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mMeenakshi Gupta D-66

mUdit Gupta D-31


mNavita Agrawal D-12
mSwati D-07
mSakshi Dhawan D-05

NTRODUCT
ON
 Maruti Suzuki
ndia Limited is a leading four-wheeler automobile manufacturer in
South Asia.
t is largely credited for having brought in an automobile revolution to

ndia.

t was a joint venture between the
ndian government, and Suzuki of Japan. As of
May 10 2007, Govt. of
ndia sold its complete share to
ndian financial institutions.
With this, Govt. of
ndia no longer has stake in Maruti Udyog.
 The company annually exports more than 50,000 cars and has an extremely large
domestic market in
ndia selling over 730,000 cars annually.
 Maruti Suzuki offers 13 models, Maruti 800, Omni, Alto, Versa, Ritz, Gypsy, A Star,
Wagon R, Zen Estilo, Swift, Swift Dzire, SX4, and Grand Vitara.
 Maruti Suzuki has manufacturing plants in Gurgaon & Manesar
Men
m The company has a multi-tier management
structure, comprising:
1. Board of Directors
2. Managing Executive Officers
3. Executive Officers
4. Divisional Heads
m Through this it is ensured that:
D @trategic supervision is provided by the board.
D Control and Implementation of Company͛s strategies is
achieved effectively.
D Operational management remains focused on
implementation.
D Information regarding the company͛s operations and
financial performance are made available adequately.
D Delegation of decision making with accountability is
achieved.
D Financial and operational control and integrity are
maintained at operational level.
D Risk is suitably evaluated and dealt with.
m The employees of Maruti, from technicians
to engineers to sales persons, have fully
imbibed the Japanese work culture of
making constant improvement, and placing
the prosperity of the company as the means
of their own advancement
Money
m For its
ndian operations, the company plans
to invest Rs 9,000 Crore by 2010.

m The company has also made huge investment


in the plant situated at Manesar, that is almost
ready to reach its peak production level of
300,000 units.
m The company also operates at the new engine
facility located at Gurgaon.

m Maruti Suzuki has a good network of internal


resources to finance the company͛s
operations, expansion plans as well as capital
investments.
Machinery
m The Manesar plant of the company
established in 2006achieved an expanded
installed capacity of 1,70,000 units at the end
of first year.

m The models of @wift, @ 4 and Dzire are


manufactured in Manesar.
m Recently, the company has introduced a peppy k
series engine for its new car, Maruti @uzuki A-
star.

m In future, it aims to produce more environment-


friendly car engines.

m The company plans to design cars that are fuel


efficient and lower on CO2 emissions. It also has
plans to develop hybrid, electrical, and multi-
fuel engines
Materials
m Maruti uses the following materials to reduce
its energy consumption while manufacturing
cars:
D Energy efficient fans in cooling towers

D Special transformers to minimize the energy losses.

D Energy efficient motors and blowers in the air washer


system for shop cooling

D Energy efficient chillers for air conditioning.


D èuilding Management System and Variable Air Volume
System for optimized cooling in the work places and
reduce the energy consumption.

D
ncreased re-use of waste heat of combustion for
running equipment.

D Energy efficient lighting.

D Energy efficient air driers.


Methodology
@mall is Beautiful
m Maruti Suzuki has a firm belief that the future of
ndian
car industry belongs to small cars.
m The rising fuel prices, high input costs and congested
city roads is paving way for small, light-weight and fuel
efficient cars.
m Even the government is supporting the introduction of
small cars with favorable policies.
m Exuding company͛s confidence on growth of small cars,
Maruti Suzuki aims to roll out more numbers of small
cars for the
ndian sub-continent.
Re-enter Europe
m Maruti Suzuki re-entered European market
with a global car that is fuel-efficient and
lower on CO2 emissions.
m This new car christened as Maruti Suzuki A-
Star was launched in Europe with the brand
͚Suzuki Alto͛.
m Maruti has announced to launch another
world strategic car model, Maruti Suzuki
Splash.
Threat from the new players: Increasing

mMost of the major global players are present in the


ndian market; few
more are expected to enter.
mFinancial strength assumes importance as high are required for building
capacity and maintaining adequacy of working capital.

Rivalry within the industry: High

mThere is keen competition in select segments. (compact and mid size


segments).
mNew multinational players may enter the market.
Market strength of suppliers: Low

mA large number of automotive components suppliers


mAutomotive players are rationalizing their vendor base to achieve
consistency in quality
Market strength of consumers: Increasing

m
ncreased awareness among consumers has increased expectations.
Thus the ability to innovate is critical
mProduct differentiation via new features, improved performance and
after-sales support is critical
m
ncreased competitive intensity has limited the pricing power of
manufacturers
Threat from substitutes: Low to medium

