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CHAPTER-2
COMPANY PROFLE
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COMPANY
Acompanyis anassociationor collection of individuals people or"warm-bodies"or else contrived "legal
persons" (or a mixture of both). Company members share a common purpose and unite in order to focus
their varioustalentsand organize their collectively availableskillsorresourcesto achieve specific,
declaredgoals. Companies take various forms such as:
Voluntary associationswhich may be registered as aNonprofit organization
A group of soldiers
Business entitywith an aim of gaining aprofit
Financial entitiesandBanks
A company or association of persons can be created atlawas legal person so that the company is itself
can acceptLimited liabilityfor civil responsibility and taxation incurred as members perform (or fail) todischarge theirdutywithin thepublicly declared"birth certificate"orpublishedpolicy.
Because companies are legal persons, they also may associate and register themselves as companies -
often known as aCorporate group. When the company closes it may need a"death certificate"to avoid
further legal obligations. A company can be defined as an "artificial person", invisible, intangible, created
by or under Law, with a discretelegal entity,perpetual successionand acommon seal. It is not affected
by the death, insanity orinsolvencyof an individual member.
Types
For a country-by-country listing, seeTypes of business entity.
Acompany limited by guarantee. Commonly used where companies are formed for non-
commercial purposes, such as clubs or charities. The members guarantee the payment of
certain (usually nominal) amounts if the company goes intoinsolvent liquidation, but otherwisethey have no economic rights in relation to the company. This type of company is common
inEngland. A company limited by guarantee may be with or without having share capital.
Acompany limited by shares. The most common form of company used for business ventures.
Specifically, a limited company is a " company in which the liability of each shareholder is limited
to the amount individually invested" with corporations being "the most common example of a
https://en.wiktionary.org/wiki/companyhttps://en.wiktionary.org/wiki/companyhttps://en.wiktionary.org/wiki/companyhttps://en.wikipedia.org/wiki/Voluntary_associationhttps://en.wikipedia.org/wiki/Voluntary_associationhttps://en.wikipedia.org/wiki/Voluntary_associationhttps://en.wikipedia.org/wiki/Natural_personhttps://en.wikipedia.org/wiki/Natural_personhttps://en.wikipedia.org/wiki/Natural_personhttps://en.wikipedia.org/wiki/Legal_personhttps://en.wikipedia.org/wiki/Legal_personhttps://en.wikipedia.org/wiki/Legal_personhttps://en.wikipedia.org/wiki/Legal_personhttps://en.wikipedia.org/wiki/Desirehttps://en.wikipedia.org/wiki/Desirehttps://en.wikipedia.org/wiki/Desirehttps://en.wikipedia.org/wiki/Skillhttps://en.wikipedia.org/wiki/Skillhttps://en.wikipedia.org/wiki/Skillhttps://en.wikipedia.org/wiki/Resourcehttps://en.wikipedia.org/wiki/Resourcehttps://en.wikipedia.org/wiki/Resourcehttps://en.wikipedia.org/wiki/Goalhttps://en.wikipedia.org/wiki/Goalhttps://en.wikipedia.org/wiki/Goalhttps://en.wikipedia.org/wiki/Voluntary_associationhttps://en.wikipedia.org/wiki/Voluntary_associationhttps://en.wikipedia.org/wiki/Nonprofit_organizationhttps://en.wikipedia.org/wiki/Nonprofit_organizationhttps://en.wikipedia.org/wiki/Nonprofit_organizationhttps://en.wikipedia.org/wiki/Company_(military_unit)https://en.wikipedia.org/wiki/Company_(military_unit)https://en.wikipedia.org/wiki/Companies_lawhttps://en.wikipedia.org/wiki/Companies_lawhttps://en.wikipedia.org/wiki/Profit_(economics)https://en.wikipedia.org/wiki/Profit_(economics)https://en.wikipedia.org/wiki/Profit_(economics)https://en.wikipedia.org/wiki/Financial_capitalhttps://en.wikipedia.org/wiki/Financial_capitalhttps://en.wikipedia.org/wiki/Bankhttps://en.wikipedia.org/wiki/Bankhttps://en.wikipedia.org/wiki/Bankhttps://en.wikipedia.org/wiki/Lawhttps://en.wikipedia.org/wiki/Lawhttps://en.wikipedia.org/wiki/Lawhttps://en.wikipedia.org/wiki/Limited_liabilityhttps://en.wikipedia.org/wiki/Limited_liabilityhttps://en.wikipedia.org/wiki/Limited_liabilityhttps://en.wikipedia.org/wiki/Dutyhttps://en.wikipedia.org/wiki/Dutyhttps://en.wikipedia.org/wiki/Dutyhttps://en.wikipedia.org/wiki/Common_knowledgehttps://en.wikipedia.org/wiki/Common_knowledgehttps://en.wikipedia.org/wiki/Incorporation_(business)https://en.wikipedia.org/wiki/Incorporation_(business)https://en.wikipedia.org/wiki/Incorporation_(business)https://en.wikipedia.org/wiki/Publishinghttps://en.wikipedia.org/wiki/Publishinghttps://en.wikipedia.org/wiki/Policyhttps://en.wikipedia.org/wiki/Policyhttps://en.wikipedia.org/wiki/Policyhttps://en.wikipedia.org/wiki/Corporate_grouphttps://en.wikipedia.org/wiki/Corporate_grouphttps://en.wikipedia.org/wiki/Corporate_grouphttps://en.wikipedia.org/wiki/Liquidationhttps://en.wikipedia.org/wiki/Liquidationhttps://en.wikipedia.org/wiki/Liquidationhttps://en.wikipedia.org/wiki/Legal_personalityhttps://en.wikipedia.org/wiki/Legal_personalityhttps://en.wikipedia.org/wiki/Legal_personalityhttps://en.wikipedia.org/wiki/Perpetual_successionhttps://en.wikipedia.org/wiki/Perpetual_successionhttps://en.wikipedia.org/wiki/Perpetual_successionhttps://en.wikipedia.org/wiki/Company_sealhttps://en.wikipedia.org/wiki/Company_sealhttps://en.wikipedia.org/wiki/Company_sealhttps://en.wikipedia.org/wiki/Insolvencyhttps://en.wikipedia.org/wiki/Insolvencyhttps://en.wikipedia.org/wiki/Insolvencyhttps://en.wikipedia.org/wiki/Types_of_business_entityhttps://en.wikipedia.org/wiki/Types_of_business_entityhttps://en.wikipedia.org/wiki/Types_of_business_entityhttps://en.wikipedia.org/wiki/Company_limited_by_guaranteehttps://en.wikipedia.org/wiki/Company_limited_by_guaranteehttps://en.wikipedia.org/wiki/Company_limited_by_guaranteehttps://en.wikipedia.org/wiki/Liquidationhttps://en.wikipedia.org/wiki/Liquidationhttps://en.wikipedia.org/wiki/Liquidationhttps://en.wikipedia.org/wiki/Englandhttps://en.wikipedia.org/wiki/Englandhttps://en.wikipedia.org/wiki/Englandhttps://en.wikipedia.org/wiki/Share_capitalhttps://en.wikipedia.org/wiki/Share_capitalhttps://en.wikipedia.org/wiki/Share_capitalhttps://en.wikipedia.org/wiki/Company_limited_by_shareshttps://en.wikipedia.org/wiki/Company_limited_by_shareshttps://en.wikipedia.org/wiki/Company_limited_by_shareshttps://en.wikipedia.org/wiki/Company_limited_by_shareshttps://en.wikipedia.org/wiki/Share_capitalhttps://en.wikipedia.org/wiki/Englandhttps://en.wikipedia.org/wiki/Liquidationhttps://en.wikipedia.org/wiki/Company_limited_by_guaranteehttps://en.wikipedia.org/wiki/Types_of_business_entityhttps://en.wikipedia.org/wiki/Insolvencyhttps://en.wikipedia.org/wiki/Company_sealhttps://en.wikipedia.org/wiki/Perpetual_successionhttps://en.wikipedia.org/wiki/Legal_personalityhttps://en.wikipedia.org/wiki/Liquidationhttps://en.wikipedia.org/wiki/Corporate_grouphttps://en.wikipedia.org/wiki/Policyhttps://en.wikipedia.org/wiki/Publishinghttps://en.wikipedia.org/wiki/Incorporation_(business)https://en.wikipedia.org/wiki/Common_knowledgehttps://en.wikipedia.org/wiki/Dutyhttps://en.wikipedia.org/wiki/Limited_liabilityhttps://en.wikipedia.org/wiki/Lawhttps://en.wikipedia.org/wiki/Bankhttps://en.wikipedia.org/wiki/Financial_capitalhttps://en.wikipedia.org/wiki/Profit_(economics)https://en.wikipedia.org/wiki/Companies_lawhttps://en.wikipedia.org/wiki/Company_(military_unit)https://en.wikipedia.org/wiki/Nonprofit_organizationhttps://en.wikipedia.org/wiki/Voluntary_associationhttps://en.wikipedia.org/wiki/Goalhttps://en.wikipedia.org/wiki/Resourcehttps://en.wikipedia.org/wiki/Skillhttps://en.wikipedia.org/wiki/Desirehttps://en.wikipedia.org/wiki/Legal_personhttps://en.wikipedia.org/wiki/Legal_personhttps://en.wikipedia.org/wiki/Natural_personhttps://en.wikipedia.org/wiki/Voluntary_associationhttps://en.wiktionary.org/wiki/company7/27/2019 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limited company. This type of company is common inEnglandand many English-speaking
countries. A company limited by shares may be a
publicly traded companyor a
Privately held company.
