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The automotive sector makes up 47% of India’s total manufacturing activity: RC Bhargava

Mr. Bhargava noted that the safety and emission standards that the industry is currently facing are some of the issues that the automotive industry is currently facing, and the company will have to decide which direction to take.

April 15, 2016 9:09 IST | India Infoline News Service
Maruti Suzuki
Maruti Suzuki’s chairman RC Bhargava was recently in an interview with ET Now where he talked about pollution and its impact on the industry.

The chairman acknowledged that the firm has had a long and fulfilling journey over the last four decades. He stated that there have been many changes judging by what the firm had been used to in the country. He also pointed out that there will be more changes over time and that the success of any firm depends on how well it is able to predict and adapt to the changes.

Mr. Bhargava noted that the safety and emission standards that the industry is currently facing are some of the issues that the automotive industry is currently facing, and the company will have to decide which direction to take. He revealed that the automotive sector occupies 47% of the entire manufacturing sector in India. He also added that the automotive and aeronautics industries have always been drivers of quality and manufacturing standards though the country's aeronautics industry is still small.

The Chairman believes that most Indians are confused about the causes of pollution. He also claims that the challenges in the automotive industry will most likely disrupt growth. According to Mr. Bhargava, the industry has never had a linear curve because there have always been upticks and downturns. This will continue to happen mostly because of people's misguided judgments instead of facts.

Mr. Bhargava also talked about the monsoon predictions, and he hopes that the predictions will be true because good monsoons in the country always lead to positive economic performance. The chairman also talked about sales where he revealed that Maruti’s sales have slowed especially in the rural areas in 2015-2016. Growth in the rural areas previously ranged between 22% and 24% and last year it dropped by half. He also believes that there would have been better performance if the Monsoons were better. He also stated that the company will finalize its forecast for 2017 in the next few weeks.

Stock price:

Maruti Suzuki India Ltd ended at Rs. 3734.6, up by Rs. 157.95 or 4.42% from its previous closing of Rs. 3576.65 on the BSE.

The scrip opened at Rs. 3604 and touched a high and low of Rs. 3748.75 and Rs. 3604 respectively. A total of 1215271(NSE+BSE) shares were traded on the counter. The current market cap of the company is Rs. 112814.8 crore.

The BSE group 'A' stock of face value Rs. 5 touched a 52 week high of Rs. 4789 on 23-Nov-2015 and a 52 week low of Rs. 3202.1 on 29-Feb-2016. Last one week high and low of the scrip stood at Rs. 3748.75 and Rs. 3418.8 respectively.

The promoters holding in the company stood at 56.21 % while Institutions and Non-Institutions held 37.62 % and 6.17 % respectively.

The stock traded above its 200 DMA.

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