mConsumer preference is changing (Mini cars are being replaced by


compact or mid sized cars)
mSetting up integrated manufacturing facilities may require higher
capital investments than establishing assembly facilities
m
ndia is also likely to increasingly serve as the sourcing base for global
automotive companies, and automotive exports are likely to gain
increasing importance over the medium term
m
ndian passenger car market is moving towards cars of higher capacity
mcompetition is likely to intensify in the SUV segment in
ndia following
the launch of new models at competitive prices
The policies & objectives laid down by the
ndian
Government regarding the automobile sector are:
m Exalt the sector as a lever of industrial growth and
employment and to achieve a high degree of value addition in
the country
m Promote a globally competitive automotive industry and
emerge as a global source for auto components
m Establish an international hub for manufacturing small,
affordable passenger cars and a key center for manufacturing
Tractors and Two-wheelers in the world
m Ensure a balanced transition to open trade at a minimal risk
to the
ndian economy and local industry
m Conduce incessant modernization of the industry
and facilitate indigenous design, research and
development
m Steer
ndia's software industry into automotive
technology. Example: the company developed
CMA software for carrying out target costing.
m Assist development of vehicles propelled by
alternate energy sources
m Development of domestic safety and
environmental standards at par with international
standards
eeping the Government policies in mind Maruti Suzuki has
adopted the following policies to run the organisation:

m Maruti Suzuki is one of the organisation which was able to


survive the global recession. Not only they made a reasonable
profit but also didn͛t give away any pink slips
m Maruti Suzuki is the leading automobile manufacturer in the
country. Now they are in the process of re-entering the
European market by introducing A-Star
m The company has now started using CNG its. They have
introduced this technology in Alto which fulfills the CSR of going
Green
m The company has introduced è-Series engine which offers
latest technology to the customers
ECONOMIC ENVIRONMENT OF MARUTI @UZUKI

mThe global meltdown has certainly hit the


ndian car industry
hard.The industry posted a growth rate of 11 per cent in the
year 2007 which has fallen to 3 per cent this year.

mMaruti now plans to tap the rural market, 60 per cent of


which runs on cash .

mMaruti has appointed 2,000 sales executives to target


customers in the rural areas.
m!he company is offering discounts ranging from Rs 3,000 to
8,000 on various models in the rural market.

mOn May 8 2009 Maruti Suzuki India planned to ramp up its


production capacity by addition of 2 Lakh cars in the next two
fiscal years.

mCurrently, Maruti Suzuki manufactures 9 Lakh cars annually


to cater to the biggest segment - small cars in India.

m It
will be spending nearly Rs 1,800 Crore to develop the
capacity.
mMaruti Suzuki sold 7.92 Lakh cars in the last 2008-09 fiscal
year which combines the domestic sales and those made
abroad.

mIt recorded the highest sales in April with a 15 percent jump


and sale of 71,748 units in one month.

mCompany has allocated Rs 9,000 Crore for a new engine plant


and new research and development centre, in japan.

mIn January 2009, Maruti exported 4774 units and accounts for
a total car sales of 71,779 units.
! 

  

!he pricing of the following cars have gone up by:

A-Star hatchback - Rs 10,000


All variants of SX4 sedan - Rs 9,000.
!he price of Swift Petrol LXi Rs 5,000.
For the higher variants of Swift-VXi and Zxi- Rs 6,000.
!he new prices for Swift DZire Rs. 7,000
Social environment
Kelfare Camps
Medical support & welfare
Education to underprivileged
Road @afety
Maruti Driving @chools
Greening of @upply Chain
Adopting energy saving
technologies
Reducing water wastage
Green Growth
m Launched CNG kit for Alto, its highest selling
small car.

m The company as a proactive move is all set to


make its entire fleet of cars adhere to ͚end of
life vehicles͛ (ELV) specifications by 2010 by
doing away with the usage of hazardous
substances during production of cars and
their components.
m The company is involved with the
development of small and fuel-
fuel-efficient car
engines.

m In future, the company has high plans to


increase the engine development work in
India along with other R&D operations.
m The company uses next generation KB series
Engine in its new Hatchback car A-
A-star.

m The company added Virtual Design Review to


its R&D activity to enable virtual validation to
reduce cycle time and development cost.

m In the field of alternate fuel technology, the


company developed LPG system for MPI
engine.
m 3R- reduce, reuse, and recycle.

m Continuous process of promoting 100%


recyclable and reusable car parts.

m Targets reducing fresh water consumption and


implement rain water harvesting.
m The newly launched Maruti Suzuki A-Star is
designed to meet the European ELV (End-of-
Life Vehicle) norms.
m Encourages its customers to act upon
environment friendly approach.

m The company conducts regular training and


education programmes at the supplier end.

m Sessions are also held at all possible places


comprising people from all arenas of the car
industry.
m Researches are done to learn innovative ways
of improving ecological balance and reduce
automotive emissions.
m Education, and improvement initiatives are
taken on the shop floor.

m The company has introduced three-coat-one-


bake painting system at its facility.

m The company is moving towards making its


entire fleet of cars green with advanced and
efficient technologies.
m 1999- Certified for establishing and
maintaining EMS as per
SO 14001:1996
standards. The company was again recertified
for the same in 2002.

m Certified for changing its EMS from


SO
14001:1996 version to
SO 14001:2004
version.
m Golden Peacock award for Environment
Management in 2007 was honored by World
Environment Foundation.

m First prize for excellence in implementation of


Energy Conservation measures in industrial
sector was awarded by renewable energy
department of Haryana Government.
Legal Environment
m Follows highest standards of Corporate Governance

m Customer can contact the Secretarial & Legal Department for any
questions/clarifications.

m Legal compliance reporting


The board periodically reviews reports of compliance with all laws
applicable to the Company, as well as steps taken by the Company to rectify
instances of non-compliances.

m The Company has developed comprehensive legal compliance scheduling


and management software by which specific compliance tasks are assigned
to each individual. The software enables in planning and monitoring all
compliance activities across the Company.