Submitted By:

M.B.A. II Sem



A STUDY ON COMPANY ANALYSIS OF MARUTHI UDYOG LTD Submitted in partial fulfillment of the requirements for the award of the degree of MASTER OF BUSINESS ADMINISTRATION BY R.ANAND MBA II SEMESTER R.No: 08931E0027 Under the esteemed guidance of S.A.HASEENA SULTANA Assistant Professor KOTTAM GROUP OF INSTITUTIONS Department of Management





CERTIFICATE This is to certify that the company analysis report entitled on “MARUTHI UDYOG LTD” submitted by “Mr.R.ANAND” in partial fulfillment of the requirements for the award of degree of MASTER OF BUSINESS ADMINISTRATION in Jawaharlal Nehru Technological University –Hyd is a record of bonafide work carried out by her in this department.

Internal guide

Head of the department




R.R.OBJECTIVES OF THE STUDY The objectives of the study are:  To narrate the profile of the company • • • • • Overview of Maruti and Suzuki Building understanding of the car market in India and various segments Understand MUL’s product range and positioning in each segment Understanding the basics in the automobile industry Overview of each Maruti model and the MUL ‘Advantage’ • Overview of the selling process and how to uncover needs of a customer to do need based selling • • Role of financing as a sales tool and the various financing options available Ensuring personal effectiveness  To study the HRM of the company • • • To enhance my knowledge about Recruitment and Selection. To prepare myself as a H. Person & for the organization as well. To convert my theoretical knowledge into practical knowledge. person who can easily identify the training need through his experience which is very essential quality of a H. To enhance my knowledge about Training & Development •  To analysis the Marketing Management of the Company  To study the financial position of the company COMPANY ANALYSIS REPORT (Maruthi Udyog Limited) 5 .

the goal seeming beyond my reach.ACKNOWLEDGEMENT The goal was fixed. I am very much obliged to “SRI KOTTAM TULASI REDDY MEMORIAL COLLEGE” which has given me opportunity to carry out our project work in its premises. I am also indebted to her for her invaluable suggestions. COMPANY ANALYSIS REPORT (Maruthi Udyog Limited) 6 . which made me to correct my faults and improve myself. for her motivation.PARIMALADEVI (Head of Department) for her consistent support and guidance. I am also thankful to her for helping me find and overcome many problems faced during the period. I feel privileged to thank wholeheartedly our Principal. “WHERE THERE IS A WILL THERE IS A WAY”. I therefore take this opportunity top express my atmost gratitude and indebtness to all who have contributed in some way I am thankful to our guide. moves were calculated and I moved with full of enthusiasm.for giving me this great opportunity.ME). It’s a sheer pleasure for me to state with candidly that this entire project is a heartily attempt to reach maximum accuracy. which made this company analysis happen. There was a time when it proved to be on up hill task. vigor and keen interest. help and continuous support. “NAYANATARA” (MA. I express my deep sense of gratitude and thanks to B. But as work progressed my determination and will power grew stronger and completion of this work further confined my belief that.

of Management SKTRMC.HASEENA SULTANA. Date: Place: Signature of the student.A. COMPANY ANALYSIS REPORT (Maruthi Udyog Limited) 7 . I also declare that report is original and not submitted to any other university of Institution for the award of any degree of Diploma. Dept.DECLARATION I here by declare mat this project entitled “A STUDY OF COMPANY ANALYSIS REPORT ON BRITANNIA is a bonafied work carried out by me under the guidance of S. Kondair. Assistant professor.

The company annually exports more than 50. Maruti Udyog Limited (MUL) was established in February 1981. Suzuki Motor Corporation of Japan holds a majority stake in the company. 2007. The rest is owned by the public and financial institutions.2 per cent of Maruti. The Indian government held an initial public offering of 25% of the company in June 2003. Maruti Alto tops the sales charts and Maruti Swift is the largest selling in A2 segment. Haryana (near Delhi). It was the first company in India to mass-produce and sell more than a million cars. 18. Govt.the Hindustan Ambassador and Premier Padmini were both around 25 years out of date at that point. It is a leading four-wheeler automobile manufacturer in South Asia. Maruti 800. based on the Suzuki Alto kei car which at the time was the only modern car available in India. Currently. It is largely credited for having brought in an automobile revolution to India. though the actual production commenced in 1983 with the Maruti 800. More than a million units of this car have been sold worldwide so far. its' only competitors. of India no longer has stake in Maruti Udyog.OVERVIEW Maruti Suzuki India Limited is a publicly listed automaker in India. It is the market leader in India and on 17 September 2007. Govt.28% of the company was owned by the Indian government. Maruti has produced over 5 Million vehicles. depending upon export orders. Cars similar to Marutis (but not manufactured by Maruti Udyog) are sold by Suzuki and manufactured in Pakistan and other South Asian countries. and 54. Japan. Until recently. The company is a subsidiary of Suzuki Motor Corporation. More than half the cars sold in India are Maruti cars. of India sold its complete share to Indian financial institutions. As of May 10.000 cars and has an extremely large domestic market in India selling over 730. was the India's largest selling compact car ever since it was launched in 1983. The company headquarter is in Gurgaon.000 cars annually. COMPANY ANALYSIS REPORT (Maruthi Udyog Limited) 8 .2% by Suzuki of Japan. which owns 54. Maruti Udyog was renamed Maruti Suzuki India Limited. till 2004. Through 2004. It is listed on the Bombay Stock Exchange and National Stock Exchange in India. Profile 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. With this. Marutis are sold in India and various several other countries.

Partner for the Joint venture Pressure started mounting on Indira and Sanjay Gandhi to share the details of the progress on the Maruti Project. Initial rounds of discussion were held with the giants of the automobile industry in Japan including Toyota. Service is a major revenue generator of the company. ownership has changed hands and the customer has evolved. the product range has widened. Ltd and Maruti Insurance Brokers Pvt. To ensure the vehicles sold by them are serviced properly. was accepted by the workforce of the company without any difficulty. Nissan and Honda. Maruti Udyog had relatively few problems with its labour force. then and now. Authorized service stations Maruti is one of the companies in India which has unparalleled service network. first instituted in Japan in the 1970s. Suzuki Motor Corporation was at that time a small player in the four wheeler automobile sector and had major share in the two wheeler segment. Maruti has 2628 listed Authorized service stations and 30 Express Service Stations on 30 highways across India. The service was set up the company with the inception of two subsidiaries Maruti Insurance Distributors Services Pvt. where Maruti trains the local staff. The Express Service stations help many stranded vehicles on the highways by sending across their repair man to the vehicle. A delegation of Indian technocrats was assigned to hunt a collaborator for the project. Most of the service stations are managed on franchise basis. Limited This service started as a benefit or value addition to customers and was able to ramp up easily. Bajaj Allianz. Its emphasis of a Japanese work culture and the modern manufacturing process. Since country's resources were made available by mother to her son's pet project. with Suzuki as a minor partner to make a people's car for middle class India. Suzuki's bid was considered negligible. What remains unchanged. Other automobile companies have not been able to match this benchmark set by Maruti. Maruti insurance Launched in 2002 Maruti provides vehicle insurance to its customers with the help of the National Insurance Company. is Maruti’s mission to motorise India. By December 2005 they were able to sell more than two million insurance policies since its inception. Industrial relations For most of its history. COMPANY ANALYSIS REPORT (Maruthi Udyog Limited) 9 . New India Assurance and Royal Sundaram. Over the years.Maruti Suzuki was born as a government company.

Standard Chartered Bank. By sending a consignment of 571 cars to the same country Maruti crossed the benchmark of 300. and Sundaram to start this venture including its strategic partners in car finance. Maruti launched Maruti Finance in January 2002.Maruti Finance To promote its bottom line growth. These schools are modelled on international standards. Later the services were extended to other cities of India as well.000 cars. 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.[15] Maruti tied up with ABN Amro Bank. COMPANY ANALYSIS REPORT (Maruthi Udyog Limited) 10 . Since its inception export was one of the aspects government was keen to encourage. Kotak Mahindra. Shown here is Maruti Gypsy in Malta. SBI-Maruti Finance is currently available in 166 cities across India Maruti Driving School As part of its corporate social responsibility Maruti Udyog launched the Maruti Driving School in Delhi. Again the company entered into a strategic partnership with SBI in March 2003[16] Since March 2003. Maruti has sold over 12. ICICI Limited. Before driving actual vehicles participants are trained on simulators. Every political party expected Maruti to earn foreign currency.000 vehicles through SBIMaruti Finance. where learners go through classroom and practical sessions. HDFC Bank. The first commercial consignment of 480 cars were sent to Hungary. Exports Maruti Suzuki has helped India emerge as the fourth largest exporter of automobiles in Asia. Many international practices like road behaviour and attitudes are also taught in these schools. Prior to the start of this service Maruti had started two joint ventures Citicorp Maruti and Maruti Countrywide with Citi Group and GE Countrywide respectively to assist its client in securing loan.

