Professional Documents
Culture Documents
In partial fulfillment of the Requirements for the award of Degree of Bachelor of Business Adminstration
INDEX
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1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22.
Contents
Acknowledgement Overview of the company India and automobile industry Growth pace of the industry Auto export in India SWOT anyalsis of exports Factors responsible for exports Major players Profile of the company Get to know the Company better Why go for Maruti Suzuki? Code of conduct Achievements and milestones Facilities provided Maruti and its Stakeholders Product range of Maruti Social activities Performance over last few years Finacial status Furture prosepects Critical appraisal and suggestions Bibliography
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ACKNOWLEDGEMENT
To complete a task all you require is some hard work and efforts, but with a blend of these two you also need the support and guidance of many people. So I pleasure is all mine to first of all thank Mr.Rahul, professor of seminar on corporate profile without whose able guidance, Co-operation & Supervision the present study couldnt have been possible. I would like to thank my greatest source of support, my god for giving me the strength and confidence to complete the same. I m truly thankful to him for showering his blessings on me time to time. I would like to thank my sister, Miss. Preeti for her valuable guidance and suggestions. I m also thankful to all my friends and my group members for their support and encouragement.
Kashish Vadhera
of suburbs and shopping centers around major cities, and played a key role in the growth of ancillary industries, such as the oil and travel businesses. The auto industry has become one of the largest purchasers of many key industrial products, such as steel. The large number of people the industry employs has made it a key determinant of economic growth.
The first automobile in India rolled in 1897 in Bombay. India is being recognized as potential emerging auto market. Foreign players are adding to their investments in Indian auto industry. Within two-wheelers, motorcycles contribute 80% of the segment size. Unlike the USA, the Indian passenger vehicle market is dominated by cars (79%). Tata Motors dominates over 60% of the Indian commercial vehicle market. 2/3rd of auto component production is consumed directly by OEMs. India is the largest three-wheeler market in the world. India is the largest two-wheeler manufacturer in the world. India is the second largest tractor manufacturer in the world. India is the fifth largest commercial vehicle manufacturer in the world. The number one global motorcycle manufacturer is in India. India is the fourth largest car market in Asia - recently crossed the 1 million mark.
The passenger car and motorcycle segment in Indian auto Industry is growing by 8-9 per cent.
GROWTH IN INDIA:
The Indian automobile industry crossed a landmark with total vehicle production of 10 million units. Car sales was 8,82,094 units against 8,20,179 units in 2004-05. The two-wheeler market grew by 13.6 per cent with 70,56,317 units against 62,09,765 units in 2004-05. Commercial vehicles segment grew at 10.1 per cent with 3,50,683 units against 3,18,430 units in 2004-05. India, sourcing base for global auto majors. Passenger car and motorcycle segment is set to grow by 8-9%. The two-wheeler segment will clock 11.5% rise by 2007. Commercial vehicle to grow by 5.2 per cent. Estimated component market size is US$ 6.7 bn.
India, in auto sector, is turning to be a sourcing base for the global auto majors. The passenger car and the motorcycle segment is set to grow by 8-9 per cent in coming couple of years, says the ICRA report. The industry is likely to maintain the growth momentum picked up in 2002-03. The ICRA's analysis points on the auto sector that the passenger car market in the country was inching towards cars with higher displacements. The sports-utilityvehicle (SUV) that was getting crowded everyday, would witness intense competition as many SUVs had been competitively priced, the report said. Honda, Suzuki, General Motors and Hyundai, the global automakers had already launched their premium SUVs in the market to broaden their portfolio and create product excitement in the segment estimated at about 10,000 units annually. In the two-wheeler segment, according to the report, the motorcycles would clock 8
11.5 per cent rise during 2004-2007 over its siblings-scooters and mopeds. Scooters sales would decelerate and mopeds would also see the same. Overseas market would present huge opportunities for the two-wheeler makers. The commercial vehicles are likely to grow at a CAGR of 5.2 per cent. Heavy commercial vehicles market would rise at 5.5 per cent and sales of light buses and trucks would achieve 4.7 per cent growth. For the tractors, the report predicts a growth at 4.6 per cent.
The domestic automobile industry sales grew 12.8 per cent at 89,10,224 units as against 78,97,629 units in 2004-05. The automotive industry crossed a landmark with total vehicle production of 10 million units. According to the Society of Indian Automobile Manufacturers (SIAM), car sales was 8,82,094 units against 8,20,179 units in 2004-05. The growth of domestic passenger car market was 7.5 per cent Car exports stood at 1,70,193 units against 1,60,670 units in 2004-05. The two-wheeler segment, the market grew by 13.6 per cent with 70,56,317 units against 62,09,765 units in 2004-05. Motorcycles had the upward march, 17.1 per cent in domestic market touching 58,15,417 units against 49,64,753 units in 2004-05. Scooter segment grew by 1.5 per cent, fall at 9,08,159 units against 9,22,428 units in 2004-05. Commercial vehicles segment grew at 10.1 per cent with 3,50,683 units against 3,18,430 units in 2004-05. Medium and heavy commercial vehicles managed a growth of 4.5 per cent against 23 per cent growth in the year ended March 31, 2005. Light commercial vehicles sales growth was 19.4 per cent at 1,43,237 units against 1,19,924 units in 2004-05. Three-wheelers sales rose by 17 per cent at 3,60,187 units against 3,07,862 units in 2004-05.
