SUBMITTED BY : -

Ashutosh DalviRajeev Shetty

Anubandh PatilSandeep ParkheVinay Thakkar

Ram SardaAatish RautSanil Jhadav

Feb 1981 – ESTD.

1982 – Joint Venture

Stakeholding

>1989

>1992

>2003

>2007 Portfolio of 12 Brands >M800, Zen, Alto, Wagon R, Swift….. Installed capacity >Plant at Gurgaon & Manesar Market Leader

OBJECTIVE

MARUTI FINANCEMARUTI INSURANCEMARUTI TRUE VALUEN2N FLEET MANAGEMENT

300000275000 280000 285000

350000

450000

420000

168000

145750 137200

178500

151050

214200234000

0

50000

100000

150000

200000

250000

300000

350000

400000

450000

500000

2000 2001 2002 2003 2004 2005 2006

CARS

MARKETSHARE

PASSENGER CAR INDUSTRY

Household Income Levels

Product Availability and Access

Product Affordability

Availability of Finance

Infrastructure (Road) Development

GDP Growth

DEMAND DRIVERS

INCOMEYears 2003 2004 2005 2006 2007Total

Income(mn)9258

011689

413335

7147531 16999

8

Sales(mn) 72535

93734 109770

120522 146539

Other Services(mn)

518 457 516 555 667

Other Income(mn)

3624 3776 3915 5335 7010

INCOME

Category

2002 2003 2004 2005 2006 CAGR Growth

%

Exports Volumes

12233 32240 51175 48893 34781 29.9

Sales (mn)

1995 6204 9549 11132 5734 30.2

EXPORTS

64%

9%2%

10%

15% AsiaAfricaUSAOceaniaEurope

COUNTRYWISE EXPORTS MODELWISE EXPORT SALES

28%

1%

4%3%

28%

36%

ZenM800OmniGypsyAltoOthers

PRODUCT MIX

0

26

1438

22 1020

5117

2

8

2

16

51

23

A1-M800 A2-ZEN ALTO SWIFT WAGON R

A3-ESTEEM BALENO A4-A6 OMNI VERSA UV

Services include end-to-end backups/solutions

Maintenance Leasing Convenience services Remarketing

Corporate clients include GAI, Siemens, Biocon, Unitech, NSE, BHEL…

N2N FLEET MANAGEMENT

J.D.Power Customer Satisfaction Index 1st rank, Asia : 7 years in a row 2000-2006

J.D.Power Sales Satisfaction Index 1st rank, Asia : 3 years in a row 2004 - 2006

Maruti 800, Zen & Esteem rated best cars in TCS Survey 2004 by TNS - Automotive. Company's quality systems and practices rated as a "benchmark for the automotive industry world-wide" by A V Belgium, global auditors for International Organization for Standardization.

CUSTOMER SATISFACTION

100

77

6250

3726 24

21

0102030405060708090

100

1999 2000 2001 2002 2003 2004 2005 2006

%

WARRANTY CLAIM RATIO

0

10000

20000

30000

OPERATINGPR0FIT

YEAR 2003 2004 2005 2006 2007

O P (Rs. mn)

3795 9305 14062 16266 20450

OPERATING PROFIT

YEAR 2003 2004 2005 2006 2007

Net Sales (Rs.mn)

72535 93734 106795 120159 146963

EBITDA (Rs.mn) 6640 13081 17976 20558 23785

EBITDA % 9.15 13.95 16.83 17.11 16.18

0

2

4

6

8

10

12

14

16

18

2003 2004 2005 2006 2007

EBITDA %

EBITDA

Challenge 30 & Challenge 50 Program launched in 2003.

Safety Feedback

MPS focusing on elimination of wasteful activities.

COST REDUCTION

100

76.17

59.36

46.12 41.86 37.95

0102030405060708090

100

2001 2002 2003 2004 2005 2006

Hours

HOURS REQUIRED TO PRODUCE A VEHICLE

Wage bill as a % of sales fell from 3.3% in 2004 to 1.9% in 2006.

VRS (2001 & 2004 )

Compensation of workers linked with productivity.

REDUCTION IN WAGE RATIO

Wage bill as a % of Net Sales 2007

Maruti Udyog 1.89

Tata Motors 5.54

Mahindra & Mahindra 6.71

Ashok Leyland 7.69

LOWEST WAGE RATIO OF INDUSTRY

Year 2003 2004 2005 2006

RM / Sales % 78.3 74.5 78.1 76.8

RAW MATERIAL PRICES

Models Localization %

M800 95

Zen 95+

Alto 90+

Swift 90

Esteem 95+

Versa 88+

INDIGENIZATION OF PARTS

205220

299

350

371

0

50

100

150

200

250

300

350

400

2003 2004 2005 2006 2007

VendorBase

VENDOR BASE

0.15

0.09

0.07

0.01

0.09

0

0.05

0.1

0.15

2003 2004 2005 2006 2007

DEBTEQUITYRATIO

DEBT EQUITY RATIO

5.1

18.8

29.55

41.16

54.07

0

10

20

30

40

50

60

2003 2004 2005 2006 2007

EPS

EPS

YEAR 2003 2004 2005 2006 2007

NPM % 2 5.6 7.8 9.9 10.29

2

5.6

7.8

9.9 10.29

0

2

4

6

8

10

12

2003 2004 2005 2006 2007

NPM

NET PROFIT MARGIN

o INVENTORY TURNOVERo CASH FLOW FROM OPERATING ACTIVITIES

WORKING CAPITAL MANAGEMENT

YEAR 2003 2004 2005 2006 2007

INV TURNOVER (TIMES)

9.8 15.2 15.4 24 31

INVENTORY TURNOVER

9.8

15.2 15.4

24

31

0

5

10

15

20

25

30

35

2003 2004 2005 2006 2007

INV TURNOVER

YEAR 2003 2004 2005 2006 2007

CASH OPERATING ACTIVITIES (Rs.mn)

7705 10359 10737 12226 13026

7705

10737

1302612226

10359

0

2000

4000

6000

8000

10000

12000

14000

2003 2004 2005 2006 2007

Cash OperatingActivities

CASH FLOW FROM OPERATINGACTIVITIES

EXTREME COMPETITION

COMPETITIVE ADVANTAGE

Low Initial Investment Unique concessions from the government Indigenous sourcing of components Fully depreciated plant High labour productivity Introducing new models

CHEAPEST INDIAN CAR PLANNED IN 2008 BY TATA MOTORS

LIMITED NO. OF PRODUCTS ON DIESEL SIDE INCREASING INTEREST RATES

CONCERNS