To convert my theoretical knowledge into practical knowledge. To enhance my knowledge about Training & Development •  To analysis the Marketing Management of the Company • • • • Understand MUL’s product range and positioning in each segment Understanding the basics in the automobile industry Overview of each Maruti model and the MUL ‘Advantage’ Overview of the selling process and how to uncover needs of a customer to do need based selling  To study the financial position of the company • • • Role of financing as a sales tool and the various financing options available Ensuring Company effectiveness in implementing accounting standards Analyzing companies financial statements in ratios COMPANY ANALYSIS REPORT (Maruthi Udyog Limited) 11 . person who can easily identify the training need through his experience which is very essential quality of a H.R.R. To prepare myself as a H. Person & for the organization as well.OBJECTIVES OF THE STUDY The objectives of the study are:  To narrate the profile of the company • • Overview of Maruti and Suzuki Building understanding of the car market in India and various segments  To study the HRM of the company • • • To enhance my knowledge about Recruitment and Selection.

COMPANY ANALYSIS REPORT (Maruthi Udyog Limited) 12 .

Creating Customer Delight and Shareholder's Wealth.: +(91)-(11)-23316831 (10 lines) Fax: +(91)-(11)-23318754. A pride of India.Code: MARUTI Bloomberg: MUL@IN Reuters: MRTI.Four Wheelers BSE ." Automotive . 23713575 Telex: 031-65029 MUL IN Works Palam Gurgaon Road Gurgaon -122015 Haryana. Registered & Corporate Office 11th Floor. 2341341-5 Website www.: +(91)-(124)-2340341-5.BO Joint Venture With Suzuki Motor COMPANY ANALYSIS REPORT (Maruthi Udyog Limited) 13 . Kasturba Gandhi Marg New Delhi . India Tel. of Japan in October 1982.PROFILE (Snap Shot) Year of Establishment Vision Industry Listings & its codes February 1981 "The Leader in The Indian Automobile Industry. now Suzuki Motor Corporation. India Tel.110001.Code: 532500 NSE . Jeevan Prakash 25.

Managing Director and CEO Industry Automotive Products Cars Revenue ▲US$3.903 [2] Parent Suzuki Website MarutiSuzuki. NSE MARUTI) Founded 1981 [1] Headquarters Gurgaon. India Key people Mr. Haryana.5 billion (2009) Employees 6. Shinzo Nakanishi.Type Public (BSE COMPANY ANALYSIS REPORT (Maruthi Udyog Limited) 14 .


000 units. Launch of Maruti Gypsy (970cc. the installed capacity reached 200.2 per cent. Maruti 800.000 units. India's first affordable car was produced. COMPANY ANALYSIS REPORT (Maruthi Udyog Limited) 7 200 • World premier of concept A-star at 9th expo.000 vehicles (cumulative production). Launch of customer information centers in Hyderabad.198 1 198 2 198 3 198 4 198 5 198 6 198 7 198 8 199 2 199 4 199 5 199 6 199 7 199 8 199 9 200 0 200 1 200 2 200 3 200 4 • • • • Maruti Udyog Ltd. Maruti closed the financial year 2003-04 with an annual sale of 472122 units. Steped into a JV with SMC of Japan. Installed capacity reached 40. Start of Maruti True value in Mumbai. 9 16 . 8 200 • Ritz has launched. Second plant launched.000 units. SMC increases its stake to 54. Exported first lot of 500 cars to Hungary. • • • • • • • • • • • • • • • • • • • 200 • The fiftieth lakh car rolls out in April. the highest ever since the company began operations 20 years ago. Launch of Maruti Finance with 10 finance companies in Mumbai. was incorporated. Produced 100. Launch of website as part of CRM initiatives. 4WD off-road vehicle). Omni. Installed capacity increased to 100. a 796 cc MUV was in production. 2005. IDTR (Institute of Driving Training and Research) launched jointly with Delhi government to promote safe driving habits. and Chennai.Suzuki innovative traffic beat in Delhi and Chennai as social initiatives. SMC increases its stake to 50 per cent. Launch of Maruti . Listed on BSE and NSE after a public issue oversubscribed 10 times. Produced the 2 millionth vehicle since the commencement of production. Production of 4 millionth vehicle. Bangalore. Launch of 24-hour emergency on-road vehicle service. Produced the 1 millionth vehicle since the commencement of production. a 796 cc hatchback. 5 200 • Swift diesel launched.


Feb 1981 . Jan 25. with Suzuki as a minor partner.The rights issue will thus witness Suzuki becoming the largest shareholder in Maruti. 2002 ." Responding to queries on the future control of Maruti. In return for this. 1983 . the sporty car achieved this feat in only three years and eight months. the sporty car achieved this feat in only three years and eight months. chairman & CEO.Maruti Suzuki's all-conquering hatchback Swift has just added another feather to its crown by becoming the fastest car model to reach the 3lakh milestone. 2000 2002 2003 2004 2005 June 26. On December 14.Osamu Suzuki. Japan.Maruti completes 25 years Maruti Suzuki recently completed 25 years. 2005 . A subsidiary of Suzuki Motor Corporation (SMC) of Japan. to make a people's car for middle class India. Since then. the Maruti Suzuki India Limited headquartered in Delhi. 1983 Dec 14. The Indore-based World Information Pages had claimed that the word Maruti is name of an Indian god. India's iconic car. running with 3 vehicle assembly plants at Gurgaon and 1 vehicle assembly. Over the years. On the occasion COMPANY ANALYSIS REPORT (Maruthi Udyog Limited) 18 . Suzuki said: "General Motors has a 20 per cent stake in Suzuki. Maruti Suzuki India Limited (MSIL) was born in February 1981. 1983. On the occasion . the company's product range has widened and ownership has changed hands.The result.Maruti Suzuki's all-conquering hatchback Swift has just added another feather to its crown by becoming the fastest car model to reach the 3lakh milestone. rolled off the assembly line at the company's Gurgaon plant. Launched in May 2005. Maruti Suzuki started as a government company. 2003 . Suzuki Motor Corporation. May 31. the Government will get a renunciation premium for forgoing its portion of the rights in favour of Suzuki as well as control premium for giving up majority control in Maruti to the .Also. Launched in May 2005. 2000 . said: "Maruti is controlled by Suzuki and will continue to be managed by Suzuki in India. Suzuki is registered under trademark laws in various countries. the first Maruti 800. Maruti Suzuki has produced and sold around Nov 21. May 2004 . They hybrid trademark 'Maruti Suzuki' has been used on products of the joint venture company in India.

.2% stake.MUMBAI. July 1 (Reuters) . said. Mr Shinzo Nakanishi. 2007 ..2006 Nov 13. the Indian subsidiary of Suzuki Motor." Jul 1. Suzuki also faces competition from global automakers like Toyota (nyse: TM . 2007 2008 2009 COMPANY ANALYSIS REPORT (Maruthi Udyog Limited) 19 .. in which Suzuki owns a 54. Managing Director and CEO.The former India bureaucrat is managing director of Maruti Suzuki.. is expanding its lineup and dealer network here. up for the six month in a row.Maruti Suzuki. Maruti Suzuki India Ltd. Such are the current competitive dynamics facing Maruti Suzuki in one of the fastest-growing auto markets in the world Dec 11.6 percent in . India's top car maker.people ). 'This month's export numbers are the highest ever monthly export volume in the company's history. addressing a press conference in the Capital on . Announcing the results.India's rapidly expanding automobile market is key for Suzuki. Apr 25.`The best year': Mr S.. Nakanishi. 2006 .. the Japanese automaker's biggest operation outside of . the company's Managing Director. its chairman has often said. 2009 . 2008 . Maruti Suzuki..' Maruti said in a statement on Wednesday. "The year 2007-08 was the best year in the history of Maruti. said its car sales rose 22.

creating customer delight and shareholders’ wealth A pride of India.VISION & VALUES VISION “The leader in the Indian Automobile Industry. FLEXIBLE & FAST MOVER • INNOVATION AND CREATIVITY • NETWORKING AND PARTNERSHIP • OPENNESS AND LEARNING BOARD OF DIRECTORS Name R C Bhargava Shuji Oishi Keilchi Asai Kenichi Ayukawa Pallavi Shroff Davinder Singh Brar Designation Chairman / Chair Person Director Director Director Director Director Name Shinzo Nakanishi Tsuneo Ohashi Osamu Suzuki Amal Ganguli Manvinder Singh Banga Hirofumi Nagao Designation Managing Director & CEO Director Director Director Director Director COMPANY ANALYSIS REPORT (Maruthi Udyog Limited) 20 .” VALUES • CUSTOMER OBSESSION • FAST.