Foreign auto makers, including Ford Motor Co. , General Motors Corp., Honda Motor Co. Ltd., Toyota Motor Corp., DaimlerChrysler AG and Hyundai Motor Co. Ltd., are looking to increase their presence in India and use it as an export hub. Exports of auto components, whose manufacturing costs are 30-40 per cent lower than in the West, have grown at 25% a year between 2000 to 2005. In 2003-04 the export of the industry was 55.98%. Two-wheelers are mostly exported from India. The reason behind the export is cost competitiveness in terms of labor and raw material. The export of auto components has grown to 19% from the start of the decade.
Passenger Car Multi Utility Vehicles Commercial Vehicles Two Wheelers Three Wheelers Percentage Growth
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AUTO COMPONENTS :
Any automobile is the assembly of several auto parts with each part contributing to its machinery and polishing its quality. Lack or failure of just one part can breakdown the entire system so every component plays its part. We have provided the detailed list of all the components of any vehicle. This list would enable the user to gain complete knowledge about various auto parts. It would allow the user to access the importance and uses of various integral parts of automobile.
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Lighting System Exhaust System Suspension and Steering Transmission System Wheels and Tyres Fasteners Valves Cooling System Engine
Cost competitiveness in terms of labor and raw material. Established manufacturing base. Economics of scale due to domestic market. Potential to harness global brand image of the parent company. Global hub policy for small car like Hyundai, Suzuki, etc.
WEAKNESS:
OPPORTUNITIES:
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Huge export markets such as Europe, America, Africa, and others for Indian cars.
THREATS:
China, Malaysia, Thailand, etc. Many other countries also have strategies for export promotion.
Attaining high quality for global standards. Continuous cost reduction for global competitiveness. Supply chain management (logistics). Attaining economies of scale & scope.
External Factors:
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automobile manufactures are also trying to cope up and are opening their service stations and dealer workshops in all the metros and major cities of the country. Dealers offer varying kind of discount of finances who in tern pass it on to the customers in the form of reduced interest rates.
Ashok Leyland Audi AG Bajaj Auto BEML BMW Bentley Motors Limited Chevrolet Daewoo Motors Eicher Motors Escorts Ltd. Fiat India Pvt Ltd Force Motor Ford Motors General Motors Hero Honda Hindustan Motors HMT Tractors Honda Motors Co. Ltd. Hyundai Motors Indofarm Tractors Kinetic Motor Co. Ltd. Lamborghini LML India Mahindra & Mahindra Ltd. Maruti Suzuki India Ltd. Mercedes Benz Mitsubishi Motors Monto Motors Nissan Motors Porsche Reva Electric Co. Rolls-Royce Motor Royal Enfield San Motors Scooters India Ltd Skoda Auto India Sonalika Tractors Suzuki Motors Swaraj Mazda Ltd. Tafe Tractors Tata Motors Telcon Terex Vectra Toyota Kirloskar Motors TVS Motor Co. Volvo Yamaha Motor
These are the companies that bring to us our dream machines. This is where it all starts from; the bourgeoisie Maruti 800, the upmarket Astra, the stately Mercedes, the 'Indian' Indica, the racy Hero Honda, the Tata truck and the rest. Wend your way through the automobile companies, their history and product lines. Find out hitherto unknown facts about the vehicles you use. Did you know that the Hindustan Motors was the first vehicle manufacturing company to be set up in India? And it is the same Hindustan Motors which manufactures both the sturdy Ambassador and the elegant Lancer, in association with Mitsubishi of course. In the two- wheeler segment, the biggest player in India is hero honda. A joint venture between the famous Hero group of India and Hondagroup of Japan, it has the record of producing 1.3 million motorbikes in a single business year in its kitty. All its produ Most popular two- wheelers produced by this company include the likes of Glamour, Karizma, splendor, CD Dawn, Passion and Passion plus.
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Next we have Bajaj Auto, which is known to be worlds third largest two as well as three wheeler manufacturing company. It offers enormously popular bikes like CT100, Platina, Discover, Pulsar, Pulsar DTS I and Avenger DTS I. All its products are popular for their mileage offerings and attractive looks.
In the four wheeler segment, the most reputed Indian global brand is Maruti Udyog, a joint venture between SuzukiMotors, Japan and the Government of India. It is a listed company and is credited for producing and subsequent selling of more than one million cars in a financial year. It is the largest producer of four wheeler automobiles in the entire south Asia. Its popular products include Maruti 800, Maruti 1000, Omni, Esteem, Alto, Wagon -R and Zen. cts are known to be user friendly and fuel efficient.
Japan holds a majority stake in the company. 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. On 17 September 2007, Maruti Udyog was renamed to Maruti Suzuki India Limited. The company's headquarters remain in Gurgaon, near Delhi. Maruti Suzuki is one of India's leading automobile manufacturers and the market leader in the car segment, both in terms of volume of vehicles sold and revenue earned. Maruti Udyog Limited (MUL) was established in February 1981, though the actual production commenced in 1983. Through 2004, Maruti has produced over 5 Million vehicles. Marutis are sold in India and various several other countries, depending upon export orders. Cars similar to Marutis (but not manufactured by Maruti Udyog) are sold by Suzuki in Pakistan and other South Asian countries.Until recently, 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. As of May 10, 2007, Govt. of India sold its complete share to Indian financial institutions. With this, Govt. of India no longer has stake in Maruti Udyog. The company annually exports more than 30,000 cars and has an extremely large domestic market in India selling over 500,000 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 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. Till recently the term "Maruti", in popular Indian culture, was associated to the Maruti 800 model. Maruti Suzuki India Limited, a subsidiary of Suzuki Motor Corporation of Japan, has been the leader of the Indian car market for over two decades.
