MARUTI saurabh

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PROJECT REPORT

ON

MARUTI SUZUKI INDIA

LIMITED

Submitted by:

SAURABH TYAGISAURABH TYAGI

FIP/BBA(G) IB/021FIP/BBA(G) IB/021

1Faculty Of International Programmes
http://info.mriu.edu.in/


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MANAV RACHNA INTERNATIONAL UNIVERSITY



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MARUTI SUZUKI INDIA LIMITED

A

PROJECT REPORT

Submitted to

Manav Rachna International University

In Partial Fulfillment of

BACHELOR OF BUSINESSADMINISTRATION

Submitted By

SAURABH TYAGIBBA(G) IB- V SEMESTER

ROLL NO. FIP/BBA(G) IB/ 021

Manav Rachna International University

http://info.mriu.edu.in/


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CONTENTS

Topics

Acknowledgement 4

Auto Industry 5

Company Background 6 - 7

Mission, Vision, Portfolio 8 - 9

Companys Performance

Key Peoples

Company Profile

Detailed Information Maruti Brands

Corporate Milestones

10

11

12

13 - 2829

30 - 31

Strategic Goal

Core Values

Awards Received

SWOT Analysis

Conclusion

32 - 33

34

35 - 36

37 - 3839

Bibliography 40



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ACKNOWLEDGEMENT

I would like to thank Miss Kanupriya Shekhar H.O.D. (B.B.A.) of

F.I.P. and teaching faculty of the F.I.P. for providing summer

training which will certainly enhance my skills and knowledge and

explore me to dynamic managerial world.

I would like to my heartiest thank to the staff of M/S Maruti Suzuki

India Ltd. who give me permission for this project and give me need

full guideline and support and co operation for conducting the

summer training and preparing this report.

The training procedure session has contributed to develop my

personality. I lean this fact in natural environment. This training

session give me opportunity to enhance professional skills and giveme a way for a success and achieving ambition in life.

I am sure that the reader will find this report useful to enhance their

knowledge in Maruti Suzuki & help them in various ways.

SAURABH TYAGI



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AUTO INDUSTRY IN INDIA

In the Indian economy, auto industry occupies a prominent place. Due to its deep

forward and backward linkage with several key segments of the economy, automotive

industry has had a strong multiplier effect and is capable of being the driver of

economic growth. The well developed automobile industry fulfills its role by producing

a wide variety of vehicles: passenger cars, light, medium and heavy commercial

vehicles, multi-utility such as jeeps, scooters, motorcycles, three wheelers, tractors, etc.

The automobile industry in India is nearly six decades old, until 1982, only three

manufacturers- M/s Hindustan Motors, M/s Premier Automobiles and M/s Standard

Motors rule the motorcar sector. In 1982, MARUTI SUZUKI INDIA LIMITED

(MSIL) came up as a government initiative in collaboration with Suzuki of Japan to

establish volume production of contemporary models. After the lifting of licensing in

1993, 17 new ventures have come up, of which 16 are for manufacture of cars. There

are at present 12 manufactures of passenger cars, 5 manufacturers of MUVs, 9

manufacturers of commercial vehicles, 12 of two wheelers, 4 of three wheelers and 14

of tractors besides 5 manufacturers of engine.

The industry comprising of the automobile and the auto component sectors has shown

great advances since delicensing and opening up of the sector to FDI in 1993. The

industry has an investment of a sum exceeding Rs.50, 000crore. During the year 2003-

04 the turnover of the automotive sector was around Rs.1, 00,000crore. The industry

provides direct employment to 4.5lakhs and generates indirect employment of 1crore.

The contribution of the automotive industry to GDP has from 2.77% in 1992-93 to 4%in 2003-04.



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A BRIEF HISTORY OF THE COMPANY

In 1909 Michio Suzuki started Suzuki loom works in hamamatsu, Japan. The company

went public in 1920 and continued producing weaving equipment until the onset of

WWII, when it began to make war-related products. Suzuki began developing

inexpensive motor vehicle in 1947, and in 1952 it introduced a 36cc engine to motorize

bicycle. The company changed its name to Suzuki motors and launched its first

motorcycle in 1954. Suzukis entry into the mini car market came in 1955 with the

Suzuki light, followed by Suzuki moped (1958), a delivery van (1959), and the Suzuki

light carry small FB trucks (1961). Suzukis triumph in the 1962 50cc Isle of Man TT

motorcycle race started a string of racing successes that brought international

prominence to the Suzuki name.

The company established its first overseas plant in Thailand in 1967. In the 1970,s

Suzuki mats market demand for motorcycle with large engine. Meanwhile, a mid-1970s

recession and falling demand for low-powered cars in Japan led the mini car industry

there to produce two-thirds fewer mini cars in 1974 than in 1970. Suzuki responded bypushing overseas, beginning auto exports, and expanding foreign distribution. In 1975

it started producing motorcycles in Taiwan, Thailand, and Indonesia. Suzuki boosted

capacity internationally throughout the 1980s through joint ventures. Motorcycle sales

in Japan peaked in 1982; the tapered off, but enjoyed a modest rebound in the late

1980s.

In 1988 the company agreed to handle distribution of Peugot cars in Japan. Suzuki andGeneral Motors begin their longstanding relationship in 1981 when GM brought a

small stake in Suzuki. The company began producing Swift subcompacts in 1983 and

sold them through GM as the chevy sprint and, later, the Geo Metro. In 1986 Suzuki

and GM of Canada jointly formed CAMI automobile to produce vehicle, including

sprints, Metros, and Geo Trackers in Ontario; production began in 1989.



