With their margins getting affected adversely due to fluctuations in the forex market, the country’s largest car maker Maruti Suzuki is all set to reduce their forex exposure significantly in the company years.
The company has said that it aims to reduce their forex exposure by 65 per cent to $600 million by March 2015. The company is working with their vendors to reduce imports so that adverse fluctuations in the value of rupee in the foreign market do not affect their margins. The current forex exposure of the company along with their vendors is about $2.5 billion.
While speaking to PTI, Maruti Suzuki India (MSI) Chief Financial Officer Ajay Seth said, "The adverse currency movements are affecting us. We are trying to reduce our net forex exposure to $0.6 billion by 2014-15 fiscal from about $1.7 billion at present."
He added that the company has identified 14-15 vendors, whose import content is very high, and requested them to reduce it. The company is helping these vendors to enhance the level of localization in their production.
