AUTOMOBILES

MARUTI SUZUKI
 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 for
ten years in a row in annual survey by J D Power Asia Pacific.
 Introduction

 The first company in India to mass-produce and sell more than a

million cars.
 India's largest passenger car company, accounting for over 45% of
the domestic car market.
 Maruti Udyog Limited was renamed Maruti Suzuki India
Limited, on 17 September 2007.
 The company's headquarters are located in New Delhi.
 During 2007-08, Maruti Suzuki sold 764,842 cars, of which
53,024 were exported. In all, over six million Maruti Suzuki cars
are on Indian roads since the first car was rolled out on 14
December 1983.
 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

 
 
 Awards
India's Most Trusted Brand 2010: The Economic times 

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

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

Ranked third amongst global car companies in the World's Most Reputed Company
Survey 2009 National Award for Excellence in Corporate Governance by ICSI National
Road Safety Mission.
 Facilities

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
Supplier’s Park: 100 acres „
Total Capacity: One Million
MAJOR COMPETITORS
Driving its message for road safety, Maruti Suzuki India Limited,
unveiled a National Road Safety Mission programme in December
2008. Under the programme, the company will:    Train 500,000
people in safe driving in the next 3 years across India While
utilizing the existing 4 Institutes of Driving Training and Research
(IDTR) in Delhi, Dehradun and Vadodara and 61 Maruti Driving
Schools across the country the company will enter into
partnerships with state governments for more IDTRs and with its
dealers for more Maruti Driving Schools Of the 500,000 people to
be trained, at least 100,000 will be people from underprivileged
section of society, who are keen to take driving as a profession. The
company will continue to support to government and industry in
their efforts for road safety
 Product management
systemm

PMS is derived from the basic Japanese principles of 5S, 3G and 3K.
Production Management System (PMS) is a strategy to achieve Manufacturing
Excellence 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.
 Balance Sheet

  Mar ' 10 Mar ' 09 Mar ' 08 Mar ' 07 Mar ' 06
Sources of funds
Owner's fund
Equity share
capital 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
Secured
loans 26.50 0.10 0.10 63.50 71.70
Unsecured
loans 794.90 698.80 900.10 567.30 -
Total 12,656.50 10,043.80 9,315.60 7,484.70 5,524.30
 Market Share
60

50

40
In %
Maruti
30 Hyundai
Tata
Honda
20

10

0
2003-04 2004-05 2005-06 2006-07 2007-08 2008-09
Years
 Financial
Performance
Rs. Mn
35000

30000

25000

20000
PAT
15000 Net Sales

10000

5000

0
2004-05 2005-06 2006-07 2007-08 2008-09 2009-10
Years
 SWOT Analysis
Strength

Weakness

SWOT
Analysis

Threat
ty
Opportuni
 SWOT Analysis
 Brand Image Strength
 Reliable and cheap.
 Established brand in Indian market.
 Great service and nationwide
penetration.
 Experience in Indian market.
 First major player. 
 Established distribution & after
sales networks product for many
segment of market
 SWOT Analysis
Opportunities
 Acquisitions
 Innovation
 Online
 Product and services expansion
 Takeovers
 Targeting Higher Middle Class requirements
 SWOT Analysis
Weakness

 Diseconomies to scale
 No online presence
 Not diversified
 SWOT Analysis

Threat
Competition
Cheaper technology
External changes (government, politics, taxes, etc)
Lower cost competitors or imports
Price wars
Product substitution
 Social
Responsibility

 Maruti created a land-mark in CRM by launching a website

for the customers in the year 1998
 Maruti is investing a lot of money and effort in building
customer loyalty programmes.

Maruti Auto Card

 Social
Responsibility
True Value Outlet

On Road Service

Availability of easy finance

 Social
Responsibility

Mega Camps

Sports Events
 Innovation
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)
 Innovation

Diesel technology

 Swift & DZire, Splash shortly

 1.3L -75 bhp-190 Nm torque
 5 Step Multi Injection Common Rail
 Good NVH, not usually associated
with diesel cars.
 21 km/l in Swift & DZire
 Innovation

Maruti Suzuki R&D evolution

 Phase 1 –Localisation
 Phase 2 –Facelift capability
 Phase 3 –Collaborative design
 Phase 4 –Full Body Design
 Conclusion

 More than half the cars sold in India are Maruti Suzuki
cars.
  Maruti Suzuki’s Gurgaon facility has an installed capacity
of 350,000 units per annum.
 The Manesar facilities, launched in February 2007
comprise a 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.
 Company At a
Glance
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 type

vehicles)

Manpower Over 7720 employees in 4 plants

Models 12 brands with over 100 variants