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Cover Story

Jun 05 - Jun 11, 2000

Pak Suzuki Motor Company Limited (PSMC) a subsidiary of Suzuki Motor Corporation Japan has the distinction of being the first overseas Suzuki Plant to produce Suzuki vehicles outside Japan. Pakistan was the first country selected by Suzuki Motor Corporation Japan for production of 4x4 vehicles that started in 1975.

Pak Suzuki Motor Company Limited is a public limited company with its shares quoted on Stock Exchanges in Pakistan. The Company was formed in August 1983 in accordance with the terms of joint venture agreement concluded between Pakistan Automobile Corporation Limited (PACO), representing Government of Pakistan and Suzuki Motor Corporation (SMC) — Japan. The company started commercial operations in January 1984 with the primary objective of manufacturing, assembling and marketing of Cars, Pickups, Vans and 4x4 vehicles in Pakistan.

By early 1990, on the completion of the first phase of this plant, in-house assembly of all Suzuki engines started. In 1992 the plant was completed and production of the Margalla car commenced. Presently the entire range of Suzuki products currently marketed in Pakistan are being produced at this plant.

At the time of privatization, Suzuki Motor Corporation (SMC) increased its equity from 25% to 40%. Subsequently, SMC progressively increased its equity to 72.8% by purchasing remaining shares from PACO. The total foreign investment brought in by SMC-Japan since inception stands at Rs. 1026.36 million.

The Suzuki management, immediately after privatization, started expansion of the Bin Qasim Plant to increase its installed capacity to 50,000 vehicles per year. The expansion was completed in July 1994. Keeping in view the company's long term plans which also include tapping of export markets, the company has acquired additional land measuring about 30 acres from Pakistan Steel Mills Corporation in proximity to its Bin Qasim Plant to setup production facilities for the manufacture of some local components.

The Company continues to be in the forefront of the automobile industry of Pakistan. Over a period time, the company has developed an effective and comprehensive network of sales service and spare parts dealers who cater to the needs of customers and render effective after sales service country wide, PSMC is serviced by over 180 active vendors who are engaged in the local manufacture and supply of automotive parts to the Company.

The Company is strictly adhering to the deletion targets set by the Engineering Development Board/Ministry of Industries, Company's resolve and commitment of localization is evidenced with the achievement of high deletion levels in the Mehran Car, Ravi Pickup, Bolan Van and Khyber car. Industry level deletion has been achieved in the recently introduced Baleno Car.

The Company's contribution to the public exchequer has been very substantial. The duties and taxes paid and foreign exchange saved by Company in its last five years of operation are as follows:

Year

Duties
& Taxes
(Rs mln)

Foreign
Exchange
Saving

1993-94

1,157

1,033

1994-95

1,804

1,581

1995-96

2,600

2,555

1996-97

2,728

2,539

1997-98

2,571

2,924

1998-99

3,203

3,751

The Company achieved a major break through with commencement of Suzuki Pickup exports to Nepal. Exports have progressively increased and Bangladesh added as another destination. The Suzuki Pickup has gained popularity overseas and export orders have increased substantially

Company Brief

Paid up capital

Rs. 491, 312,000/-

Locution

Downstream Industrial Estate of Pakistan Steel

Total area

259,200 m (64 Square acres)

Covered area

41,000 Square Meters

Facilities

 

 

 

 

 

 

Press Shop, Welding Shop, Paint Shop with state of the Art ED System Engine & Transmission Assembly shop Modern Conveyorised Final Assembly and Hi-Tech Inspection Shop/Tester line. The Company has also established a modern Waste Water Treatment Plant as its contribution to the environment.

Cost

Rs. 2.7 billion

Production capacity

50,000 units per annum (double shift)

Board of Directors

Mr. Yasuo Suzuki

Chairman & Chief Executive

Capt. (Retd) Bashir
Ahmed

Deputy Managing Director

Katsichiro Ota

Director

Yoshio Saito

Director

Koki Imamura

Director

Nasim Beg

Director