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Although sales via GM increased through 1990, US efforts with the Suzuki nameplateflattered shortly after Suzuki formed its US subsidiary in Brea, California, in 1986. A

1988 consumer Reports claims that the companys Samurai SUV was prone to rolling

over devasted US sales. The next year Suzukis top US executives quit, apparently

questioning the companys commitment the US markets. Suzuki established Magyar

Suzuki, a joint venture with Hungarian automaker Aotukonszern

and international Finance Corporation in 1991 to begin producing the Swift sedan in

Hungary.

The company expanded a licensing agreement with the Chinese government partner in

1993, becoming the first Japanese company to take an equity stake in a Chinese car

making venture. The ext year Suzuki introduced the Alto van cheapest car, at just over

$5000, and the Wagon R mini Wagon, which quickly became one of Japans top-

selling vehicles.

GM raised its 3% stake in Suzuki to 10% in 1998. The company6 teamed up with Gm

and Fuji heavy industries in 2000 to develop compact cars for the European market. It

was also announced that GM would spend about $600 million to double its stake in

Suzuki to 20%. In 2001 Suzuki announced that it had agreed to cooperate with

Kawasaki in the development of new motorcycle, scooters and ATVs. The following

year Suzuki agreed to take control of Maruti Udyog Limited, the state-owned India-

based car manufacturer, in an $80 million rights issue deal. Additional shares would be

made available in the public offering.



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COMPANYS PORTFOLIO:

Maruti Udyog Limited (MUL),INDIAs finest and Asias largest automobile industry

was established in 1981 by an act of parliament.MUL, the first automobile company in

the world to be honored with an ISO 9000:2000 certificate, is a subsidiary of Suzuki

Motor Corp (holds a 54% equity stake). The Government of India remains a significant

equity stakeholder (10%).With its early mover advantage in Indian market; Maruti

retains a dominant Market share despite increasing competition.

BUSINESS PORTFOLIO:

The Group's principal activity is to manufacture, purchase and sale of Motor Vehicles

and Spare parts. The other activities of the Group comprises of facilitation of Pre-

Owned Car Sales, Fleet Management and Car Financing. The Group also provides

services like framing of customized car policies, economical leasing of cars,

maintenance management, registration and insurance management, emergency

assistance and accident management. The product range includes ten basic models with

more than 50 variants. The Group has operations in over 100 cities with more than 150

outlets and also exports cars to other countries.

VISION:

Visions of any company are those values on which company works. As the MUL is

started by Governmental initiatives it tends to be more consumer oriented and hence

cost effective, but on the other hand Suzukis participation ensures not only need of the

profit, but of the need of maximum profit. The only way for this Noras dilemma of

selecting principals for companys working vision ,was to maximize profit and

reducing cost by maximizing output and sales Hence MUL declared its Vision as-

The Leader in the Indian Automobile Industry, Creating Customer Delight1 and

Shareholder's Wealth2; eventually become a pride of India



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Customer Delight1 is making sure that performance, after sales service and customer

support are best and beyond expectation. Shareholders wealth2 is the prime concern

for running business smoothly.MUL knows this and understands customer is king, he

can change the fortune of any company, hence goes companys brand line: COUNTON US Change.

Mission:

Mission is the statement of an organizations purpose, what it want to accomplish in the

larger environment and its goals which are specific, realistic and motivating. Missions

are described over visions and visions demand certain objectives. The main

objectives/Missions of MUL are:

- Modernization of the Indian Automobile Industry.

- Developing cars faster and selling them for less.

- Production of fuel-efficient vehicles to conserve scarce resources.

- Production of large number of motor vehicles which was necessary for economic

growth.

- Market Penetration, Market Development Similarly Product Development andDiversification.

- Partner relationship management, Value chain, Value delivery network



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COMPANY PERFORMANCE

MSIL is the largest manufacturer of cars in India with a production of over 3, 00,000 vehicles per year.

The company is proposing a major expansion program to augment the capacity to over 5 lakes vehicles

per year. The company has expanded its swings in the recent past.

Maruti created history by going into production in a record 13 months. Volume targets were routinely

exceeded, and in March 1994, MSIL became the first Indian company to produce over one million

vehicles, a landmark yet to be achieved by any other car company in India. Maruti is the highest

volume car manufacturer in Asia, outside Japan and Korea, having produced over 3.5 million vehicles

by December 2001.

Maruti is one of the most successful automobile joint ventures, and has made profits every year since

inception till 2000-01. In 2000-01, although we generated operating profits on an income of Rs 92.5

billion, high depreciation on new model launches resulted in a book loss.

We are on track for profits in 2001-02, with a profit of Rs 300 million in the first half. In this period,

sales have increased by 5.3%, against an industry decline of 6.1%. Our total exports till July 2002 was

over 253000 vehicles. Over 71% of these vehicles have been exported to Europe. The internationally

popular Alto has carved a niche for itself in extremely competitive and technologically advanced

European countries like Netherlands, UK, Finland, Sweden, Greece, Italy, Belgium, and in South

America.

For successfully carving out this niche in international marketing, the Government of

India has awarded us the Golden Star Trading House status.

Despite there being 11 companies now in the passenger car market, Maruti holds about 60% of the total

market share. MUL is also the first and only car company in the world to lead its home market in terms

of both market share and in the JD Power Customer Satisfaction study (JD Power Asia Pacific 2000

India Customer Satisfaction studies).



