New Delhi: Even an Indian can become the President of Suzuki Motor Corporation, its Representative Director and President Toshihiro Suzuki said here on Thursday during his ongoing visit to India.

Suzuki, like his father, is extremely bullish on India. And the Indian subsidiary has reason to be feted by the parent. Therefore, an Indian origin chef executive for the parent isn’t a fanciful politically correct statement. There is an obvious business case to merit an Indian taking the top seat.

The bigger question, however, is whether it is possible for a subsidiary given its sterling performance to own the parent? What if India’s largest carmaker and household icon Maruti Suzuki India Limited (MSIL) owns the parent Suzuki Motor Corporation (SMC)?

For context, the data is affirmative. As of January 17 market closing, Suzuki Motor Corp market cap was $21.50 billion while that of Maruti Suzuki India stood at $41.72 billion.

Suzuki achieved an accumulated automobile production of 30 million units in India last financial year. (Image – Reuters)

As part of a special New Year ‘What If’ financial daily ‘Financial Chronicle’ special edition, I raised this key question on January 1, 2010. At that time Maruti’s market cap was just about 25 per cent less than its parent.

According to latest industry estimates, Maruti Suzuki’s market cap has been by and large more than twice of its parent in recent times.........

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