• To increase to the fullest the employee’s job satisfaction and self-actualization. Importance: • Social significance: proper management of personnel’s. Objectives: • To help the organization reach its goals. • To be Ethically and Socially Responsive to the needs of society. • To employ the skills and abilities of the workforce efficiently. • To develop and maintain a quality of work life. enhances their dignity by satisfying their social needs.HUMAN RESOURCE MANAGEMENT: Personnel management is that part of management process which is primarily concerned with the human constituents of an organization. • To provide the organization with well-trained and well-motivated employees. • To communicate HR policies to all employees. COMPANY ANALYSIS REPORT (Maruthi Udyog Limited) 21 .

• Significance for Individual Enterprise: It can help the organization in accomplishing. it promotes team work in the employees. create a learning And vibrant organisation with High sense of pride amongst its Members CULTURE BUILDING INITIATIVES SINCE INCEPTION:  Japanese Spirit Management philosophy of Team  Common uniform  Open office   Common Canteen FOCUS OF EFFECTIVE MANAGENENT PROCESS  Top Driven HR – MD is also Director HR COMPANY ANALYSIS REPORT (Maruthi Udyog Limited) 22 .• Professional significance: By providing healthy working environment. HR VISION : Lead and Facilitate continuous Change towards organisational Excellence .

Training need identification. Empowerment. HR’s role of a facilitator  Line managers as HR Managers  Year of the Customer –  HR INTERNAL CUSTOMER FOCUS  Focus on Internal & External Customer HR INITIATIVES  Prepare MUL Strategic Business Plan-2000-2003. Job Rotation . To achieve the Vision & Goal  Improve the performance Appraisal system .it’s process. skill & usage  Introduce a Potential Appraisal System  Improvements in internal & external Training & it’s effective utilisation. Roll out of Vision  Raise cost consciousness for cost control and reduction COMPANY ANALYSIS REPORT (Maruthi Udyog Limited) 23 .  Systematic career planning . Job enrichment  Periodic communication meeting at various level.

IITS/RECS/RORKEE/HBTI  ALL-INDIA TEST  MBAs – IIMs/XLRI  CAs . INDUCTION SUCCESSION:  Transparent Recruitment & Selection process  Recruitment on an All India Basis – no sectoral or  Region specific  Recruitment of Best available Talent in the Country ENGINEERS – CAMPUS .Rank Holders  Technicians .ITI’s diploma holders after All  India Exam & Apprenticeship In MUL  Lateral Entry for Experienced Professionals SUCCESSION PLANNING COMPANY ANALYSIS REPORT (Maruthi Udyog Limited) 24 .marketing staff  Retention of Talent. Exposure on Brand Strategy to all non.

/ Asst.  Maruti Udyog Sahyog Samiti – a forum for   Non-Unionised Staff  Delayered Organisation Structure   Workers(Techn. Speedy   Communication and decision making  Morning Meetings   Morning Exercises   Management Committee Meetings – every   Tuesday  Single unaffiliated Union  Excellent Industrial Relations scenario – no  loss of mandays due to strike/lockout etc.  Executives. in  past 5 yrs. potential & performance  vacancy – based  Open Office – Easy accessibility. Managers COMPANY ANALYSIS REPORT (Maruthi Udyog Limited) 25 . Supervisors.).

which are listed below: Overview of Maruti and Suzuki:  Building understanding of the car market in India and various segments  Understand MUL’s product range and positioning in each segment  Understanding the basics in the automobile industry  Overview of each Maruti model and the MUL ‘Advantage’  Overview of the selling process and how to uncover needs of a customer to do need based selling COMPANY ANALYSIS REPORT (Maruthi Udyog Limited) 26 .e. This program attempts to orient the new DSEs on a few important parameters.INDUCTION PROGRAMME Objective: The objective of this program is to facilitate smooth induction of the new DSEs into their place of work i. Maruti dealerships.

RECRUITMENT PROCESS OF MARUTI UDYOG LTD:  The recruiting procedure at a Maruti dealership is as follows: FOR A PARTICULAR DEALERSHIP  The dealership should release an advertisement.  Depending on availability of infrastructure  Interview of shortlisted/ qualified personnel COMPANY ANALYSIS REPORT (Maruthi Udyog Limited) 27 . Role of financing as a sales tool and the various financing options available  Ensuring personal effectiveness  Understand the attributes of a good DSE MEANING OF RECRUITMENT  It is the process of searching the potential candidate and offers him or her the job  It is positive in nature in the Indian context. Process of identifying and hiring best- qualified candidate.

These hurdles or screens are designed to eliminate an unqualified candidate at any point in the selection process There is no standards selection procedure to be used in all organizations or for all jobs. It is a series of successive hurdles or barriers which an applicant must cross. Steps in Selection Process of Maruti udyog ltd: Selection process consists of a series of steps.MEANING OF SELECTION: It is the process of searching the potential candidate. But it is positive in the US context. It is negative in nature in the Indian context. at each stage. facts may come light which may lead to the rejection of the applicant. The complexity of selection procedures increases with the level and responsibility of the position to be filled.  Preliminary Interview (screening applications)  Application Form COMPANY ANALYSIS REPORT (Maruthi Udyog Limited) 28 .

 Induction.  Annual Training Plan .All Levels  Training customised to meet Organisational Objectives  Topics selected based on Vision. Selection Test  Employment Interview  Medical Examination  Reference Checks  Final Approval  Employment. Values & Departmental COMPANY ANALYSIS REPORT (Maruthi Udyog Limited) 29 .  Follow – up (Evaluation) IMPORTANCE OF TRAINING Training and Development helps in optimizing the utilization of human resource that further helps the employee to achieve the organizational goals as well as their individual goals.

for Overseas Tech. Japan (2 batches/yr of 50 each)  9 months Javada Training for Press. Feedback of Company-wide Managers  Competency Mapping to identify Individual Training Needs  Technical Training on latest Technologies abroad at SMC. Japan and  AOTS (Assoc. Tool & Die COMPANY ANALYSIS REPORT (Maruthi Udyog Limited) 30 . Japan STRONG FOCUS ON TRAINING INITIATIVES:  Build a Learning Organisation  Continuous Value Additions to Professional Skills  Customised Training  Training to the personnel of Business Partners OVERSEAS TRAINING :  Training held in co-ordination with SMC. Scholarship)  (covered 1600 employees under the various schemes)  6 months SMC Training for Technicians  OJT in SMC.

Technological Knowhow  R & D Training (2 yrs. an impartial rating of an employee’s excellence in matters pertaining to his present job and to his potentialities for a better job.  New Appraisal System based on KRAs &Targets   Review of Targets at regular Intervals  People Development an important KRA REWARD  Promotions based on Performance  Productivity & Profit-linked Incentive Schemes  Training including Long-term SMC Japan Trg. if not the Country  LEADERSHIP  Vision.Research on new Technologies APPRAISAL REWARD Appraisal: A systematic. in terms of techniques.5 to 6 months) for  Supervisors & above .) .Managerial Best Practices  AOTS Technical Training (3. Specialists .  Highest paid workforce in the Industry. Value & Team Building Workshops for Top Management  CFT (Cross Functional Teams) of Managers for Major Thrust Areas  Managers sent to Joint Ventures to upgrade their practices to MUL standards CAREER DESIGN It is defined as the process of deciding on the content of a job in terms of its duties and responsibilities on the methods to be used in carrying out the job.Design & Maintenance  AOTS Managerial Training (4-10weeks) for Manager &above . COMPANY ANALYSIS REPORT (Maruthi Udyog Limited) 31 . periodic and so far as humanly possible.

including Inter-functional OUTSOURCING HR:  Part of our Long-term Strategic Plan  Currently Trainers hired from outside RETENTION EMPLOYEE WELFARE : Employee retention is a process in which the employees are encouraged to remain with the organization for the maximum period of time or until the completion of the and procedures and on the relationships that should exist between the job holder and his superiors. EMPLOYEE WELFARE: COMPANY ANALYSIS REPORT (Maruthi Udyog Limited) 32 . subordinates and colleagues  Performance & Potential based Appraisals  Fast Track Option for High-performers  Promotions after Managers Vacancy based  Interviews for promotions above Managers SELECTION OF SUPERVISORS:  Performance / Attendance / Discipline record  Written Test & Interview  Job Rotation . Employee retention is beneficial for the organization as well as the employee.