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BOARD OF DIRECTORS

Mr.R.C.Bhargava Mr. Shinzo Nakanishi Mr. ManvinderSingh Banga

Chairman Managing Director andCEO

Director

Mr. Amal Ganguli Mr. D. S. Brar Mr. Keiichi Asai

Director Director Director

Mr. Osamu Suzuki Mr. Shuji Oishi Ms. Pallavi Shroff

Director Director Director

http://www.marutisuzuki.com/board-of-directors-shinzo.aspxhttp://www.marutisuzuki.com/board-of-directors-manvinder.aspxhttp://www.marutisuzuki.com/board-of-directors-manvinder.aspxhttp://www.marutisuzuki.com/board-of-directors-amal.aspxhttp://www.marutisuzuki.com/board-of-directors-brar.aspxhttp://www.marutisuzuki.com/board-of-directors-keiichi.aspxhttp://www.marutisuzuki.com/board-of-directors-osamu.aspxhttp://www.marutisuzuki.com/board-of-directors-shuji.aspxhttp://www.marutisuzuki.com/board-of-directors-pallavi.aspxhttp://www.marutisuzuki.com/board-of-directors-pallavi.aspxhttp://www.marutisuzuki.com/board-of-directors-shuji.aspxhttp://www.marutisuzuki.com/board-of-directors-osamu.aspxhttp://www.marutisuzuki.com/board-of-directors-keiichi.aspxhttp://www.marutisuzuki.com/board-of-directors-brar.aspxhttp://www.marutisuzuki.com/board-of-directors-amal.aspxhttp://www.marutisuzuki.com/board-of-directors-manvinder.aspxhttp://www.marutisuzuki.com/board-of-directors-shinzo.aspxhttp://www.marutisuzuki.com/board-of-directors-bhargava.aspxhttp://www.marutisuzuki.com/board-of-directors-manvinder.aspxhttp://www.marutisuzuki.com/board-of-directors-manvinder.aspxhttp://www.marutisuzuki.com/board-of-directors-amal.aspxhttp://www.marutisuzuki.com/board-of-directors-brar.aspxhttp://www.marutisuzuki.com/board-of-directors-keiichi.aspxhttp://www.marutisuzuki.com/board-of-directors-osamu.aspxhttp://www.marutisuzuki.com/board-of-directors-shuji.aspxhttp://www.marutisuzuki.com/board-of-directors-pallavi.aspxhttp://www.marutisuzuki.com/board-of-directors-shinzo.aspx


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COMPANY PROFILE

Maruti Suzuki India Ltd

Type Public (BSEMARUTI,NSEMARUTI)

Founded 1981

Headquarters Gurgaon ,Haryana,India

Key people Mr. Shinzo Nakanishi,Managing Director

and CEO

Industry Automotive

Products Cars, City,Compact Cars,Micro vans

Revenue US$4.8 billion (2010)

Employees 7,523

Parent Suzuki

Website MarutiSuzuki.com

http://en.wikipedia.org/wiki/Types_of_business_entityhttp://en.wikipedia.org/wiki/Bombay_Stock_Exchangehttp://www.bseindia.com/price_finder/stockreach.asp?scripcd=532500http://www.bseindia.com/price_finder/stockreach.asp?scripcd=532500http://en.wikipedia.org/wiki/National_Stock_Exchange_of_Indiahttp://en.wikipedia.org/wiki/National_Stock_Exchange_of_Indiahttp://en.wikipedia.org/wiki/National_Stock_Exchange_of_Indiahttp://www.nse-india.com/marketinfo/equities/quotesearch.jsp?companyname=MARUTI&series=EQ&submit1=Go&flag=0http://en.wikipedia.org/wiki/1981http://en.wikipedia.org/wiki/Gurgaonhttp://en.wikipedia.org/wiki/Haryanahttp://en.wikipedia.org/wiki/Haryanahttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Managing_Directorhttp://en.wikipedia.org/wiki/Managing_Directorhttp://en.wikipedia.org/wiki/CEOhttp://en.wikipedia.org/wiki/Industryhttp://en.wikipedia.org/wiki/Automotivehttp://en.wikipedia.org/wiki/Product_(business)http://en.wikipedia.org/wiki/Compact_carhttp://en.wikipedia.org/wiki/Compact_carhttp://en.wikipedia.org/wiki/Microvanshttp://en.wikipedia.org/wiki/Microvanshttp://en.wikipedia.org/wiki/Revenuehttp://en.wikipedia.org/wiki/US$http://en.wikipedia.org/wiki/Employmenthttp://en.wikipedia.org/wiki/Holding_companyhttp://en.wikipedia.org/wiki/Suzukihttp://en.wikipedia.org/wiki/Websitehttp://www.marutisuzuki.com/http://en.wikipedia.org/wiki/File:Maruti-logo.pnghttp://en.wikipedia.org/wiki/Types_of_business_entityhttp://en.wikipedia.org/wiki/Bombay_Stock_Exchangehttp://www.bseindia.com/price_finder/stockreach.asp?scripcd=532500http://en.wikipedia.org/wiki/National_Stock_Exchange_of_Indiahttp://www.nse-india.com/marketinfo/equities/quotesearch.jsp?companyname=MARUTI&series=EQ&submit1=Go&flag=0http://en.wikipedia.org/wiki/1981http://en.wikipedia.org/wiki/Gurgaonhttp://en.wikipedia.org/wiki/Haryanahttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Managing_Directorhttp://en.wikipedia.org/wiki/CEOhttp://en.wikipedia.org/wiki/Industryhttp://en.wikipedia.org/wiki/Automotivehttp://en.wikipedia.org/wiki/Product_(business)http://en.wikipedia.org/wiki/Compact_carhttp://en.wikipedia.org/wiki/Microvanshttp://en.wikipedia.org/wiki/Revenuehttp://en.wikipedia.org/wiki/US$http://en.wikipedia.org/wiki/Employmenthttp://en.wikipedia.org/wiki/Holding_companyhttp://en.wikipedia.org/wiki/Suzukihttp://en.wikipedia.org/wiki/Websitehttp://www.marutisuzuki.com/


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Maruti Suzuki India Limited is a publicly listed automaker in India. It is a leading

four- wheelerautomobilemanufacturer in South Asia. Suzuki Motor Corporation of

Japan holds a majority stake in the company. It was the first company in India to mass-

produce and sell more than a million cars. It is largely credited for having brought in an

automobile revolution to India. It is the market leader in India and on 17 September

2007, Maruti Udyog was renamed Maruti Suzuki India Limited. The company

headquarter is in Gurgaon, Haryana (nearDelhi).