A company limited by guarantee with a share capital . A hybrid entity, usually used where the
company is formed for non-commercial purposes, but the activities of the company are partly
funded by investors who expect a return. This type of company may no longer be formed in the
UK, although provisions still exist in law for them to exist.
Alimited-liability company. "A companystatutorily authorized in certain statesthat is
characterized by limited liability, management by members or managers, and limitations on
ownership transfer", i.e., L.L.C LLC structure has been called "hybrid" in that it "combines the
characteristics of a corporation and of a partnership or sole proprietorship". Like a corporation it
has limited liability for members of the company, and like a partnership it has "flow-through
taxation to the members" and must be "dissolved upon the death or bankruptcy of a member".
Anunlimited companywith or without a share capital. A hybrid entity, a company where the
liability of members or shareholders for the debts (if any) of the company are not limited. In this
case doctrine of veil of incorporation does not apply.
Less common types of companies are:
Companies formed by letters patent. Most corporations by letters patent arecorporations
soleand not companies as the term is commonly understood today.
Charter corporations. Before the passing of modern companies legislation, these were the onlytypes of companies. Now they are relatively rare, except for very old companies that still survive
(of which there are still many, particularly many British banks), or modern societies that fulfill a
quasi regulatory function (for example, theBank of Englandis a corporation formed by a modern
charter).
Statutory Companies. Relatively rare today, certain companies have been formed by a private
statute passed in the relevant jurisdiction.
Note that "Ltd after the company's name signifies limited company, and PLC (public limited company)
indicates that its shares are widely held."
In legal parlance, the owners of a company are normally referred to as the "members". In a company
limited or unlimited by shares (formed or incorporated with a share capital), this will be
theshareholders. In a company limited by guarantee, this will be the guarantors. Someoffshore
jurisdictionshave created special forms ofoffshore companyin a bid to attract business for their
jurisdictions. Examples include "segregated portfolio companies" and restricted purpose companies.
https://en.wikipedia.org/wiki/Englandhttps://en.wikipedia.org/wiki/Englandhttps://en.wikipedia.org/wiki/Englandhttps://en.wikipedia.org/wiki/Public_companyhttps://en.wikipedia.org/wiki/Public_companyhttps://en.wikipedia.org/wiki/Privately_held_companyhttps://en.wikipedia.org/wiki/Privately_held_companyhttps://en.wikipedia.org/wiki/Limited-liability_companyhttps://en.wikipedia.org/wiki/Limited-liability_companyhttps://en.wikipedia.org/wiki/Limited-liability_companyhttps://en.wikipedia.org/wiki/Unlimited_Companyhttps://en.wikipedia.org/wiki/Unlimited_Companyhttps://en.wikipedia.org/wiki/Unlimited_Companyhttps://en.wikipedia.org/wiki/Corporation_solehttps://en.wikipedia.org/wiki/Corporation_solehttps://en.wikipedia.org/wiki/Corporation_solehttps://en.wikipedia.org/wiki/Corporation_solehttps://en.wikipedia.org/wiki/Royal_charterhttps://en.wikipedia.org/wiki/Royal_charterhttps://en.wikipedia.org/wiki/Bank_of_Englandhttps://en.wikipedia.org/wiki/Bank_of_Englandhttps://en.wikipedia.org/wiki/Bank_of_Englandhttps://en.wikipedia.org/wiki/Public_limited_companyhttps://en.wikipedia.org/wiki/Public_limited_companyhttps://en.wikipedia.org/wiki/Public_limited_companyhttps://en.wikipedia.org/wiki/Shareholderhttps://en.wikipedia.org/wiki/Shareholderhttps://en.wikipedia.org/wiki/Shareholderhttps://en.wikipedia.org/wiki/Offshore_Financial_Centrehttps://en.wikipedia.org/wiki/Offshore_Financial_Centrehttps://en.wikipedia.org/wiki/Offshore_Financial_Centrehttps://en.wikipedia.org/wiki/Offshore_Financial_Centrehttps://en.wikipedia.org/wiki/Offshore_companyhttps://en.wikipedia.org/wiki/Offshore_companyhttps://en.wikipedia.org/wiki/Offshore_companyhttps://en.wikipedia.org/wiki/Segregated_portfolio_companyhttps://en.wikipedia.org/wiki/Segregated_portfolio_companyhttps://en.wikipedia.org/wiki/Segregated_portfolio_companyhttps://en.wikipedia.org/wiki/Segregated_portfolio_companyhttps://en.wikipedia.org/wiki/Offshore_companyhttps://en.wikipedia.org/wiki/Offshore_Financial_Centrehttps://en.wikipedia.org/wiki/Offshore_Financial_Centrehttps://en.wikipedia.org/wiki/Shareholderhttps://en.wikipedia.org/wiki/Public_limited_companyhttps://en.wikipedia.org/wiki/Bank_of_Englandhttps://en.wikipedia.org/wiki/Royal_charterhttps://en.wikipedia.org/wiki/Corporation_solehttps://en.wikipedia.org/wiki/Corporation_solehttps://en.wikipedia.org/wiki/Unlimited_Companyhttps://en.wikipedia.org/wiki/Limited-liability_companyhttps://en.wikipedia.org/wiki/Privately_held_companyhttps://en.wikipedia.org/wiki/Public_companyhttps://en.wikipedia.org/wiki/England7/27/2019 MARUTI SUZUKI Chapter 2
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There are however, many, many sub-categories of types of company that can be formed in various
jurisdictions in the world.