Service & speedy redress   Proposed MUL Pension Scheme  Learning Opportunity ..26% Lock-in period of 3 years Transferable Internally COMPANY ANALYSIS REPORT (Maruthi Udyog Limited) 33 . Residential Colonies for Employees – Chakkarpur & Bhondsi  Hospitalisation Reimbursement – on actuals without Ceiling  Vehicle Loans  Household Equipment Loans  House Building Advance  Annual Advance  MUL PF Trust – for better Mgt. Japan   Job Rotation & Job enrichment  EMPLOYEE ENGAGEMENT -ESOPs Maruti Udyog Ltd. Employees Mutual Benefit Fund Scheme Managed by a 10member Trust Fixed Equity of 0.Benchmark in Auto Technology  Professional Value addition through Training  Opportunity for foreign training at SMC.

4 implemented/employee/month  Cost Saving Rs.Rs.SUGGESTION SCHEME QUALITY CIRCLES:  For better quality and productivity  Through involvement of all employees and teamwork During the year 1999-2000 : Suggestions Implemented . 131.52.Best Team sent to SMC  MD’s lunch with Best QC Team & Best Suggestion Winner SUGGESTIONS : MONETARY REWARD:  Criteria ./ Year  Target .34 marks / suggestion  Company-wide QC Groups (8-15 members per group)  Monthly QC Meetings on the First Wednesday each Month  Company-wide QC Competitions .1implmented/employee/month  Other areas .8.7189 Target for SS & QC for 2000-01:  Suggestions Implemented .13 meetings/QC Gp.69 Crores  Number of QC Groups . 165 crores (25%)increase for the Company  QC Meeting .Idea  Efforts  Result : Cost reduction / Q Improvement / Productivity COMPANY ANALYSIS REPORT (Maruthi Udyog Limited) 34 . & VI .510  QC Meetings held .Prod.054  Cost Saving (in crores) .

 Improvement FUTURE CHALLENGES  Realigning organisation culture based on new vision & values  Objective performance management & development system  Transparent job rotation & job enrichment  Performance linked reward and recognition system  Career planning & promotion policy  Revised recruitment policy  Competency mapping  Strong fucus on training initiatives  Build a learnng organisation  Continuous value addition to professional skill  Customised training  Training to the personnel of business partners  Internal Communication  Union alignment  Employee involvment & participation CODE OF BUSINESS CONDUCT AND ETHICS: COMPANY ANALYSIS REPORT (Maruthi Udyog Limited) 35 .

its Board Members and its employees is the focus of public attention and accordingly.e. The Senior Management Personnel should continue to comply with otherapplicable laws & regulations and the relevant policies. the top management personnel (i. 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. APPLICABILITY : This Code of Conduct is applicable to all Senior Management Personnel which would include the directors of the Company. All Senior Management Personnel are expected to comply with the letter and spirit of this Code. every act of the Company. INTERPRETATION OF THE CODE : In this Code the term “Relative” shall have the same meaning as defined in Section 6 of the Companies Act. You can also contact the Secretarial & Legal Department if you have any questions or clarifications. Uphold these standards in day-to-day activities and also comply with all applicable standards. In this Code. This policy should be read in conjunction with applicable regulations & existing policies & procedures of the Company. executive directors & advisors at executive director level) & all functional heads (including management personnel with direct functional reporting to directors & top management personnel). words importing the masculine shall include feminine and words importing singular shall include the plural or vice versa. All Senior Management Personnel are expected to read and understand this Code of Business Conduct and Ethics. policies and procedures of the company.. Any question or interpretation under this Code of BusinessConduct and Ethics will be considered and dealt with by the Board or any person authorized by the Board on their behalf. rules and procedures of the Company. 1956. Being a listed Company.The Code comes into immediate effect. COMPANY ANALYSIS REPORT (Maruthi Udyog Limited) 36 . there is a need to reinforce Maruti’s commitment towards maintaining highest standards of Corporate Governance.As a responsible corporate citizen. Maruti Suzuki India Limited (‘Maruti’ or “the Company”) has alwaysbelieved in following highest standards of Corporate Governance.

COMPLIANCE WITH APPLICABLE LAWS & REGULATIONS : Senior Management Personnel must comply and where applicable. fairness and ethical conduct while working for the Company as well when representing the Company. INTEGRITY & ETHICAL CONDUCT : Senior Management Personnel shall act in accordance with the highest standards of integrity. Each Senior Management Personnel must acquire appropriate knowledge of the requirements relating to his duties sufficient to enable him to recognize potential non compliance issues and to know when to seek advice from the Legal Department on specific Company policies and procedures. COMPANY ANALYSIS REPORT (Maruthi Udyog Limited) 37 . 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. rules and regulations applicable to the Company and its employees. oversee compliance by employees with all the laws. honesty. HONESTY. by a Senior Management Personnel or authorized or instructed to be made or undertaken by any other person or the Company if the consequence of that transaction or payment would be the violation of any law in force. No payment or transaction should be made or undertaken.

 Intelligent and capable application of modern marketing policies.  To take appropriate action in the course of actions. Importance : COMPANY ANALYSIS REPORT (Maruthi Udyog Limited) 38 .MARKETING MANAGEMENT: Marketing is the creation and delivery of standard of living to the society.  To develop the marketing field.  To revive existing marketing function.  To find source for further information concerning the market Problems.  To suggest solution by studying the problems relating to marketing. if shortcoming are found.  To develop guiding policies and their implementation for a good result. Objectives: The various objectives of marketing include the following :.

 Importance of marketing to the firm.  Importance of marketing in Developed Economy.  Importance of marketing in underdeveloped or Developing Economy.  Importance of marketing in a Seller’s or Buyer’s market. Importance of marketing to the society. PRODUCTS OF MARUTHI SUZUKI : Available Car Models Starting Price (Ex-showroom. Mumbai) COMPANY ANALYSIS REPORT (Maruthi Udyog Limited) 39 .

36.58.214 • Maruti Suzuki Omni Rs. 3.Maruti Suzuki 800 Rs.97. 2. 2.13.532 • Maruti Suzuki A-Star Rs. 1.03. 3.843 • Maruti Suzuki Zen Estilo Rs.565 • Maruti Suzuki Alto Rs.942 • COMPANY ANALYSIS REPORT (Maruthi Udyog Limited) 40 . 3.39. 3.22.157 • Maruti Suzuki Wagon R Duo Rs.085 • Maruti Suzuki Wagon R Rs.

6.300 • Maruti Suzuki Gypsy Rs.872 • Maruti Suzuki Swift Rs. 4.091 • Maruti Suzuki Grand Vitara Rs.Maruti Suzuki Versa Rs. 16.81.953 • Maruti Suzuki Ritz Rs.23.05.325 • Maruti Suzuki SX4 Rs.22.86. 5. 4.000 • COMPANY ANALYSIS REPORT (Maruthi Udyog Limited) 41 .82. 3. 4.92.859 • Maruti Suzuki Swift Dzire Rs.


Dream-Like Handling. trip meter (digital display). a sense that it is packed with energy and ready to deliver a dynamic drive. central door locking (4 door). cabin light (3 position). headlamp leveling device. its one-and-a-half box. fabric accented door trims. cup holders (front 2. light off/ key reminder. manual air-conditioning. rear seat belts etc. front and rear electronic windows. day and night rear view mirror. front door trim pockets. vanity mirrors (sun visor co-driver side). antenna. door ajar warming lamp. It's a perfect complement to your evolved tastes and lifestyle.PRODUCT: The all-new Maruti Suzuki Swift is fully loaded with a range of exciting new features. green tinted glass window. front fog lamps. And the best way to take your driving pleasure to a brand-new high. and a greater feeling of stability as you sail over our roads with feather-touch ease. high mounted stop lamp. Styled with a clear sense of muscularity. COMPANY ANALYSIS REPORT (Maruthi Udyog Limited) 43 . steering. etc. rear fog lamps. heater and manual Air conditioning.European Styling. brake assist . Swift VXi: Apart from the features found in other model. tailgate opener key type. You get lower road noise. sun visors (both sides). aggressive form makes for a look of stability. gearbox and rear engine mounting to be attached to a suspension frame. rear seat head restraints. rear1). Japanese Engineering. driver's seatbelt warning lamp. OVRM (internally adjusted). striking features of this model are black colored A & B pillars. halogen headlamps. 12v accessory socket in center console. There are three variants of Maruti Suzuki Swift : • • • Swift LXi Swift VXi Swift ZXi 3 assist grips. New chassis systems allow for the front suspension lower arms. console box (lower). child lock (rear door).Its solid look is complemented by an equally rooted road presence and class-defining ride quality. wind screen wiper 2 speed plus 1 speed intermittent. key not removed warning buzzer. The new Swift is a generation different from Suzuki design. are the features available in this model. power steering. driver's seat belt warning lamp. tachometer. 3 spoke urethane steering wheel.

