Assignment Assessment Rep ort Campus: AHMEDAB AD Year/semester 2010-2012 Level: ACL II Assignment Type WEEKLY Module Name:

RESEARCH AND ANALYTICS Assessor s Name MR. RAJ K. DEVA Student s Name: SUMEET ANAND Reqd Submission Date 26/04/2011 Mob No e-mail id & Sumeet.anand1@gmail.co Actual Submission Date 26/04/2011 m to : SONIKA Stream FINANCE Submitted MADAM Certificate by the Student: is a serious College offence. Plagiarism I certify that this is my own work. I have referen ced all relevant materials. (Student s Name/Signatures) Exp ected Outcomes Assessment Criteria Grade based on D,M,P,R syste m Feedback

General Parameters Clarity Clear understanding o f the concep t Analytical Thinking- Ability to analyze the problem realistically Research Done- Research carried out to solve the problem Formatting & PresentationConcise& clear thinking along with presentation Subject Specific Parameters 1. Design a research program 2. research Conduct (both and oral)

3. Presentation written

Grades Grade Descriptors P A Pass grade is achieved by meeting all the requirements defined. M Identify & apply strategies/techniques to find appropriate solutions D Demonstrate convergent, lateral and creative thinking. Assignment Grading Summary (To be filled by the OVERALL Assessor) ASSESSMENT GRADE: TUTOR S COMMENTS ON ASSIGNMEN T: SUGGESTED MAKE UP PLAN (applicable in case the student is asked the assignment) to re-do REVISED ASSESSM ENT GRADE TUTOR S COMMENT ON REVISED WORK (IF ANY) Date: Assessor s Name / Signatures:

Achieved Yes/No (Y / N)

ASSIGNMENT (A) 1. Divide the class into group of five. Each of the five students should be given one of the under mentioned companies for assignment work. It should be ensured that none of the companies is repeated and each student is given a different company for working on the assignment. Make company profiles for the following companies: Maruti Suzuki Ranbax YAI S L eliance R Industries Hero Honda NOTES: An industry report generally following: y Name y Address o Headquarters o Plan t y Year of inception y y y y y contains the

y y

Structure: Public listed, private listed and other Organization structure supplied Products Market share Key end use market segment focus %age of sale to each market segment o o Rationale for focus Production or imports Domestic o o manufacturing Current installed capacity, capacity utilization and technology o used Expansion (time lines), enhanced capacity and o investment of Level backward integration o In-house o manufacture Other o Imports I Source of supply Total sales (Value and volume) Breakdown o b by: D Domestic Expor t Key drivers for growth in business Channels to market: % supply : Direct o o Through Assets distributors (PP&E) Land o

Equipmen t Type and specification

Financials o Manufacturing c cost Variable cost y Raw material costs y Utilities y Labor L Fixed costs Plant y and machinery o Investmen o t Depreciation and interest o Total Administration, sales and marketing costs Financials (cont d) o Financial costs F T Taxes Interes t thers O o Profit margin P G Gross EBIDT Aet profit N Key strengths and weaknesses as seen by company and other competitors o Quality of products o Product range o Technical support o Commitment on o quality Others

REPORT ON

Name - MARUTI SUZUKI LIMITED. Address Headquarters Maruti Suzuki India Limited Nelson Mandela Road, Kunj, New Vasant Delhi110070no Board .46781000 Fax 46150275 : 46150276 Plant Gurgaon Plant Maruti Suzuki India Ltd Ltd Gurgaon Plant Old Palam Gurgaon Road Gurgaon 122015 Tel: ( 0124) 2346721

INDIA

and Manesar plant Maruti Suzuki India Manesar Plant, Plot No. -1 , Phase 3A, IMT Manesar , Gurgaon -122051

Year of inception- stablished in February 1981, though the actual production E commenced in 1983. Structure : Maruti Suzuki India ltd. is Public Limited company and listed in Bombay stock exchange and National Stock Exchange. Suzuki Motor Company(SMC) is Majority shar eholder 54. 21% equity stake in a company. Share holding pattern of company: DEC2010 SEP2010 JUN2010 MAR2010
DEC2009 Promoter and Promoter 54.21 % 54.21 % 54.21 % 54.21 % 54.21 Group % Indian -- -- -- --Foreign 54.21 % 54.21 % 54.21 % 54.21 % 54.21 % Public 45.79 % 45.79 % 45.79 % 45.79 % 45.79 Institutions 38.00 % 37.11 % % 37.11 % 37.79 % 39.14 % FII 21.00 % 20.09 % 20.09 % 21.12 % 22.82 % DII 17.00 % 17.02 % 17.02 % 16.67 % 16.32 % Non Institutions 7.79 % 8.68 % 8.68 % 8.00 % 6.65 % Bodies Corporate 5.26 % 6.00 % 6.00 % 5.64 % 4.59 % Custodians -- -- -- -- -Total 28,89,10,060 28,89,10,060 28,89,10,060 28,89,10,060 28,89,10,060

Organisational structure
CHAIRMA N

MANAGING DIRECTOR JOINT MANAGING DIRECTO R DIRECTO R PART DIRECTOR DV M TIME

DEPARTMEN T MANAGE R MANAGE R

DEPUTY MANAGER SENIOR EXECUTIVE

SUPERVISO R

ASSISTANT SUPERVISOR TRAINE E WORKE R

The company has a multi-tier management structure, compr ising the board of directors at the top followed by five business vertical heads reporting to the Managing Director. These business verticals are Marketing & Sales, Engineering, Production, Administration and Supply Chain. Each of these verticals is headed by a team of two members, one of whom is a Japanese manager and the other, an Indian manager. The Japanese manager s are also the Executive Directors of the board. The Indian managers are designated as Managing Executive Officers (MEOs) and Executive Officers (EOs) and attend all board meetings. T hey are supported by divisional and departmental heads. This system has ensured regular flow of strategic direction from the board to the operational management, effective implementation of the strategy, clear delegation of decision making with accountability, timely risk identification and mitigation, adequate controls and r eporting of the company's operations, and a healthy financial performance . PRODUCT SUPPLIED. The company offers a portfolio of 13 brands, ranging from the people's car Maruti 800 to the stylish hatch-back Swift, SX4 sedan and luxury Sport Utility Vehicle (SUV), Grand Vitara. More than half the sold in India wear a Maruti Suzuki badge. As per the classification by the Society of cars Indian Automobile Manufacturers (SIAM), Maruti Suzuki models are categorised under the following heads: A1 Segment (upto 3400 mm) : Maruti 800 Segment (3400 mm to 4000 mm) A2 : Alto, Estilo, WagonR, A-star, Ritz, swift A3 Segment (4000 mm to 4500 mm) : DZire & Multi : Gypsy & Grand SX4 Utility Vehicle (MUV) Segment Multi : Omni & Vitara Purpose Vehicle (MPV) Segment Versa MARKET SHARE Accounting to 79%, Cars rule the passenger automobile in India. The chief players in this segment are Maruti Suzuki. While Maruti Suzuki enjoys full-fledged monopoly in multi-purpose automobiles sector 52% of market with shareautomobile industry had a growth of 15.4 % during April-January 2007, with the average The annual of 10-15% over the last decade or so. With the incremental investment of $35-40 billion, growth the growth is expected to double in the next 10 years. Consistent growth and dedication have made the Indian automobile industry the second- largest tractor and two-wheeler manufacturer in the world. It is also the fifth-largest commercial vehicle manufacturer in world. The Indian automobile market is among the largest in the Asia. The key players like Hindustan Motors, Maruti Udyog, Fiat India Private Ltd, Tata Motors, Bajaj Motors, Hero Motors, Ashok Leyland, Mahindra & Mahindra have been dominating the vehicle industry. A few foreign players like Toyota Kirloskar Motor Ltd., Skoda India Private Ltd., Honda Siel Cars of the Indiahave also entered the market and have catered to the customers needs to a large Ltd. extent.