Maruti Suzuki is one of India's leading automobile manufacturers and the market

leader in the car segment, both in terms of volume of vehicles sold and revenue earned.

Until recently, 18.28% of the company was owned by the Indian government, and

54.2% by Suzuki of Japan. The Indian government held an initial public offering of

25% of the company in June 2003. As of May 10, 2007, Govt. of India sold its

complete share to Indian financial institutions. With this, Govt. of India no longer has

stake in Maruti Udyog.

http://en.wikipedia.org/wiki/Automakerhttp://en.wikipedia.org/wiki/Automakerhttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Automobilehttp://en.wikipedia.org/wiki/Automobilehttp://en.wikipedia.org/wiki/Manufacturinghttp://en.wikipedia.org/wiki/South_Asiahttp://en.wikipedia.org/wiki/South_Asiahttp://en.wikipedia.org/wiki/Suzukihttp://en.wikipedia.org/wiki/Suzukihttp://en.wikipedia.org/wiki/September_17http://en.wikipedia.org/wiki/2007http://en.wikipedia.org/wiki/2007http://en.wikipedia.org/wiki/Gurgaonhttp://en.wikipedia.org/wiki/Gurgaonhttp://en.wikipedia.org/wiki/Haryanahttp://en.wikipedia.org/wiki/Delhihttp://en.wikipedia.org/wiki/Delhihttp://en.wikipedia.org/wiki/File:Marutisuzuki.jpghttp://en.wikipedia.org/wiki/Government_of_Indiahttp://en.wikipedia.org/wiki/Government_of_Indiahttp://en.wikipedia.org/wiki/Suzukihttp://en.wikipedia.org/wiki/Suzukihttp://en.wikipedia.org/wiki/Japanhttp://en.wikipedia.org/wiki/Initial_public_offeringhttp://en.wikipedia.org/wiki/Initial_public_offeringhttp://en.wikipedia.org/wiki/May_10http://en.wikipedia.org/wiki/2007http://en.wikipedia.org/wiki/File:Marutisuzuki.jpghttp://en.wikipedia.org/wiki/File:Maruti-logo.pnghttp://en.wikipedia.org/wiki/Automakerhttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Automobilehttp://en.wikipedia.org/wiki/Manufacturinghttp://en.wikipedia.org/wiki/South_Asiahttp://en.wikipedia.org/wiki/Suzukihttp://en.wikipedia.org/wiki/September_17http://en.wikipedia.org/wiki/2007http://en.wikipedia.org/wiki/Gurgaonhttp://en.wikipedia.org/wiki/Haryanahttp://en.wikipedia.org/wiki/Delhihttp://en.wikipedia.org/wiki/Government_of_Indiahttp://en.wikipedia.org/wiki/Suzukihttp://en.wikipedia.org/wiki/Japanhttp://en.wikipedia.org/wiki/Initial_public_offeringhttp://en.wikipedia.org/wiki/May_10http://en.wikipedia.org/wiki/2007


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Maruti Udyog Limited (MUL) was established in February 1981, though the actual

production commenced in 1983 with the Maruti 800, based on the Suzuki Altokey car

which at the time was the only modern car available in India, its' only competitors- the

Hindustan Ambassadorand Premier Padmini were both around 25 years out of date at

that point. Through 2004, Maruti has produced over 5 Million vehicles. Marutis are

sold in India and various several other countries, depending upon export orders. Cars

similar to Marutis (but not manufactured by Maruti Udyog) are sold by Suzuki and

manufactured inPakistan and otherSouth Asiancountries.

The company annually exports more than 50,000 cars and has an extremely largedomestic market in India selling over 730,000 cars annually. Maruti 800, till 2004, was

the India's largest selling compact car ever since it was launched in 1983.

More than a million units of this car have been sold worldwide so far. Currently,Maruti

Alto tops the sales charts and Maruti Swift is the largest selling in A2 segment.

Due to the large number of Maruti 800s sold in the Indian market, the term "Maruti" is

commonly used to refer to this compact car model. Till recently the term "Maruti", in

popular Indian culture, was associated to the Maruti 800 model.

Maruti Suzuki India Limited, a subsidiary of Suzuki Motor Corporation of Japan, has

been the leader of the Indian car market for over two decades.

Its manufacturing facilities are located at two facilities Gurgaon and Manesar south of

New Delhi. Marutis Gurgaon facility has an installed capacity of 350,000 units per

annum. The Manesar facilities, launched in February 2007 comprise a vehicle assembly

plant with a capacity of 100,000 units per year and a Diesel Engine plant with an

annual capacity of 100,000 engines and transmissions. Manesar and Gurgaon facilities

have a combined capability to produce over 700,000 units annually.

