Assignment Assessment Report Campus: Sainik Farms Year/semester 2 nd Semester Level: ACLII Assignment Type Module Name: Assessor’s Name Student’s Name: Rohit Manik Sajid Mansoori Sharib Kausar Rouf Wani Reqd Submission Date 6 th april 2011 e-mail id & Mob No Actual Submission Date 6 th april 2011 Stream PGDBE Submitted to : Mr. Subrata Roy Certificate by the Student: Plagiarism is a serious College offence. I certify that this is my own work. I have referenced all relevant materials. (Student’s Name/Signatures Expected Outcomes Assessment Criteria Grade based on D,M,P, R Feedback
Transcript
Assignment Assessment Report
Campus: Sainik Farms Year/semester 2 nd Semester
Level: ACLII Assignment Type
Module Name: Assessor’s Name
Student’s Name:
Rohit Manik
Sajid Mansoori
Sharib Kausar
Rouf Wani
Reqd Submission Date 6th april 2011
e-mail id & Mob No Actual Submission Date 6 th april 2011
Stream PGDBE Submitted to : Mr. Subrata Roy
Certificate by the Student:
Plagiarism is a serious College offence.
I certify that this is my own work. I have referenced all relevant materials.
(Student’s Name/Signatures)
Expected Outcomes Assessment Criteria
Grade based on D,M,P,R system
Feedback
General Parameters
Clarity Clear understanding of the concept
Analytical Thinking-
Ability to analyze the problem
realistically
Research Done- Research carried out to solve the problem
Formatting & Presentation-
Concise& clear thinking along with presentation
Subject Specific Parameters
1.Design a research program
2. Conduct research
3.Presentation (both written and oral)
Grades Grade DescriptorsAchieved Yes/No (Y / N)
P A Pass grade is achieved by meeting all the requirements defined.
M Identify & apply strategies/techniques to find appropriate solutions
D Demonstrate convergent, lateral and creative thinking.
Assignment Grading Summary (To be filled by the Assessor)
OVERALL ASSESSMENT GRADE:
TUTOR’S COMMENTS ON
ASSIGNMENT:
SUGGESTED MAKE UP PLAN
(applicable in case the student is asked
to re-do the assignment)
REVISED ASSESSMENT GRADE
TUTOR’S COMMENT ON REVISED
WORK (IF ANY)
Date: Assessor’s Name / Signatures:
REPORT ON
NAME - MARUTI SUZUKI INDIA LIMITED.
ADDRESS –
HEADQUATERS –
Maruti Suzuki India Limited Nelson Mandela Road, Vasant Kunj, New Delhi-110070 Board no.46781000 Fax : 46150275 and 46150276
Established in February 1981, though the actual production commenced in 1983.
Structure :
Maruti Suzuki India ltd. is Public Limited company and listed in Bombay stock exchange and National Stock Exchange. Suzuki Motor Company(SMC) is Majority shareholder 54.21% equity stake in a company. Share holding pattern of company:-
DEC2010 SEP2010 JUN2010 MAR2010 DEC2009Promoter and Promoter Group
The company has a multi-tier management structure, comprising the board of directors at the top followed by five business vertical heads reporting to the Managing Director. These business verticals are Marketing & Sales, Engineering, Production, Administration and Supply Chain. Each of these verticals is headed by a team of two members, one of whom is a Japanese manager and the other, an Indian manager.
The Japanese managers are also the Executive Directors of the board. The Indian managers are designated as Managing Executive Officers (MEOs) and Executive Officers (EOs) and attend all board meetings.
They are supported by divisional and departmental heads. This system has ensured regular flow of strategic direction from the board to the operational management, effective implementation of the strategy, clear delegation of decision making with accountability, timely risk identification and mitigation, adequate controls and reporting of the company's operations, and a healthy financial performance.
PRODUCT SUPPLIED
The company offers a portfolio of 13 brands, ranging from the people's car Maruti 800 to the stylish hatch-back Swift, SX4 sedan and luxury Sport Utility Vehicle (SUV), Grand Vitara. More than half the cars sold in India wear a Maruti Suzuki badge.
As per the classification by the Society of Indian Automobile Manufacturers (SIAM), Maruti Suzuki models are categorised under the following heads:
A1 Segment (upto 3400 mm) : Maruti 800A2 Segment (3400 mm to 4000 mm) : Alto, Estilo, WagonR, A-star, Ritz, swiftA3 Segment (4000 mm to 4500 mm) : DZire & SX4Multi Utility Vehicle (MUV) Segment : Gypsy & Grand VitaraMulti Purpose Vehicle (MPV) Segment : Omni & Versa
MARKET SHARE
Accounting to 79%, Cars rule the passenger automobile in India. The chief players in this segment are Maruti Suzuki. While Maruti Suzuki enjoys full-fledged monopoly in multi-purpose automobiles sector with 52% of market share.
The automobile industry had a growth of 15.4 % during April-January 2007, with the average annual growth of 10-15% over the last decade or so. With the incremental investment of $35-40 billion, the growth is expected to double in the next 10 years.
Consistent growth and dedication have made the Indian automobile industry the second- largest tractor and two-wheeler manufacturer in the world. It is also the fifth-largest commercial vehicle manufacturer in the world. The Indian automobile market is among the largest in Asia.
The key players like Hindustan Motors, Maruti Udyog, Fiat India Private Ltd, Tata Motors, Bajaj Motors, Hero Motors, Ashok Leyland, Mahindra & Mahindra have been dominating the vehicle industry. A few of the foreign players like Toyota Kirloskar Motor Ltd., Skoda India Private Ltd., Honda Siel Cars India Ltd. have also entered the market and have catered to the customers’ needs to a large extent.
Not only the Indian companies but also the international car manufacturing companies are focusing on compact cars to be delivered in the Indian market at a much smaller price. Moreover, the automobile companies are coming up with financial schemes such as easy EMI repayment systems to boost sales.
There have been exhibitions like Auto-expo at Pragati Maidan, New Delhi to share the technological advancements. Besides, there are many new projects coming up in the automobile industry leading to the growth of the sector.
The Government of India has liberalized the foreign exchange and equity regulations and has also reduced the tariff on imports, contributing significantly to the growth of the sector. Having firmly established its presence in the domestic markets, the Indian automobile sector is now penetrating the international arena. Vehicle exports from India are at their highest levels.
The leaders of the Indian automobile sector, such as Tata Motors, Maruti and Mahindra and Mahindra are leading the exports to Europe, Middle East and African and Asian markets.