A year later.5 lakh. keyless entry. 12v accessory socket in luggage room.dual front airbags. PRICE: Maruti is expected to take Hyundai heads on with the pricing of their upcoming Maruti Suzuki Swift car.Delhi NCR is one of the major targeted markets and it might get the benefit of this policy. colored outside door handles. PROMOTION: When Maruti Udyog launched the Swift in May last year. Cars at a price higher than 4 lakh have to pay a 4% road tax. central door locking (5 doors). having totted up sales of 61. COMPANY ANALYSIS REPORT (Maruthi Udyog Limited) 44 . 4 lakh. ex-showroom.Swift ZXi Special features that have made this model more market friendly are rear window demister. Three versions were launched with the base variant carrying a retail tag of Rs 3. they would quite likely force the competition to rethink their strategy. rear parcel shelf. There is another advantage in doing so considering in the capital city of Delhi NCR road tax on the sub 4 lakh priced cars is comparatively lower at 2%.This price range would practically rip apart Hyundai’s offering in Getz. seat belts 3-point ELR with shoulder adjusters. rear window wiper.tailgate opener electromagnetic type etc.85 lakh. However. seat belts front 3-point ELR with pretensioning. New Delhi.200 units. 4.The official pricing however is still not out. After launching cars for the masses since so many years. which is priced at a much higher tag of Rs. the company is said to be studying the prospects of launching the base model at the 4-lakh price tag. the company says the Swift is now the most-sold car in the first year of any car in the history of the Indian automobile industry. room lamp and luggage room. And if they indeed do take the chance of pricing Suzuki Swift at a considerable lower price than Hyundai Getz. India’s largest automobile manufacturer is now targeting the premium segment with their latest model from the Suzuki’s stable. Both the companies are known for their value based offerings and Maruti with their extensive service network and brand reputation for making reliable cars should get the customer’s nod over their competition. The analysts predict the pricing of this premiumhatchback to start from Rs. colored outside door mirror cowls. and this aggressive pricing only reinforced this feeling. driver seat height adjuster. the automotive industry was agog with expectation that the car had the makings of a real winner.

The ultimate total plant capacity is three lakh diesel engines. The car recorded an estimated 4. called Maruti Suzuki Automobiles India Limited.524.000 bookings at the time of its launch. In October. wasn’t enough to cope with demand.5 lakh units per annum.4 lakh transmission assemblies. The Rs1.This is higher than what Maruti had initially planned to sell. 20.2 crore plant has a capacity to roll out 1 lakh cars per year with a capacity to scale up to 2. The car manufacturing plant will begin commercial production by the end of 2006. the initial production is 1 lakh diesel engines. However.000 petrol engines and 1.The engine and the transmission plant has owned by Suzuki Powertrain India Limited in which Suzuki Motor Corporation would hold 51 per cent stake and Maruti Udyog holding the balance. is a joint venture between Maruti Udyog and Suzuki Motor Corporation holding a 70 per cent and 30 per cent stake respectively. SALES PERFORMANCE : COMPANY ANALYSIS REPORT (Maruthi Udyog Limited) 45 . the company increased capacity for the Swift which helped cut down on the waiting time from an estimated three months. and the initial output of 200 units a day on a two-shift basis. PLACE : The car manufacturing company.

We are Suzuki's largest manufacturing facility. in 2001 it was 352.415 crores it increased to 764.842 in the year 2008. The high localization of parts within India is one of our distinct strengths.this report says that Maruthi Suzuki has out standng it’s performance in producing and marketing its products. we have produced more than 6. outside Japan offering 11 models in over 150 variants. Marti has the highest market capitalization in the auto sector. the balance being held by various       QIBs.INTERPRETATION: The sales volumes of Maruthi Suzuki had increased randomly from 2001-2008. On BSE. The turnover last year was USD 3. PCBs Public. MARKET SHARE : INTERPRETATION: Market Share:  Currently Suzuki holds 54.37 Bn employing more than 6700 employees. We are the largest car company in the country.2% stake of Marti.6 million cars. 4th plant was added with the capacity of 100000 Cars 46 COMPANY ANALYSIS REPORT (Maruthi Udyog Limited) . Where the company has 3 plants in Gurgaon facility. So far.

The market share of Maruthi Suzuki had decreased gradually from the year 2001- 2008 due to its rigid competitors HYUNDAI and TATA motors etc. BRAND HIERARCHY OF THE COMPANY: The Product Line: COMPANY ANALYSIS REPORT (Maruthi Udyog Limited) 47 . Hundred thousand at Manesar in 2006-07.

size (i. length of the model and its weight) and other factors (including engine capacity).e.The Indian passenger car market was divided into various segments and subsegments on the basis of price. MUL had a presence in all the segments and sub-segments. COMPETITORS : Major Competitors: COMPANY ANALYSIS REPORT (Maruthi Udyog Limited) 48 .










Since 1985, Maruti Udyog Limited (MUL) has been the market leader in the passenger car industry in India. Its flagship product - M800 had the distinction of being the largest selling car model in India since its launch in December 1983.Positioned as people's car, M800 ruled the Indian passenger car market and remained unchallenged ever since it occupied the top slot, five months after its introduction In March 2003, MUL sold 20,687


units of M800, the highest ever sales by any single model in a month. It was also the highest sales since M800 debuted, surpassing its previous monthly high of 18,735 units in August 1999 For the first few months of 2004, M800 performed well, selling 15,301 units in January, 13,518 units in February and 15,540 in March. But gradually Alto, another MUL product, began eating into M800's share. Alto reported In April, its sales increased to 9,350 units and in May 2004, Alto took over M800's position as the largest selling car with sale of 10,373 units, slightly over M800's sales of 10,016 units. Analysts felt that Alto had taken the top spot because of its price reduction in September 2003 by Rs. 23,000 followed by the launch of the non-AC Alto for Rs. 0.23 mn in the first week of April 2004. On reducing the gap between its bread and butter model M800 and its compact car Alto, MUL said it had "long term" plans for M800. Commenting on Alto's pricing strategy, Jagdish AKhattar (Khattar), managing director of MUL, said, "The new price positioning of the Alto would cannibalize existing A1 segment product the M800 which is also considered an old model. But, the cannibalization will remain within the Maruti family and the bigger numbers will help Maruti depreciate Alto faster. Net M800 sales may be less but we would be pushing more Alto and the more we sell the Alto the faster it will depreciate." Though industry analysts said this move would boost MUL's profits, they also expressed their views that MUL's long-term plan might be to discontinue M800 and replace the entry segment with Alto. However, Khattar clarified that MUL's pricing strategy was not meant to replace M800 with Alto. He said, "Now, we have two cars in entry-level. Maruti 800 is still a dream of Indians, how can I replace it?"

Current and Future Market Strategies: Design small cars suitable for the Indian conditions as a strategy to beat the stiff competition with development capabilities and internal resources to finance its expansion, thereby cushioning itself Company’s plan to stay away from the ultra low-cost segment.