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In 1909, Michio Suzuki founded the Suzuki Loom Company in the small seacoast village of Hamamatsu, Japan. Business boomed as Suzuki built weaving looms for Japan's giant silk industry. Suzuki's only desire was to build better, more user-friendly looms. In 1929, Michio Suzuki invented a new type of weaving machine, which was exported overseas. Suzuki filed as many as 120 patents and utility model rights. The company's first 30 years focused on the development and production of these exceptionally complex machines. Despite the success of his looms, Suzuki realized his company had to diversify and he began to look at other products. Based on consumer demand, he decided that building a small car would be the most practical new venture. The project began in 1937, and within two years Suzuki had completed several compact prototype cars. These first Suzuki motor vehicles were powered by a then-innovative, liquid-cooled, four-stroke, four-cylinder engine. It featured a cast aluminum crankcase and gearbox and generated 13 horsepower (9.7 kW) from a displacement of less than 800cc. With the onset of World War II, production plans for Suzuki's new vehicles were halted when the government declared civilian passenger cars a "non-essential commodity." After the war, the Japanese had a great need for affordable, reliable personal transportation. A number of firms began offering "clip-on" gas-powered engines that could be attached to the typical bicycle. Suzuki's first two-wheel ingenuity came in the form of a motorized bicycle called, the "Power Free." Designed to be inexpensive and simple to build and maintain, the 1952 Power Free featured a 36 cc two-stroke engine. An unprecedented feature was the double-sprocket gear system, enabling the rider to either pedal with the engine assisting, pedal without engine assist, or simply disconnect the pedals and run on engine power alone. The system was so ingenious that the patent office of the new democratic government granted Suzuki a financial subsidy to continue research in motorcycle engineering, and so was born Suzuki Motor Corporation. In 1953, Suzuki scored the first of many racing victories when the tiny 60 cc "Diamond Free" won its class in the Mount Fuji Hill Climb.
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By 1954, Suzuki was producing 6,000 motorcycles per month and had officially changed its name to Suzuki Motor Co., Ltd. Following the success of its first motorcycles, Suzuki created an even more successful automobile: the 1955 Suzulight. Suzuki showcased its penchant for innovation from the beginning. The Suzulight included front-wheel drive, four-wheel independent suspension and rack-and-pinion steering -- features common on cars half a century later.
Modernization of the Indian Automobile Industry. Production of vehicles in large volumes Production of fuel efficient vehicles.
Suzuki was an obvious choice because of its unparalled expertise in small cars.The Joint Venture agreement was signed between Government of India and Suzuki Motor Company (now Suzuki Motor Corporation of Japan) in Oct 1982. The company went into production in a record time of 13 months and the first car was rolled out from Maruti Suzuki India Limited Gurgaon in December, 1983 and heralded a revolution in the Indian car industry. Maruti collaborated with Suzuki of Japan to produce the first affordable car for the average Indian. At this time, the Indian car market had stagnated at a volume of 30,000 to 40,000 cars for the decade ending 1983. This was from where Maruti took over. The sales figure for the year 1993 reached up to 1,96,820. The company reached a total production of one million vehicles in March 1994 becoming the first Indian Company to cross this milestone. It crossed the two million mark in 1997. India's largest automobile company, it entered the Indian car market with the avowed aim to provide high quality, fuel - efficient, low - cost vehicles. Its cars
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operate on Japanese technology, adapted to Indian conditions and Indian car users. Maruti comes in a variety of models in various segments. In the small car segment it produces the Maruti 800 and the Zen.The big car segment includes the Maruti Esteem and the Maruti 1000. Maruti Suzuki was born as a Government of India company, with Suzuki as a minor partner, to make a peoples car for middle class India. Over the years, the product range has widened, ownership has changed hands and the customer has evolved.
Later the logo of Suzuki Motor Corp. was also added to it.
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Type Public (BSE MARUTI, NSE MARUTI) Founded 1981 Headquarters Gurgaon, Haryana, India Shinzo Nakanishi, CEO Key people Jagdish Khattar, Managing Director Industry Automotive Products Cars Revenue US$2.5 billion (2005) Employees 6,903 Parent Suzuki Website www.marutisuzuki.com
Incorporation Year Registered Office Telephone Fax Industry House Face Value Market Lot Listing Registrar
1981 11th floor Jeevan Prakash, 25 Kasturba Gandhi Marg, New Delhi 110001, New Delhi 91-11-23316831/23712854 91-11-23318754/23713575 Automobiles - Passenger Cars MNC Associate 5 1 Mumbai, NSE Karvy Computershare Pvt Ltd Karvy House 46, Road No 4 Street No1, Banjara Hills, Hyderabad 500034
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BOARD OF DIRECTORS:
Shinzo Nakanishi
Director (Production)
Tsuneo Ohashi
Shuji Oishi
Director
O Suzuki
Chairman (Non-Executive)
Directors
R C Bhargava Amal Ganguli D S Brar Manvinder Singh Banga Pallavi Shroff Anil Rustgi Keilchi Asai Kenichi Ayukawa D S Brar Tsuneo Kobayashi
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Maruti Suzuki owners experience fewer problems with their vehicles than any other car manufacturer in India (J.D. Power IQS Study 2004). The Alto was chosen No.1 in the premium compact car segment and the Esteem in the entry level mid - size car segment across 9 parameters. The J.D. Power APEAL Study 2004 proclaimed the Wagon R no. 1 in the premium compact car segment and the Esteem No.1 in the entry level mid - size car segment. This study measures owner in terms of design, content, layout and performance of vehicles across 8 parameters. A Buying Experience Like No Other
Maruti Suzuki has a sales network of 307 state-of -the-art showrooms across 189 cities, with a workforce of over 6000 trained sales personnel to guide our customers in finding the right car. Our high sales and customer care standards led us to achieve the No.1 nameplate in the J.D. Power SSI Study 2004. Quality Service Across 1036 Cities
In the J.D. Power CSI Study 2004, Maruti Suzuki scored the highest across all 7 parameters: least problems experienced with vehicle serviced, highest service quality, best in-service experience, best service delivery, best service advisor experience, most user-friendly service and best service initiation experience. 92% of Maruti Suzuki owners feel that work gets done right the first time during service. The J.D. Power CSI study 2004 also reveals that 97% of Maruti Suzuki owners would probably recommend the same make of vehicle, while 90% owners would probably repurchase the same make of vehicle.