More than half the cars sold in India are Maruti cars. The company is a subsidiary of

Suzuki Motor Corporation, Japan, which owns 54.2 per cent of Maruti. The rest is

owned by the public and financial institutions. It is listed on the Bombay StockExchange and National Stock Exchange in India.

http://en.wikipedia.org/wiki/Suzuki_Altohttp://en.wikipedia.org/wiki/Kei_carhttp://en.wikipedia.org/wiki/Hindustan_Ambassadorhttp://en.wikipedia.org/wiki/Hindustan_Ambassadorhttp://en.wikipedia.org/wiki/Premier_Padminihttp://en.wikipedia.org/wiki/Pakistanhttp://en.wikipedia.org/wiki/Pakistanhttp://en.wikipedia.org/wiki/South_Asiahttp://en.wikipedia.org/wiki/South_Asiahttp://en.wikipedia.org/wiki/Maruti_800http://en.wikipedia.org/wiki/Maruti_Altohttp://en.wikipedia.org/wiki/Maruti_Altohttp://en.wikipedia.org/wiki/Suzuki_Altohttp://en.wikipedia.org/wiki/Kei_carhttp://en.wikipedia.org/wiki/Hindustan_Ambassadorhttp://en.wikipedia.org/wiki/Premier_Padminihttp://en.wikipedia.org/wiki/Pakistanhttp://en.wikipedia.org/wiki/South_Asiahttp://en.wikipedia.org/wiki/Maruti_800http://en.wikipedia.org/wiki/Maruti_Altohttp://en.wikipedia.org/wiki/Maruti_Alto


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During 2007-08, Maruti Suzuki sold 764,842 cars, of which 53,024 were exported. In

all, over six million Maruti cars are on Indian roads since the first car was rolled out on

December 14,1983.

Maruti Suzuki offers 13 models, Maruti 800, Omni, Alto, Versa, Ritz, Gypsy, A Star,

Wagon R, Zen Estilo, Swift, Swift Dzire, SX4, and Grand Vitara. Swift, Swift dzire, A

star and SX4 are manufactured in Manesar, Grand Vitara is imported from Japan as a

completely built unit (CBU), remaining all models are manufactured in Maruti Suzuki's

Gurgaon Plant. Suzuki Motor Corporation, the parent company, is a global leader in

mini and compact cars for three decades. Suzukis technical superiority lies in its ability

to pack power and performance into a compact, lightweight engine that is clean and

fuel efficient. Maruti is clearly an employer of choice for automotive engineers and

young managers from across the country. Nearly 75,000 people are employed directly

by Maruti and its partners. The company vouches for customer satisfaction. For its

sincere efforts it has been rated (by customers) first in customer satisfaction among all

car makers inIndia for nine years in a row in annual survey by J D Power Asia Pacific.

Maruti Suzuki was born as a government company, with Suzuki as a minor partner to

make a people's car for middle class India. Over the years, the product range has

widened, ownership has changed hands and the customer has evolved. What remains

unchanged, then and now, is Marutis mission to motorize India.

Suzuki Motors Company was chosen from seven prospective partners worldwide. This

was done not only due to their undisputed leadership in small cars but also to their

commitment to actively bring to MSIL, contemporary technology and Japanese

management practices.

A license and a joint venture agreement were signed between government of India and

Suzuki motor company in Oct 1982.

JAPANESE TECHNOLOGY

http://en.wikipedia.org/wiki/1983http://en.wikipedia.org/wiki/1983http://en.wikipedia.org/wiki/1983


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Japanese technology is renowned for its quality and reliability as against Korean

technology. Where consumer durables are concerned, Korean products are regarded as

cheap imitations of Japanese products.



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INDIAS LARGEST AUTO COMPANY

(1). With more than 1 new product launched every year and 4 new products launched

last year, for over 15 years now, Maruti has delivered high quality to Indian customers.

(2). More than 21lakh customers in India are proud to own and drove Maruti cars.

INDIAS LARGEST SALES, SERVICE AND SUPPORT NETWORK

Maruti reaches its customers through a sales and distribution network across more than

470 cities-the largest of its kind. With over 1200 service stations- it is true that

wherever you go you will not be far from a Maruti service station.

RELEVANT TECHNOLOGY

(1). Maruti technology is customized to Indian road condition and requirements of

Indian customers.

(2). Suzuki is a leader in small car technology and Maruti has access to the very latest

technology. To manufacture a compact aluminum (ACE) engine is something no car

manufacturer in India besides Maruti has been able to do.

(3). With over 25lakh vehicles on Indian roads, Marutis technology is proven in India.

SHAREHOLDING

MSIL was set up as deemed public company in 1981 by an act of parliament. MSIL

was classified in the public sector as long as the equity of government if India remained

over 51%. A license and joint venture was signed in 1982, with Suzuki motor

corporation (SMC) acquiring 26% of the equity. SMC increased its equity to 40% in

1989. In 1992, Maruti ceased to be Government Company, as SMCs equity holding

went up to 50%.

In 2002, SMCs share went up to 54.2%, making MSIL a subsidiary of SMC. The

government of India holds 46.6%, employees trust holds balance 0.2%.



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FINANCIAL HIGHLIGHTS OF MARUTI SUZUKI

INDIA LIMITED

FINANCIAL HIGHLIGHTS

The gross of the company for the year was Rs.188,238 million as against Rs.152,523

million in the previous year showing an impressive growth of 23.4%. earnings before

depreciation, interest, tax, amortization stood at Rs.31,308 million against Rs.25,888

million in the previous year, recording the jump of 20.9%.

Servicing customers 24X7... 365 days...

The company takes great pride in sharing that customers have rated Maruti Suzuki first

once again in Customer Satisfaction Survey conducted by independent body, J.D.Power

Asia Pacific. It is 9th time in a row.

The award mirrors the company's commitment towards "Customer Obsession".

