Project report on MARUTI SUZUKI

SUBMITTED TO MISS.____________________________BY AJAY VERMAROLL NO.104302462229CHANDIGARH GROUP OF COLLEGESLANDRAN,MOHALI.

Maruti Suzuki India Limited

Type Public

Traded as BSE: 532500

NSE: MARUTI

BSE SENSEX Constituent

Industry Automotive

Predecessor(s) Maruti Udyog Limited

Founded 1981

Headquarters New Delhi, India

Key people Shinzo Nakanishi

(CEO & MD)

Products Automobiles

Revenue 37,522 crore (US$7.49 billion)(2010-

11)

Net income 2,288 crore (US$456.46 million)(2010-

11)

Employees 6,903 (2011)

Parent Suzuki Motor Corporation

Website www.marutisuzuki.com

Maruti Suzuki India Limited (Hindi: मा�रुति� सु�ज़ुकी� /marut /i suzuki/) ( (NSE: MARUTI, BSE: 532500),

commonly referred to asMaruti, is a subsidiary company of Japanese automaker Suzuki Motor

Corporation. It has a market share of 44.9% of the Indian passenger car market as of March

2011. Maruti Suzuki offers a complete range of cars from entry level Maruti 800 and Alto, to

hatchback Ritz, A-Star, Swift, Wagon-R, Estillo and sedans DZire, SX4, in the 'C' segment Maruti

Eeco and Sports Utility vehicleGrand Vitara.

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 Limited was renamed asMaruti Suzuki India Limited. The

company's headquarters are located in New Delhi. In February 2012, the company sold its 10th

million vehicle in India.

Contents 

1 Profile

2 Joint venture related issues

3 Industrial relations

4 Services offered

o 4.1 Current sales of automobiles

4.1.1 Imported

o 4.2 Discontinued car models

o 4.3 Manufacturing facilities

4.3.1 Gurgaon Manufacturing Facility

4.3.2 Manesar Manufacturing Facility

o 4.4 Sales and service network

o 4.5 Maruti Insurance

o 4.6 Maruti Finance

o 4.7 Maruti TrueValue

o 4.8 N2N Fleet Management

o 4.9 Accessories

o 4.10 Maruti Driving School

5 Issues and problems

6 Exports

7 Awards and recognition

Profile

Te old logo of Maruti Suzuki India Limited. Later the logo of Suzuki Motor Corp. was also added to it

To Munsiyari on a Maruti 800',Uttarakhand Himalayas

Maruti Suzuki plant in Manesar

Maruti Suzuki is India and Nepal's number one leading automobile manufacturer 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 BJP-led government held an initial public offering of 25% of the company in

June 2003. As of 10 May 2007, the government of India sold its complete share to Indian financial

institutions and no longer has any stake in Maruti Udyog.

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

commenced in 1983 with the Maruti 800, based on the Suzuki Alto kei car which at the time was the

only modern car available in India, its only competitors- the Hindustan Ambassador and Premier

Padmini were both around 25 years out of date at that point. Through 2004, Maruti Suzuki has

produced over 5 Million vehicles. Maruti Suzukis are sold in India and various several other countries,

depending upon export orders. Models similar to Maruti Suzukis (but not manufactured by Maruti

Udyog) are sold by Suzuki Motor Corporation and manufactured in Pakistan and other South

Asian countries.

The company exports more than 50,000 cars annually and has an extremely large domestic 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 Suzuki Alto tops the sales charts.

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. Its manufacturing facilities are located at two

facilities Gurgaon and Manesar south of Delhi. Maruti Suzuki’s 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 Suzuki cars. The company is a subsidiary of Suzuki Motor Corporation, Japan, which owns

54.2 per cent of Maruti Suzuki. The rest is owned by public and financial institutions. It is listed on

the Bombay Stock Exchange and National Stock Exchange in India.

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.

Maruti Suzuki offers 15 models, Maruti 800, Alto, WagonR, Estilo, A-star,Ritz, Swift, Swift

DZire, SX4, Omni, Eeco, Gypsy, Grand Vitara, Kizashiand the newly launched Ertiga. Swift, Swift

DZire, A-star and SX4 are manufactured in Manesar, Grand Vitara and Kizashi are imported from

Japan as completely built units(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. Suzuki’s technical superiority lies in its ability to pack power and performance into a

compact, lightweight engine that is clean and fuel efficient. Nearly 75,000 people are employed

directly by Maruti Suzuki and its partners. It has been rated first in customer satisfaction among all car

makers in India from 1999 to 2009 by J D Power Asia Pacific.