The Ministry of Heavy Industries has released the Automotive Plan 2006-2016, with the motive of making India the most popular manufacturing hub for automobiles and its components in Asia. The plan focuses on the removal of all the bottlenecks that are inhibiting its growth in the domestic as well as international arena.
KEY END USE MARKRT SEGMENT FOCUS
Maruti Suzuki, the largest passenger car maker in the Indian market, has regained the crucial 50 % market share in the Indian passenger car market during month of October. It is to be mentioned here that Maruti’s market share had slipped to 43.62 percent in the month of June, due to launch of a series of cars by leading automakers like Volkswagen, Ford, Nissan and GM in the country.
As per the data released by the SIAM (Society of Indian Automobile Manufacturers), Maruti Suzuki India managed to sell 91,754 units of its passenger cars as compared to the total market sales of 1,82,992 units, accounting for about 50.14 percent market share during the period. Sales of company’s starting range models including Alto, Wagon R, Zen Estilo, Swift, Ritz and A-Star stood at 77, 502 units during the month.
Achieving a new mile stone, the company registered over 39 percent increase its sales to 1,18,908 units (inclusive of exports) during the month of October, which was its highest ever monthly sales in its over 27 year’s of operations in the Indian market.
The company has been planning aggressively for regaining its over 50 percent market share ever since it dipped below this crucial mark. The company had launched CNG versions of as many as five of its portfolio vehicles like Alto, Zen-Estilo, Wagon R and SX4 in the month of August 2010, which has met with an overwhelming response from the Indian buyers.
Meanwhile, the company has geared up to launch its much awaited and first ever premium sedan model – Maruti Kizashi – in the Indian market by the first quarter of next year. Kizashi will be competing with the like of Toyota Corolla Altis, Chevrolet Cruze, Skoda Laura and Mitsubishi Lancer in the Indian market.
RATIONAL FOR FOCUS
The Product Line
The Indian passenger car market was divided into various segments and sub-segments on the basis of price, size (i.e. length of the model and its weight) and other factors (including engine capacity). MUL had a presence in all the segments and sub-segments of car in India.
The Pricing Strategy
Due to the fierce competition in the Indian passenger car industry, price emerged as an important factor affecting the purchasing decisions of customers. Since it had been in the industry for more than two decades, and as a market leader, MUL adopted aggressive pricing strategies.The company had products at various price points (Refer Exhibit IV for a comprehensive list of MUL's products, their variants and prices). In the early 2000s, when the passenger car industry was witnessing stagnation, MUL slashed the prices of its various models, to revive the industry...
Promotion and Distribution
In the early 2000s, MUL also focused on promotion and distribution to face intense competition. The company devised various innovative promotional strategies. With interest rates declining from 12% to as low as 8% in automobile finance, MUL used financing as a major tool to drive up its car sales. The overall percentage of cars being financed through automobile loans increased from 65% in 1998 to over 85% in 2003...
The Result By 2004, the competition in the Indian passenger car industry had further intensified. However, MUL retained its leadership position mainly due to its aggressive pricing strategy. In December 2004, MUL reported an 18% rise in vehicle sales helped by a sharp increase in exports and rising demand in the domestic market.
Domestic sales increased by 11.4 percent amounting to 37,153 units, while exports jumped 78 percent to 6,675 units. After the price reductions and aggressive promotion, M800 and Alto sold in huge volumes in India and also new car with new technology used help them sell more.
PRODUCTION OR IMPORTS
Domestic Manufacturing
Maruti Suzuki India's plan to manufacture car with domestic tag by 2012 is moving as per schedule. The company is likely to finalize the design, engine size and how to position it in the market by mid 2011.
Also it is reported that the made in India car will be positioned along with Maruti's best selling model Alto.
Presently, the company is still dependent on parent manufacturer Suzuki for its future model design and development programme. It is, however, spending around Rs 1,500 crore over the next 3-4 years at its R&D centre at Rohtak -- Suzuki's only such significant centre outside Japan -- to scale up its vehicle development programme and become self reliant.
Alto is currently the highest selling car model in India, with average sales of over 20,000 units per month.
Current Installed capacity
Maruti Suzuki India will soon increase its production capacity by at least one lakh vehicles. The country’s largest car maker is targeting sales of about 9.5 lakh vehicles this fiscal, close to the current capacity of a million (10 lakh) units of its Gurgaon and Manesar facilities together.
The company was earlier targeting a 5% sales growth this fiscal, but has since revised its forecast to 10% for the domestic market. The export target has also been increased to 1.3-1.5 lakh units from 1.2 lakh units earlier.
Meanwhile, on account of capacity constraints, there is already a waiting period for some of its popular models such as the Swift Dzire, Ritz and Swift diesel.
Chairman R C Bhargava told DNA Money, “We are already working at full capacity. In July and August, we produced close to 86,000 vehicles each and going at this rate, we would be using the entire available capacity of a million units this fiscal… so we are looking to increase capacity at Manesar.”
Bhargava said they could add a production line at the existing site, but a finaldecision would be taken only when the Suzuki Motor Company chairman Osamu Suzuki visits India next week.
Suzuki would be here to chair the annual general meeting of Maruti on September 3 and is expected to take the call on additional investment needed to create fresh capacity.
Though Bhargava declined to specify the investment needed for capex, he did indicate that economies of scale dictate any new production line should be making 1-1.2 lakh units.
Manesar’s current installed capacity is 3 lakh units. Going by industry sources, putting up capacity for 1 lakh units typically needs an investment of about Rs 1,500 crore. That could well be the investment Maruti will make at Manesar.
The proposed new line would take at least a year to be up and running. At present, the bulk of Maruti’s cars — the 800, Alto, WagonR, Estilo, Ritz, Versa and Gypsy — are being made at the Gurgaon facility. The relatively newer models —Swift, Swift Dzire, A-Star and SX4 — roll out of Manesar.
Then, Maruti is planning to augment its portfolio in the next few months with a ‘cost down’ Alto, a new MPV based on the Versa platform and facelifts of existing models. No wonder it is thinking of capacity expansion now, since this new capacity will take at least 12 months to come on stream.
Fresh investment of Rs 1,925 Cr to take annual production capacity to 1.75 million units
India's leading car maker Maruti Suzuki India Limited (MSIL) today held its 29th Annual General Meeting here today. At the meeting Mr. O Suzuki, Chairman and CEO, Suzuki Motor Corporation, Japan, (majority stakeholder in MSIL), made wide ranging announcements.
