Indian manufacturers: Maruti, Suzuki, tie up for Steel
November 7, 2008 – 5:05 pmThe price hits have not spared even the Indian major car and automobile manufacturers! Recently, Maruti Suzuki, the leading car manufacturer has made a tie up with his two-wheeler making cousin Suzuki, to buy steel collectively. This is intended to save the cost incurred in making cars. Both the vendors agree that steel being the major raw material for their products, has adversely affected their manufacturing cost. Therefore, the duo decided to buy steel from the wholesale market, and make use of an effective cost cutting technique.
Maruti gets half of its steel requirements imported from Korea and Japan and the other half of it from the Indian market. Witnessing the rising price of steel in the domestic market, Maruti and Suzuki have taken a smart move towards cost reduction that may blaze a trail in other companies as well. A nice way to hit the input costs indeed!