Companies are also sometimes distinguished for legal and regulatory purposes between public
companiesandprivate companies. Public companies are companies whose shares can be publicly
traded, often (although not always) on a regulatedstock exchange. Private companies do not have
publicly traded shares, and often contain restrictions on transfers of shares. In some jurisdictions,
private companies have maximum numbers of shareholders.
https://en.wikipedia.org/wiki/Public_limited_companyhttps://en.wikipedia.org/wiki/Public_limited_companyhttps://en.wikipedia.org/wiki/Public_limited_companyhttps://en.wikipedia.org/wiki/Public_limited_companyhttps://en.wikipedia.org/wiki/Private_companyhttps://en.wikipedia.org/wiki/Private_companyhttps://en.wikipedia.org/wiki/Private_companyhttps://en.wikipedia.org/wiki/Stock_exchangehttps://en.wikipedia.org/wiki/Stock_exchangehttps://en.wikipedia.org/wiki/Stock_exchangehttps://en.wikipedia.org/wiki/Stock_exchangehttps://en.wikipedia.org/wiki/Private_companyhttps://en.wikipedia.org/wiki/Public_limited_companyhttps://en.wikipedia.org/wiki/Public_limited_company7/27/2019 MARUTI SUZUKI Chapter 2
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MARUTI SUZUKI
HISTORY
Maruti Suzuki India Limited (i i), commonly referred to as Maruti and formerly known
as Maruti Udyog Limited, is an automobile manufacturer in India.[7]It is a subsidiary of Japanese
automobile and motorcycle manufacturerSuzuki.[6]As of November 2012, it had a market share of 37%
of the Indian passenger car market.[8]Maruti Suzuki manufactures and sells a complete range of cars from
the entry levelAlto, to hatchbackRitz,A-Star,Swift,Wagon R,Zenand sedansDZire,KizashiandSX4,
in the 'C' segmentEeco,Omni, Multi Purpose vehicle SuzukiErtigaand Sports Utility vehicleGrand
Vitara.[9]The company's headquarters are on Nelson Mandela Road,New Delhi.[1]In February 2012, the
company sold its ten millionth vehicle in India[10]edit
The old logo of Maruti Suzuki India Limited. Later the logo of Suzuki Motor Corp. was also added to it
Originally, 18.28% of the company was owned by theIndian government, and 54.2% by Suzuki of Japan.
The BJP-led government held aninitial public offeringof 25% of the company in June 2003. As of May
2007, the government of India sold its complete share to Indian financial institutions and no longer has
any stake in Maruti Udyog
http://en.wikipedia.org/wiki/Maruti_Suzuki#cite_note-7http://en.wikipedia.org/wiki/Maruti_Suzuki#cite_note-7http://en.wikipedia.org/wiki/Maruti_Suzuki#cite_note-7http://en.wikipedia.org/wiki/Suzukihttp://en.wikipedia.org/wiki/Suzukihttp://en.wikipedia.org/wiki/Maruti_Suzuki#cite_note-corpinfo-6http://en.wikipedia.org/wiki/Maruti_Suzuki#cite_note-corpinfo-6http://en.wikipedia.org/wiki/Maruti_Suzuki#cite_note-corpinfo-6http://en.wikipedia.org/wiki/Maruti_Suzuki#cite_note-marketshare-8http://en.wikipedia.org/wiki/Maruti_Suzuki#cite_note-marketshare-8http://en.wikipedia.org/wiki/Suzuki_Altohttp://en.wikipedia.org/wiki/Suzuki_Altohttp://en.wikipedia.org/wiki/Suzuki_Altohttp://en.wikipedia.org/wiki/Suzuki_Splashhttp://en.wikipedia.org/wiki/Suzuki_Splashhttp://en.wikipedia.org/wiki/Suzuki_Splashhttp://en.wikipedia.org/wiki/Suzuki_Alto#Internationalhttp://en.wikipedia.org/wiki/Suzuki_Alto#Internationalhttp://en.wikipedia.org/wiki/Suzuki_Alto#Internationalhttp://en.wikipedia.org/wiki/Suzuki_Swifthttp://en.wikipedia.org/wiki/Suzuki_Swifthttp://en.wikipedia.org/wiki/Suzuki_Swifthttp://en.wikipedia.org/wiki/Suzuki_Wagon_Rhttp://en.wikipedia.org/wiki/Suzuki_Wagon_Rhttp://en.wikipedia.org/wiki/Suzuki_Wagon_Rhttp://en.wikipedia.org/wiki/Maruti_Zenhttp://en.wikipedia.org/wiki/Maruti_Zenhttp://en.wikipedia.org/wiki/Maruti_Zenhttp://en.wikipedia.org/wiki/Suzuki_Swifthttp://en.wikipedia.org/wiki/Suzuki_Swifthttp://en.wikipedia.org/wiki/Suzuki_Swifthttp://en.wikipedia.org/wiki/Suzuki_Kizashihttp://en.wikipedia.org/wiki/Suzuki_Kizashihttp://en.wikipedia.org/wiki/Suzuki_Kizashihttp://en.wikipedia.org/wiki/Suzuki_SX4http://en.wikipedia.org/wiki/Suzuki_SX4http://en.wikipedia.org/wiki/Suzuki_SX4http://en.wikipedia.org/wiki/Maruti_Eecohttp://en.wikipedia.org/wiki/Maruti_Eecohttp://en.wikipedia.org/wiki/Maruti_Eecohttp://en.wikipedia.org/wiki/Suzuki_Carryhttp://en.wikipedia.org/wiki/Suzuki_Carryhttp://en.wikipedia.org/wiki/Suzuki_Carryhttp://en.wikipedia.org/wiki/Suzuki_Ertigahttp://en.wikipedia.org/wiki/Suzuki_Ertigahttp://en.wikipedia.org/wiki/Suzuki_Ertigahttp://en.wikipedia.org/wiki/Suzuki_Escudohttp://en.wikipedia.org/wiki/Suzuki_Escudohttp://en.wikipedia.org/wiki/Suzuki_Escudohttp://en.wikipedia.org/wiki/Maruti_Suzuki#cite_note-9http://en.wikipedia.org/wiki/Maruti_Suzuki#cite_note-9http://en.wikipedia.org/wiki/Maruti_Suzuki#cite_note-9http://en.wikipedia.org/wiki/New_Delhihttp://en.wikipedia.org/wiki/New_Delhihttp://en.wikipedia.org/wiki/Maruti_Suzuki#cite_note-marutisuzuki1-1http://en.wikipedia.org/wiki/Maruti_Suzuki#cite_note-marutisuzuki1-1http://en.wikipedia.org/wiki/Maruti_Suzuki#cite_note-marutisuzuki1-1http://en.wikipedia.org/wiki/Government_of_Indiahttp://en.wikipedia.org/wiki/Government_of_Indiahttp://en.wikipedia.org/wiki/Government_of_Indiahttp://en.wikipedia.org/wiki/Initial_public_offeringhttp://en.wikipedia.org/wiki/Initial_public_offeringhttp://en.wikipedia.org/wiki/Initial_public_offeringhttp://en.wikipedia.org/wiki/File:Maruti800_manhan.JPGhttp://en.wikipedia.org/wiki/File:Maruti_Old_Logo.JPGhttp://en.wikipedia.org/wiki/File:Maruti800_manhan.JPGhttp://en.wikipedia.org/wiki/File:Maruti_Old_Logo.JPGhttp://en.wikipedia.org/wiki/Initial_public_offeringhttp://en.wikipedia.org/wiki/Government_of_Indiahttp://en.wikipedia.org/wiki/Maruti_Suzuki#cite_note-marutisuzuki1-1http://en.wikipedia.org/wiki/New_Delhihttp://en.wikipedia.org/wiki/Maruti_Suzuki#cite_note-9http://en.wikipedia.org/wiki/Suzuki_Escudohttp://en.wikipedia.org/wiki/Suzuki_Escudohttp://en.wikipedia.org/wiki/Suzuki_Ertigahttp://en.wikipedia.org/wiki/Suzuki_Carryhttp://en.wikipedia.org/wiki/Maruti_Eecohttp://en.wikipedia.org/wiki/Suzuki_SX4http://en.wikipedia.org/wiki/Suzuki_Kizashihttp://en.wikipedia.org/wiki/Suzuki_Swifthttp://en.wikipedia.org/wiki/Maruti_Zenhttp://en.wikipedia.org/wiki/Suzuki_Wagon_Rhttp://en.wikipedia.org/wiki/Suzuki_Swifthttp://en.wikipedia.org/wiki/Suzuki_Alto#Internationalhttp://en.wikipedia.org/wiki/Suzuki_Splashhttp://en.wikipedia.org/wiki/Suzuki_Altohttp://en.wikipedia.org/wiki/Maruti_Suzuki#cite_note-marketshare-8http://en.wikipedia.org/wiki/Maruti_Suzuki#cite_note-corpinfo-6http://en.wikipedia.org/wiki/Suzukihttp://en.wikipedia.org/wiki/Maruti_Suzuki#cite_note-77/27/2019 MARUTI SUZUKI Chapter 2
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Maruti Udyog Limited (MUL) was established in February 1981, though the actual production
commenced in 1983 with the Maruti 800, based on theSuzuki Altokei carwhich at the time was the only
modern car available in India, its only competitors- theHindustan AmbassadorandPremier Padminiwere
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 those made by Maruti in India, albeit not assembled or fully manufactured in
India or Japan are sold byPak Suzuki MotorsinPakistan.