Financial Highlights (graphical description)

Expansion of sales netw or

(cities)

161197

227

312

393446

0

100

200

300

400

500

2002- 03 2004- 05 2005- 06 2006- 07 2007- 08 2008- 09

Cities



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Growth of Service Networ

301407

596779

13821513

1858 1988

695

10011184

1314

0

500

1000

1500

2000

2500

2000-01 2003-04 2007-08 2008-09

Dealer Workshops Maruti Authorised Service Stations Cities Covered


Expansion of sales network

(Dealer outlet)

243

325375

491

600

664

0

100

200

300

400

500

600

700

2002-03 2004-05 2005-06 2006-07 2007-08 2008-09

Dealer Sales outlet


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JD P ow er Custome r Sa tisfaction

11 5 119 124 123

813 82384 8 83 8 82 0

0

10 0

20 0

30 0

40 0

50 0

60 0

70 0

80 0

90 0

2 00 0 2 00 1 2 00 2 2 00 3 2 00 4 2 00 5 2 00 6 2 00 7 2 00 8

Year

Z

JD Power Sales Satisfaction Index

102 103 106 105

784 794 795 790 775

0

100

200

300

400

500

600

700

800

900

2000 2001 2002 2003 2004 2005 2006 2007 2008

Years



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Servicing customers 24X7... 365 days...

The company takes great pride in sharing that customers have rated Maruti Suzuki first

once again in Customer Satisfaction Survey conducted by independent body, J.D.Power

Asia Pacific. It is 9th time in a row.

The award mirrors the company's commitment towards "Customer Obsession".



23/41

Monthly Sales

Maruti Suzuki sales in April 2009 New Delhi, May 01, 2009 Car market leader Maruti

Suzuki India Limited sold a total of 71,748 vehicles in April 2009. This includes 6,891

units for export.

This is the fourth consecutive month of sales crossing 70,000 units mark.

The company had sold a total of 62,336 vehicles in April 2008.

Maruti Suzuki's volume in the domestic A2 segment grew by 9 per cent while in the A3

segment the sales volume grew by 69 per cent during the month as compared to sales in

April 2008.

The sales figures for April 2009 are given below:

April

2009 2008 % Change

A1 M800 2345 4458 -47% 49383

C Omni, Versa 7724 7705 0% 77948

A2Alto, Wagon-R, Zen, Swift,

A-star46817 43121 9% 511396

A3 SX4, Dzire 7066 4187 69% 75928

Total Passenger Cars 63952 59471 8% 714655

MUV Gypsy, Vitara 905 68 1231% 7489

Domestic 64857 59539 9% 722144

Export 6891 2797 146% 70023

Total Sales 71748 62336 15% 792167

A-star launched in November 2008, DZire launched in March 2008.



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ORGANIZATIONAL STRUCTURE

The organizational structure ensures better communication and speedy decision

making process. It also creates an environment that builds trust, transparency and a

sense of belonging amongst employees


Chairman

Managing Director(MD)

Joint Managing Director(JMD)

Director

Divisional Manager(DVM)

Deputy Divisional Manager(DDVM)

Department Manager(DPM)

Manager

Deputy Manager


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Ethos of Maruti:

Employees are Marutis greatest strength and asset. The employee management

relationship is therefore characterized by:

Participative management Team work and Kaizen

Communication and information sharing

Open office culture for easy accessibility.

To implement this philosophy, they have taken several measures like Flat

organizational structure. There are three levels of responsibilities ranging from the

board of directors, division to head of departments. Other features are: an open office,common uniforms at all levels, and a common canteen to all.

System of Designation:

The following system of designation is being practiced without any exception within

the company. The company has been divided into three layers of management:

Division


Senior Executive/Asst.

Executive

Supervisor

Technician/Asst. Technician


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Department

Section

An official of the company, who will be designated as divisional manager,department manager, section manager respectively would head each of these

responsibility centers.

DIVISION AND DEPARTMENTS

1. Corporate Service Division

Legal & Secretarial Department

Corporate Communication Cell

Protocol

Strategic Initiative Group

Recruitment & Management Compensation

2. Human Resource Division

Employee Relations Department

Establishment & Time Office

Factory Administration Department

Organizational Development Department

3. Production Division

Production-1

Production-2

Production Planning & Control

4. Production Engineering



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Production Engineering Division

Production Services Division

Tool Room, Die Shop Division

5. Engineering Directorate

QAIN Division

Service Division

Service-1 to 5

MSS (D)

Parts Inspection Division

Engineering Division

6. Supply Chain Division

Supply Chain - 1 to 3 Divisions

Shipping & Transport Department

Imports Department

Consumable Department

7. Information Technology Division

Application Group 1 (AG1)



System Management Department (SMD)

8. Marketing & Sales Secretariat

Marketing Strategy & Development

Marketing



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Sales

Exports

Web IT, E Commerce

9. Spare Parts Division

Spare Parts Procurement

Warehousing & Dispatch

Spare Parts Sales

Accessories

10. Vigilance Division

Security Wing

Vigilance Wing

11. Finance Division

Budget, Cost & Accounts Department

Income Accounting Department

Excise Department

Vendor Payments & Price Negotiations Department

Corporate finance.



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THE WORK CULTURE

Work culture in big organization means a philosophy, which guides actions and

behavioral patterns of the employees, thus determining the extent of efficiency.

Interaction between them: - It also defines the working environment. Building a

distinctive organizational culture whereby a WE feeling dominates among employees

and each member feels that he/she is a part of the family. All the employees wear sameuniform, eat in the same canteen, travel by same busses and sit in the same open office

irrespective of the nature of their work or position in the companies hierarchy.

Participative working

Equity participation of employees

Smooth interaction among the employees

Open-minded approach

Stress on team building

Effective communication among the employees

Certain forums are established for the benefit of the employees namely Maruti

sahyog samiti, Suggestion scheme, Small group activity, Kaizen and quality

circles, which help in promoting team spirit and information sharing among the

employees. KAIZEN in Japanese loosely means continuous improvement and

generally stated as TODAY SHOULD BE BATTER THAN YESTERDAY

AND TOMMORROW SHOULD BE BETTER THAN TODAY.

