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MARUTI SUZUKI

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    MARUTI SUZUKI

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    Introduction

    Maruti Udyog Ltd was estd. in 1981.

    Joint venture agreement with Suzuki Motor in 1983. 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.

    1st in Customer satisfaction among all car makers in India forten years in a row in annual survey by J D Power Asia Pacific.

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    Introduction

    The first company in India to mass-produce and sell more than amillion cars.

    India's largest passenger car company, accounting for over 45% ofthe domestic car market.

    Maruti Udyog Limited was renamed Maruti Suzuki IndiaLimited, on 17 September 2007.

    The company's headquarters are located in New Delhi.

    During 2007-08, Maruti Suzuki sold 764,842 cars, of which53,024 were exported. In all, over six million Maruti Suzuki carsare on Indian roads since the first car was rolled out on 14December 1983.

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    Products

    Maruti 800 Maruti Alto Maruti Grand Vitara XL-7

    Maruti Gypsy King Maruti Omni Maruti Suzuki SX4 Maruti Swift Maruti Swift Dzire Maruti Versa

    Maruti Vitara Maruti Wagon-R Maruti Zen Maruti Estilo

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    India's Most Trusted Brand 2010: The Economic times

    Maruti Suzuki has been ranked India's most Trusted Brand in AutomobileSector by India's leading Business newspaper The Economic Times.

    2000-2010: Ranked the highest in J.D. Power Asia Pacific 2010 IndiaCustomer Service Index (CSI).

    Ranked third amongst global car companies in the World's Most ReputedCompany Survey 2009 National Award for Excellence in Corporate Governanceby ICSI National Road Safety Mission.

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    Gurgaon Facility: 300 acres, capacity 700,000

    cars/ annum Manesar Facility: 600 acres, capacity 300,000 cars/

    annum

    Diesel Engine plant, SPIL: JV SMC & MSIL,200,000 units/annum

    Suppliers Park: 100 acres

    Total Capacity: One Million

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    MAJOR COMPETITORSMAJOR COMPETITORS

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    y Driving its message for road safety, Maruti Suzuki India Limited, unveiled aNational Road Safety Mission programme in December 2008. Under theprogramme, the company will: Train 500,000 people in safe driving in thenext 3 years across India While utilizing the existing 4 Institutes of DrivingTraining and Research (IDTR) in Delhi, Dehradun and Vadodara and 61 MarutiDriving Schools across the country the company will enter into partnershipswith state governments for more IDTRs and with its dealers for more MarutiDriving Schools Of the 500,000 people to be trained, at least 100,000 will bepeople from underprivileged section of society, who are keen to take driving asa profession. The company will continue to support to government andindustry in their efforts for road safety

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    PMS is derived from the basic Japanese principles of 5S, 3G and 3K.

    Production Management System (PMS) is a strategy to achieve ManufacturingExcellence evolved through participative approach. The system is people driven

    and ensures involvement of all levels (Managers, Executives, and Supervisors).

    The concept ensures participation and error free communication.

    These values make PMS a sustainable system.

    PMS has lead the production team towards greater enhanced productivity with

    perfection.

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    Mar ' 10 Mar ' 09 Mar ' 08 Mar ' 07 Mar ' 06

    Sources of funds

    Owner's fund

    Equity sharecapital 144.50 144.50 144.50 144.50 144.50

    Reserves &surplus 11,690.60 9,200.40 8,270.90 6,709.40 5,308.10

    Loan funds

    Securedloans 26.50 0.10 0.10 63.50 71.70

    Unsecuredloans 794.90 698.80 900.10 567.30 -

    Total 12,656.50 10,043.80 9,315.60 7,484.70 5,524.30

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    0

    10

    20

    30

    40

    50

    60

    2003-04 2004-05 2005-06 2006-07 2007-08 2008-09

    Maruti

    Hyundai

    Tata

    Honda

    In %

    Years

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    Financial

    Performance

    0

    5000

    10000

    15000

    20000

    25000

    30000

    35000

    2004-05 2005-06 2006-07 2007-08 2008-09 2009-10

    PAT

    Net Sales

    Years

    Rs. Mn

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    Strength Weakness

    Opportunity Threat

    SWOTSWOT

    AnalysisAnalysis

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    Brand Image

    Reliable and cheap.

    Established brand in Indianmarket.

    Great service and nationwidepenetration.

    Experience in Indian market. First major player.

    Established distribution & aftersales networks product for manyse ment of market

    Strength

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    Acquisitions

    Innovation Online

    Product and services expansion

    Takeovers

    Targeting Higher Middle Class requirements

    Opportunities

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    Diseconomies to scale No online presence

    Not diversified

    Weakness

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    Competition

    Cheaper technology External changes (government, politics, taxes, etc)

    Lower cost competitors or imports

    Price wars

    Product substitution

    Threat

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    Maruti created a land-mark in CRM by launching a websitefor the customers in the year 1998

    Maruti is investing a lot of money and effort in buildingcustomer loyalty programmes.

    Maruti Auto Card

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    Availability of easy finance

    True Value Outlet

    On Road Service

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    MegaCamps

    Sports Events

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    Next Generation: KB Engine Technology

    1 litre All Aluminium engine

    67ps / 90nm

    Euro-5 compliant

    A-star & Splash

    Fuel Efficiency-19.59km/l on A-star

    Improved NVH

    (Noise, Vibration & Harshness)

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    Diesel technology

    Swift & DZire, Splash shortly

    1.3L -75 bhp-190 Nm torque

    5 Step Multi Injection Common Rail

    Good NVH, not usually associatedwith diesel cars.

    21 km/l in Swift & DZire

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    Maruti Suzuki R&D evolution

    Phase 1 Localisation

    Phase 2 Facelift capability Phase 3 Collaborative design

    Phase 4 Full Body Design

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    Conclusion

    More than half the cars sold in India are Maruti Suzuki

    cars. Maruti Suzukis Gurgaon facility has an installed capacity

    of 350,000 units per annum.

    The Manesar facilities, launched in February 2007comprise a assembly plant with a capacity of 100,000 unitsper year and a Diesel Engine plant with an annual capacityof 100,000 engines and transmissions.

    Manesar and Gurgaon facilities have a combined capabilityto produce over 700,000 units annually.

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    Equity Structure 54.21% Suzuki, 45.79% with FIs, Public

    Turnover Rs. 188.2 bn (2009-10)

    Net Profit Rs. 17.3 bn (2009-10)

    cars Sales 764,842 (2009-10)

    Market Share 54% (Passenger Cars including Van typevehicles)

    Manpower Over 7720 employees in 4 plants

    Models 12 brands with over 100 variants