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At Maruti Suzuki, you will find all your car related needs met under one roof. Whether it is easy finance, insurance, fleet management services, exchangeMaruti Suzuki is set to provide a single-window solution for all your car related needs. The Low Cost Maintenance Advantage
The acquisition cost is unfortunately not the only cost you face when buying a car. Although a car may be affordable to buy, it may not necessarily be affordable to maintain, as some of its regularly used spare parts may be priced quite steeply. Not so in the case of a Maruit Suzuki. It is in the economy segment that the affordability of spares is most competitive, and it is here where Maruti Suzuki shines. Lowest Cost of Ownership
The highest satisfaction ratings with regard to cost of ownership among all models are all Maruti Suzuki vehicles: Zen, Wagon R, Esteem, Maruti 800, Alto and Omni. We are proud to have the lowest cost of operation/km (among petrol vehicles) the top 5 models are all Maruti Suzuki models : Maruti 800, Alto, Zen, Omni and Wagon R.
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auditors for International Organization for Standardisation(ISO), certified Maruti after a four day long audit, covering varied parameters like Customer Focussed organisation, Leadership, Involvement of people, Process approach, System approach to Management, Continual improvement, etc.
CODE OF CONDUCT
WHAT EXACTLY IS CODE OF CODUCT FOR MARUTI:
As a responsible corporate citizen, Maruti Suzuki India Limited (Maruti or the Company) has always believed in following highest standards of Corporate Governance. Being a listed Company, every act of the Company, its Board Members and its employees is the focus of public attention and accordingly, there is a need to reinforce Marutis commitment towards maintaining highest standards of Corporate Governance. This Code of Business Conduct and Ethics (Code of Conduct or Code) helps ensure compliance with our standards of business conduct & ethics and also with regulatory requirements. All Senior Management Personnel are expected to read and understand this Code of Business Conduct and Ethics, uphold these standards in day-
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to-day activities and also comply with all applicable standards, policies and procedures of the company. This policy should be read in conjunction with applicable regulations & existing policies & procedures of the Company.
APPLICABILITY:
This Code of Conduct is applicable to all Senior Management Personnel which would include the directors of the Company, the top management personnel (i.e., executive directors & advisors at executive director level) & all functional heads (including management personnel with direct functional reporting to directors & top management personnel). All Senior Management Personnel are expected to comply with the letter and spirit of this Code. The Senior Management Personnel should continue to comply with other applicable laws & regulations and the relevant policies, rules and procedures of the Company.
Senior Management Personnel shall act in accordance with the highest standards of integrity, honesty, fairness and ethical conduct while working for the Company as well when representing the Company. Honest conduct means conduct that is free from fraud or deception. Integrity & ethical conduct includes ethical handling of actual or apparent conflicts of interest between personal and professional relationships. Senior Management Personnel should promote ethical behavior and take steps to ensure that the Company promotes ethical behavior and also encourages employees to freely report violations of laws, rules, regulations or the Company's Code of Conduct to the appropriate personnel. 26
BUSINESS OPPORTUNITIES:
Senior Management Personnel should not exploit for their own benefit, opportunities that are discovered through the use of Corporate property, information or position unless the opportunity is disclosed fully in writing to the Companys Board of Directors and the Board of Directors authorizes the said Senior Management Personnel to pursue such opportunity. Further, the Senior Management Personnel must refrain from using the Company's property or information for personal gain.
DISCIPLINARY ACTIONS:
The matters covered in this Code of Business Conduct and Ethics are of the utmost importance to the Company, its stockholders and its business partners, and are essential to the Company's ability to conduct its business in accordance with its stated values. They expect all of their Senior ManagementPersonnel to adhere to these rules in carrying out their duties for the Company. The Company will take appropriate action against any Senior Management Personnel whose actions arefound to violate these policies or any other policy of the Company. Disciplinary actions may 27
include immediate termination of directorship, employment or business relationship at the Company's sole.
But what makes the Maruti Suzuki motorsport calendar an attraction in India (and internationally too) are Maruti-Suzuki Raid-de-Himalaya, Maruti Suzuki Rally Desert Storm and Maruti Suzuki Monsoon Car Rally of Kerala. Maruti Suzuki Raid-de-Himalaya Maruti Suzuki Raid-de-Himalaya is India's longest and most demanding motorsport rally.It is open to both, car and bike enthusiasts. Maruti Suzuki provides opportunity to professional as well as amateur motorsport lovers to participate in the Maruti Suzuki Raid Raid-de-Himalaya. Every year, more and more people are coming for the Maruti Suzuki Raid-deHimalaya, many of them from abroad. In 2007, as many as 145 teams participated in car and bike categories.