The employees are given the scope of improvement by arranging quality circles,

which encourage enthusiasm and commitment within the department to improve

the quality of work done.



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Maruti Brands:Maruti 800: Launched - 1983

Maruti Omni: Launched - 1984

Maruti Gypsy: Launched - 1985

Maruti Alto: Launched - 2000

Maruti Wagon-R: Launched - 2002

Maruti Versa: Launched - 2003

Maruti Grand Vitara : Launched - 2004

Maruti Suzuki Swift: Launched - 2005

Maruti Suzuki SX4: Launched - 2007

Maruti Swift Dzire: Launched - 2008

Maruti Suzuki A-STAR: Launched - 2008

Maruti Suzuki Ritz: Launched - 2009

Maruti Suzuki Estilo: Launched 2009

Maruti Suzuki New Swift : Launched 2010

Maruti Suzuki Wagon LXI : Launched 2010

Maruti Suzuki Alto K10 : Launched 2010

Maruti Suzuki Kizashi : Launched -- 2010

New Maruti Suzuki Swift : Launched -- 2011

http://en.wikipedia.org/wiki/Maruti_800http://en.wikipedia.org/wiki/1983http://en.wikipedia.org/wiki/Maruti_Omnihttp://en.wikipedia.org/wiki/1984http://en.wikipedia.org/wiki/Maruti_Gypsyhttp://en.wikipedia.org/wiki/1985http://en.wikipedia.org/wiki/Maruti_Altohttp://en.wikipedia.org/wiki/2000http://en.wikipedia.org/wiki/Maruti_Wagon-Rhttp://en.wikipedia.org/wiki/2002http://en.wikipedia.org/wiki/Maruti_Versahttp://en.wikipedia.org/wiki/2003http://en.wikipedia.org/wiki/Suzuki_Grand_Vitarahttp://en.wikipedia.org/wiki/Suzuki_Swifthttp://en.wikipedia.org/wiki/2005http://en.wikipedia.org/wiki/Suzuki_SX4http://en.wikipedia.org/wiki/2007http://en.wikipedia.org/wiki/Maruti_Swift_Dzirehttp://en.wikipedia.org/wiki/2008http://en.wikipedia.org/wiki/Maruti_Suzuki_A-STARhttp://en.wikipedia.org/wiki/2008http://en.wikipedia.org/wiki/Suzuki_Splashhttp://en.wikipedia.org/wiki/2009http://en.wikipedia.org/wiki/Suzuki_MR_Wagonhttp://en.wikipedia.org/wiki/Maruti_800http://en.wikipedia.org/wiki/1983http://en.wikipedia.org/wiki/Maruti_Omnihttp://en.wikipedia.org/wiki/1984http://en.wikipedia.org/wiki/Maruti_Gypsyhttp://en.wikipedia.org/wiki/1985http://en.wikipedia.org/wiki/Maruti_Altohttp://en.wikipedia.org/wiki/2000http://en.wikipedia.org/wiki/Maruti_Wagon-Rhttp://en.wikipedia.org/wiki/2002http://en.wikipedia.org/wiki/Maruti_Versahttp://en.wikipedia.org/wiki/2003http://en.wikipedia.org/wiki/Suzuki_Grand_Vitarahttp://en.wikipedia.org/wiki/Suzuki_Swifthttp://en.wikipedia.org/wiki/2005http://en.wikipedia.org/wiki/Suzuki_SX4http://en.wikipedia.org/wiki/2007http://en.wikipedia.org/wiki/Maruti_Swift_Dzirehttp://en.wikipedia.org/wiki/2008http://en.wikipedia.org/wiki/Maruti_Suzuki_A-STARhttp://en.wikipedia.org/wiki/2008http://en.wikipedia.org/wiki/Suzuki_Splashhttp://en.wikipedia.org/wiki/2009http://en.wikipedia.org/wiki/Suzuki_MR_Wagon


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CORPORATE MILESTONES

1980s

1983 Started production. Launched Maruti 800

1984 Launched Omni

1985 Launched Gypsy

1986 Produced 100,000 vehicles since commencement of

operations

1987 First lot of five hundred Maruti 800 cars exported to

Hungary

1990s

1993 Launched Zen

1994 Launched Esteem

1994 Produced 1 millionth vehicle since inception1995 Plant 2 became operational at Gurgaon

1997 Produced 2 millionth vehicle since inception

1999 Plant 3 became operational at Gurgaon. Launched Baleno and Wagon R

2000s

2000 Launched Alto

2000 Set up Institute of Driving Training and Research (IDTR)in Delhi to promote safe driving habits

2001 1st auto company in the world to receive ISO 9001-2000

Certification for Quality Standards by AV Belgium

2001 Launched new businesses: Maruti True Value, Maruti

Finance and Maruti Insurance

2002 Suzuki Motors Corporation takes management control of

Maruti

2003 M800, Zen & Esteem in the top 10 automotive brands in



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the Most Trusted Brand Survey, 2003

2005 Five millionth car rolls out. Launched Swift

2006 2nd Institute of Driving Training and Research set up in

Delhi. Zen Estilo launched2007 Swift Diesel launched

2007 Manesar car assembly plant inaugurated. Diesel engine

and transmission plant, Suzuki

Power train India Limited

Inaugurated

SX4 Launched

2008 DZIRE Launched

2009 A-STAR Launched

2009 RITZ Launched



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MARUTIS STRATEGIC GOAL

Maintained its materials cost despite change in product mix.

Growing shipments of Alto.

Has 55% of the market.

Introduced both petrol and diesel variants of Swift.