Joint venture related issues

Maruti Suzuki's A-Star vehicle during its unveiling in Pragati Maidan, Delhi. A-Star, Suzuki's fifth global car model, was

designed and is made only in India. Maruti Suzuki is also Suzuki's leading research and development arm outside

Japan

Relationship between the Government of India, under the United Front (India) coalition and Suzuki

Motor Corporation over the joint venturewas a point of heated debate in the Indian media till Suzuki

Motor Corporation gained the controlling stake. This highly profitable joint venture that had a near

monopolistic trade in the Indian automobile market and the nature of the partnership built up till then

was the underlying reason for most issues. The success of the joint venture led Suzuki to increase its

equity from 26% to 40% in 1987, and further to 50% in 1992. In 1982 both the venture partners had

entered into an agreement to nominate their candidate for the post of Managing Director and every

Managing Director will have a tenure of five years.

R.C. Bhargava was the initial managing director of the company since the inception of the joint

venture. Till today he is regarded as instrumental for the success of Maruti Suzuki. Joining in 1982 he

held several key positions in the company before heading the company as Managing Director.

Currently he is on the Board of Directors. After completing his five year tenure, Mr. Bhargava later

assumed the office of Part-Time Chairman. The Government nominated Mr. S.S.L.N. Bhaskarudu as

the Managing Director on 27 August 1997. Mr. Bhaskarudu had joined Maruti Suzuki in 1983 after

spending 21 years in the Public sector undertaking Bharat Heavy Electricals Limited as General

Manager. In 1987 he was promoted as Chief General Manager. In 1988 he was named Director,

Productions and Projects. The next year (1989) he was named Director of Materials and in 1993 he

became Joint Managing Director.

Suzuki Motor Corporation didn't attend the Annual General Meeting of the Board with the reason of it

being called on a short notice. Later Suzuki Motor Corporation went on record to state that

Bhaskarudu was "incompetent" and wanted someone else. However, the Ministry of

Industries, Government of India refuted the charges. Media stated from the Maruti Suzuki sources that

Bhaskarudu was interested to indigenise most of components for the models including gear boxes

especially for Maruti 800. Suzuki also felt that Bhaskarudu was a proxy for the Government and would

not let it increase its stake in the venture. If Maruti Suzuki would have been able to indigenise gear

boxes then Maruti Suzuki would have been able to manufacture all the models without the technical

assistance from Suzuki. Till today the issue of localization of gear boxes is highlighted in the press.

The relations strained when Suzuki Motor Corporation moved to Delhi High Court to bring a stay order

against Bhaskarudu's appointment. The issue was resolved in an out-of-court settlement and both the

parties agreed that R S S L N Bhaskarudu would serve up to 31 December 1999, and from 1 January

2000, Jagdish Khattar, Executive Director of Maruti Udyog Limited would assume charges as the

Managing Director.Many politicians stated in parliament that the Suzuki Motor Corporation is unwilling

to localize manufacturing and reduce imports. As of 2011 Gear boxes are still imported from Japan

and are assembled at the Gurgaon facility.

Industrial relations

For most of its history, Maruti Udyog Limited had relatively few problems with its labour force. Its

emphasis of a Japanese work culture and the modern manufacturing process, first instituted in Japan

in the 1970s, was accepted by the workforce of the company without any difficulty. But with the

change in management in 1997, when it became predominantly government controlled for a while,

and the conflict between the United Front Government and Suzuki may have been the cause of unrest

among employees. A major row broke out in September 2000 when employees of Maruti Udyog Ltd

(MUL) went on an indefinite strike, demanding among other things, revision of the incentive scheme

offered and implementation of a pension scheme

Employees struck work for six hours in October 2000, irked over the suspension of nine employees,

going on a six-hour tools-down strike at its Gurgaon plant, demanding revision of the incentive-linked

pay and threatened to fast to death if the suspended employees were not reinstated. About this time,

the NDA government, following a disinvestments policy, proposed to sell part of its stake in Maruti

Suzuki in a public offering. The Staff union opposed this sell-off plan on the grounds that the company

will lose a major business advantage of being subsidised by the Government.

The standoff with the management continued to December with a proposal by the management to

end the two-month long agitation rejected with a demand for reinstatement of 92 dismissed workers,

with four MUL employees going on a fast-unto-death. In December the company's shareholders met

in New Delhi in an AGM that lasted 30 minutes. At the same time around 1500 plant workers from the

MUL's Gurgaon facility were agitating outside the company's corporate office demanding

commencement of production linked incentives, a better pension scheme and other benefits. The

management has refused to pass on the benefits citing increased competition and lower margins.

Services offered

Current sales of automobiles

Red Bull Maruti Suzuki Swift

Maruti Omni

India's Corps of Military Police personnel patrolling the Wagah border crossing in thePunjab in a Maruti Gypsy

Maruti Alto

Maruti Suzuki Swift

Maruti Suzuki Zen Estilo

Suzuki SX4

7th Generation Suzuki Alto is sold as Maruti Suzuki A-Star in India.