Maruti Suzuki is looking to make India an exclusive base to manufacture small cars The Pricing Strategy : Due to the fierce competition in the Indian passenger car industry, price emerged as an important factor affecting the purchasing decisions of customers. Since it had been in the industry for more than two decades, and as a market leader, MUL adopted aggressive pricing strategies. The company had products at various price points (Refer Exhibit IV for a comprehensive list of MUL's products, their variants and prices). In the early 2000s, when the passenger car industry was witnessing stagnation, MUL slashed the prices of its various models, to revive the industry. KEY STRATEGIC INITIATIVES BY MARUTI Turnaround Strategies Maruti Followed : Maruti was the undisputed leader in the automobile utility-car segment sector, controlling about 84% of the market till 1998. With increasing competition from local players like Telco, Hindustan Motors, Mahindra & Mahindra and foreign players like Daewoo, PAL, Toyota, Ford, Mitsubishi, GM, the whole auto industry structure in India has changed in the last seven years and resulted in the declining profits and market share for Maruti. At the same time the Indian government permitted foreign car producers to invest in the automobile sector and hold majority stakes. OFFERING ONE STOP SHOP TO CUSTOMERS: Maruti has successfully developed different revenue streams without making huge investments in the form of MDS, N2N, Maruti Insurance and Maruti Finance. These help them in making the customer experience hassle free and helps building customer satisfaction. Maruti Finance: In a market where more than 80% of cars are financed, Maruti has strategically entered into this and has successfully created a revenue stream for Maruti. This has been found to be a major driver in converting a Maruti car sale in certain cases. Finance is one of the major decision drivers in car purchase. Maruti has tied up with 8 finance companies to form a consortium. This consortium comprises Citicorp Maruti, Maruti Countrywide, ICICI Bank, HDFC Bank, Kotak Mahindra, Sundaram Finance, Bank of Punjab and IndusInd Bank Ltd.( erstwhile-Ashok Leyland Finance). Maruti Insurance : Insurance being a major concern of car owners. Maruti has brought all car insurance needs under one roof. Maruti has tied up with National Insurance Company, Bajaj Allianz, New India Assurance and Royal Sundaram to bring this service for its customers. From


size car segment across 9 parameters. allowing customers to bring their vehicle to a 'Maruti True Value' outlet and exchange it for a new car. Focus on customer satisfaction is what Maruti lives with. KEY SUCCESS FACTORS : The Quality Advantage : Maruti Suzuki owners experience fewer problems with their vehicles than any other car manufacturer in India (J. TRUE VALUE : Another significant development is MUL's entry into the used car market in 2001.This helps them retain the customer. REPOSITIONING OF MARUTI PRODUCTS : Whenever a brand has grown old or its sales start dipping Maruti makes some facelifts in the models. With Maruti True Value customer has a trusted name to entrust in a highly unorganized market and where cheating is rampant and the biggest concern in biggest driver of sale is trust. CUSTOMER CENTRIC APPROACH: Maruti’s customer centricity is very much exemplified by the five times consecutive wins at J D Power CSI Awards.sector laid back attitude image and has inculcated the customer-friendly approach in its organization culture. Other changes have been made from time to time based on market responses or consumer feedbacks or the competitor moves. by paying the difference. Power IQS Study 2004). The customer centric attitude is imbibed in its employees.identifying the most suitable car coverage to virtually hassle-free claim assistance it's your dealer who takes care of everything. There are instances of cancellation of dealerships based on customer feedback. They are offered loyalty discounts in return. A Buying Experience Like No Other: COMPANY ANALYSIS REPORT (Maruthi Udyog Limited) 52 . Maruti dealers and employees are answerable to even a single customer complain. Maruti has successfully shed off the public.D. The Alto was chosen No.1 in the premium compact car segment and the Esteem in the entry level mid . Here are the certain changes observed in different models of Maruti. Maruti Insurance is a hassle-free way for customers to have their cars repaired and claims processed at any Maruti dealer workshop in India.

customers will find all car related needs met under one roof.Maruti Suzuki has a sales network of 307 state-of -the-art showrooms across 189 cities. Maruti Suzuki scored the highest across all 7 parameters: least problems experienced with vehicle serviced. exchange. Whether it is easy finance. Wagon R. most userfriendly service and best service initiation experience. Maruti 800. It is in the economy segment that the affordability of spares is most competitive. best in-service experience. Quality Service Across 1036 Cities : In the J. Technological Advantage : It has introduced the superior 16 * 4 Hypertech engines across the entire Maruti Suzuki range. with a workforce of over 6000 trained sales personnel to guide MUL customers in finding the right car. SWOT ANALYSIS OF MARUTI UDYOG STRENGTHS : COMPANY ANALYSIS REPORT (Maruthi Udyog Limited) 53 .Maruti Suzuki is set to provide a single-window solution for all car related needs. best service delivery. fleet management services. insurance. This new technology harnesses the power of a brainy 16-bit computer to a fuel-efficient 4-valve engine to create optimum engine delivery. and it is here where Maruti Suzuki shines. as some of its regularly used spare parts may be priced quite steeply. Not so in the case of a Maruti Suzuki. Alto and Omni. This means every Maruti Suzuki owner gets the ideal combination of power and performance from his car. The Low Cost Maintenance Advantage : The acquisition cost is unfortunately not the only cost customers face when buying a car. it may not necessarily be affordable to maintain. Although a car may be affordable to buy.D. highest service quality. Power CSI Study 2004. Lowest Cost of Ownership : The highest satisfaction ratings with regard to cost of ownership among all models are all Maruti Suzuki vehicles: Zen. best service advisor experience. Esteem. One Stop Shop : At Maruti Suzuki.

 Established distribution and after-sales networks  Understanding of the Indian market and ability to liaison with the government: Ability to design products with differentiating features: Brand Image  Experience and Know-how in technology:- WEAKNESSES :  Lack of experience with the foreign market: Inexperience with foreign workforce  Heavy Import tariffs OPPORTUNITY:  Increased purchasing power of Indian middleclass category  Govt. subsidies  Tax benefits  Foreign collaboration THREATS :  Threats from Chinese manufacturers  Indian as well as foreign competitors FINANCIAL MANAGEMENT DEFINITION : COMPANY ANALYSIS REPORT (Maruthi Udyog Limited) 54 .

Reduction in risk and uncertainty. Efficient allocation of fund. Use for co-operation in business activities. Useful in decision making.         Profit / EPS is the test of economic efficiency. Wealth maximization: this is also known as value maximization or net present worth maximization approach. Social welfare. Finance management for optimum use firms. This objective can be achieved by:  Profit/EPS maximization  Wealth maximization. IMPORTANCE: The following are the points to highlight the importance of finance. Internal resources for expansion. A business being an economic institution must earn profit to cover its costs and provide funds for growth. 55 COMPANY ANALYSIS REPORT (Maruthi Udyog Limited) .       Finance for business promotion. Measurement of business. Basis of decision-making. Determinant of business success.Financial management is concerned with the efficient use of an important economic resource namely Capital Funds. Objectives: The main objective of a business is to maximize the owner’s economy welfare. More competitive. it takes into consideration the time value of money. Desire for controls. Profit /EPS maximization: Profit /EPS earning is the main aim of every economic activity.

co-ordination and control. Basis of planning. BALANCE SHEET DEFINITION : A Balance sheet may be described as a statement of the financial position of a concern at a given data.  Useful to shareholders and investors. The financial position of a concern is revealed by its assets on a given data and its liabilities on that date. COMPANY ANALYSIS REPORT (Maruthi Udyog Limited) 56 . such excess may be taken as an indicator of the financial soundness of a concern. Excess of assets over liabilities represents Capital.

903.053.169.524.4 5.70 307.088.50 270.4 Total 3.903.50 144.50 144.1 4.843.10 0 0 0 0 Notes: Book value of unquoted 5.50 Share application money Preference share capital 8.90 0 0 0 0 3.285.80 0 0 0 0 Capital work-in-progress 736.315.409.30 written 9.4 2.659.60 311.4 1.50 144.6 5.734.1 1.10 0 0 0 0 Uses of funds Fixed assets 7.695.1 Gross block 4.10 sharesoutstanding (Lacs) COMPANY ANALYSIS REPORT (Maruthi Udyog Limited) 57 .7 1.10 2889.685.873.505.Interpretation : The balance sheet amount 08 increased gradually from the05 Mar ' 04 Balance sheet Mar ' has Mar ' 07 Mar ' 06 Mar ' year 2004Sources of funds Owner's fund Equity share capital 144.4 3.4 1.70 0 0 0 0 Loan funds Secured loans 0.40 advances 0 0 0 0 Less : current liabilities & 3.686.30 0 0 0 0 Net current assets Current assets.3 4.677.40 2.144.6 1.10 2889. loans & 3.0 3.666.7 3.50 144.80 0 0 0 Number of equity 2889.094.2 1.60 1.398.90 5.7 Net block 1.1 2.709.6 Investments 1.524.7 Contingent liabilities 893.289.2 2.70 0 0 0 0 Less : revaluation reserve 3.446.00 42.184.8 4.4 Total 3.10 63.50 71.30 9.954.80 200.097.840.3 4.8 3.0 Total net current assets 102.254.566.296.870.6 3.956.7 5.1 3.051.8 1.10 2889.7 3.119.30 238.3 6.830.10 150.779.686.516.308.6 7.4 Less : accumulated depreciation 2.484.10 567.180.90 Unsecured loans 900.735.5 2.179.2 2.9 6.3 Reserves & surplus 3.60 provisions 0 0 0 0 1.90 92.9 1.10 2889.988.484.234.20 investments 0 0 0 0 Market value of quoted 219.10 303.9 1.2 1.5 3.7 5.040.6 7.80 0 0 0 Miscellaneous expenses not 16.259.10 74.487.90 investments 2.315.

it would be net loss. PROFIT & LOSS ACCOUNT: Definition: Net profit represents the excess of gross profit plus other revenue incomes over sales expense including sales costs and other expenses. COMPANY ANALYSIS REPORT (Maruthi Udyog Limited) 58 . If the total of the credit side is more. it will be net profit. The debit side of P&L a/c shows the expenses and the credit side the incomes.Analysation: This indication shows the company operations reach in wide in facing the market efficiently. And if the debit side happens to be more.

