roy as Chief Financial Officer (CFO) – designate, effective October 16 and whole-time CFO of the company with effect from January 1, 2024.

Further, Ajay Seth, the current CFO, will superannuate from the post of whole-time CFO effective close of business hours of December 31. However, he will continue to be a Member - Executive Board, MSIL said.

Shares of MSIL closed at ₹9,620.10 apiece on the BSE on Tuesday, up 0.26 per cent from the previous close.

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