A Study on Maruti Suzuki India Limited

BYGOPI KRISHNAN K

KRUTHIKA MPRADEEP B

RAKESH SOLANKI CROHINI M

MARUTISUZUKI

INDIA LIMITED

COUNT ON US

AUTOMOBILE INDUSTRY

• Small• Other industries• Capital intensive• Production shift- Non-OECD regions

AUTOMOBILE INDUSTRY IN INDIA

• 11 million vehicles/year• 1.5 million- export• Two wheelers (75%)• Passenger Cars- 16%• Commercial vehicles (9%)• US $35 billion

MARUTI SUZUKI INDIA LIMITED

• February 1981• SMC Subsidy• 40% share• Mass production• 10 million cars-2012

SUBSIDIARY COMPANIES

• Maruti Insurance Business Agency Limited• Maruti Insurance Distribution Services

Limited• Maruti Insurance Agency Solutions Limited• Maruti Insurance Agency Network Limited• Maruti Insurance Agency Services Limited • Maruti Insurance Agency Logistics Limited Total income of` 457.7 million

FINANCE

• `1 43 412 Crore worth• Sales down 25%• 44.9% to 40%

•http://current-trends-now.com/2012/02/maruti-suzuki-sales-decline/•http://www.businessworld.in/businessworld/businessworld/content/Labour-Unrest-Costs- Maruti-Suzuki-Market-Share.html-0

PROFIT & LOSS RATIOS % TO NET SALES

P&L Ratios

0 10 20 30 40 50 60 70 80 90

PAT

Effective Tax rate (Tax/PBT)

PBT

Depriciation

Interest

EBDITA

Other Income

Selling & Distribution expenses

Manufacturing, Admin-istration & other ex-pensesRoyalty

Employee Cost

Material Cost

http://www.marutisuzuki.com/company-at-a-glance-newroom.aspx

NET SALES & PAT

2003-04

2004-05

2005-06

2006-07

2007-08

2008-09

2009-10

2010-2011

0

50000

100000

150000

200000

250000

300000

350000

400000

Net SalesPAT

http://www.marutisuzuki.com/company-at-a-glance-newroom.aspx

SALES TREND: IMPORT & EXPORT

2003-04

2004-05

2005-06

2006-07

2007-08

2008-09

2009-10

2010-11

0

200000

400000

600000

800000

1000000

1200000

Export VolumeDomestic Volume

http://www.marutisuzuki.com/company-at-a-glance-newroom.aspx

EXPORTS AND IMPORTS

EXPORTS

• Poland• Finland• Iceland• Malta• Switzerland• The Netherlands• Algeria• Italy

>Continued…• Over 120 countries• Entry Level models• "Top Exporter for the Year 2008-09"

IMPORTS

Two models• Kizashi• Grand Vitara (SUV)

MSIL New Model Development Trend

India Specific & Re-designed

India Manufactured & designed

Globally Manufactured & designed

Manufacturing India India Global

Market India Global Global

Design Suzuki existing model, modified to suit India

New design, new/existing platform

New design, new/existing platform

Automotive Mission Plan 2006-16- Conference, 2006

RAW MATERIALS USED

Composition

SteelPlasticAuminiumGlassElastomersFluidsCast IronOthers

Automotive Mission Plan 2006-16- Conference, 2006

TECHNOLOGICAL TRENDS

• Fuel efficiency • Light weight• CO2emissions• Performance• Safety• NVH isolation• Upholstery• Environment regulation compliant• Alternate fuels• Diesel

RESEARCH & DEVELOPMENT• Parallel to the vision• Product design• Engineering capability development• Cost management• Technology development

• Full body changes ingeniously• Full vehicle in-house• Training of engineers (overseas/in-house)• Test facilities up-gradation• Prototype build capability• Experimental projects

CURRENT MODELS OF MSIL

SMALL CAR SEGMENT• 800 (1983- present)• Omni (1984- present)• Zen (1993-2006)

Zen Estilo (2006-2010)• Wagon R (1999- present)• Alto (2000- present)

Alto K10 (2010- present)• Swift (2005- present)• A- Star (2008- present)• Ritz (2009- present)

SEDANS• 1000 (1990-94)• Esteem (1994- 2008)• Baleno (1999- 2007)• SX4 (2007- present)• Swift DZire (2008- present)• Kizashi (2011- present)

MULTI UTILITY VEHICLES (MUV)Versa (2001-10)Eeco (2010- present)Ertiga (Expected to be launched in mid 2012)

SPORTS UTILITY VEHICLES (SUV)Gypsy (1985- Now available on demand)Grand Vitara (2003- present)XA Alpha (To be launched in 2014)

CURRENT ISSUES

1.Response to globalized auto industry

2.Improved performance

3.Environmental impact

4. Labor unrest

http://business.techwhack.com/4654-maruti-elv/https://www.araiindia.com/facilities_NVH.asp

SWOT ANALYSIS STRENGTH

•STRONG NETWORK•PRESENCE•BRAND IMAGE•KNOWLEDGE OF THE MARKET•STRONG PARTNERSHIP

WEAKNESS

•RELATIVELY NEW IN THE DIESEL CAR SEGMENT•IMAGE STUCK ON SMALL CARS•HEAVY IMPORT TARIFFS ON IMPORTED MODELS

OPPURTUNITIES

•GROWING SMALL CAR MARKET•GOVERNMENT SUBSIDIES•INCREASE IN PURCHASING POWER OF INDIAN CUSTOMERS

THREAT

•GLOBAL PLAYERS•WORKER’S STRIKES•HIGH COMPETITION

BCG MATRIXSTAR

SWIFTSWIFT DZIRESX4

QUESTION MARK

KIZASHINEW GRAND VITARAEECO

CASH COW

ALTORITZWAGON R

DOG

800OMNIVERSAZEN ESTILO

DEALER NETWORK DETAILS

DEMAND FOR SMALL CAR

• Demand increasing

• Lower tax rates

• Encouraged to venture into small car segment

• Demand estimated 35%

Automotive Mission Plan 2006-16- Conference, 2006

THANK YOU