Not only the Indian companies but also the international car manufacturing companies are focusing on compact cars to be delivered in the Indian market at a much smaller pr ice. Moreover, the automobile are coming up with financial schemes such as easy EMI repayment systems to boost companies sales. Ther e have been exhibitions like Auto-expo at Pragati Maidan, New Delhi to share the technological Besides, there are many new projects coming up in the automobile industr y leading to advancements. the growth of the sector. The Gover nment of India has liberalized the foreign exchange and equity regulations and has also reduced the tariff on imports, contributing significantly to the gr owth of the sector. Having firmly established its presence in the domestic markets, the Indian automobile sector is now penetrating the international arena. Vehicle exports from India are at their highest levels. The leaders of the Indian automobile sector, such as Tata Motors, Maruti and Mahindra and Mahindra are leading the exports to Europe, Middle East and African and Asian mar kets. The Ministry of Heavy Industries has released the Automotive Plan 2006-2016, with the motive of making India the most popular manufacturing hub for automobiles and its components in Asia. The plan focuses on the removal of all the bottlenecks that are inhibiting its growth in the domestic as well as international arena. KEY END USE MARKRT SEGMENT FOCUS Maruti , the largest passenger car maker in the Indian market, has regained the crucial 50 Suzuki share in % Indian passenger car market during month of October. It is to be mentioned here market the that Maruti market share had slipped to 43.62 percent in the month of June, due to launch of a series of s leading automakers like Volkswagen, Ford, Nissan and GM in the cars by country. As per the data released by the SIAM (Society of Indian Automobile Manufacturers), Maruti Suzuki India managed to sell 91,754 units of its passenger cars as compared to the total market sales of 1,82,992 accounting units, for 50.14 percent market share during the period. Sales of companys about models including Alto, Wagon R, Zen Estilo, Swift, Ritz and A-Star stood at 77, 502 units starting range during the month. Achieving a new mile stone, the company registered over 39 percent incr ease its sales to 1,18,908 units (inclusive of exports) dur ing the month of October, which was its highest ever monthly sales in its overyears of operations in the Indian 27 market. The company has been planning aggressively for regaining its over 50 percent market share ever since it dipped below this crucial mark. T he company had launched CNG versions of as many as five of its portfolio vehicles like Alto, Zen-Estilo, Wagon R and SX4 in the month of August 2010, which has met an overwhelming response from the Indian with buyers. Meanwhile, the company has geared up to launch its much awaited and first ever premium sedan model aruti M in the Indian mar ket by the first quarter of next Kizash will be competing Kizashi of T oyota Corolla Altis, Chevrolet Cr uze, Skoda Laura and Mitsubishi Lancer in the year. i with the like Indian market .

RATIONAL FOCUS

FOR

The Product Line Indian passenger car market was divided into various segments and sub-segments on the basis of price, The size length of the model and its weight) and other factors (including engine capacity). MUL had a presence in (i.e. all segments and sub-segments of car in the India.

The Pricing Due to the fierce competition in the Indian passenger car industry, price emerged as an important factor Strategy
affecting the purchasing decisions of customers. Since it had been in the industry for more than two decades, and as a arket leader, MUL adopted aggressive pricing strategies. m

The company had products at v arious price points (Refer Exhibit IV for a comprehensive list of MUL's their variants and prices). In the early 2000s, when the pas senger car industry was products, witnessing MUL slashed the prices of its various models, to reviv e the stagnation, industry... Promotion and Distribution In the early 2000s, MUL also focused on promotion and distribution to face intense competition. The
companyvarious innovative promotional strategies. With interest rates declining from 12% to as low as 8% devised in automobile finance, MUL used financing as a major tool to drive up its car sales. The overall percentage of cars being financed through automobile loans increased from 65% in 1998 to over 85% in 2003... The ResultBy 2004, the competition in the Indian passenger car industry had further

intensified. MUL retained its leadership position m ainly due to its aggressive pricing str ategy. Howev er, In December 2004, MUL reported an 18% rise in v ehicle sales helped by a sharp increase in exports and dem and in the domestic m rising arket. Domestic sales increased by 11.4 percent amounting to 37,153 units, while exports jumped 78 percent units. After the price r eductions and aggressive promotion, M800 and Alto sold in to 6,675 huge volumes in India and also new car with new technology used help them sell more. Production o r Imports Domestic Manufacturing
Maruti Suzuki India's plan to manufacture car with domestic tag by 2012 is moving as per schedule. The company to finalize the design, engine size and how to position it in the market by mid 2011. is likely Also it is reported that the made in India car will be positioned along with Maruti's best selling model Alto. Presently, the company is still dependent on parent manufacturer Suzuki for its future model design and development programme. It is, however, spending around Rs 1,500 crore over the next 3-4 years at its R&D centre at Rohtak -- Suzuki's only such significant centre outside Japan -- to scale up its vehicle development programme self reliant. Alto is currently the highest selling car model in India, with average sales of over 20,000 and become units per month.