90 150.90 839.20 5.545.602.80 43.611.30 8.515.70 5.947.20 2.50 -14.20 4.379.30 456.40 -83.40 2.795.565.30 -19.50 7.515.90 1.60 -31.40 198.30 44.60 adjustme Reported net profit 1.90 82.90 72.70 10.280.80 196.50 219.40 1.033.50 Preference dividend Dividend tax 24.570.00 Mar ' 04 9.20 36.90 14.134.00 2.40 11.40 1.80 Retained earnings 7.30 37.10 57.007.90 9.10 20.00 2.40 361.50 37.204.449.00 33.5 0 2.806.197.80 Earnigs before 7.20 Mar ' 05 11.730.70 489.80 15.331.20 8.00 Non recurring items Other non cash 76.828.30 560.10 Mar ' 06 12.00 1.20 -23.20 326.s productivity is increasing yearly to extend its market operations.00 170.60 542.0 0 670.551.40 285. COMPANY ANALYSIS REPORT (Maruthi Udyog Limited) 59 .8 0 13.90 Mar ' 07 14.10 3.616.90 1.189.40 59.40 499.622.60 5.10 non operating expenses and income are incresing Analysation : This trend shows that company.60 763.40 177.00 369.10 2.451.10 227.00 456.60 -6.40 51.80 Interpretation : The operating and gradually from the year 2004-2008 130.046.50 705.80 16.30 1.10 4.30 1.10 1.561.10 appropriation Equity dividend 144.60 228.30 1.368.40 853.70 356.60 568.80 8.631.476.90 3.10 2.90 -12.789.80 288.00 268.30 12.40 -151.10 2.P&L Operating income Expenses Material consumed Manufacturing expenses Personnel expenses Selling expenses Adminstrative expenses Expenses capitalised Cost of sales Operating profit Other recurring income Adjusted PBDIT Financial expenses Depreciation Other write offs Adjusted PBT Tax charges Adjusted PAT Mar ' 08 18.066.60 271.20 560.90 274.551.90 666.197.30 218.252.60 5.829.20 112.40 9.90 494.878.60 356.866.60 3.50 273.223.90 1.70 359.267.10 446.20 -22.70 611.30 21.40 1.198.00 101.50 833.508.

Steps in Ratio Analysis: COMPANY ANALYSIS REPORT (Maruthi Udyog Limited) 60 . A change in these ratios helps to bring about a change in the way a company works. It helps to identify areas where the management needs to change. It is a quantitative investment technique used for comparing a company's financial performance to the market in general.RATIO ANALYSIS Meaning of Ratio Analysis: Ratio Analysis can be defined as the study and interpretation of relationships between various financial variables. by investors or lenders.

The ratios are economic barometer useful to all mentioned above as they can know the good and bad position of a company by making a comparative study of financial statement. Ratios are used for communication of weak and good points to the concerned parties. The second step is to compare the calculated ratio with the ratios of the same firm relating to past or with the industry ratios. better solvency ratio speaks out good financial position. For example. This step facilitates in assessing success or failure of the firm. Ratios are useful in co-ordination which is very needed in business. COMPANY ANALYSIS REPORT (Maruthi Udyog Limited) 61 . drawing of inferences and report-writing. Ratios should be shown the better financial position of the firm.The firs task of the financial analyst is to select the information relevant to the decision under consideration from the statements and calculates appropriate ratios. The efficiency and weakness of an enterprise if communicated properly will establish a better coordination among areas of appreciation and control. Conclusions are drawn after comparison in the shape of report or recommended course of action. Importance: Ratios are useful for the following reasons: • • • • • The ratios can be used by financial managers for future financial planning. Ratios calculated for a number of years work as a guide for the future. The third step involves interpretation.

67 0.66 Inventory turnover ratio 22.85 30.07 63.55 45.19 1.26 32.10 15.25 22.24 21.62 - .25 earnings) Selling cost Component 3.16 51.62 0.78 Dividend payout ratio (cash profit) 7.73 4.) Net operating income per share (Rs) 625.ratio (post tax) 39.76 9.05 Total debt/equity 0.06 0.13 28.97 92.28 (Rs) Book value (incl rev res) per share 291.79 Adjusted return on net worth (%) 19.76 73.00 54.15 0.94 Adjusted cash EPS (Rs) 75.01 98.28 (Rs.41 Financial charges coverage ratio 50.21 91.35 151.92 2.09 94.03 Current ratio (inc.12 Gross profit margin (%) 10.74 327.90 12.95 0.46 4.13 14.93 Payout ratios Dividend payout ratio (net profit) 9.31 Book value (excl rev res) per share 291.40 1.67 1.56 151.16 40.91 13.72 8.23 49.48 Liquidity ratios Current ratio 1. in raw mat.97 Net profit margin (%) 9.91 4.09 54.34 144.69 63.57 Component ratios Material cost component (% 77.36 Earning retention ratio 89.89 19.34 Free reserves per share (Rs) 286.30 3.12 0.74 123.10 Owners fund as % of total source 90. charges cov.96 20.77 1. st loans) 0.42 1.36 3.45 23.74 0.57 Dividend per share 5.21 10.07 93.87 53.84 Long term assets / total Assets 0.08 92.28 77.04 104.47 0.00 2.35 Leverage ratios Long term debt / Equity 0.04 3.49 - Mar ' 05 28.49 231.88 13.95 9.28 90.17 1.56 Return on long term funds (%) 27.34 68.03 19.32 25.69 7.73 422.33 Fixed assets turnover ratio 2.89 14.18 15.57 2.30 237.85 45.34 8.74 Bonus component in equity capital (%) Mar ' 07 53.01 0.50 43.58 0.78 30.25 2. consumed 10.40 92.35 123.05 629.57 11.01 22.59 19.05 10.70 2.61 73.85 78.02 4.59 188.50 76.56 382.40 0.49 28.08 7.53 Cash earnings retention ratio 92.78 18.81 90.28 Profitability ratios Operating margin (%) 14.07 116.91 Reported cash EPS (Rs) 79.07 1.23 512.25 Coverage ratios Adjusted cash flow time total debt 0.80 33.RATIOS Mar ' 08 Per share ratios Adjusted EPS (Rs) 55.75 0.16 22.01 5.69 0.10 COMPANY ANALYSIS REPORT (Maruthi Udyog Limited) Import comp.31 18.53 12.43 2.41 1.73 188.40 1.10 Exports as percent of total sales 4.91 92.09 91.97 7.08 0.52 - Mar ' 04 21.86 0.71 74.23 29.21 17.61 12.20 183.80 18.63 22.78 9.25 8.61 - Mar ' 06 43.91 Quick ratio 0.77 1.34 Adjusted cash margin (%) 11.00 Operating profit per share (Rs) 88.50 64.47 7.61 Reported EPS (Rs) 59.29 12.01 95.43 9.70 37.23 237.37 3.46 1.23 49.08 0.29 12.71 0.20 Reported return on net worth (%) 20.76 38.46 Fin.75 41.68 1.

28 291.34 286.30 237.) Net operating income per share (Rs) Free reserves per share (Rs) 2008 55.40 1.20 183.80 18.59 188.04 3.91 79.31 291.76 38.50 43.50 64.92 2.07 116. EPS = net profit after tax.PER SHARE RATIOS: EPS is measured by dividing the net profits after taxes and preference dividend by the total number of equity shares.35 123.23 512.16 40.87 53.74 123.34 144.56 382.16 51.73 422.23 29.28 625.23 237.74 327.28 2008 53.07 63.85 45.61 59.91 Interpretation: Due To Incresing Profits And Market Sustainability The Per Share Value Of Maruthi Suzuki Had Been In Incresing Trend From 2004-2009.00 88.35 151.69 63.57 5.18 2006 28.00 54.75 41.56 151.preference dividend Per share ratios Adjusted EPS (Rs) Adjusted cash EPS (Rs) Reported EPS (Rs) Reported cash EPS (Rs) Dividend per share Operating profit per share (Rs) Book value (excl rev res) per share (Rs) Book value (incl rev res) per share (Rs. Analysis: As a result of that the per share value in the market is above 1100rs.94 75. COMPANY ANALYSIS REPORT (Maruthi Udyog Limited) 63 .89 2007 43.46 4.09 54.50 76.49 231.73 188.55 45.13 2005 21.