The company exports more than 50,000 cars annually and has domestic sales of 730,000 cars annual. its
manufacturing facilities are located at two facilitiesGurgaonandManesarinHaryana, south ofDelhi.
Mi Si Ggon fciliy h n inlled cpciy of 900,000 ni pe nn. The Mne
facilities, launched in February 2007 comprise a vehicle assembly plant with a capacity of 550,000 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 14,50,000 units annually.
About 35% of all cars sold in India are made by Maruti. The company is 54.2% owned by the
JapanesemultinationalSuzuki Motor Corporationper cent of Maruti Suzuki. The rest is owned by public
and financial institutions. It is listed on theBombay Stock ExchangeandNational Stock Exchange of
India.
During 2007 and 2008, 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,Maruti Alto 800,WagonR,Estilo,A-star,Ritz,Swift,Swift
DZire,SX4,Omni,Eeco,Gypsy,Grand Vitara,Kizashiand the newly launchedErtiga. 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.
The company is believed to be moving towards introduction of a new version of Maruti 800 by November
2012, which will be more fuel efficient, though slightly costlier than Alto and existing Maruti 800. The
Suzuki Motor Corporation, Maruti's main stakeholder, is a global leader in mini and compact cars for three
decde. Si egy i o illie ligh-weight, compact engines with stronger power, fuel-efficiency
and performance capabilities. 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 Maruti Suzuki will be introducing new 800 cc model by Diwali in 2012.The
model is supposed to be fuel efficient, hence more expensive.
Joint venture related issues
Relationship between the Government of India, under theUnited Front (India)coalition andSuzuki Motor
Corporationover thejoint venturewas a point of heated debate in the Indian media until Suzuki Motor
Corporation gained the controlling stake. This highly profitable joint venture that had a near monopolistic
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rg/wiki/Maruti_800http://en.wikipedia.org/wiki/National_Stock_Exchange_of_Indiahttp://en.wikipedia.org/wiki/National_Stock_Exchange_of_Indiahttp://en.wikipedia.org/wiki/Bombay_Stock_Exchangehttp://en.wikipedia.org/wiki/Suzukihttp://en.wikipedia.org/wiki/Multinational_corporationhttp://en.wikipedia.org/wiki/Delhihttp://en.wikipedia.org/wiki/Haryanahttp://en.wikipedia.org/wiki/Manesarhttp://en.wikipedia.org/wiki/Gurgaonhttp://en.wikipedia.org/wiki/Pakistanhttp://en.wikipedia.org/wiki/Pak_Suzuki_Motorshttp://en.wikipedia.org/wiki/Premier_Padminihttp://en.wikipedia.org/wiki/Hindustan_Ambassadorhttp://en.wikipedia.org/wiki/Kei_carhttp://en.wikipedia.org/wiki/Suzuki_Alto7/27/2019 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trade in theIndian automobile marketand 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 Materialsand in 1993 he became Joint Managing Director.
Suzuki did not 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, Governmentof India refuted the charges.
Media stated from the Maruti Suzuki sources that Bhaskarudu was interested to indigenisemost of
components for the models including gear boxes especially forMaruti 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.
Industrial relations
Since its founding in 1983, Maruti Udyog Limited experienced few problems with its labour force.
TheIndian labourit hired readily accepted Japanese work culture and the modern manufacturing
process. In 1997, there was a change in ownership, and Maruti became predominantly government
controlled. Shortly thereafter, conflict between theUnited Front Governmentand Suzuki started. Labour
unrest started under management of Indian central government. In 2000, a major industrial relations issue
began and employees of Maruti went on an indefinite strike, demanding among other things, major
revisions to their wages, incentives and pensions.
Employees usedslowdownin October 2000, to press a revision to their incentive-linked pay. In parallel,
after elections and a new central government led byNDA alliance, India pursued a disinvestments policy.
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Along with many other government owned companies, the new administration proposed to sell part of its
stake in Maruti Suzuki in a public offering. The worker's union opposed this sell-off plan on the grounds
that the company will lose a major business advantage of being subsidised by the Government, and the
union has better protection while the company remains in control of the government.
The standoff between the union and the management continued through 2001. The management refused
union demands citing increased competition and lower margins. The central government prevailed and
privatized Maruti in 2002. Suzuki became the majority owner of Maruti Udyog Limited.