Following points are for your reference:
Outline on current production capacity:
Annual Capacity at Maruti Suzuki Gurgaon is: 850,000 units
Annual Capacity at Maruti Suzuki Manesar is: 350,000 units
Total capacity : 12,00,000 units (1.2 million units) To keep pace with growth (which has been as high as 27% in this fiscal), Maruti Suzuki
needs more capacity
Capacity announcements (subject to Board approval)
Maruti Suzuki will establish "Plant C" at Manesar.
Plant C will be constructed concurrently with the Plant B at Manesar. Plant C toWwith an installed capacity of 250,000 units per annum. Plant C is likely to be ready by end of fiscal 2012 / early 2013
Plant B (announced earlier in Feb2010) at Manesar, will be ready by Jan 2012 and will
bring an additional capacity of 250,000 units per annum
Plush two-tone interiors and an all-new 3-spoke steering wheel. These are aided by
Present facilities : 12,00,000 units per annum Plant B (Manesar) : 2,50,000 units per annum by Jan 2012 Plant C (Manesar) : 2,50,000 units per annum likely in fiscal 2012-13
Total Capacity: 17,50,000 units per annum by end of fiscal 2012-13 (including productivityenhancements)
Investment update (subject to Board approval)
The investment to construct Plant C at Manesar is estimated at 35 Billion Japanese Yen (approx Rs. 1,925 crores @ Yen 1= 0.55 Rs). This investment will be funded by internal accruals of Maruti Suzuki.
Medium term investment: Rs 6,000 Crores (or $ 1.3 billion) during the period 2010-2013.
Rs 1700 Cr (Manesar plant B) announced earlier in March 2010 Rs 2500 Cr (Engine plant & R&D) announced earlier in March 2010 Rs 1925 Cr (Manesar plant C) announced at AGM-2010 (7 Sept 2010)
Other projects to be undertaken in Medium term:
Commence construction of test course at R&D Centre at Rohtak We would also look at constructing Regional Offices at 16 locations. SMC and MSIL will have an integrated approach towards these developments. The timelines for all these projects will be evolved post board approval.
Capacity utilaisation
The country’s largest car producer — Maruti Suzuki — is caught in a cleft. There is growing demand for its cars, but it does not have sufficient production capacity to feed this demand. To top that, this capacity constraint is not likely to be lifted before 2012.
The company, which sold over one million cars in the last financial year, expects sales to go up by around 10 per cent. In simple terms, this means that its engineers have to produce over 1,00,000 more cars, in a plant which is already working at much over 100 per cent capacity utilisation.
The man steering the fortunes of the company, chairman R C Bhargava, admits the problem. “We are certainly not in the comfort zone. We are working at well above 100 per cent capacity.
Our engineers are stretching the production capacity through various innovations, as new capacity will be available only by 2012,” he says.
Bhargava says while the engineers have ensured they would be able to meet this financial year’s sales target, 2011-12 could be a challenging year.
Maruti’s engineers are trying to get out of the problem by putting in manual lines until the new capacity gets added.
Mayank Pareek, executive officer (marketing and sales), of Maruti Suzuki, says: “We are in the process of renovating, rationalising and debottlenecking our Gurgaon plant to put it to optimal use.
We hope to cover whatever added demand there is from this exercise.” Maruti's two plants in Gurgaon and Manesar together have an installed capacity of 800,000 cars
but the engineers have been able to produce over a million units this year. As a result the capacity utilisation in the plant is already at 125 per cent. The company is of course expanding the capacity in the Manesar plant by another 250,000, but this capacity will only come by 2012. However the same plants now have to produce over 1.1 million cars for this financial year.
What is adding to the worry are the long queues for some of its car models. For instance the hot selling Dzire has a waiting list of around three to four months; the Swift is not available to consumers before two months and the newly-launched Eeco, which has caught the fancy of consumers, has a waiting list of three to four months. Says Bhargava: "We had not planned or anticipated such a high growth for this model"
Maruti is also keen to push exports and add more international markets that could lessen its dependence on the European nations. In addition, Maruti has a signed a pact with Nissan to supply 35,000 A-star's (rebadged as Nissan Pixo) during the current year. This, according to experts, could mean lesser number available in the domestic market.
However, a Mumbai-based analyst says that due to increased competition in the local market from players like General Motors, Nissan and Ford, all of whom already have or will have launched a new model in the small car market, Maruti sales will come under pressure.
Technology Used
The country's largest car maker Maruti Suzuki today unveiled its flagship CNG engine technology, 'intelligent-Gas Port Injection' or i-GPI on five popular models. The CNG vehicles were unveiled by Mr. Jairam Ramesh, Hon'ble Minister of State (Independent Charge) Environment and Forests in the presence of senior government dignitaries and Maruti Suzuki management team.
The models include SX4, Eeco, WagonR, Estilo and Alto and are being launched in Delhi NCR, Mumbai and Gujrat. With this initiative, the CNG footprint of the company spreads across entry level cars, compact cars, sedans and MPV segments.
On the occasion, Maruti Suzuki India Chairman RC Bhargava said, ¿We are happy to bring contemporary CNG technology to the Indian customer. We are confident customers would value our i-GPI technology that is safe, reliable, clean, responsive and environment friendly.
Adapting the CNG technology in our vehicles is another step to keep low cost of
ownership for our customers.¿ Shinzo Nakanishi Managing Director & CEO Maruti Suzuki India said, ¿The
development is significant on multiple counts. This is the first instance when a car manufacturer has developed and launched factory-fitted technologically superior CNG engines in India. Compressed Natural Gas is environment friendly and also reduce country's dependence on imported fuels. Maruti Suzuki's big ticket entry into CNG fuel segment augurs well for the environment.
Peppy and responsive 'intelligent-GPI technology
The i-GPI or Intelligent Gas Port Injection bi-fuel technology offers an intelligent ride. Intelligent as it ensures more power vis-à-vis retro-fitted CNG vehicles and offers a peppier ride experience at par with that of a petrol-fuelled engine, while achieving high fuel efficiency at the same time.
The factory fitted CNG vehicles score very high on safety and reliability vis-à-vis the aftermarket retro-fitted options. Maruti Suzuki CNG vehicles pass through all the quality checks, processes and systems similar to a regular car manufactured at Maruti Suzuki plants.
As the CNG technology is factory fitted the customers will enjoy the full warranty benefits including extended warranty. To top it all, the CNG vehicles from Maruti Suzuki will enjoy the nationwide back up of over 2700 Maruti Service Stations.