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MILESTONES:
2005 The fiftieth lakh car rolls out in April, 2005 Growth in overall sales by 15.8% 2004 New (non A/C) variant of Alto Alto becomes India's new best selling car LPG variant of 'Omni Cargo' Versa 5-seater, a new variant Baleno LXi, a new variant Maruti closed the financial year 2003-04 with an annual sale of 472122 units, the highest ever since the company began operations 20 years ago 2003 New Suzuki Grand Vitara XL-7 Redesigned and allnew Zen New upgraded WagonR Enters into partnership with State Bank of India Production of 4 millionth vehicle. Listed on BSE and NSE after a public issue oversubscribed 10 times 2002 WagonR Pride Esteem Diesel. All other variants upgraded Maruti Insurance. Two new subsidiaries started: Maruti Insurance Distributor Services and Maruti Insurance Brokers Limited Alto Spin LXi, with electronic power steering Special edition of Maruti 800, Indias first colour-coordinated car Maruti True value in Mumbai Maruti Finance in Mumbai with 10 finance companies Suzuki Motor Corporation (SMC) increases its stake in Maruti to 54.2 percent 2001
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Zen LXi Maruti True Value launched in Bangalore and Delhi Maruti Versa, Indias first luxury MPV Alto Spin LXi, with electronic power steering Alto Vxi Customer information centers launched in Hyderabad, Bangalore and Chennai Launch of versa 2000 First car company in India to launch a Call Center New Alto Altura, a luxury estate car IDTR (Institute of Driving Training and Research) launched jointly with the Delhi government to promote safe driving habits
PRODUCTION MILESTONES:
1st vehicle produced, December 1983 1,00,000 vehicles produced by August, 1986 5,00,000 vehicles produced by June, 1990 10,00,000 vehicles produced by March, 1994 15,00,000 vehicles produced by April, 1996 20,00,000 vehicles produced by October, 1997 25,00,000 vehicles produced by March, 1999 30,00,000 vehicles produced by June, 2000 35,00,000 vehicles produced by December 2001 40,00,000 vehicles produced by April, 2003 45,00,000 vehicles produced by April, 2004
AWARDS:
2006 JD Power CSI: 1st Rank, 7 years in a row 2000 2006
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JD Power SSI: 1st Rank, 3 years in a row 2004 2006 Tops TNS TCS Survey in key segments, 5 years in a row 2002 - 2006 Among Top 5 car companies in the Forbes list of the Worlds Most Reputed Companies Nov 06 Features in Business Todays annual list of 20 companies to look for in 2007 Nov 06 The only automobile manufacturer to feature in Business Todays list of Indias Best 10 Marketers Nov 06 Ranks 1st for Corporate Social Responsibility by TNS Automotive 2005 Ranks 1st among Automobile companies in the Corporate Image Monitor (CIM) Study 2005 conducted by AC Nielsen ORG-MARG Receives a commendation from Ministry of Economy, Trade and Industry (MITI) of Japan Sept 05 Number one in JD Power SSI for the second consecutive year Number one in JD Power CSI for the sixth time in a row - the only car to win it so many times M800, WagonR and Swift topped their segments in the TNS Total Customer Satisfaction Study Leadership in the JD Power Initial Quality Study - Alto number one in its segment for the 2nd time in a row, Esteem number one in its segment for the 3rd year in a row, Swift number one in the premium compact segment WagonR and Esteem top their segments in the JD Power APEAL study Ranks 1st in Auto sector for Corporate Reputation Strength (CSR) study Feb 05 TNS ranks Maruti 4th in the Corporate Reputation Strength (CSR) study (#1 in Auto sector)-Feb 05 Maruti bagged the "Manufacturer of the year" award from Autocar-CNBC ( 2nd time in a row)-Feb 05 First Indian car manufacturer to reach 5 million vehicles sales Business World ranks Maruti among top five most respected companies in India-Oct 04 Maruti ranked among top ten (Rank7) greenest companies in India by Business Today - Sep '04 2004 Maruti Suzuki was No. 1 in Customer Satisfaction, No. 1 in Sales Satisfaction No.1 in Product Quality (Esteem and Alto) and No. 1 in Product Appeal (Esteem and Wagon R) No. 1 in Total Customer Satisfaction (Maruti 800, Zen and Alto) Business World ranked us among the country's five most respected companies Business World ranked us the country's most respected automobile company Voted Manufacturer of the year by CNBC Voted one of India's Greenest Companies by Business Today-AC Nielson ORG-MARG 2003 Maruti 800, Maruti Zen and Maruti Esteem make it to the top 10 automotive brands in "Most Trusted Brand survey 2003" J D Power ranked 3 models of Maruti on top: Wagonr, Zen and Esteem Maruti 800 and Wagonr top in NFO Total Customer Satisfaction Study 2003. MUL tops in J D Power CSI (2001) for 4th time in a row
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2001 MUL tops in J D Power CSI (2001) for 2nd time in a row: another international first 2000 Maruti bags JD Power CSI - 1st rank; unique achievement by market leader anywhere in the world
Our Manesar facility has been made to suit Suzuki Motor Corporation (SMC) and Maruti Suzuki India Limited's (MSIL) global ambitions. The plant was inaugurated in February 2007. The World Car derived from concept A-Star would be manufactured here.At present the plant rolls our World Strategic Models Swift & SX4 and DZire.The plant has several in-built systems and mechanisms.