Maruti Suzuki Swift DZire

Suzuki Splash is sold as Maruti Suzuki Ritz in India.

1. 800  (Launched 1983)

2. Omni  (Launched 1984)

3. Gypsy  (launched 1985)

4. WagonR  (Launched 1999)

5. Alto  (Launched 2000)

6. Swift  (Launched 2005)

7. Estilo  (Launched 2009)

8. SX4  (Launched 2007)

9. Swift DZire  (Launched 2008)

10. A-star  (Launched 2008)

11. Ritz  (Launched 2009)

12. Eeco  (Launched 2010)

13. Alto K10  (Launched 2010)

14. Maruti Ertiga , seven seater MPV R3 designed and developed in India, will compete

with Toyota Innova, Mahindra Xylo, and Tata Sumo Grande. In early 2012, Suzuki

Ertiga will be exported first to Indonesia in Completely Knock Down car.

15. Maruti XA Alpha  will be launched in the year 2014 Imported

Suzuki Grand Vitara

1. Grand Vitara  (Launched 2007)

2. Kizashi  (Launched 2011)

Discontinued car models

1. 1000  (1990–1994)

2. Zen  (1993–2006)

3. Esteem  (1994–2008)

4. Baleno  (1999–2007)

5. Zen Estilo  (2006–2009)

6. Versa  (2001–2010)

7. Grand Vitara XL7  (2003–2007)

Manufacturing facilities

Maruti Suzuki has two manufacturing facilities in India. Both manufacturing facilities have a combined

production capacity of 1,250,000 vehicles annually.

Gurgaon Manufacturing Facility

The Gurgaon Manufacturing Facility has three fully integrated manufacturing plants and is spread

over 300 acres (1.2 km2). All three plants have an installed capacity of 350,000 vehicles annually but

productivity improvements have enabled it to manufacture 700,000 vehicles annually. The Gurgaon

facilities also manufacture 240,000 K-Series engines annually. The entire facility is equipped with

more than 150 robots, out of which 71 have been developed in-house. The Gurgaon Facilities

manufactures the 800, Alto, WagonR, Estilo,Omni, Gypsy, Ertiga and Eeco.

Manesar Manufacturing Facility

The Manesar Manufacturing Plant was inaugurated in February 2007 and is spread over 600 acres

(2.4 km2). Initially it had a production capacity of 100,000 vehicles annually but this was increased to

300,000 vehicles annually in October 2008. The production capacity was further increased by 250,000

vehicles taking total production capacity to 550,000 vehicles annually. The Manesar Plant produces

the A-star, Swift, Swift DZire , SX4 and Ritz.

Sales and service network

As of 31 March 2011 Maruti Suzuki has 933 dealerships across 666 towns and cities in

all states and union territories of India. It has 2,946 service stations (inclusive of dealer workshops

and Maruti Authorised Service Stations) in 1,395 towns and cities throughout India. 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.

Maruti Insurance

Launched in 2002 Maruti Suzuki provides vehicle insurance to its customers with the help of the

National Insurance Company, Bajaj Allianz, New India Assurance and Royal Sundaram. The service

was set up the company with the inception of two subsidiaries Maruti Insurance Distributors Services

Pvt. Ltd and Maruti Insurance Brokers Pvt. Limited

This service started as a benefit or value addition to customers and was able to ramp up easily. By

December 2005 they were able to sell more than two million insurance policies since its inception.

Maruti Finance

To promote its bottom line growth, Maruti Suzuki launched Maruti Finance in January 2002. Prior to

the start of this service Maruti Suzuki had started two joint ventures Citicorp Maruti and Maruti

Countrywide with Citi Group and GE Countrywide respectively to assist its client in securing

loan. Maruti Suzuki tied up with ABN Amro Bank, HDFC Bank, ICICI Limited, Kotak Mahindra,

Standard Chartered Bank, and Sundaram to start this venture including its strategic partners in car

finance. Again the company entered into a strategic partnership with SBI in March 2003 Since March

2003, Maruti has sold over 12,000 vehicles through SBI-Maruti Finance. SBI-Maruti Finance is

currently available in 166 cities across India.

"Maruti Finance marks the coming together of the biggest players in the car finance business. They are the

benchmarks in quality and efficiency. Combined with Maruti volumes and networked dealerships, this will enable

Maruti Finance to offer superior service and competitive rates in the marketplace".