The simultaneous launch of five CNG vehicles with the same contemporary technology demonstrates the company's intent and future readiness to produce environmentally friendly vehicles in large numbers.
Steps in Environment care
Maruti Suzuki has the distinction of introducing a host of environment friendly programmes ahead of government regulations and the industry. This includes implementing End of Life Vehicle (ELV) programme ¿ where harmful elements like Lead, Cadmium, Chromium and Mercury are not used in making vehicles.
Maruti Suzuki produced the first BS-IV and E-10 compliant engines much ahead of regulations coming to force in the country. Developing a factory-fitted CNG engine is another effort by the Company to contribute to a clean environment.
Technology up
The factory fitted CNG vehicles use advanced Intelligent Gas Port Injection technology. Maruti Suzuki R&D team has integrated this technology with the Company's range of engines and products to bring the benefits to the consumers.
In a leap over alternative aftermarket options, the i-GPI technology is a Dual ECU (Engine Control Unit) technology. This highly reliable system delivers accurate amounts of gas to the
engine thus ensuring improved and consistent performance under various driving conditions.The i-GPI technology uses separate injectors for each cylinder.
Based on inputs from the ECU, metered CNG quantity is injected to the engine through gas ports.
The quantity of CNG required for different driving conditions is controlled by the dedicated ECU, leading to more efficient fuel usage.
Similar to the usual pre-launch evaluation, each of the cars with i-GPI CNG technology has been extensively tested for around 2 lakh kilometers in varied terrains. In addition, over 3,000 hours of bench tests have validated the design and performance to bring unmatchable combination of performance and reliability for the customers.
While working on the new CNG technology, Maruti Suzuki engineers focused on critical aspects of safety, reliability and performance.
CNG for the future
Government of India has committed to developing the infrastructure and network of the CNG stations across the country. This is in line with government's aim to reduce the dependence on import of fossil fuels. With the discovery of large gas reserves in the country the network of CNG supplies is set to expand rapidly in near future. Maruti Suzuki's launch of CNG technology vehicles will help create the eco system for use of a clean and cost effective fuel in India.
EXPANSION (TIME LINES ),ENHANCED CAPACITY AND INVESTMENT
Maruti Suzuki India, the countrys largest car manufacturer, is set to expand capacity at its Manesar plant to 1.7 lakh units per annum by the end of this month.
At present, the plant produces one lakh cars per annum The expansion is part of the Rs 9,000-crore investment plan drawn up by Suzuki Motor Corporation and Maruti Suzuki till 2010, a senior company official said.
From the expanded production line at Manesar, Maruti will roll out, among other models, the DZire, a sedan version of the Swift.
The plant, which was commissioned in February 2007, manufactures at 120 per cent of its installed capacity and rolls out the Swift (both diesel and petrol variants) and the SX4 sedan.
With the enhanced capacity, the waiting period for a Swift which in some cases is up to a month is expected to come down. It will also give the company the much needed flexibility to accommodate the production of the Swift DZire, said company sources.
In fixing the deadline for the expansion at Manesar, the company had in mind the A-Star, Suzukis fifth car on a global platform that will be rolled out from October.
By January 2009, the company will also export the the A-Star from India. S. Nakanishi, managing director of Maruti Suzuki India, said, The company is focused on attaining one million sales in the Indian market in the next three years, which will be one-third of Suzukis worldwide sales.
The present capacity expansion is in line with that goal. By 2010, Maruti Suzuki aims to increase capacity to 300,000 cars at the Manesar plant,Nakanishi added.He said the plant has been designed keeping in mind the global aspirations of Maruti Suzuki and its parent Suzuki Motor Corporation.
The facility is considered one of Suzuki Motor Corporations best outside Japan. Within the complex is Suzuki Powertrain India Ltd, the diesel engine and transmission plant. Suzuki Powertrain manufactures 1.3 litre diesel engines used in the Swift.
It is the global supplier of diesel engines for Suzuki Motor Corporations plants.Maruti Suzuki is also setting up a suppliers park at Manesar to attract ancillary investment.
As it eyes one million annual sales by 2010, country's top carmaker Maruti Suzuki has firmed up a massive expansion plan of its service network and plans to expand it to 1,700 towns and cities from the current about 1,200.
Company officials said Maruti has firmed up a blueprint for expansion of the service network by as much as 45% over the next three years as it expects higher sales and further penetration in the market.
The company plans to increase the number of service stations and workshops to over 3,800, from the about 2600 currently. Also, the plan includes almost doubling the dealer workshops by 2011, officials said.
The network would be expanded to newer cities, which is in line with the company's plan to go deeper in the market. Currently the company's service network is in 1,215 cities and its plans to boost this substantially to 1,700 cities by going to new areas.
The plan has been approved by the management and would further strengthen its grip on the market, considering it already has a dominant position compared to rivals.
The company, that has more than 50% share of the Indian car market, primarily sells small cars, many of which are targeted at first-time buyers. The cut in excise duty on small cars in the Budget and new pay commission recommendations expected later this year are likely to give a major boost to the sales of small cars in India and increase demand in many new unserviced geographies, including in interior regions.
Maruti, which currently is the cheapest car maker in the market with its entry-level 'Maruti800' compact priced just below Rs 2 lakh, has also been coming out with specific sales promotion programmes targeted at interior regions.
Among them is the 'Mera Sapna Meri Maruti: New Panchayati Scheme' programme launched in rural areas last year through which the company offered special discount schemes and financing options in villages.
Interestingly, Tata Motors that plans to come out with the country's cheapest car 'Nano' has also spoken about massively expanding its dealer and service network as it prepares for the launch of the new Rs 1 lakh entry-level car around October this year. Maruti officials said expansion of the service network was among the key focus area for its new Managing Director S Nakanishi.
Maruti Suzuki India Ltd has just completed a programme to ramp up capacity at its fourth and newest plant at Manesar. By the end of March, the company will be able to roll out 1.7 lakh units per annum from this facility, up 70 per cent from the installed capacity.
The enhanced production capacity will also be used to roll out DZire, the sedan version of the Swift, that is due to be launched later this month.
The plant, which attained full capacity within weeks of its commissioning in Feb 2007, is currently manufacturing at 120 per cent of its installed capacity and rolls out the Swift (both diesel and petrol variants) and the SX4 sedan. With the enhanced capacity, the waiting period for the Swift, which is two to three months will come down, a statement said.
The capacity expansion at Manesar is also timed for Suzuki’s fifth world strategic model, A-Star, that will be rolled out in October this year. By January 2009, exports of this model will take off. By 2010, Maruti Suzuki aims to increase capacity to 3,00,000 cars at this plant.