There is a high degree of automation and robotic control in the press shop, weld shop and paint shop to carry on manufacturing work with acute precision and high quality.The plant is designed to be flexible: diverse car models can be made here conveniently owing to automatic tool changers, centralized weld control system and numerical control machines that ensure high quality. The plant at Manesar is the company's fourth car assembly plant and started with an initial capacity of 100,000 cars per year. This will be scaled up to 300,000 cars per year by October 2008.
SAFETY PROVIDED:
WOMEN N DRIVING: In the early 1990s, it was quite a discovery to see women drive a car in India. It was completely a man's domain, and women mostly used public transport or were led by chauffeur - driven cars.
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One of the limiting factors were the kind of cars that were available in the Indian market at that time; cars were often bulky and difficult to drive. Today, the Indian woman has moved beyond her traditional roles. The transition from a humble homemaker to a tech savvy, independent, decision maker has happened and women in India today occupy an important place in the society.One of the factors that has contributed significantly to the success of women in India is "Mobility", and this mobility has come in the form of personal transport. Maruti Suzuki brought in the first car that was easy to drive and park in the Indian sub-continent. Today the latest cars and the technology adaptations like power steering make driving very easy and enjoyable. However, one important aspect was to 'learn to drive'.Only in this decade, organized players like Maruti have ventured into imparting driving skills through organized schools with world class training modules. Maruti Suzuki has taken up to train them 'how to drive safely' through its network of 40 Maruti Driving Schools spread over 36 cities. Over 21,000 women have been trained at these Maruti Driving Schools. While the individual woman gains from learning driving, in many cases this skill leads to flexibility for the whole family. ITS COMPLETELY A GREAT EXPEREINCE: Majority of these women are homemakers with little or limited access to affluence. Some of them are college students, some are grandmothers, yet what is common is their sheer passion to learn driving. Lady instructors have been appointed to train women at these schools. These schools are equipped with the world class, state of the art driving simulators and cars in good condition. At MDS, the training modules are as per international standards and include both theory and practical. Difficult driving situations such as fog, uphill terrain, rain and night driving is simulated on state-of-the-art simulators to give learners a first hand experience of the weather conditions. Only after class room and simulator training the learners are taken for actual driving on road.
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In these competitive times the challenge is to keep inventing newer ways of doing things to keep the customers in your fold. Over the last few years ,the company strengthened the existing practices and experimented with many new initiatives by way of kaizens (continuous improvements) to delight its customers. These initiatives ranged from product design and quality to network expansion, and included new service programs to meet unsaid needs of customers. Servicing customers 24X7 ..... 365 days.... The company takes great pride in sharing that customers have rated Maruti Suzuki first once again in Customer Satisfaction Survey conducted by independent body, J.D.Power Asia Pacific. It is 8th time in a row. The award mirrors the company's commitment towards "Customer Obsession". Key Initiatives: 36
Car pickup & delivery facility for women car owners Service at your Door Step through Maruti Mobile Support: Another unique initiative is the door step service facility through Maruti Mobile Support.Maruti Mobile Support is a first of it's kind initiative and is expected not only to help the company reach out customers in metro cities but also as a mean to reach semi urban /rural areas where setting up of new workshop may not be viable.
SUPPLIERS:
In manufacturing where a sizeable percentage of inputs are bought from vendors and suppliers, the ability to continuously improve quality and reduce costs is directly dependent on vendors doing the same. In light of this statement, the company guides suppliers in adopting latest technologies, and transfers its best practices in the areas of productivity improvement, quality enhancement and cost reduction. The company has set up Maruti Centre for Excellence (MACE) in collaboration with some of its suppliers to achieve these objectives. With the help of MACE, now the company is assisting its direct suppliers in upgrading their sub-suppliers or (Tier-2 suppliers).
DEALERS:
The company has been passionately building its sales and service network since its inception. The company has set up 16 Regional Training Centres across the country to continuously upgrade skills of dealer employees as per new technologies and customers'requirements. In recent years, the company has conducted a comprehensive national survey of its dealer employees to gauge their level of satisfaction. By many accounts, this is a rare initiative by any principal company. Based on the results of the survey, the company formed a cross functional team of senior management from sales, network development and HR to identify an action plan to improve satisfaction levels of dealer employees. One of the initiatives, for instance, was providing car loans at low rates of interest for good performers with repayment guarantee provided by the dealer.
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The company has put in place a strong mechanism for Corporate Governance to enhance confidence of its large number of shareholders and investors in the company. The company complies with all guidelines of SEBI, including new guidelines of Clause 49. With an objective to ensure timely compliance of all applicable laws and regulations, the company has hired an agency called 'Chess Management' to assist in further strengthening systems of Corporate Governance including installation of new software 'eLCM', which tracks compliance using sophisticated IT systems and generates compliance reports.
EMPLOYEES:
The company has enforced highly conducive working environment for its employees. MSIL does not support favouritism in recruitment, promotion, providing compensation, or termination based on caste, religion, gender or age. The company offers equal opportunity for growth to all employees. During the year, the company finalised its policy on affirmative action as per the guidelines laid down by Confederation of Indian Industries.
Maruti culture: Open office culture, easy accessibility and innovative HR practices comprise the Maruti culture. Our Human Resources team views an employee as an "internal customer" and strives to deliver maximum satisfaction to him through transparent, sensitive and innovative HR practices. Participative management, team work and
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kaizen, communication and information sharing are the pillars of employeemanagement relationship. Following our open office culture we have a flat organizational structure with only three levels of responsibilities via Board of Directors, Division Heads and Department Heads. Carrying the philosophy forward, we have an open office, common uniforms and a common canteen for all to create an environment of trust, transparency and a sense of belonging amongst employees.