Manesar violence July 2012
On 18 July 2012, Maruti's Manesar plant was hit by violence as workers at one of its auto factories
attacked supervisors and started a fire that killed a company official and injured 100 managers, including
two Japanese expatriates. The violent mob also injured nine policemen. The company's General Manager
of Human Resources had both arms and legs broken by his attackers, unable to leave the building that
was set ablaze, and was charred to death. The incident is the worst-ever for Suzuki since the company
began operations in India in 1983.
Since April 2012, the Manesar union had demanded a three-fold increase in basic salary, a monthly
conveyance allowance of 10,000, a laundry allowance of 3,000, a gift with every new car launch, and
a house for every worker who wants one or cheaper home loans for those who want to build their own
houses.Initial reports claimed wage dispute and a union spokesman alleged the incident may be caste-
related. According to the Maruti Suzuki Workers Union a supervisor had abused and made discriminatory
comments to a low-caste worker. These claims were denied by the company and the police. The
supervisor alleged was found to belong to a tribal heritage and outside of Hindu caste system; further, the
numerous workers involved in violence were not affiliated with caste either. Maruti said the unrest began,
not over wage discussions, but after the workers' union demanded the reinstatement of a worker who had
been suspended for beating a supervisor. The workers claim harsh working conditions and extensive
hiring of low-paid contract workers which are paid about $126 a month, about half the minimum wage of
permanent employees. Maruti employees currently earn allowances in addition to their base
wages. Company executives denied harsh conditions and claim they hired entry-level workers on
contracts and made them permanent as they gained experience. It was also claimed that bouncers were
deployed by the company.
India Todayclaimedthat its interviews of witnesses present at the plant confirms the dispute was over the
suspended worker. The management insisted that they must wait for completion of inquiry underway
before they can take any action on the employee suspended for beating up his supervisor. The
management was then told, "you will be beaten up after we get a signal." Thereafter, the workers broke
up into groups, went on to set the shop floor as well as all offices afire. They searched for management
officials and proceeded with a barbaric beating of the officials at the site with iron rods.
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The police, in itsFirst Information Report(FIR), claimed on 21 July that Manesar violence may be the
result of a planned violence by a section of workers and union leaders. The report claimed the worker's
action was recorded on close circuit cameras installed within the company premises. The workers took
several managers and high ranked management officials hostage. The responsible Special Investigative
Team official claimed, "some union leaders may be aware of the facts, so they burnt down the main
servers and more than 700 computers." The recordedCCTVfootage has been used to determine the
sequence of events and people involved. Per the FIR, police have arrested 91 people and are searching
for 55 additional accused.
Maruti Suzuki in its statement on the unrest announced that all work at the Manesar plant has been
suspended indefinitely. A Suzuki spokesman said Manesar violence won't affect the auto maker's
business plans for India. The shut down of Manesar plant is leading to a loss of about Rs 75 crore per
day. On 21 July 2012, citing safety concerns, the company announced alockoutunderThe Industrial
Disputes Act, 1947pending results of an inquiry the company has requested of theHaryana
governmentinto the causes of the disorder. Under the provisions of The Industrial Disputes Act for
wages, the report claimed, employees are expected to be paid for the duration of the lockout. On 26 July
2012, Maruti announced employees would not be paid for the period of lock-out in accordance with Indian
labour laws. The company further announced that it will stop using contract workers by March 2013. The
report claimed the salary difference between contract workers and permanent workers has been much
smaller than initial media reports - the contract worker at Maruti received about 11,500 per month, while
a permanent worker received about 12,500 a month at start, which increased in three years to
21,000-22,000 per month.In a separate report, a contractor who was providing contract employees to
Maruti claimed the company gave its contract employees the best wage, allowances and benefits
package in the region.
Shinzo Nakanishi, managing director and chief executive of Maruti Suzuki India, said this kind of violence
has never happened in Suzuki Motor Corp's entire global operations spread across Hungary, Indonesia,
Spain, Pakistan, Thailand, Malaysia, China and the Philippines. Mr. Nakanishi went to each victim
apologising for the miseries inflicted on them by fellow workers, and in press interview requested the
central and Haryana state governments to help stop such ghastly violence by legislating decisive rules to
restore corporate confidence amid emergence of this new 'militant workforce' in Indian factories. He
announced, "we are going to de-recognise Mi Si Woe Union nd dii ll woe ned
in connection with the incident. We will not compromise at all in such instances of barbaric, unprovokedviolence." He also announced Maruti plans to continue manufacturing in Manesar, thatGujaratwas an
expansion opportunity and not an alternative to Manesar.
