 Maruti Udyog has bought out Suzuki Motor Corporation's 30-per cent stake in the joint venture Maruti Suzuki Automobile India (MSAIL) for Rs12 crore, buying 12 lakh shares of Rs100 each from Suzuki Motor. This makes the former joint venture company in to a wholly owned subsidiary of MUL, which had earlier held a 70-per cent stake in MSAIL. In September 2004, MSAIL was set up as a subsidiary to operate the new car plant in Manesar and was meant to be only a manufacturing company, with its other functions like sales and marketing, procurement of materials and R & D entrusted to MUL. MUL had said that the purpose of setting up MSAIL was to start operations with a fresh approach in the new plant. In April, the MUL board had decided to merge MSAIL with Maruti Udyog, in a bid to "add value for shareholders and eliminate all potential issues relating to inter-company transactions."
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