Current Installed capacity Maruti Suzuki India will soon increase its production capacity by at least one lakh vehicles. The countrys largest car maker is targeting sales of about 9.5 lakh vehicles this fiscal, close to the current of a million (10 lakh) units of its Gurgaon and Manesar facilities capacity together. The company was earlier targeting a 5% sales growth this fiscal, but has since revised its forecast to 10% domestic market. The export target has also been increased to 1.3-1.5 lakh units from 1.2 for the lakh units earlier. Meanwhile, on account of capacity constraints, there is already a waiting period for some of its popular such as the Swift Dzire, Ritz and Swift models diesel. Chair man R C Bhar gava told DNA Money, We are already working at full capacity. In July and August, we produced close to 86,000 vehicles each and going at this rate, we would be using the entir e available capacity of a million units this fiscal so we are looking to increase capacity at Manesar. Bhargava said they could add a production line at the existing site, but a finaldecision would be taken when the Suzuki Motor Company chairman Osamu Suzuki visits India next only week. Suzuki would be here to chair the annual general meeting of Maruti on September 3 and is expected to take the call on additional investment needed to create fresh capacity. Though Bhargava declined to specify the investment needed for capex, he did indicate that economies scale dictate any new production line should be making 1-1.2 lakh of units. Manesars current installed capacity is 3 lakh units. Going by industry sources, putting up capacity for 1 lakh units typically needs an investment of about Rs 1,500 crore. That could well be the Maruti make at investmentwill Manesar. The proposed new line would take at least a year to be up and running. At present, the bulk of Marutis 800, Alto, WagonR, Estilo, Ritz, Versa and Gypsy are being made at the Gurgaon cars the facility. The relatively newer models Swift, Swift Dzire, A-Star and SX4 roll out of Manesar. Then, Maruti is planning to augment its portfolio in the next few months with a cost down Alto, a new based on the Ver sa platform and facelifts of existing models. No wonder it is thinking of MPV capacity expansion now, since this new capacity will take at least 12 months to come on stream. Fresh investment of Rs 1,925 Cr to take annual production capacity to 1.75 million units India's leading car maker Maruti Suzuki India Limited (MSIL) today held its 29th Annual General Meeting her e today. At the meeting Mr. O Suzuki, Chair man and CEO, Suzuki Motor Corporation, Japan, (majority stakeholder in MSIL), made wide ranging announcements. Following points are for your reference: Outline on current production capacity: Annual Capacity at Maruti Suzuki Gurgaon is: 850,000 units Annual Capacity at Maruti Suzuki Manesar is: 350,000 units capacity : 12,00,000 units (1.2 million Total units)

To keep pace with growth (which has been as high as 27% in this fiscal), Maruti Suzuki needs more capacity Capacity announcements (subject to Board approval) Maruti Suzuki will establish "Plant C" at Manesar. C will be constructed concurrently with the Plant B at Plant Manesar. o have an installed capacity of 250,000 units per annum. Plant C is likely to be ready by end of fiscal 2012 / early 2013 Plant B (announced earlier in Feb2010) at Manesar, will be ready by Jan 2012 and will bring an additional capacity of 250,000 units per annum Plush two-tone interiors and an all-new 3-spoke steering wheel. These are aided by Present facilities : 12,00, 000 units per annum (Manesar) : 2, 50,000 units per annum by Jan Plant B 2012 C (Manesar) : 2, 50,000 units per annum likely in fiscal 2012 Plant -13 Total Capacity: 17,50,000 units per annum by end of fiscal 2012 -13 (including productivity enhancements) Investment update (subject to Board approval) The investment to construct Plant C at Manesar is estimated at 35 Billion Japanese Yen (approx Rs. 1,925 crores @ Yen 1= 0.55 Rs). This investment will be funded by accruals of Maruti internal Suzuki. Medium term investment: Rs 6,000 Crores (or $ 1.3 billion) during the period 2010 Rs 1700 Cr (Manesar plant B) announced earlier in March -2013. 2010 Rs 2500 Cr (Engine plant & R&D) announced earlier in March 2010 Rs 1925 Cr (Manesar plant C) announced at AGM-2010 (7 Sept 2010) Other projects to be undertaken in Medium term: Commence construction of test course at R&D Centre at Rohtak We would also look at constructing Regional Offices at 16 locations. SMC and MSIL will have an integrated approach towards these developments. for all these projects will be evolved post board The timelines approval. Capacity utilaisation The countr ys largest car producer Maruti Suzuki is caught in a cleft. T here is gr owing demand for cars, but it does not have sufficient production capacity to feed this demand. To top that, this its capacity is not likely to be lifted bef ore 2012. The company, which sold over one million cars in the constraint last financial year, expects sales to go up by around 10 per cent. In simple terms, this means that its engineers have to produce over 1,00,000 more cars, in a plant which is already working at much over 100 per cent capacity utilisation. The man steering the fortunes of the company, chairman R C Bhargava, admits the problem. We are certainly not in the comfort zone. We are wor king at well above 100 per cent capacity. Our engineers are stretching the production capacity through various innovations, as new capacity will be available only by 2012, he says.

Bhargava says while the engineers have ensured they would be able to meet this financial years sales 2011-12 could be a challenging target, year. Marutis engineers are trying to get out of the problem by putting in manual lines until the new capacity gets added. Mayank Pareek, executive officer (marketing and sales), of Maruti Suzuki, says: We are in the process of renovating, rationalising and debottlenecking our Gurgaon plant to put it to optimal use. We hope to cover whatever added demand there is from this exercise. Maruti's two plants in Gurgaon and Manesar together have an installed capacity of 800,000 cars but the engineers have been able to produce over a million units this year. As a result the capacity utilisation in plant is already at 125 per cent. The company is of course expanding the capacity in the the Manesar another 250, 000, but this capacity will only come by 2012. However the same plants now plant by have to produce over 1.1 million cars for this financial year. What is adding to the worry are the long queues for some of its car models. For instance the hot sellinghas a waiting list of around three to four months; the Swift is not available to consumers before Dzire two months and the newly-launched Eeco, which has caught the fancy of consumers, has a waiting list of to four months. Says Bhargava: "We had not planned or anticipated such a high growth for three this model " Maruti is also keen to push exports and add more inter national markets that could lessen its dependence on the European nations. In addition, Maruti has a signed a pact with Nissan to supply 35,000 Astar's (rebadged as Nissan Pixo) during the current year. This, according to experts, could mean lesser number available in the domestic market. However, a Mumbai-based analyst says that due to increased competition in the local market players like General Motors, Nissan and Ford, all of whom already have or will have launched a from new in the small car market, Maruti sales will come under pr model essure. TECHNOLOGY USED The countr y's largest car maker Maruti Suzuki today unveiled its flagship CNG engine technology, 'intelligent-Gas Port Injection' or i-GPI on five popular models. The CNG were unveiled by Mr. Jairam Ramesh, Hon'ble Minister of State (Independent vehicles Charge) Environment and For ests in the presence of senior government dignitaries and Maruti management team. The models include SX4, Eeco, WagonR, Estilo and Alto and are Suzuki being launched in Delhi NCR, Mumbai and Gujrat. With this initiative, the CNG footprint of company spreads across entry level cars, compact cars, sedans and MPV segments. the On the occasion, Maruti Suzuki India Chairman RC Bhar gava said, We are happy to bring contemporary CNG technology to the Indian customer. We are confident customers would our i-GPI technology that is safe, reliable, clean, responsive and environment value friendly. the CNG technology in our vehicles is another step to keep low cost of ownership Adapting for customers. our Shinzo Nakanishi Managing Director & CEO Mar uti Suzuki India said, The development is significant on multiple counts. This is the first instance when a car manufactur er has developed

