Japanese two-wheeler major Yamaha Motor Co today announced a restructuring of its business in India, bringing all its group companies under one single leadership.
The company will re-start Yamaha Motor India Pvt Ltd (YMI) as the regional control company for India operations. YMI would function as the regional headquarters and corporate control body of India business operations for Yamaha Motor Co (YMC), the company said in a statement.
It further said effective August 15, 2014, Hiroyuki Suzuki, 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 other Yamaha group companies in India – India Yamaha Motor (IYM), Yamaha Motor India Sales (YMIS) and Yamaha Motor Research & Development India (YMRI)," the statement said.
Takashi Terabayashi, Deputy MD of IYM would be the new Managing Director of IYM, it said.
In 2008, Yamaha Motor Co announced setting up a joint venture with Mitsui Corp to produce motorcycles in India and replaced its then money-losing Indian motorcycle business -- Yamaha Motor India (YMI) -- with the new venture, called India Yamaha Motor (IYM).
Last year, IYM announced setting up of a separate company, Yamaha Motor India Sales (YMIS) for selling its products in India.
Elaborating on the functions of the group firms under the new structure, the company said Yamaha Motor India (YMI) would be responsible for corporate planning and strategy; business planning and business expansion, quality control, and regional control of Yamaha India Business.
IYM would be the manufacturing company under the new organisation structure while YMIS and YMRI would continue to independently support IYM for sales and marketing and development of its products respectively, the company added.
Commenting on the development, Suzuki said, "The restructuring is part of Yamaha's mid-term plan and is aimed at improving organisational efficiency by enhancing functional focus."
The objective of setting up independent vertical for manufacturing, sales and marketing and R&D was to enhance the functional focus, thereby excelling in these three core areas of our business, he added.
"With the formation of a regional control company now, we aim to set up a strong corporate governance framework that would help in achieving the objective of being a true professional conglomerate," Suzuki said.
YMI along with YMIS and YMRI would function as 100 per cent subsidiaries of YMC while IYM would continue to have joint investment from YMC and Mitsui & Co Ltd, the company said.