Labour disputes are endemic in the auto industry of India and have affected other manufacturers. India
has strictlabour laws, but their application is widely sidestepped by hiring low-wage contract
workers. Manesar violence adds to India's recent incidents of labour disputes turning to violence. Analysts
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claim, recent incidents like Manesar violence suggest a need for urgent reform of archaic Indian labour
laws, the rigid rules on hiring and layoffs, which harm theformal sectorand discourageinvestment in
India. Government mandated procedures for labour dispute resolution are currently very slow, with tens of
thousands of cases pending for years. The government of India is being asked to recognise that incidents
such asManesarviolence indicate a structural sickness which must be solved nationally.
The company dismissed 500 workers accused of causing the violence and re-opened the plant on 21
August, saying it would produce 150 vehicles on the first day, less than 10% of its capacity. Analysts said
that the shutdown was costing the company 1 billion rupees ($18 million) a day and costing the company
market share.
The previous week company officials had announced that Maruti would scrap the practice of hiring
contract workers and that the workers currently on temporary contracts would be made permanent. It
would begin the process of hiring new workers on a permanent basis from 2 September 2012.
Products and services
Current automobiles
Red BullMaruti Suzuki Swift
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Maruti Suzuki Swift DZire
Suzuki Splashis sold as Maruti Suzuki Ritz in India.
1. Omni(Launched 1984)
2. Gypsy(launched 1985)
3. WagonR(Launched 1999)
4. Alto(Launched 2000)
5. Swift(Launched 2005)6. Estilo(Launched 2006)
7. SX4(Launched 2007)
8. Swift DZire(Launched 2008)
9. A-star(Launched 2008)
10.Ritz(Launched 2009)
11.Eeco(Launched 2010)
12.Alto K10(Launched 2010)
13.Maruti Ertiga(Launched 2012), seven seater MPV R3 designed and developed in India, will
compete withToyota Innova, Mahindra Xylo, and Tata Sumo Grande. In early 2012, Suzuki
Ertiga will be exported first to Indonesia in Completely Knock Down car.
14.Maruti XA Alphabased compact SUV to compete with the Ford EcoSport & Renault Duster will
be launched in the year 2014
15.Maruti Alto 800(Launched 2012), Maruti Alto 800 is finally out with a price tag of Rs.2.44 lakh (ex-
showroom New Delhi). Maruti has rolled out three standard variants-Alto 800 Base, Alto 800 LX
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and Alto 800 LXi and three CNG variants -Alto 800 CNG Base,Alto 800 CNG LX and Alto 800
CNG LXi. The 0.8 litre of petrol engine is very fuel efficient and pushes the car to produce high
class mileage of 17 to 22 km per litre. The 45.7BHP of peak power produced by the engine is
also successful on road by delivering top-notch performance.
Imported automobiles
it
Suzuki Grand Vitara
1. Grand Vitara(Launched 2007)
2. Kizashi(Launched 2011)
Discontinued automobiles
1. 1000(19902000)
2. Zen(19932006)
3. Esteem(19942008)
4. Baleno(19992007)
5. Versa(20012010)
6. Grand Vitara XL7(20032007)
7. 800(1983-2012)
8. Alto(2000-2012)
Manufacturing facilities
Maruti Suzuki has two manufacturing facilities in India. Both manufacturing facilities have a combined
production capacity of 14,50,000 vehicles annually. During a recent meeting of the Gujarat chief minister
with Suzuki Motor Corp chairman & CEO Osamu Suzuki,the Chairman had said that the work on car
manufacturing plant at Mandal near Ahmedabad would be started soon. Maruti Suzuki to set up second
plant in Gujarat; acquires 600 acres
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Gurgaon manufacturing facility
TheGurgaonmanufacturing 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 900,000 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
the800,Alto,WagonR,Estilo,Omni,Gypsy, andEeco.
Manesar manufacturing facility
TheManesarmanufacturing 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 to300,000 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
theA-star,Swift,Swift DZire,SX4,Ertigaand Ritz.
On 25 June June 2012, Haryana State Industries and Infrastructure Development Corporation demanded
Maruti Suzuki to pay an additional Rs 235 crore for enhanced land acquisition for its Haryana plant
expansion. The agency reminded Maruti that failure to pay the amount would lead to further proceedings
and vacating the enhanced land acquisition.
Sales and service networkAs of 31 March 2011 Maruti Suzuki has 933 dealerships across 666 towns and cities in
allstatesandunion territoriesof 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 30National Highwaysacross 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.
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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 FinanceTo 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.
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
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 outlets.
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 coversand other car care products. These products are sold through dealer outlets and authorized service
stations throughout India.
Maruti Driving School
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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.
A the launch ceremony for the school Jagdish Khattar stated "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.
Issues and problems
On 24 February 2010, Maruti Suzuki India announced recalling of 100,000 A-Star hatchbacks to fix a fuel
leakage problem, for which the company will replace the gaskets.
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
toHungary. By sending a consignment of 571 cars to the same country Maruti Suzuki crossed the
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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 Reportpublished 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 which launched in April 2012.
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