and launched factory-fitted technologically superior CNG engines in India. Compr essed Gas is environment friendly and also reduce country's dependence on imported Natural fuels. Suzuki's big ticket entry into CNG fuel segment augurs well for the Maruti environment. Peppy and responsive 'intelligent -GPI technology' The i-GPI or Intelligent Gas Port Injection bi-fuel technology offers an intelligent ride. Intelligent as it ensures mor e power vis--vis r etro-fitted CNG vehicles and offers a peppier ride experience at par with of a petrol-fuelled engine, while achieving high fuel efficiency at the same time. The factory that fitted vehicles score very high on safety and reliability vis--vis the aftermarket retro-fitted CNG options.Suzuki CNG vehicles pass through all the quality checks, processes and systems similar to Maruti aegular car manufactur ed at Maruti Suzuki r plants. Service support across the country As the CNG technology is factory fitted the customers will enjoy the full warranty benefits including warranty. T o top it all, the CNG vehicles from Maruti Suzuki will enjoy the nationwide extended up back of over 2700 Maruti Service Stations. The simultaneous launch of five CNG vehicles with the same contemporar y technology demonstrates intent and future readiness to pr oduce envir onmentally friendly vehicles in the company's large numbers . Steps in Environment care Maruti Suzuki has the distinction of introducing a host of environment friendly programmes ahead of gover nment regulations and the industry. This includes implementing End of Life Vehicle (ELV) programme where harmful elements like Lead, Cadmium, Chromium and Mercury are not used in making vehicles. Maruti Suzuki produced the first BS-IV and E-10 compliant engines much ahead of regulations coming to for ce in the country. Developing a factory-fitted CNG engine is another effort by Company to contribute to a clean the environment. Technology up The factory fitted CNG vehicles use advanced Intelligent Gas Port Injection technology. Maruti Suzuki R&D team has integrated this technology with the Company's range of engines and products to bring the benefits to the consumers. In a leap over alternative aftermarket options, the i-GPI technology is a Dual ECU (Engine Control Unit) technology. This highly reliable system delivers accurate amounts of gas to the engine thus ensuring improved and consistent performance under various driving conditions. The i-GPI technology uses separate injectors for each cylinder. Based on inputs from the ECU, metered CNG quantity is injected to the engine through gas ports. The quantity of CNG required for different conditions is controlled by the dedicated ECU, leading to more efficient fuel usage. Similar driving to usual pre-launch evaluation, each of the cars with i-GPI CNG technology has been extensively the tested for around 2 lakh kilometers in varied terrains. In addition, over 3,000 hours of bench tests have validated the design and performance to bring unmatchable combination of performance and reliability for the customers.

While working on the new CNG technology, Maruti Suzuki engineers focused on cr itical aspects of safety, reliability and performance. CNG for the future Government of India has committed to developing the infrastructure and network of the CNG stationsthe country. This is in line with government's aim to reduce the dependence on import of across fossil With the discovery of large gas r eserves in the country the network of CNG supplies is set fuels. to expand rapidly in near future. Maruti Suzuki's launch of CNG technology vehicles will help create the system for use of a clean and cost effective fuel in eco India. EXPANSION (TIME LINES ),ENHANCED CAPACITY AND INVESTMENT Maruti Suzuki India, the countrys largest car manufacturer, is set to expand capacity at its Manesar plant lakh units per annum by the end of this to 1.7 month. At present, the plant produces one lakh cars per annum The expansion is part of the Rs 9,000crore investment plan drawn up by Suzuki Motor Corporation and Maruti Suzuki till 2010, a senior company official said. From the expanded production line at Manesar, Maruti will roll out, among other models, the DZire, aedan version of the s Swift. The plant, which was commissioned in February 2007, manufactures at 120 per cent of its installed and rolls out the Swift (both diesel and petrol variants) and the SX4 capacity sedan. With the enhanced capacity, the waiting period for a Swift which in some cases is up to a month is expected to come down. It will also give the company the much needed flexibility to accommodate the production of the Swift DZire, said company sources. In fixing the deadline for the expansion at Manesar, the company had in mind the A-Star, Suzukis fifth on a global platform that will be rolled out from car October. By January 2009, the company will also export the the A-Star from India. S. Nakanishi, managing director of Mar uti Suzuki India, said, The company is focused on attaining one million sales in the Indian market in the next three years, which will be one-third of Suzukis worldwide present capacity expansion is in line with that sales. The goal.2010, Maruti Suzuki aims to increase capacity to 300,000 cars at the Manesar By plant,Nakanishithe plant has been designed keeping in mind the global aspirations of Maruti Suzuki added.He said its parent Suzuki Motor and Corporation. is considered one of Suzuki Motor Corporations best outside The facility Within Japan. the complex is Suzuki Powertrain India Ltd, the diesel engine and transmission plant. Powertrain manufactures 1.3 litr e diesel engines used in the Suzuki It is Swift.the global supplier of diesel engines for Suzuki Motor Corporations plants. Suzuki is also setting up a suppliers park at Manesar to attract ancillary . Maruti investment As it eyes one million annual sales by 2010, country's top carmaker Maruti Suzuki has fir med up a assive expansion plan of its service network and plans to expand it to 1,700 towns and cities from m the curr ent about 1,200.

Company officials said Mar uti has firmed up a blueprint for expansion of the service network by as much as 45% over the next three years as it expects higher sales and further penetration in the market. The company plans to incr ease the number of service stations and workshops to over 3,800, from the 2600 currently. Also, the plan includes almost doubling the dealer workshops by 2011, about officials said. The network would be expanded to newer cities, which is in line with the company's plan to go deeper in market. Currently the company's service network is in 1,215 cities and its plans to boost the this substantially to 1,700 cities by going to new areas. The plan has been approved by the management and would further strengthen its grip on the market, considering it already has a dominant position compared to rivals. The company, that has more than 50% share of the Indian car market, primar ily sells small cars, many of which are targeted at first-time buyers. T he cut in excise duty on small cars in the Budget and new pay commission recommendations expected later this year are likely to give a major boost to the sales of small cars in India and increase demand in many new unserviced geographies, including in regions. interior Maruti, which curr ently is the cheapest car maker in the market with its entry-level 'Mar uti800' compact below Rs 2 lakh, has also been coming out with specific sales promotion programmes priced just targeted at interior regions. Among them is the 'Mera Sapna Mer i Maruti: New Panchayati Scheme' programme rural areas last year through which the company offered special discount schemes launched in and financing options in villages. Inter estingly, Tata Motors that plans to come out with the countr y's cheapest car 'Nano' has also spoken about massively expanding its dealer and service network as it pr epares for the launch of the new Rs 1 lakh entry-level car around October this year. Maruti officials said expansion of the service network was among the key focus area for its new Managing Director S Nakanishi. Maruti Suzuki India Ltd has just completed a programme to ramp up capacity at its fourth and newest Manesar. By the end of Mar ch, the company will be able to roll out 1.7 lakh units per plant at annumthis facility, up 70 per cent from the installed from capacity. The enhanced production capacity will also be used to roll out DZir e, the sedan version of the Swift, thatdue to be launched later this is month. The plant, which attained full capacity within weeks of its commissioning in Feb 2007, is currently manufacturing at 120 per cent of its installed capacity and rolls out the Swift (both diesel and petrol variants) and the SX4 sedan. With the enhanced capacity, the waiting period for the Swift, which is two to three months will come down, a statement said. The capacity expansion at Manesar is also timed for Suzukis fifth world strategic model, A-Star, that be r olled out in October this year. By January 2009, exports of this model will take off. By will 2010, Suzuki aims to increase capacity to 3,00, 000 cars at this Maruti plant.