Growth opportunities: Maruti Suzuki offers one of the best environments to learn and grow and to be associated with some of the best processes and methods in the business of automotive manufacturing. Apart from this, the company offers many services like Finance, Insurance, and Driving School. As with any progressive world class company, Maruti Suzuki 'listens' to employees and acts on the feedback. Many innovative schemes and practices through the years are results of having a good communication system across the organization.
CARS Maruti 800 Omni Maruti Alto 5 seater Maruti Omni 8 seater Maruti Omni LPG Maruti Omni
Maruti 800 STD BS III Maruti 800 AC BS III Maruti 800 Duo
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Wagon R
Maruti Zen Estilo Lx Maruti Zen Estilo Lxi Maruti Zen Estilo Vxi
Maruti Esteem
Baleno
Swift LXi Swift VXi Swift ZXi Swift Diesel'Ldi' Swift Diesel 'Vdi'
Maruti Gypsy
Maruti SX4
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Grand Vitara
Swift DZire
AWAITED MODELS Maruti Escudo Maruti A-Star Maruti Kazshi Maruti Suzuki Splash
Environment initiatives::
The company has remained ahead of regulatory requirements in pursuit of environment protection and energy conservation at its manufacturing facilities, and in development of products that use fewer natural resources and are environment friendly.
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Total energy consumption at the facilities has come down by 26 percent compared to the beginning of the decade.
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The company has been facilitating implementation of Environment Management System (EMS) at its suppliers' end. Regular training programs are conducted for all the suppliers on EMS. Surveys are conducted to assess the vendors who need more guidance. The systems and the environmental performance of suppliers are audited.
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800 City car Alto Wagon-R Wagon-R Zen Estilo Suzuki Splash Zen
Historic models
EXPORTS:
Maruti Exports Limited is the subsidiary of Maruti Udyog Limited 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 crossed the benchmark of
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300,000 cars. Since its inception export was one of the aspects government was keen to encourage. Every political party expected Maruti to earn foreign currency. Angola, Benin, Djibouti, Ethiopia, Europe, Kenya, Morocco, Sri Lanka, Uganda, Chile, Guatemala, Costa Rica and El Salvador are some of the markets served by Maruti Exports. The Middle-East region has also opened up and is showing good potential for growth. Some markets in this region where Maruti has a good presence are Saudi Arabia, Jordan, Kuwait, Bahrain, Qatar and UAE. Maruti has won several national and international accolades. Forbes magazine ranked Maruti at 91 in the list of "World's Most Reputed Companies". The TNS Automotive Global Corporate Social Responsibility (CSR) study has rated Maruti as India 's "Most Trusted" passenger car company.
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The export portfolio, so far dominated by Alto and Maruti 800, will be bolstered with the launch of A-Star during the latter part of 2008-09. The Company has entered into a partnership with Mundra Port for a dedicated car terminal, including a stockyard and parking area, in preparation for the sharp scale-up in exports in the next few years. The Company sold 53,024 units during 2007-08. This is the highest ever export volume in a year for the Company, and marked a growth of 35 percent over the previous year. The Company's contribution towards total exports by the industry increased to 25% from 20% last year. Cumulative exports made by the Company crossed the milestone of 500,000 vehicles. The Company has decided that while focussing on volume growth,it will enhance efforts to improve profitability from export operations.Exports will enable the Company to be at the frontier of technology, quality and manufacturing excel.
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2007 India APEAL for Maruti Swift which has been highest ranked model in Premium Compact car segment. 2007 India APEAL for Maruti SX4 which has been highest ranked model in Midsize car segment. "Car Manufacturer of the Year" Award by NDTV. ICICI-NDTV Profit Viewers Choice Award for Maruti SX4 in the Midsize car segment. CNBC TV-18 Autocar Midsize Car Award for Maruti SX4. CNBC TV-18 Autocar Value for Money for Maruti SX4. CNBC TV 18 Autocar Award for Viewers Choice for Maruti SX4. CNBC TV-18 Autocar Manufacturer Award. "Manufacturer of the Year" Award in the Passenger Car category by Auto Monitor.
Share Capital Reserves & Surplus Total Shareholders Funds Secured Loans Unsecured Loans Total Debt Total Liabilities Gross Block Less: Accum. Depreciation Net Block Capital Work in Progress Investments Inventories Sundry Debtors
Mar 08 144.50 8,270.90 8,415.40 0.10 900.10 900.20 9,315.60 7,285.30 3,988.80 3,296.50 736.30 5,180.70 1,038.00 655.50
Mar 07 144.50 6,709.40 6,853.90 63.50 567.30 630.80 7,484.70 6,146.80 3,487.10 2,659.70 250.70 3,409.20 701.40 747.40
Mar 06 144.50 5,308.10 5,452.60 71.70 0.00 71.70 5,524.30 4,954.60 3,259.40 1,695.20 92.00 2,051.20 881.20 646.10
Mar 05 144.50 4,234.30 4,378.80 307.60 0.00 307.60 4,686.40 5,053.10 3,179.40 1,873.70 42.10 1,516.60 666.60 599.50
Mar 04 144.50 3,446.70 3,591.20 311.90 0.00 311.90 3,903.10 4,566.70 2,735.90 1,830.80 74.90 1,677.30 439.80 689.40
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Cash and Bank Balance Loans and Advances Current Liabilities Provisions Net Current Assets Miscellaneous Expenses not w/o Total Assets Contingent Liabilities
1,029.40 240.20 801.90 775.00 1,454.20 1,520.20 389.20 320.40 1,254.00 303.80 0.00 16.30 4,686.40 3,903.10 1,051.40 1,297.30
The gross revenue (net of excise) ofthe Company for the year was Rs. 188,238 million as against Rs. 152,523 million in the previous year showing an impressive growth of 23.4%. Earnings before depreciation,interest, tax and amortization (EBDITA) stood at Rs. 31,308 million against Rs. 25,888 million in the previous year, recording a jump of 20.9%.Based on technical evaluation and market considerations, the Company has, with effect from 1st April 2007, revised the estimated useful life of certain assets which resulted in depreciation being higher by Rs. 2,122 million for the current year with a corresponding reduction in profit for the year and net fixed assets. Profit before tax (PBT) stood at Rs. 25,030 million against Rs. 22,798 million in the previous year showing a growth of 9.8% and Profit after Tax (PAT) stood at Rs. 17,308 million against Rs. 15,620 million in the previous year showing a growth of 10.8%.
