Bhaskarudu told newsmen that he had accepted the government's offer to join as member, Public Enterprise Selection Board (PSEB) on August 18. Bhaskarudu will formally hand over charge to Khattar on Tuesday.

Announcing his decision to resign, Bhaskarudu said, "I have done my bit and I am leaving the company as a happy man." He said that the government has treated him fairly and that he was leaving at a time when the company is doing well.

Bhaskarudu has put in over 16 years in Maruti. He joined Maruti on December, 1983 as general manager (projects) and became the managing director of the company in August 1997.

Bhaskarudu also said that the board of directors of Maruti Udyog has recommended a 30 per cent dividend for the financial year 1998-99 which will result in an outgo of Rs 20crore.

Bhaskarudu said the company will be introducing new models in the coming months which will be financed through internal resources. He said that sizable investments have been earmarked for the purpose. The company has recently signed a MoU with DGFT for import of component kit for the new models.

With the company introducing new models with MPFI engines early next year, there will be a upward revision of costs. The company has not yet decided how much of the increased cost will be passed on the customers, he said.

The outgoing managing director of country's largest automobile manufacturer conceded that it would be difficult for the company to enjoy a very high market share as in the past in view of increased competition. He was however confident that in the long run with launch of new models Maruti would be able to have around 65 per cent market share in the long run.

Maruti earned a profit after tax of Rs. 523 crore for the financial year over Rs 652 crore in the previous year. Net profit alsowent down by by 19.85 per cent to Rs 783 crore from Rs 977 crore.

Bhaskarudu said that the dip in net profit was due to cut in prices in December last year. The company's total income has taken a dive to Rs. 8,118 crore from Rs 8,474 crore in 1997-98.