Senior executive exits at Maruti trigger talk of glass ceiling
NEW DELHI: A major churn is underway at India’s largest car maker Maruti Suzuki with some of its top Indian executives finding themselves at odds with the management of parent firm Suzuki Motor Corp.
The company has seen the exit of two senior-level Indian executives in the last few months and two more have been sidelined from their executive roles. The rejig is far from routine and reinforces what some see as a glass ceiling that top ranking executives face on the possibility of an appointment of an Indian in an executive position.
Earlier this year, Maruti had sidelined two top-level executives — MM Singh, chief operating officer, production, SY Siddiqui, COO, HR and administration, robbing them of their executive powers and appointing them instead as chief mentors. Around the same time, Sudam Maitra, who was incharge of supply chain, had also quit to join IFB, while Mayank Pareek, who headed the marketing and sales division, also left to join rival Tata Motors last week.
“The time has come for a change and we have to change,” said Kenichi Ayukawa, MD and CEO, Maruti Suzuki India Ltd while referring to the exits and growth obstacles faced by Indian executives. “It is necessary for us to survive in this tough market.”
Maruti, which was a public sector enterprise not long ago, has not had an Indian on the board in an executive role since the retirement of Jagdish Khattar in 2008. In comparison, average utilisation rates for refineries globally during the same period stood at 89.1% in North America, 78.9% in Europe and 84% in Asia.
“The earnings are better than market expectations and refining margins have been the main surprise,” said independent market expert Ambarish Baliga. “This will have a positive impact on the stock tomorrow.”
Shares of Reliance fell 0.3% ahead of the earnings announcement. Outlining RIL’S expansion plans, Ambani said: “Renewed optimism in the domestic economy augurs well for business and consumer confidence, particularly against the backdrop of continuing concerns on global economic growth. We expect to create significant value for our stakeholders over the next 12-18 months as we complete our large investment programme across energy and consumer businesses.”
In June, Ambani told share holders that RIL was planning to invest ₹70,000 crore in vari ous businesses. Reliance Jio Infocomm, a subsidiary of RIL has already signed a $750-mil lion loan agreement backed by Korea Exim Bank in September
Reliance said the net addi tion to fixed assets for the half year ended September 30 stood at ₹44,895 crore. “Capital expenditure was principally on account of ongoing expansions projects in the petrochemi cals and refining business at Jamnagar, Dahej and Hazira broadband access and US Shale gas projects,” the statement added.