Yamaha's restructuring plan: All group cos under one umbrella

New Delhi: Japanese two-wheeler major YamahaMotor Co today announced a restructuring of its business inIndia, bringing all its group companies under one singleleadership.

The company will re-start Yamaha Motor India Pvt Ltd(YMI) as the regional control company for India operations.

YMI will function as the regional headquarters and corporatecontrol body of India business operations for YamahaMotor Co (YMC), the company said in a statement.

[caption id="attachment_93150" align="alignleft" width="380"] Representational image. Reuters[/caption]

It further said effective August 15, 2014, HiroyukiSuzuki, CEO & Managing Director of India Yamaha Motor (IYM),has been appointed as the Managing Director of YMI.

"He would also function as the Chairman of the otherYamaha group companies in India - India Yamaha Motor (IYM),Yamaha Motor India Sales (YMIS) and Yamaha Motor Research &Development India (YMRI)," the statement said.

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Takashi Terabayashi, Deputy MD of IYM would be the newManaging Director of IYM, it said.

In 2008, Yamaha Motor Co announced setting up a jointventure with Mitsui Corp to produce motorcycles in India andreplaced its then money-losing Indian motorcycle business --Yamaha Motor India (YMI) -- with the new venture, called IndiaYamaha Motor (IYM).

Last year, IYM announced setting up of a separatecompany, Yamaha Motor India Sales (YMIS) for selling its

products in India.

Elaborating on the functions of the group firms underthe new structure, the company said Yamaha Motor India (YMI)would be responsible for corporate planning and strategy;business planning and business expansion, quality control, andregional control of Yamaha India Business.

IYM would be the manufacturing company under the neworganisation structure while YMIS and YMRI would continue toindependently support IYM for sales and marketing anddevelopment of its products respectively, the company added.

Commenting on the development, Suzuki said, "Therestructuring is part of Yamaha's mid-term plan and is aimed

at improving organisational efficiency by enhancing functionalfocus."

The objective of setting up independent vertical formanufacturing, sales and marketing and R&D was to enhance thefunctional focus, thereby excelling in these three core areasof our business, he added.

"With the formation of a regional control company now,we aim to set up a strong corporate governance framework thatwould help in achieving the objective of being a trueprofessional conglomerate," Suzuki said.

YMI along with YMIS and YMRI would function as 100 percent subsidiaries of YMC while IYM would continue to havejoint investment from YMC and Mitsui & Co Ltd, the companysaid.

PTI