MANUFACTURING FACILITIES Maruti Suzuki has two facilities in Gurgaon and Manesar, Haryana, India, with a combined
manufacturing capacity close to 1 million cars per annum. In terms of number of cars produced and sold worldwide, the company is the largest subsidiary of SMC, Japan.
Gurgaon Plant
The Gurgoan facility houses three fully integrated plants having a combined manufacturing capacity of over 700,000 cars per annum.
In 2008-09, the company took a major stride by commissioning a state-of-the-art K-series engine plant in Gurgaon with an installed annual capacity of 240,000 engines. Spread over an area of 20,300 m2, K-series engine plant employs global manufacturing best practices to ensure high quality standards. K-series engine technology is environment friendly, reduces fuel consumption and offers best engine performance.
Manesar Plant
The plant at Manesar is the company's latest car assembly plant which was started in February, 2007 and has a capacity to produce over 300,000 units per annum.
Manesar facility is the most modern plant, set up to suit SMC's and Maruti Suzuki's global ambitions. The plant rolls out World Strategic
Models, such as the Swift, the A-star, the SX4 and the DZire
IMPORTS
Maruti Suzuki India is in a belt-tightening mode. Not only has the country's largest carmaker initiated cost rationalisation with its "one gram, one component" programme last fiscal, it is now also going aggressive with another such initiative that would enhance parts localisation at the vendor level.
The "internal parts localisation" initiative aims at significant reduction in imports at the vendor level for assemblies and subassemblies which are ultimately sourced by Maruti.
At present, imports by vendors account for up to 10% of the company's net sales. But isn't the localisation content of Maruti cars already pretty high at 80% and beyond for most models? Ajay Seth, chief financial officer, says that for the company, total imports are only 12% of net sales but at the vendor level, another 10% import content is added. "We will be pushing for further localisation at the vendor level. By the end of the fiscal, our imports and exports should come to settle at the same levels," he said.
Whenever localisation is being done, there is a ballpark cost reduction of 30-40%. So this aggressive localisation at vendor level should bring major cost savings for Maruti in the current fiscal.
Managing director Shinzo Nakanishi said the "one gram one component" programme would be extended to tier II suppliers from this fiscal but refused to quantify the cost benefits already seen from this initiative.
Maruti's cost rationalisation drive comes at a time when input costs are already down for items such as steel by 20-25%. Though input prices softened some months back, their full benefits with forward contracts would start accruing from this fiscal.
Already, the company has seen substantial erosion in margins -- closing FY09 at 12% against a peak of 17% during some months of the fiscal. So any softening in commodity prices is a welcome break.
But will input cost reduction mean product prices will come down anytime soon? The company did not give any indication on this front, merely pointing to margin pressure to maintain end prices for now.
To a question on sales expense, Seth said that the outgo on account of discounts was higher by awhopping Rs 140 crore last fiscal compared with 2007-08. Though discounts have been reduced on some models since the beginning of the month, he said their quantum would depend on market conditions going forward.
On new products, the company reiterated that it was on course to launch the 'Ritz' as an upper premium sedan next month.
Already, a landmark manufacturing capacity of 1 million cars on an annualised basis has been achieved and the expenditure on capex this fiscal would be Rs 1,800 crore. Though Nakanishi expressed confidence in doing much better export numbers this fiscal than 70,000 units of FY09, he declined to give a guidance.
STRONG SUPPLIERS BASE
The company works jointly with its suppliers to develop new products, achieve high localisation levels, and reduce cost.
It has a strong base of 246 suppliers (as on 31st March, 2009) including 16 JV companies where the company has strategic equity stake. 76% of the company's suppliers are located in the 100 kms of radius from its manufacturing facilities. Most of the JVs are situated in the Suppliers' Park adjacent to the company facilities
MARUTII SUZUKI INDIA LIMITED JOINT VENTURES
NameComponent
Asahi India Glass Ltd. Glasses Bawal (Rewari)Bellsonica Auto Components
India Ltd. Large Sheet Metal Manesar (Gurgaon)
Bharat Seats Ltd. SeatsMaruti Suzuki India Ltd. Joint
Venture Complex
Caparo Maruti Ltd. Large Sheet MetalMaruti Suzuki India Ltd. Joint
Venture Complex
Climate Systems India Ltd. Radiators Assembly Bhiwadi (Alwar)
Denso India Ltd. Auto Electricals Dadri (Greater Noida)
FMI Automotive Exhaust System Manesar (Gurgaon)Components Ltd. Components
Jay Bharat Maruti Ltd. Large Sheet Metal,Maruti Suzuki India Ltd. Joint
Exhaust Systems Venture Complex
Krishna Maruti Ltd.Seats/HL Roof/Door Trim
Narsinghpur (Gurgaon)
Machino Plastics Ltd.Bumper, Instrument Panel
Maruti Suzuki India Ltd. Joint
Venture Complex
Mark Exhaust Systems Ltd.Exhaust Systems, Door Sashes Gurgaon
Magneti Mareli Powertrain Electronic Manesar (Gurgaon)India (P) Ltd. Control Unit
Nippon Thermostat Water Thermostat,Gummidipoondi (Chennai)
India Ltd. Water Temp-sensor
SKH Metal Ltd. Fuel Tanks,Maruti Suzuki India Ltd. Joint
Sheet Metal Assemblies Venture Complex
Sona Koyo Steering System Ltd. Steering System,
Case DifferentialNarsinghpur (Gurgaon)
Suzuki Power Train India Ltd. Castings & Engines Manesar (Gurgaon)
TOTAL SALES (VOLUME)
Car market leader Maruti Suzuki India Limited sold a total of 1,11,645 vehicles in February 2011. This includes 10,102 units of exports.
The company had sold a total of 96,650 vehicles in February 2010. In February 2011, the company sold 1,01,543 units in the domestic market, up 19.8 per cent over
corresponding month last year. Sales were up 19.4 per cent in A2 and 27 per cent in A3 segment. In C segment, company recorded a growth of 26.9 per cent.
In February 2011, Maruti Suzuki launched the Super Turbo Diesel SX4. During the month, company also launched the Luxury Sporty Kizashi sedan. The Kizashi units despatched in February are display / test drive vehicles for dealers. Deliveries of Kizashi to customers will begin this month.
The sales figures for February 2011 are given below:
Segment Models
In February Till FebruaryApril'09 - March'102011 2010
Total Sales 111645 96650 15.5% 1149053 923242 24.5% 1018365
EXPORT
What do countries like Poland, Finland, Iceland, Malta, Switzerland, The Netherlands, Algeria and Italy have in common?