— Jagdish Khattar, Managing director of Maruti Udyog Limited in a press conference announcing the launch of

Maruti Finance on 7 January 2002

Citicorp Maruti Finance Limited is a joint venture between Citicorp Finance India and Maruti Udyog

Limited its primary business stated by the company is "hire-purchase financing of Maruti Suzuki

vehicles". Citi Finance India Limited is a wholly owned subsidiary of Citibank Overseas Investment

Corporation, Delaware, which in turn is a 100% wholly owned subsidiary of Citibank N.A. Citi Finance

India Limited holds 74% of the stake and Maruti Suzuki holds the remaining 26%. GE Capital, HDFC

and Maruti Suzuki came together in 1995 to form Maruti Countrywide. Maruti claims that its finance

program offers most competitive interest rates to its customers, which are lower by 0.25% to 0.5%

from the market rates.

Maruti TrueValue

Main Article: Maruti True Value

Maruti True service offered by Maruti Suzuki to its customers. It is a market place for used Maruti

Suzuki Vehicles. One can buy, sell or exchange used Maruti Suzuki vehicles with the help of this

service in India. As of 31 March 2010 there are 341 Maruti True Valueoutlets.

N2N Fleet Management

N2N is the short form of End to End Fleet Management and provides lease and fleet management

solution to corporates. Clients who have signed up of this service include Gas Authority of India

Ltd, DuPont, Reckitt Benckiser, Sona Steering, Doordarshan, Singer India, National Stock Exchange

and Transworld. This fleet management service include end-to-end solutions across the vehicle's life,

which includes Leasing, Maintenance, Convenience services and Remarketing.

Accessories

Many of the auto component companies other than Maruti Suzuki started to offer components and

accessories that were compatible. This caused a serious threat and loss of revenue to Maruti Suzuki.

Maruti Suzuki started a new initiative under the brand name Maruti Genuine Accessories to offer

accessories like alloy wheels, body cover, carpets, door visors, fog lamps, stereo systems, seat

covers and other car care products. These products are sold through dealer outlets and authorized

service stations throughout India.

Maruti Driving School

A Maruti Driving School in Chennai

As part of its corporate social responsibility Maruti Suzuki launched the Maruti Driving School in Delhi.

Later the services were extended to other cities of India as well. These schools are modelled on

international standards, where learners go through classroom and practical sessions. Many

international practices like road behaviour and attitudes are also taught in these schools. Before

driving actual vehicles participants are trained on simulators.

"We are very concerned about mounting deaths on Indian roads. These can be brought down if government,

industry and the voluntary sector work together in an integrated manner. But we felt that Maruti should first do

something in this regard and hence this initiative of Maruti Driving Schools."

— Jagdish Khattar, at the launch ceremony of Maruti Driving School, Bangalore

Issues and problems

On 24 February 2010, Maruti Suzuki India announced recalling of 100,000 A-Star hatchbacks to fix a

fuel leakage problem. the company will replace the gaskets for all 100,000 A-Star cars.

Exports

Maruti Exports Limited is the subsidiary of Maruti Suzuki with its major focus on exports and it does

not operate in the domestic Indian market. The first commercial consignment of 480 cars were sent

to Hungary. By sending a consignment of 571 cars to the same country Maruti Suzuki crossed the

benchmark of 300,000 cars. Since its inception export was one of the aspects government was keen

to encourage. Every political party expected Maruti Suzuki to earn foreign currency. Angola, Benin,

Djibouti, Ethiopia, Europe, Kenya, Morocco, Nepal, Sri Lanka, Uganda, Chile, Guatemala, Costa Rica

and El Salvador are some of the markets served by Maruti Exports.

Awards and recognition

The Brand Trust Report published by Trust Research Advisory has ranked Maruti Suzuki in the

seventh position in 2011 and the sixth position in 2012 among the brands researched in India.

Bluebytes News, a news research agency, rated Maruti Suzuki as India's Most Reputed Car

Company in their Reputation Benchmark Study conducted for the Auto (Cars) Sector launched in April

2012.

The Vehicleades Group is spread across 4 states( New Delhi, Punjab,Himachal Pradesh

and J&K) annually.Vehicleades is among the Top 5 Maruti dealers in the country. It

started  operations in 1987,  with an employee strength of 15,which now stands at

2000 plus.The success is attributed to the loyal patronage of esteemed

customers,supported by an excellent,dedicated team.Commitment towards Customer

Care has,time and time again, been appreciated by MSIL,in the form of numerous

awards.We say: 'Think Maruti,Think Vehicleades'.

The Outlets are as under:

1Pathankot Vehicleades ,

Pathankot  (1997)

2J&K Vehicleades ,

Udhampur (2001)

3Jamkash Vehicleades ,

Jammu (2002)

4Jamkash Vehicleades ,

Srinagar (2003)

5Kangra Vehicleades ,

Nagrota Baghwan(2006)

6AAA Vehicleades Outlets,

New Delhi (2007)