Maruti Suzuki tells vendors to buckle up
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New Delhi, Oct. 13 -- Maruti Suzuki India Ltd has advised owners of its highly leveraged component vendors to sell some of their non-core businesses and increase promoter stakes to improve cash flow and financial stability of their firms, two people aware of the developments said.
The country's largest carmaker has also asked suppliers to build a sizeable inventory of components to prevent any disruption in production from affecting Maruti.
The New Delhi-based company has also suggested that parts makers cut fixed administrative costs in every department to reduce any adverse impact on financials in case of a sharp drop in volumes in the coming months, the people cited above said seeking anonymity.
Financials of component makers have b...
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