MSIL Receives Gold Trophy for "Top Exporter for the Year 2008-09" for the Northern region.Maruti Suzuki exports, entry-level models across the globe to over 120 countries and the focus has been to identify new markets. Some important markets include Latin America, Africa, South East Asia and Oceana.
The Company clocked its highest ever exports at 147,575 units, a growth of 111% in the Fiscal Year 2009-10.
Sales and service network
As of 31 March 2010 Maruti Suzuki had 802 dealerships across 555 towns and cities in India. It had 906 dealer workshops and 1,834 Maruti Authorised Service Stations in 1,335 towns and cities . It has 30 Express Service Stations on 30 National Highways across 1,314 cities in India.
Service is a major revenue generator of the company. Most of the service stations are managed on franchise basis, where Maruti Suzuki trains the local staff. Other automobile companies have not been able to match this benchmark set by Maruti Suzuki. The Express Service stations help many stranded vehicles on the highways by sending across their repair man to the vehicle.
DOMESTIC SALES AND SERVICE
The company has a largest sales and service netork amongst car manufactures in India . it had 681 sales outlet s in 454 cities . the car park of the company is in excess of seven million vehichles and services the park the company has 2767 service workshops in 1314 cities .
The service network of maruti Suzuki includes Dealer workshops , Maruti authorised service masters nad zones. Besides selling and servicing vehicles , the company provides its customer one stop shop experience such as automobile finance ,genuine parts , maruti certified preowned car.
TOTAL SERVICE NETWORK – 2767
TOTAL SALES NETWORK-681
REGIONAL OFFICES -16
AREA OFFICES-9
ZONAL OFFICE-4
EXPORTS
Maruti Suzuki exported the first lot of 500 cars to Hungary in September, 1987. Presently, we are exporting to over 100 markets in Europe, Asia, Latin America, Africa and Oceania. In 2008-09, the company launched a new model A-star that meets stringent European safety and emission regulations. The company has exported over 500,000 cars so far.
In 2008-09, in association with Mundra Port SEZ Limited, the company had set up the state-of-the-art facilities at Mundra Port, Gujarat for export of cars. This car export terminal offers a “RollOn, Roll Off” (RORO) berth, which speeds up the loading process and minimises the chance of damage to cars. The company also has a Pre-Delivery Inspection (PDI) Centre at Mundra.
In a first of its kind initiative, the company, in partnership with Indian Railways, has developed double decker rail wagons for transporting export cars from Manesar manufacturing facility to Mundra Port.
Current assets, loans & advances 3,856.00 5,570.00
Less : current liabilities & provisions 3,788.40 3,631.60
Total net current assets 67.60 1,938.40
Miscellaneous expenses not written - - - - -
Total 12,656.50 10,043.80
Notes:
Book value of unquoted investments 11.10 3,162.20
Market value of quoted investments 215.10 108.70
Contingent liabilities 3,657.20 1,901.70
Number of equity sharesoutstanding (Lacs) 2889.10 2889.10
Cash flow
Mar ' 10 Mar ' 09
Profit before tax 3,592.50 1,675.80
Net cashflow-operating activity 2,887.40 1,193.30
Net cash used in investing activity -4,783.30 951.40
Netcash used in fin. activity 55.10 -536.20
Mar ' 10 Mar ' 09
Net inc/dec in cash and equivlnt -1,840.80 1,608.50
Cash and equivalnt begin of year 1,939.00 330.50
Cash and equivalnt end of year 98.20 1,939.00
Ratios
Mar ' 10 Mar ' 09
Per share ratios
Adjusted EPS (Rs) 83.15 42.81
Adjusted cash EPS (Rs) 111.70 67.26
Reported EPS (Rs) 86.45 42.18
Reported cash EPS (Rs) 115.00 66.64
Dividend per share 6.00 3.50
Operating profit per share (Rs) 129.38 65.89
Book value (excl rev res) per share (Rs) 409.65 323.45
Book value (incl rev res) per share (Rs.) 409.65 323.45
Net operating income per share (Rs) 1,014.77 717.50
Free reserves per share (Rs) 403.82 318.45
Profitability ratios
Operating margin (%) 12.74 9.18
Gross profit margin (%) 9.93 5.77
Net profit margin (%) 8.34 5.72
Adjusted cash margin (%) 10.78 9.13
Adjusted return on net worth (%) 20.29 13.23
Reported return on net worth (%) 21.10 13.04
Return on long term funds (%) 28.80 17.48
Leverage ratios
Long term debt / Equity 0.03 0.06
Total debt/equity 0.06 0.07
Owners fund as % of total source 93.51 93.04
Mar ' 10 Mar ' 09
Fixed assets turnover ratio 2.82 2.38
Liquidity ratios
Current ratio 1.02 1.53
Current ratio (inc. st loans) 0.91 1.51
Quick ratio 0.67 1.26
Inventory turnover ratio 30.47 30.46
Payout ratios
Dividend payout ratio (net profit) 8.09 9.70
Dividend payout ratio (cash profit) 6.08 6.14
Earning retention ratio 91.59 90.44
Cash earnings retention ratio 93.74 93.92
Coverage ratios
Adjusted cash flow time total debt 0.25 0.35
Financial charges coverage ratio 130.02 48.06
Fin. charges cov.ratio (post tax) 100.18 38.75
Component ratios
Material cost component (% earnings) 77.21 77.10
Selling cost Component 3.12 3.56
Exports as percent of total sales 15.49 7.24
Import comp. in raw mat. consumed 12.89 11.70
Long term assets / total Assets 0.76 0.59
Bonus component in equity capital (%) - -
Annual results in brief
Mar ' 10 Mar ' 09
Sales 29,623.01 20,852.52
Operating profit 3,954.29 1,832.06
Interest 33.50 50.98
Mar ' 10 Mar ' 09
Gross profit 4,417.55 2,382.42
EPS (Rs) 86.45 42.18
Annual results in details
Mar ' 10 Mar ' 09
Other income 496.76 601.34
Stock adjustment -193.31 281.87
Raw material 21,701.73 15,235.27
Power and fuel - -
Employee expenses 545.64 471.09
Excise - -
Admin and selling expenses - -
Research and development expenses - -
Expenses capitalised - -
Other expenses 3,614.66 3,032.23
Provisions made - -
Depreciation 825.02 706.54
Taxation 1,094.91 457.14
Net profit / loss 2,497.62 1,218.74
Extra ordinary item - -
Prior year adjustments - -
Equity capital 144.46 144.46
Equity dividend rate - -
Agg.of non-prom. shares (Lacs) 1322.92 1322.92
Agg.of non promotoHolding (%) 45.79 45.79
OPM (%) 13.35 8.79
GPM (%) 14.67 11.10
NPM (%) 8.29 5.68
Total current assets of maruti in mar 2009 is 10,043.80 and total current assets in mar 2010 is 12,656.50 ..