MANUFACTURING FACILITIES Maruti Suzuki has two facilities in Gurgaon and Manesar, Haryana, India, with a combined manufacturing capacity close to 1 million cars per annum. In terms of number of cars produced and sold worldwide, the company is the largest subsidiary of SMC, Japan. Gurgaon Plant The Gurgoan facility houses three fully integrated plants having a combined manufacturing capacity of 700,000 cars per annum. over In 2008-09, the company took a major stride by commissioning a state-of-the-art K-series engine plant Gurgaon with an installed annual capacity of 240,000 engines. Spread over an area of 20,300 2 , K-series in m engine plant employs global manufacturing best practices to ensure high quality standards. Kseries technology is environment friendly, reduces fuel consumption and offers best engine perfor engine mance. Manesar Plant The plant at Manesar is the company's latest car assembly plant which was started in February, 2007 and a capacity to produce over 300,000 units per annum. has Manesar facility is the most modern plant, set up to suit SMC's and Maruti Suzuki's global ambitions. The plant rolls out World Strategic such as the Swift, the A-star, the SX4 and the Models, DZire IMPORT S Maruti Suzuki India is in a belt-tightening mode. Not only has the country's largest car maker initiated cost rationalisation with its "one gram, one component" programme last fiscal, it is now also going aggressive with another such initiative that would enhance parts localisation at the vendor level. The "internal parts localisation" initiative aims at significant reduction in imports at the vendor level for assemblies and subassemblies which are ultimately sourced by Maruti. At present, imports by vendors account for up to 10% of the company's net sales. But isn't the localisationMaruti cars already pretty high at 80% and beyond for most models? Ajay Seth, chief content of financialsays that for the company, total imports are only 12% of net sales but at the vendor level, officer, another 10% import content is added. "We will be pushing for further localisation at the vendor level. By the end fiscal, our imports and exports should come to settle at the same levels, " he of the said. Whenever localisation is being done, there is a ballpark cost reduction of 30-40%. So this aggressive at vendor level should bring major cost savings for Maruti in the current localisation fiscal. Managing dir ector Shinzo Nakanishi said the "one gram one component" pr ogramme would be extended suppliers fr om this fiscal but refused to quantify the cost benefits already seen from to tier II this initiative . Maruti's cost rationalisation drive comes at a time when input costs are already down for items such steel by 20-25%. Though input prices softened some months back, their full benefits with as forward would start accruing from this fiscal. Already, the company has seen substantial erosion contracts in margins -- closing FY09 at 12% against a peak of 17% during some months of the fiscal. So any softening in commodity prices is a welcome break.

But will input cost reduction mean product prices will come down anytime soon? The company did not any indication on this front, merely pointing to margin pressure to maintain end prices for give now. To a question on sales expense, Seth said that the outgo on account of discounts was higher by awhopping Rs 140 crore last fiscal compared with 2007-08. Though discounts have been r educed on some models since the beginning of the month, he said their quantum would depend on market conditions going forward. On new products, the company reiterated that it was on course to launch the 'Ritz' as an upper premium month. Already, a landmark manufacturing capacity of 1 million cars on an annualised sedan next basisbeen achieved and the expenditur e on capex this fiscal would be Rs 1,800 crore. Though has expressed confidence in doing much better export numbers this fiscal than 70,000 units of FY09, Nakanishi he declined to give a guidance. STRONG SUPPLIERS BASE The company works jointly with its suppliers to develop new products, achieve high localisation levels, and reduce cost. It has a strong base of 246 suppliers (as on 31st March, 2009) including 16 JV companies where the company has strategic equity stake. 76% of the company's suppliers are located in 100 kms of radius from its manufacturing facilities. Most of the JVs are situated in the Suppliers' the Park adjacent to the company facilities

MAR UT II SUZUKI IND IA LIMITED JOINT VENTURE S

Name

Component
Asahi India Glass Ltd. Bellsonica Auto Components India Ltd. Bharat Seats Ltd. Caparo Maruti Ltd. Climate Systems India Ltd. Denso India Ltd. Glasses Large Sheet Metal Seats Large Sheet Metal Radiators Assembly Auto Electricals

Bawal (Rewari) Manesar (Gurgaon) Maruti Suzuki India Ltd. Venture Complex Joint Maruti Suzuki India Ltd. Venture Complex Joint Bhiwadi (Alwar) Dadri (Greater Noida)

FMI Automotive Components Ltd. Jay Bharat Maruti Ltd. Krishna Maruti Ltd. Machino Plastics Ltd. Mark Exhaust Systems Ltd. Magneti Mareli Powertrain India (P) Ltd. Nippon Thermostat India Ltd. SKH Metal Ltd. Sona Koyo Steering System Ltd. Suzuki Power Train India Ltd.

Exhaust System Components Large Sheet Metal, Exhaust Systems Seats/HL Roof/Door Trim Bumper, Instrument Panel Exhaust Systems, Door Sashes Electronic Control Unit Water Thermostat, Water Temp-sensor Fuel Tanks, Sheet Metal Assemblies Steering System, Case Differential Castings & Engines

Manesar (Gurgaon) Maruti Suzuki India Ltd. Venture Complex Joint Narsinghpur (Gurgaon) Maruti Suzuki India Ltd. Venture Complex Joint Gurgaon Manesar (Gurgaon) Gummidipoondi (Chennai) Maruti Suzuki India Ltd. Venture Complex Joint Narsinghpur (Gurgaon) Manesar (Gurgaon)

TOTAL SALES (VOLUME) Car market leader Mar uti Suzuki India Limited sold a total of 1,11,645 vehicles in February 2011. This includes 10, 102 units of exports. The company had sold a total of 96,650 vehicles in February 2010. In February 2011, the company sold 1,01,543 units in the domestic market, up 19.8 per cent over esponding month last year. Sales were up 19.4 per cent in A2 and 27 per cent in A3 segment. In corr C segment, company recorded a growth of 26.9 per cent. In February 2011, Maruti Suzuki launched the Super Turbo Diesel SX4. During the month, company also launched the Luxury Sporty Kizashi sedan. The Kizashi units despatched in February are display / vehicles for dealers. Deliveries of Kizashi to customers will begin this test drive month. The sales figures for February 2011 are given : below
Segment Models In February Till February April'09 2011 2010 % Change 2010-11 2009-10 % Change March'10

