“The government should not do business, because public sector companies are incompetent. Cannot mobilize enough resources for its growth.” RC Bhargava, Chairman, Maruti Suzuki India said this. He said in an interview that public sector companies need support all the time for growth. For capital investment, money is needed from the government.
“I have no doubt that the government should not be in business. Under no circumstances. He was asked whether the government should do business in view of his experience of turning the then state-owned Maruti Udyog Limited into Maruti Suzuki India Limited. Maruti Suzuki India Limited is now owned by Suzuki Motor Corporation of Japan.
He further said, “The truth is that the companies run by the government are not efficient. They don’t have productivity. They do not generate profits. They do not mobilize resources. They don’t grow. They need the support of the government all the time for growth.
Bhargava insisted, “You cannot make industrial growth by taxation.” He said that industrial growth comes from internal resources and any company should create wealth and there should be no erosion of wealth.
He said that taxpayers’ money is used to support public sector companies. Referring to the then Maruti Udyog Limited, he said that at that time we had to do many non-value added activities, which prevented the company from moving forward. Bhargava, however, said that the failure of the public sector did not happen only in India, but it was also seen in Russia, Britain, France and Japan.
Bhargava said that Maruti is also going to make many changes. There will also be organizational changes. He said that the contribution of Maruti India in the global production output of Maruti has exceeded 60 per cent.