Total sales of maruti in mar 2009 is 20,852.52cr. And tatal sales of maruti in mar 2010 is 29,623.01cr Total gross profit of maruti in mar 2009 is 2,382.42cr. Total gross profit of maruti in mar 2010 is
4,417.55 cr.
Total current assets of Maruti is 12,656.50 cr. .
Total assets of Maruti is 176136.00 . Gross Profit of Maruti is 4,417.55 cr. Sales of Maruti is 29,623.01cr.
DETAILED RESULT OF MARUTI SUZUKI
Type Audited
Date Begin 01-Apr-09
Date End 31-Mar-10
DescriptionAmount(Rs.
million)
Net Sales / Income from Operations 296,230.10
Net Sales 289,584.70
Other Operating Income 5,241.60
Income from Services 1,403.80
Expenditure -264,937.40
(Increase) / Decrease In Stock In Trade & WIP 1,933.10
Consumption of Raw Materials -217,017.30
Depreciation -8,250.20
Employees Cost -5,456.40
Other Expenditure -27,096.70
Purchase of Traded Goods -9,049.90
Profit from Operations before Other Income, Interest and Exceptional Items
31,292.70
Other Income 4,967.60
Profit before Interest and Exceptional Items 36,260.30
Interest -335.00
Profit after Interest but before Exceptional Items 35,925.30
Exceptional Items 0.00
Profit (+)/ Loss (-) from Ordinary Activities before Tax
35,925.30
Tax -10,949.10
Net Profit (+)/ Loss (-) from Ordinary Activities after Tax
24,976.20
Extraordinary Items 0.00
Net Profit 24,976.20
Equity Capital 1,444.60
Face Value (in Rs) 5.00
Reserves 116,906.00
EPS before Extraordinary items (in Rs)
EPS after Extraordinary items (in Rs)
Basic & Diluted EPS after Extraordinary items 86.45
Number of Public Shareholding 132,291,620
Percentage of Public Shareholding 45.79
Promoters and Promoter Group Shareholding
Pledged / Encumbered
Number of Shares 0
Percentage of Shares (as a % of the total shareholding of promoter and promoter group)
0.00
Percentage of Shares (as a% of the total share capital of the company)
0.00
Non-encumbered
Number of Shares 156,618,440
Percentage of Shares (as a% of the total shareholding of promoter & prom group)
100.00
Percentage of Shares (as a % of the total share capital of the company)
54.21
KEY DRIVERS FOR GROWTH
With a 14 per cent return over the past year, the Maruti Suzuki stock has outperformed the BSE Auto index (17 per cent decline) and has turned out to be one of the best defensive picks. At Rs 848, the stock discounts its four quarter earnings by 19 times.
Strong performance has pushed its valuation to a premium over the entire auto pack (about 17 times), limiting possible upside over the medium term. However, shareholders of the company can remain invested for its strong earnings visibility.
With value-for-money offerings in the sedan segment and price increases to offset input costs, the company’s top-line for 2008-09 registered a growth of 13 per cent, beating the automobile slowdown. However, net profits have disappointed, declining by 30 per cent due to higher material costs, a change in depreciation policy and forex losses.
With sustained sales growth in April 2009, planned launches and good export prospects, the company appears well-placed to deliver continued sales growth this year.
Easing margin pressures, as commodity price declines filter in, suggest that the company is on track to deliver better earnings performance.
STRONG PRODUCT PORTFOLIO
Maruti’s key advantage lies in its focus on the passenger vehicle segment, which has weathered the slowdown better than commercial vehicles.
Products at almost every price point — Alto, WagonR, Zen Estilo, Swift and A-Star — make the company a market leader in the hatchbacks (A2) segment. Intense competition and tight credit availability that prevailed for most of last year muted its sales growth in this space to 2.4 per cent.
But with credit crunch easing out, this segment has shown better growth since the beginning of 2009 (10 per cent increase in sales between December 2008 and April 2009). Maruti has enlarged its market share in this segment to 59 per cent this year as against 53 per cent last year.
Swift and the recently launched A-Star have helped these gains. The launch of Ritz this week may strengthen Maruti’s position in the hatchback market, as it occupies a price point between Swift and A-Star.
While the hatchback segment witnessed a slowdown last year, it is the sedan or the A3 segment that has delivered surprising growth for Maruti. Driven by launches of SX4 and Swift DZire (the sedan version of Swift), this segment has grown by 53.9 per cent.
The sedans have been less vulnerable to the credit crunch, given that a higher proportion of purchases is funded by cash. The Sixth Pay Commission revision has also aided cash purchases in this segment.
Concerns however remain on Maruti’s entry-level models such as Maruti 800 and Alto. Preferred by the urban middle-class, these cars may face challenges in 11 cities, including Delhi, Mumbai Kolkata and Chennai, after a change in emission norms to Bharat Stage IV mandated by October 2009.
The company may have to either re-engineer these versions or phase them out in these cities to meet the new norms. As of now, there is not much clarity about what it plans to do in this regard. The Tata’s Rs 1 lakh car, the Nano, has also been perceived as a threat to Maruti’s entry level models.
About 50 per cent of the bookings for the Nano are estimated to be for its high-end variants which are relatively close to Maruti 800 and Alto in terms of performance.
With the on-road price differential (in Delhi) of about Rs 35,000-Rs 50,000 between Maruti’s entry-level models and Nano’s high-end version, competition from this source cannot be ruled out.
MIGHTY EXPORT GROUND
Domestic sales apart, exports too are seen as a key growth driver for Maruti over the next couple of years. Engineered to suit European standards, A-Star has lifted Maruti’s exports by 32 per cent for FY09. Exports accounted for 10 per cent of the company’s sales volumes in the last fiscal.
Maruti has a contract with Nissan to manufacture 50,000 of A-Star under the ‘Pixo’ label in Europe and a tie-up with Suzuki to ship 10,000 units of the car to Latin America, Algeria, Australia and some African nations.
