Maruti Suzuki’s board approved a non-profit named after Osamu Suzuki to boost vocational and technical skills across India.

In simple terms, Maruti Suzuki wants a separate non-profit body that focuses on skills for manufacturing work.

At a meeting on 27 October, the directors of Maruti Suzuki India Limited agreed to the plan by 1:10 pm, after which the company informed the stock exchanges.

The disclosure came under Regulation 30 of the SEBI listing rules, which covers developments investors need to know about.

The new body will be called Osamu Suzuki Centre of Excellence Foundation, or OSCOE Foundation.

The name could still change if the Registrar of Companies approves another one. It does not exist yet.

Legally, it will be a Section 8 company under the Companies Act, a category meant for not-for-profit organisations. Maruti Suzuki will own all of it.

Its job is to promote and teach vocational and technical skills that raise manufacturing standards.

The company says the work will draw on Japanese manufacturing thinking, practices and culture, along with the ideas of Osamu Suzuki himself.

The foundation counts as part of Maruti Suzuki’s corporate social responsibility work.

The company says it wants to help India’s manufacturing sector grow and compete better.

The starting capital is Rs 1 lakh. Maruti Suzuki will pay it in cash for 10,000 shares of Rs 10 each, with no share swap.

The foundation still needs approval from the Registrar of Companies before it can be formally set up.

The carmaker last reported results on 31 July, for the April-June quarter. It sold 6,82,724 vehicles, 29.3% more than a year earlier, and net sales rose 36.4% to about Rs 49,959 crore.

Standalone net profit, which leaves out group companies, came to around Rs 3,352 crore, and the company pointed to rising material costs.

For now, the foundation is an approved plan, not a working institution.

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