Maruti has cut the prices of models including Maruti 800, Omni, Zen, Wagon

R, Swift Diesel and Alto. The amount of this price cut varies from Rs. 6,500 for

Maruti 800 to Rs. 18,030 for Swift Diesel (in New Delhi).


New Products Capacity Expansion

SX4 launched in 2007 Production capacity ofGrand Vitara launched in Swift increased2007 Started production at its

New variant of third plant inSwift 2003

International DistributionBusiness Network

Growth in Exports Increase Customer TouchPointsIncrease in the NumberOf Maruti Service Station

MaintainLeadershipPosition in India

Grow InternationalBusiness


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Maruti Suzuki to invest 200 billion Yen on expansion in India.

Sri Lanka currently is the largest export market for Maruti where it sells 8,000-9,000 cars a year.

Maruti Udyog to enter South African market.

Invest more on marketing and research and development.

They are working on identifying their dealership in the region in collaboration

with the parent company Suzuki.



35/41

MARUTI SUZUKI INDIA LIMITED CORE

VALUES

Customer obsession

Fast, Flexible and first Mover

Innovation and creativity

Networking and Partnership

Openness and Learning



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Awards & Accolades:

2010

2009

RITZ Car of the year

A-star bags Zigwheels car of the year award

A-Star rated best small car of the year Autocar-UTVi

2008 Maruti won Car Manufacturer of the year

TV-18 Autocar mid size car Award-SX4

CNBC TV-18 autocar Manufacturer Award Maruti Suzuki2007 India Customer Satisfaction index award

India automotive Performance, Execution & Layout study

award2006 J.D Power Survey award for the seventh year2005 Number one in JD Power SSI for the second consecutive

year.

Number one in JD Power CSI for the sixth time in a row -

the only car to win it so many times.

M800, WagonR and Swift topped their segments in the

TNS Total Customer Satisfaction Study Leadership in the

JD Power Initial Quality Study - Alto number one in its

segment for the 2nd time in a row, Esteem number one in

its segment for the 3rd year in a row, Swift number one in

the premium compact segment.

WagonR and Esteem top their segments in the JD Power

APEAL study.

TNS ranks Maruti 4th in the Corporate Reputation Strength

(CSR) study (#1 in Auto sector)-Feb 05.

Maruti bagged the "Manufacturer of the year" award from

Autocar-CNBC (2nd time in a row)-Feb 05.

First Indian car manufacturer to reach 5 million vehicles

sales.

Business World ranks Maruti among top five mostrespected companies in India-Oct 04.



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2004 Maruti Suzuki was No. 1 in Customer satisfaction, No. 1 in

Sales Satisfaction No.1 in Product Quality (Esteem and

Alto) and No. 1 in Product Appeal (Esteem and Wagon R).

No. 1 in Total Customer Satisfaction (Maruti 800, Zen andAlto).

Business World ranked us among the country's five most

respected companies.

Business World ranked us the country's most respected

automobile company.

Voted Manufacturer of the year by CNBC.

Voted one of India's Greenest Companies by Business

Today-AC Nielson ORG-MARG.

SWOT ANALYSIS OF MARUTI SUZUKI INDIA

LIMITED

STRENGTHS:

Largest network of dealers and after sales service center in the country.

Diverse product range in small car segment.

Strong Indian association.



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Entry into second hand car market with a brand name Maruti True Value.

Diversified business model.

Strong brand value.

Loyal customer base: Awarded 5 consequent years for best customer

satisfaction in JD Power survey.

WEAKNESS:

Lack of product range in higher end and luxury car segment.

Inferior quality interiors inside the car.

OPPORTUNITIES:

Booming economy.

Consumer spending on the rise with rise in the middle class.

Large export market especially for its concept cars like A-star and splash.

Opportunity to re-enter into the diesel segment of the cars. Although MSILlaunched Zen in diesel version but it was unsuccessful.

Large export markets especially for its concept cars.

Liberal policies of government of India.

THREATS:

PLC of cars becoming shorter, so need to upgrade continuously.

Entry of international players like GM & Toyota with better technology.

Launch of 1 lakh car-Nano by Tata Motors and another by Bajaj- Renault

Nissan can eat the Market share of Marutis entry level cars.

Rising input prices of steel, aluminum and plastic present a big challenge to the

company.



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Increasing interest rates due to rising inflation can slow down the growth rate of

the car market.

Rise in fuel prices can slow the pace of car market growth.



40/41

CONCLUSION

It was a really good learning experience at MSIL. As management student MSIL gave

me good insight into the corporate. I have studied various Human Resource Department

and their functioning.

Also I studied the cultural shift in the company. I observed that at MSIL themanagement has a transparent approach and flat organization structure is being

adopted. There is more emphasis being given on communication among all levels. A

number of meetings, journals and programs are being conducted to ensure continuous

communication. Family connect is given high priority and various events like Parivar

Milan, family day, Plant Visits, Sports, Vishwakarma Pooja, etc are being organized.

Then welfare activities such as employee children counseling, scholarships, etc. are

being organized..

Also the contractual labor is taken good care of and they are also offered good facilities

like uniform, shoes, canteen, etc. A healthy working environment is encouraged in all

the departments and is being practiced to ensure a state of continuous improvement in

some part of the plant or the other.



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BIBLIOGRAPHY

WWW.MARUTISUZUKI.COM

WWW.CARTRADEINDIA.COM

WWW.WIKIPEDIA.ORG

WWW.SCRIBD.COM

MARUTI SUZUKI INFORMATION MANUAL
http://www.marutisuzuki.com/http://www.cartradeindia.com/http://www.wikipedia.org/http://www.scribd.com/http://www.marutisuzuki.com/http://www.cartradeindia.com/http://www.wikipedia.org/http://www.scribd.com/

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