DIVIDEND:
The Board recommends a dividend of100% (i.e. Rs. 5 per equity share of Rs. 5 each) for the year ended 31 March 2008 amounting to Rs. 1,445million as against a dividend of 90% amounting to Rs. 1,300 million, paid for the year ended 31 March 2007.
CAPITAL HISTORY:
Year
FURTURE PROSPECTS
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To develop capability for full model change. To upgrade R&D capabilities for total evaluation of products. Emphasis on VA-VE & innovative cost reduction ideas to cut down costs. Carry out continuous up-gradation of existing models. Maximum localisation for achieving cost reduction in existing as well as new models. Compliance with Bharat Stage IV emission norm and other new regulations. Developing knowledge of costing of various Automotive Technologies through standard cost tables and cost benchmarking. Cost planning of new products coinciding with the new Product planning to put cost in the right perspective at the concept stage and give target cost to designers.
Design in cost reduction to reduce costs from concept stage itself. Develop more products with alternative fuel option. Keeping promises to get closer to out the customers. Using technology to give our customers more for less.
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Spares stockyards in select centres across the country to meet customer requirements faster.
Suzuki aims to make India car unit production hub: Japan's Suzuki Motor
Corp expects to make its Indian unit a major production hub and pursue an aggressive strategy to retain its dominant market share in India, the unit's new managing director. Japan's Suzuki Motor Corp expects to make its Indian unit a major production hub and pursue an aggressive strategy to retain its dominant market share in India, the unit's new managing director said The company, which is expanding its capacity to hit 1 million units by 2010, will launch other models that will upgrade consumers from its popular small
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cars such as the Alto and Zen Estillo, Shinzo Nakanishi said in e-mailed responses a day after taking over as managing director. He said, "We have an aggressive plan for new model launches," said Nakanishi, who has previously worked in China, Indonesia, Hungary, Pakistan and the Middle East. "Maruti Suzuki is ready to play a much bigger role in Suzuki's global operations," he said. "Its manufacturing capability has reached a level where we want to make small cars exclusively in India for export to Europe." Of the 3 million cars that Suzuki wants to sell worldwide by fiscal 2010, Maruti Suzuki will account for a third. "Small cars would continue to grow", says Chairman, Maruti Suzuki: Car market leader Maruti Suzuki India Limited had its 27th Annual General meeting.Addressing the shareholders Chairman Mr. RC Bhargava said emphatically, "The future belongs to small cars."Supporting his statement he said, "Worldwide there seems to be no respite from increasing fuel prices. In addition, the commodity prices have also shot up manifold. Therefore, the demand for small, light-weight, fuel efficient cars would grow and strengthen. This trend is clearly visible in global markets and is likely to enter India as well."
Small is beautiful:Exuding confidence on growth of small cars in the Indian sub-continent Chairman, MSIL said, "The Government has laid down policies that favour small cars. We are at an advantageous position because we have an expertise in designing small cars. With demand for small cars going up we will quickly scale up our R&D capabilities to design cars that are best suited for the Indian market."
Investment:The Company has committed to invest Rs 9,000 Crore by 2010 in India operations. The world class plant at Manesar (part of this investment) is ready to reach its peak production level of 300,000 units next month. In addition, the diesel facility and the suppliers' park at Manesar which were commissioned last fiscal are progressively building capacities, as per plan. The company will soon commence operations at the new engine series plant at
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Gurgaon On further investment the Chairman remarked, "Maruti Suzuki's great strengths is that we have internal resources to finance both R&D expansion as well as capital investments. The higher interest rates, and the risk of making large borrowings to finance capital costs, will not affect us."
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Recently in an auto expo in delhi Maruti Suzuki India has show cased three conpect cars. Namely,Concept A-Star, Concept Splash and Concept Kizashi. Production models, based on Concept A-Star and Concept Splash, will be launched in India in the near future, and will contribute to the companys goal of achieving one million unit sales by 2010.
BIBILOGRAPHY
1. www.maurtisuzuki.com
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2. http://www.topnews.in/maruti-will-not-react-another-company-s-plankhattar-21433 3. http://www.cmlinks.com/moneypore/profilenew/financial.asp?mainopt =9&cocode=5496 4. http://www.marutiexports.com/rhdv.asp 5. http://www.infoplease.com/ce6/bus/A0805415.html 6. http://auto.indiamart.com/auto-industry/ 7. http://auto.indiamart.com/auto-industry/component-industry.html 8. http://www.surfindia.com/automobile/auto-export.html 9. http://www.energymanagertraining.com/automobile/IndiaAutomobileI ndustry.htm 10. http://www.pcra.org/English/transport/dilipchenoy.p
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