A1 M800 2712 3178 -14.7% 23570 30266 -22.1% 33028 A2 Alto, WagonR, Zen, Swift, Ritz, A-Star 72090 60380 19.4% 730092 578427 26.2% 633190 A3 SX4, D'zire 13024 10254 27.0% 117362 88862 32.1% 99315 A4 Kizashi * 25 0 35 0 0 A: Total Passenger Cars 87851 73812 19.0% 871059 B: MUV Gypsy, Grand Vitar a 156 285 -45.3% 5046 3255 55.0% 3932 C: Van Type Omni, Versa, Eeco 13536 10668 26.9% 146210 90450 61.6% 101325 Domestic Sales 101543 84765 19.8% 1022315 Export Sales Total Sales 111645 10102 11885 -15.0% 126738 131982 -4.0% 147575 96650 15.5% 1149053 923242 24.5% 1018365

697555

24.9%

765533

791260

29.2%

870790

EXPOR T What do countries like Poland, Finland, Iceland, Malta, Switzerland, T he Netherlands, Algeria and Italy have in common? MSIL Receives Gold Tr ophy for "Top Exporter for the Year 2008-09" for the Northern region. Suzuki exports, entry-level models across the globe to over 120 countries and the focus has Maruti been to identify new markets. Some important mar kets include Latin America, Africa, South East Asia and Oceana. The Company clocked its highest ever exports at 147,575 units, a growth of 111% in the Fiscal Year 2009-10. Sales and service network As of 31 Mar ch 2010 Maruti Suzuki had 802 dealerships across 555 towns and cities in India. It had 906 workshops and 1,834 Maruti Authorised Service s in 1,335 towns and cities . It has dealer Station 30 Express Service Stations on 30 National Highways across 1,314 cities in India. Service is a major revenue generator of the company. Most of the service stations are managed on franchise basis, where Maruti Suzuki trains the local staff. Other automobile companies have not been to match this benchmark set by Maruti Suzuki. The Express Service stations help many able stranded on the highways by sending across their repair man to the vehicles vehicle. DOMESTIC SALES AND SERVICE The company has a lar gest sales and service netork amongst car manufactures in India . it had 681 sales s in 454 cities . the car par k of the company is in excess of seven million vehichles and outlet the park services the company has 2767 service workshops in 1314 cities . the service network of maruti Suzuki includes Dealer workshops , Maruti authorised service masters nad zones. Besides selling and vehicles servicing , the company provides its customer one stop shop experience such as automobile finance ,genuine parts , maruti certified preowned car. TOTAL SERVICE NETWORK 2767 TOTAL SALES NETWORK681 REGIONAL OFFICES -16 AREA OFFICES9 ZONAL OFFICE4 EXPORT S Maruti Suzuki exported the first lot of 500 cars to Hungary in September, 1987. Presently, we are exporting to over 100 markets in Europe, Asia, Latin America, Afr ica and Oceania. In 2008-09, the company launched a new model A-star that meets stringent European safety and emission The company regulations. has exported over 500,000 cars so far.

Port Facilities for Export In 2008-09, in association with Mundra Port SEZ Limited, the company had set up the state-of-theart facilities at Mundra Port, Gujarat for export of cars. This car export ter minal off ers a Roll On, Roll Off (RORO) berth, which speeds up the loading process and minimises the chance of damage to cars. The company also has a Pre-Delivery Inspection (PDI) Centre at Mundra. In a first of its kind initiative, the company, in partnership with Indian Railways, has developed double rail wagons decker for transporting export cars from Manesar manufacturing facility to Mundra Port. EXPORT MARKET SUZUKI COUNTRY VOLUME NETHERLAND 69751 ALGERIA 62123 ITAL Y CHIL E U. K SRILANKA 29277 GERMANY 28090 HUNGRY 22924 NEPA L FOR MARUTI

45086 40925 37329

19943

Profit loss account OF MAR UTI SUZ UK I

Incom e
Operating income

Mar ' 10 Mar ' 09

29,317.70 20,729.40

Expense s
Material consumed Manufacturing expenses 1,278.20 909.70 Personnel expenses Selling expenses Adminstrative expenses Expenses capitalised Cost of sales Operating profit Other recurring income Adjusted PBDIT Financial expenses Depreciation 545.60 471.10 916.00 738.20 404.60 389.20 - -22.30 25,579.80 18,825.70 3,737.90 1,903.70 617.70 547.60 4,355.60 2,451.30 33.50 51.00 825.00 706.50 22,435.40 16,339.80

Mar ' 10 Mar ' 09 Other write offs Adjusted PBT Tax charges Adjusted PAT Non recurring items Other non cash adjustments Reported net profit Earnigs before appropriation 10,501.80 8,244.40 Equity dividend Preference dividend Dividend tax Retained earnings (Rs crore) 173.30 101.10 - 28.80 17.20 10,299.70 8,126.10 - 3,497.10 1,693.80 1,094.90 457.10 2,402.20 1,236.70 44.30 -55.90 51.10 37.90 2,497.60 1,218.70

Balance sheet
Mar ' 10 Mar ' 09

Sources funds
Owner's fund

of

Equity share capital Share application money Preference share capital Reserves & surplus

144.50 144.50 - - 11,690.60 9,200.40

Loan funds
Secured loans Unsecured loans Total 26.50 0.10 794.90 698.80 12,656.50 10,043.80

Uses funds
Fixed assets Gross block

of

10,406.70 8,720.60 - 5,382.00 5,024.70 4,070.80 387.60 861.30 7,176.60 3,173.30

Less : revaluation reserve Less : accumulated 4,649.80 Net block Capital work-in-progress Investments depreciation

Net assets

current

Mar ' 10 Mar ' 09 Current assets, loans & advances 3,856.00 5,570.00 Less : current liabilities & provisions 3,631.60 Total net current assets Miscellaneous expenses not written Total 3,788.40 67.60 1,938.40 - - - 12,656.50 10,043.80

Notes :
Book value of unquoted investments 11.10 3,162.20 Market value of quoted investments 215.10 108.70 Contingent liabilities Number of equity sharesoutstanding (Lacs) 2889.10 2889.10 3,657.20 1,901.70

Cash flow Profit before tax Net cashflow-operating activity 2,887.40 1,193.30 Net cash used in investing activity -4,783.30 951.40 Netcash used in fin. activity 55.10 -536.20 Net inc/dec in cash and equivlnt -1,840.80 1,608.50 Cash and equivalnt begin of year 1,939.00 330.50 Cash and equivalnt end of year 98.20 1,939.00 Ratio s
Per ratios share
83.15 42.81 111.70 67.26 86.45 42.18 115.00 66.64 6.00 3.50 129.38 65.89

Mar ' 10 Mar ' 09 3,592.50 1,675.80

Mar ' 10 Mar ' 09

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) 409.65 323.45 Book value (incl rev res) per share (Rs.) 409.65 323.45 Net operating income per share (Rs) 1,014.77 717.50