Favourable incentives offered by the European countries, for fuel-efficient small cars to replace the older ones, give ample room for the company to expand its export volumes. Maruti has reached 38 per cent of its export target (two lakh units by fiscal year 2010-11) so far.
The launch of Ritz (another model that may suit European requirements), could also hold potential.
FINANCIAL SCORECARD
The year 2008-09 ended with a sales growth of 13 per cent, while total volumes grew by 3.6 per cent. Excise duty cuts aided sales margins.
High-cost pressures from some raw materials such as steel, aluminium alloys and rubber, and a change in product mix in favour of diesel variants (particularly in Swift and DZire), resulted in the operating profits declining by 48 per cent on a year-on-year basis. The net profits shrank by 30 per cent.
Forex losses incurred in FY-09 may be viewed as a one-off profits dampener since they were on account of import contracts for raw materials. The company has been slow to benefit from softened commodity prices since it has entered into long-term agreements for raw materials.
The effect of lower input costs will trickle in by the first quarter of this fiscal. With initiatives to localise vendors, operating profits are expected to grow by 20-30 per cent in 2010-11. On a sequential basis, the company has seen 33 per cent increase in sales volume and a 19 per cent increase in net profits for the March 2009 quarter.
Try to enter in diesel segment
Maruti Suzuki is now looking to be an aggressive player in the diesel segment, a category which is dominated by Tata Motors. After the success of the Swift hatchback and the Dzire sedan in the diesel variant, the company is hoping to replicate this success in its upcoming model Ritz.
To meet the growing demand for the diesel variants in its models, it is increasing the engine capacity by one lakh units as part of its Rs 9,000-crore expansion plan. This will then take its total production capacity for diesel engines to 3 lakh units by March 2010. The capacity expansion is to reduce the long waiting period on its diesel models.
Maruti also hopes to divert some of its export capacity in diesel engines for the domestic market. These engines used to earlier be exported to Hungary, but the demand in that market has decreased now.
Currently, the Swift petrol model has a waiting period of 2-3 weeks. But the diesel variants of both Swift and Dzire have a waiting period of 3-5 months. The Swift hatchback sells about 9,000-10,000 units a month and Dzire too sells about 6,000-8,000 units. Of this, the ratio of diesel sales versus petrol is 70:30. The Ritz, set to be launched later this week, and built on the Swift platform, will sport a 1.3-litre diesel engine.
“We are trying to further increase capacity of diesel engines. We can tweak production based on demand,” said Mr Shashank Srivastava, Chief General Manager, Marketing, Maruti Suzuki.
Last year, the company exported 20,000 units of engines to Hungary. “But with demand in the European market low, we will be able to use some of that capacity for the domestic market,” said Mr I.V. Rao, Executive Officer, Research and Development at Maruti Suzuki.
When asked how many units of Ritz diesel variant the company intends to sell, Mr Srivastava said, “We would like the ratio of 70 and 30 between diesel and petrol like we have had for the Swift.”
The company did not specify by how much it will be able to lower the waiting period of its diesel variants with the increased capacity expansion
FUTURE PLAN
Maruti Suzuki Future Plans in India
Maruti Suzuki is planning to launch its cheapest hatchback Maruti Cervo in 2011. It is also planning to give loans for the customers to buy its product. It is also concentrating to increase its dealerships in India.Maruti Suzuki is planning to boost its service centers by adding 1500 outlets by 2015.
India’s largest car manufacturer Maruti Suzuki is getting advance bookings for their products, keeping this in mind, the company is planning to increase its production capacity to over 17 lakh units annually by 2015
. To execute the plan MSI plans to take additional employment of about 22,000 people by the service network operators.
Maruti Suzuki currently has 2,784 service points and it is planning to increase it to over 4,200 outlets in the next five years, a jump of more than 50 per cent.
Maruti Suzuki has recently invested Rs 1,925crore to establish its third plant at Manesar facility; it has a capacity to manufacture 2.5 lakh units annually. It will add the new outlets in over 1,300 cities and small towns with an aim to provide car servicing facility for every 25 km across the country.
Maruti Suzuki best cars
Maruti Ritz –
Maruti Ritz was launched in May 2009. It is a premium compact car which has touched 100,000
units sales mark within one and half year of its launch.
Maruti Suzuki claims the Maruti Ritz surpassed the 50,000units record sales mark in record as
well. Maruti Ritz is the fastest selling car for the company. It has crossed the one lakh sales milestone in the premium compact car segment. It is considered as the tuff competitor to other compact cars like Skoda Fabia, Nissan Micra and Volkswagen Polo.
There is lots of new technology features in it which help to deliver better results and great mileage
(close to 17 kpl). This is 1197 cc DOHC, develops 84 bhp at 6000rpm, it looks logically little quick, it reaches 0 to 100 kph in just 12.9 seconds and top speed is 170 kph
The Diesel motor is 1248 cc DDiS that develops 74 bhp at 4000 rpm. Response time is almost
same as you get in Petrol one. Diesel versions are giving a great mileage close to 20 kpl, better you can save some money for your weekends.
Maruti Suzuki Sales and Network
Maruti Suzuki has recorded 10 lakh units’ sales in 10 months of this financial year. It has achieved the record sales of 1 lakh sales in just 10 months of this fiscal (April to Jan). It is the first time in the history in Indian car industry to sell 1 lakh units in a single year.
In the first three quarters of this financial year, Maruti’s cumulative sales stood at 9, 27,655 units. In last fiscal, the company had sold a total of 10, 18,365 units (including both domestic sales and exports).
Maruti Suzuki is manufacturing more than 12, 00,000 units per Annam, out of which Gurgaon communicate accounts for 8.5 lakh units and Manesar installation accounts for 3.5 lakh units. Moreover, the consort is setting-up a 3rd plant at its Manesar facility that leads to hump an annual production ability of 2.5 lakh units in Indian market. The company plans to establish its third plant by 2012 at Manesar facility.
SWOT ANANLYSIS OF COMPANY
STRENTHS
*Contemporary technology*Japanese Management practices *After sale services *Distribution*Diversification & R&D
WEAKNESS
• Still depends upon SUZUKI COPORATION
• 10% components are manufactured outside India
• Still considered as poor man’s brand
• Unaccustomed to international standards or keen competition.
OPPURTUNITY
• first company to roll out suitably Designed cars before 2008 as per Govt.’s Proposal of new ethanol (renewable)
• Other companies lacks economy of scale
• Rising demand
• Untapped rural market
THREAT
• Numbers of new Technology driven players and manufactures are in market
• Reduction in subsidies by government on petroleum products