88 15.63 23.21 19. COMPANY ANALYSIS REPORT (Maruthi Udyog Limited) 64 .61 11.01 12.24 19.20 22.35 30.29 and decreased in the year 2008 as 10.01 9.71 35 30 25 20 15 10 5 0 2008 2007 2006 2005 2004 Operatingm argin (% ) Gross profit margin (% ) Net profit margin (% ) Adjusted cash margin Adjusted return on net worth (% ) Reported return on net worth Interpretation: The gross profit and net profit had increased initially from the year 20042007 from 8.59 12.05 12.45 11.21 13.12 14.78 21. Being a ratio profitability is a meaningful measure and reveals the relation of different individuals items with sales of the concern.12 27.03 17.53 7. Gross profit ratio=Gross profit (100) /Net sales Gross profit ratio= net sales-cost of goods sold (100) / Net sales Profitability ratios Operating margin (%) Gross profit margin (%) Net profit margin (%) Adjusted cash margin (%) Adjusted return on net worth (%) Reported return on net worth (%) Return on long term funds (%) 2008 2008 2007 2006 2005 14. Profitability of a concern can be known through the analysis of general and overall profitability.79 12.95 10.29 9.74 33.95 and 9.57 5.34 10.5.10 20.61-10.97 13.08 8.01-13.80 19. Analysis: Due to the implementation latest organisational aspects company increased its expenses in the year 2008.49 15.PROFITABILITY RATIOS: Profitability is a ratio.25 10.56 22.47 28.29 14.

LEVERAGE RATIOS: Leverage ratios can be computed from the balance sheet items to determine the proportions of debt in total financing. Leverage ratios can also be calculated from the income statement items by determining the exact to which operating profits are sufficient to cover the fixed charges.57 98.08 90.09 0.19 2.00 2.41 2.48 2.08 0.10 0.46 2.05 0.08 0.33 91.06 0.01 0.07 0. Debt –equity ratio = Leverage ratios Long term debt / Equity Total debt/equity Owners fund as % of total source Fixed assets turnover ratio Long –term debit / Shareholder’s Equity 2008 2008 2007 2006 2005 0.43 92. COMPANY ANALYSIS REPORT (Maruthi Udyog Limited) 65 .01 0.07 12 10 Longtermdebt / Equity 8 6 4 2 0 2008 2007 2006 2005 2004 Total debt/equity Ownersfund as %of total source Fixed assets turnover ratio Interpretation: The Debt Equity Ratio Is Expected To Be 2:1 Ratio But It Is In 1:2 Ratio Analysis: This Situation Creates Insecurity To Creditor’s.70 93.

67 1.97 30.40 1.31 1. COMPANY ANALYSIS REPORT (Maruthi Udyog Limited) 66 .76 18.15 0. Analysis: One way this trend shows the.85 22.78 22.13 1.03. st loans) Quick ratio Inventory turnover ratio Interpretation: The current ratio is in between 2:1 ratio.25 0.66 1.LIQUIDITY RATIOS: Liquidity means the ability of a concern to meet its current obligations as and when these become due.17 0. Thus the liquidity ratios indicate the ability of a concern to meet its short-term obligations.03 1.77 1. Quick ratio= Quick assets / Current liabilities Current ratio = Current assets / Current liabilities 2008 2007 2006 2005 2004 1.91 1.42 1. From 2004-2007 and decreased in the year 2008 as 1. This trend is continued even in quick ratio and liquid ratios.93 28.43 Liquidity ratios Current ratio Current ratio (inc.77 1. this is in increasing trend from initial stage.68 1. balancing of current assets and liabilities.

97 92.36 89.86 120 100 80 60 40 20 0 2008 2007 2006 2005 2004 Dividend payout ratio ( Dividend payout ratio (cash Earning retention ratio Cash earnings retention ratio Interpretation: The Dividend Pay Out Ratio And Retention Ratio Is Increasing From The Year 2004-2008.67 2007 9.53 92.78 7.02 4.25 2008 9.58 2006 7.91 92.81 90. Thus is calculated as: Pay out ratio = dividend per share / Earning per share Payout ratios Dividend payout ratio (net profit) Dividend payout ratio (cash profit) Earning retention ratio Cash earnings retention ratio 2008 9.73 4.01 95.72 8. Analysis: This Is Proseperous Trend To Share Holders And Company.28 90.95 2005 9.21 91. COMPANY ANALYSIS REPORT (Maruthi Udyog Limited) 67 .PAYOUT RATIO: This is the relationship between the returns belonging to the equity shareholders and the dividend paid to them.40 92.09 94.69 7.

23 49.34 0.28 49. Coverage Ratio = sum of net profit before interest / Taxes dividend by interest charges COVERAGE RATIOS Adjusted cash flow time total debt Financial charges coverage ratio Fin.71 Interpretation: The Cash Balance Is Being Adjusted From 2004-2008 Between Creditors.23 0.61 73.32 25. charges cov.COVERAGE RATIOS This ratio indicates the times-interest-earned.ratio (post tax) 2008 2007 2006 2005 2004 0.57 68.85 32. Debtors And Shareholders Dividend . The interest coverage ratio is the sum of net profit before interest and taxes dividend interest charges.This Is Prosperous To Company And Its Stake Holders COMPANY ANALYSIS REPORT (Maruthi Udyog Limited) 68 .46 39.26 50. It is used to examine the firm’s debtservicing capacity. Analysis: This Is In Incresing Trend From 2004-2008.41 0.70 37.76 104.04 0.

High total capital ratio is always required in the interest of the company.74 2007 73.05 9.96 20.90 12.30 3.91 4.40 0. in raw mat.34 8.25 2.25 3. This is also the test of managerial efficiency and business performance.49 2005 78.36 3. Analysis: As the Productivity is increasing simultaneously but the selling cost component COMPANY ANALYSIS REPORT (Maruthi Udyog Limited) 69 .52 2004 74. Long term assets Turnover Ratio = Component ratios Material cost component (% earnings) Selling cost Component Exports as percent of total sales Import comp.47 7.69 0.75 0.10 4.COMPONENT RATIOS: This ratio ensures whether the capital employed has been effectively used or not.62 - Interpretation: The Material Cost Component Ratio Is Increasing From 2004-2008.10 10. consumed Long term assets / total Assets Bonus component in equity capital (%) Sales(net) / Capital employed 2008 77.89 19.61 2006 77.78 18.62 0.37 3.84 0.

COMPANY ANALYSIS REPORT (Maruthi Udyog Limited) 70 . it follows lawful and ethical practices impractically in accounting its finance.ratio decreased gradually from the year 2004-2008. brought out many findings.  This company at most reaches the standard ratio in every ratio every year. which are near to customer preferences and tastes. MARKETING MANAGEMENT:  This segment is the initial cause for the sustainability of maruthi as an leader in the market of passenger cars. HRM:  Maruthi suzuki has finite recruiting and training procedures .  Maruthi suzuki conducts r&d.which can decline the sales percentage of company.  There are quality circles which can motivate employee and employer relationship. in developing marketing strategies and products . & foreign investments). FINANCIAL MANAGEMENT:  As Maruthi Suzuki is an company which consists of Indian government’s capital . FINDINGS This company analysis done by me. I would like to state some from them: Maruthi Suzuki can be termed as an greater example for merging industries (Govt.

is counting its profits. An analysis also includes assessing the accounting principles used and significant estimates. evidence supporting the amounts and disclosures in the financial statements. My pleasure is to express an opinion on these financial statements based on analysis Those Standards An analysis includes examining. as of Five years comparison and the related Profit and Loss Account and Cash Flow Statement for the year ended on that dates Annexed thereto ! These financial statements are the Responsibility of the company's management. products development etc. and responsibility. Finally “Maruthi Udyog Limited” has it financial trend in ascending order from previous four years.  The company analysis done by me on Maruthi Udyog Limited.CONCLUSION I have analyzed the attached Balance Sheet of Maruti Suzuki India Limited (Formerly Maruti Udyog Limited). on a test basis. sorted out that the automobile industry in India is prosperous and growing with innovating technology.  Thus. marketing Techniques.  Cars in the market through different marketing strategies such as pricing strategy. Maruthi Udyog Limited. financial position of the Maruthi Udyog Limited.e fulfilling the Social . by making its tag line to be implemented i. HRM strategies. “Count on us” COMPANY ANALYSIS REPORT (Maruthi Udyog Limited) 71 .

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