Mar ' 10 Mar ' 09 Free reserves per share (Rs) 403.82 318.45

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 (%) 12.74 9.18 9.93 5.77 8.34 5.72 10.78 9.13 20.29 13.23 21.10 13.04 28.80 17.48

Leverage ratios
Long term debt Equity Total debt/equity /

0.03 0.06 0.06 0.07 93.51 93.04 2.82 2.38

Owners fund as % of total source Fixed assets turnover ratio

Liquidity ratios
Current ratio Current ratio (inc. st loans) Quick ratio Inventory turnover ratio 1.02 1.53 0.91 1.51 0.67 1.26 30.47 30.46

Payout ratios
Dividend payout ratio (net profit) Dividend payout ratio (cash profit) Earning retention ratio Cash earnings retention ratio

8.09 9.70 6.08 6.14 91.59 90.44 93.74 93.92

Coverage ratios
Adjusted cash flow time total debt Financial charges coverage ratio Fin. charges cov.ratio (post tax) 0.25 0.35 130.02 48.06 100.18 38.75

Component ratios
Material cost component (% earnings) 77.21 77.10 Selling cost Component Exports as percent of total sales Import comp. in raw mat. consumed 11.70 Long term assets / total Assets 12.89 0.76 0.59 3.12 3.56 15.49 7.24

Mar ' 10 Mar ' 09 Bonus component in equity capital (%) - -

Annual results in brief

Mar ' 10 Mar ' 09 Sales Operating profit Interest Gross profit EPS (Rs) 29,623.01 20,852.52 3,954.29 1,832.06 33.50 50.98 4,417.55 2,382.42 86.45 42.18 Mar ' 10 Mar ' 09 496.76 601.34 -193.31 281.87 21,701.73 15,235.27 - 545.64 - -

Annual details
Other income Stock adjustment Raw material Power and fuel Employee 471.09 Excise

results

in

expenses

Admin and selling expenses Research and development expenses Expenses capitalised Other expenses Provisions made Depreciation Taxation Net profit / loss Extra ordinary item Prior year adjustments Equity capital Equity dividend rate Agg.of non-prom. shares (Lacs) 1322.92 1322.92 Agg.of non promotoHolding (%) 45.79 45.79 OPM (%) GPM (%) NPM (%)

- 3,614.66 3,032.23 - 825.02 706.54 1,094.91 457.14 2,497.62 1,218.74 - - 144.46 144.46 - -

13.35 8.79 14.67 11.10 8.29 5.68

y Total current assets of maruti in mar 2009 is 10,043.80 and total current assets in mar 2010 is 12,656.50 . . y Total sales of maruti in mar 2009 is 20,852.52cr. And tatal sales of maruti in mar 2010 is 29,623.01cr profit of maruti in mar 2009 is 2,382.42cr. Total gross profit of maruti in mar 2010 y Total gross is 4,417.55 cr. Total current assets of Maruti is 12,656.50 cr. . y Total assets of Mar uti is 176136.00 . y Gross Profit of Maruti is 4, 417.55 cr. y Sales of Maruti is 29,623.01cr. DETAILED RESULT OF MARUTI SUZUKI Type Audited Date BeginEnd Date Description Amount(Rs. Net Sales / Income from Operations Net Sales Other 5,241.60 Income Operating from Income Services 296,230.1 0 01-Apr09 31-Mar10 million ) 289,584.7 0

1,403.80 Expenditure -264,937.40 (Increase) / Decrease In Stock In Trade & WI P Consumption of Raw Materials -217,017.30 Depreciatio n Employees Cost -5,456.40 Other Expenditure -27,096.70 Traded Goods -9,049.90 Purchase of Profit from Operations before Other Interest and Exceptional Items Income, 31,292.70 Other Income before Profit 36,260.30 Interes t Profit after Exceptional Item s Exceptional Items (+)/ Profit Activities before Tax Tax Interest Interest and but Exceptional before Items -335.00 35,925.3 0 0.00 35,925.3 0 -10,949.10 1,933.10

8,250.20

4,967.60

Loss

(-)

from

Ordinary

Net Profit (+)/ Loss ( -) from Ordinary Activities after Tax Extraordinary Items Net Profit Equity Capital Value Face Rs) Reserves EPS before Extraordinary items (in Rs) EPS after Extraordinary items (in Rs) Basic & Diluted EPS after Extraordinary items Number of 132,291,620 of Percentage Public Public Shareholding Shareholding (in

24,976.20 0.00 24,976.20 1,444.60 5.00 116,906.00

86.4 5

45.79 Promoters and Promoter Group Shareholding Pledged / Encumbered Number of Shares Percentage of Shares (as a % of the total shareholding of promoter and promoter group) 0.00 Percentage of Shares (as a% of the total share capital of the company) 0.00 Non-encumbered Number of Shares 156,618,440 Shares (as a% of the total Percentage of shareholding of promoter & prom group) 100.00 Percentage of Shares (as a % of the total share capital of the company) 54.21 0

Key drivers for growth With a 14 per cent return over the past year, the Maruti Suzuki stock has outperformed the BSE Auto (17 per cent decline) and has turned out to be one of the best defensive picks. At Rs 848, the index stock discounts its four quarter earnings by 19 times. Strong performance has pushed its valuation to a premium entire auto pack (about 17 times), limiting possible upside over the medium term. over the However, shareholders of the company can remain invested for its strong earnings visibility. With value-for-money offerings in the sedan segment and price increases to offset input costs, the companys top-line for 2008-09 r egistered a growth of 13 per cent, beating the automobile slowdown.net profits have disappointed, declining by 30 per cent due to higher material costs, a change However, in depreciation policy and forex losses. With sustained sales growth in April 2009, planned launches and export prospects, the company appears well-placed to deliver continued sales gr owth this year. good

Easing margin pressures, as commodity pr ice declines filter in, suggest that the company is on track to deliver better earnings performance. Strong product portfolio Marutis key advantage lies in its focus on the passenger vehicle segment, which has weathered the slowdown better than commercial vehicles. Products at almost every price point Alto, WagonR, Zen Swift and A-Star make the company a market leader in the hatchbacks (A2) segment. Estilo, Intense competition and tight credit availability that prevailed for most of last year muted its sales growth in this to 2.4 per cent. But with credit crunch easing out, this segment has shown better growth since space the beginning of 2009 (10 per cent increase in sales between December 2008 and April 2009). Maruti has enlarged its market shar e in this segment to 59 per cent this year as against 53 per cent last year. Swift recently launched A-Star have helped these gains. The launch of Ritz this week may and the strengthen Marutis position in the hatchback mar ket, as it occupies a price point between Swift and AStar. While the hatchback segment witnessed a slowdown last year, it is the sedan or the A3 segment that has delivered surprising growth for Maruti. Driven by launches of SX4 and Swift DZire (the sedan version of Swift), this segment has grown by 53.9 per cent. The sedans have been less vulnerable to the credit given that a higher proportion of purchases is funded by cash. The Sixth Pay crunch, Commissionalso aided cash purchases in this segment. revision has Concerns however remain on Marutis entry-level models such as Maruti 800 and Alto. Preferred by the middle-class, these cars may face challenges in 11 cities, including Delhi, Mumbai Kolkata urban and Chennai, after a change in emission norms to Bharat Stage IV mandated by October 2009. The company may have to either re-engineer these versions or phase them out in these cities to meet the nor ms. As of now, there is not much clarity about what it plans to do in this regard. T he Tatas Rs new 1 lakh car, the Nano, has also been perceived as a threat to Marutis entry level models. About 50 per cent bookings for the Nano are estimated to be for its high-end variants which are relatively close of the to Maruti 800 and Alto in terms of performance. With the on-road price differential (in Delhi) of about Rs 35,000-Rs 50,000 between Marutis entrylevel and Nanos high-end version, competition from this source cannot be ruled models out. Mighty export ground Domestic sales apart, exports too are seen as a key growth driver for Maruti over the next couple of years. Engineered to suit European standards, A-Star has lifted Marutis exports by 32 per cent for FY09. accounted for 10 per cent of the companys sales volumes in the last Exports fiscal. Maruti has a contract with Nissan to manufacture 50,000 of A-Star under the Pixo label in Europe and aie-up with Suzuki to ship 10,000 units of the car to Latin America, Algeria, Australia and some Afr t ican nations . Favourable incentives offered by the European countries, for fuel-efficient small car s to replace the older give ample room for the company to expand its export volumes. Mar uti has reached 38 per cent ones, its of export target (two lakh units by fiscal year 2010-11) so far. The launch of Ritz (another model that suit European r equirements), could also hold may potential.

Financial scorecard The year 2008-09 ended with a sales growth of 13 per cent, while total volumes grew by 3.6 per cent. duty cuts aided sales margins. High-cost pressures from some raw mater ials such as steel, Excise aluminium alloys and rubber, and a change in pr oduct mix in favour of diesel variants (particularly in Swift and DZire), resulted in the operating profits declining by 48 per cent on a year-on-year basis. The profits shrank by 30 per net cent. Forex losses incurred in FY-09 may be viewed as a one-off profits dampener since they were on account of import contracts for raw mater ials. The company has been slow to benefit from softened commodity it has entered into long-term agreements for raw prices since materials. The effect of lower input costs will trickle in by the first quarter of this fiscal. With initiatives to localise operating profits are expected to grow by 20-30 per cent in 2010-11. On a sequential basis, vendors, the company has seen 33 per cent increase in sales volume and a 19 per cent increase in net profits for the March 2009 quarter. Try to enter in diesel segment Maruti Suzuki is now looking to be an aggressive player in the diesel segment, a category which is dominated by Tata Motors. After the success of the Swift hatchback and the Dzire sedan in the diesel the company is hoping to replicate this success in its upcoming model variant, Ritz. To meet the growing demand for the diesel variants in its models, it is increasing the engine capacity by lakh units as part of its Rs 9,000 -crore expansion plan. This will then take its total one production diesel engines to 3 lakh units by March 2010. The capacity expansion is to reduce the capacity for long waiting period on its diesel models. Maruti also hopes to divert some of its export capacity in diesel engines for the domestic market. engines used to earlier be exported to Hungar y, but the demand in that market has decreased These now. Currently, the Swift petrol model has a waiting per iod of 2-3 weeks. But the diesel variants of both SwiftDzire have a waiting period of 3-5 months. T he Swift hatchback sells about 9,000-10,000 units and a onth and Dzire too sells about 6,000-8,000 units. Of this, the ratio of diesel sales versus petrol is m 70:30. The Ritz, set to be launched later this week, and built on the Swift platform, will sport a 1.3-litre engine diesel . We are trying to further increase capacity of diesel engines. We can tweak production based demand, said Mr Shashank Srivastava, Chief General Manager, Marketing, Maruti on Suzuki. Last year, the company exported 20,000 units of engines to Hungary. But with demand in the European we will be able to use some of that capacity for the domestic market, said Mr I.V. market low, Executive Officer, Research and Development at Maruti Rao, Suzuki. When asked how many units of Ritz diesel variant the company intends to sell, Mr Srivastava said, We like the ratio of 70 and 30 between diesel and petrol like we have had for the Swift. would The company did not specify by how much it will be able to lower the waiting period of its diesel variants with the increased capacity expansion

FUTURE PLAN Maruti Suzuki Future Plans in India Maruti is planning to launch its cheapest Maruti in . It is also planning Suzuki for the customers to buy its product. It is also concentrating to increase its to hatchback Cervo 2011 give loans dealerships in India Maruti is planning to boost its service centers by adding 1500 outlets by 2015. . Suzuki Indias largest car manufacturer Maruti Suzuki is getting advance bookings for their products, keeping this in mind, the company is planning to increase its production capacity to over 17 lakh units annually by 2015. To execute the plan MSI plans to take additional employment of about 22,000 people by the service networ k operators. Maruti currently has 2,784 service points and it is planning to increase it to over 4,200 outlets Suzuki five years, a jump of mor e than 50 per Maruti in the next has recently invested Rs cent. 1,925crore to establish its third plant at Manesar facility; it has a Suzuki to manufacture 2.5 lakh units annually. capacity It add the new outlets in over 1,300 cities and small towns with an aim to provide car ser vicing will facility for every 25 km across the country. Maruti Suzuki best cars Maruti Ritz - Maruti was launched in May 2009. It is a premium compact car which has Ritz touched 100,000 units sales mark within one and half year of its launch. Maruti Suzuki claims the Maruti Ritz surpassed the 50,000units record sales mar k in r ecord as well. Maruti Ritz is the fastest selling car for the company. It has crossed the one lakh sales milestone in the premium compact car segment. It is considered as the tuff competitor to other compact cars like Skoda Fabia, Nissan Micra and Volkswagen is lots of new technology features in it which help to deliver better results and great Polo. There mileage 17 kpl). This is 1197 cc DOHC, develops 84 bhp at 6000rpm, it looks logically little quick, (close to it reaches 0 to 100 kph in just 12.9 seconds and top speed is 170 kph. The Diesel motor is 1248 cc DDiS that develops 74 bhp at 4000 rpm. Response time is almost same as you get in Petrol one. Diesel are giving versions a great mileage close to 20 kpl, better you can save some money for your weekends. Maruti Suzuki Sales and Network Maruti has recorded 10 lakh units sales in 10 months of this financial year. It has achieved Suzukisales of 1 lakh sales in just 10 months of this fiscal (April to Jan). It is the first time in the the record in Indian car industry to sell 1 lakh units in a single year. In the first three quarters of this financial history year, Marutis cumulative sales stood at 9, 27,655 units. In last fiscal, the company had sold a total of 18,365 units (including both domestic sales and 10, exports). Maruti is manufacturing more than 12, 00,000 units per Annam, out of which communicate accounts for 8.5 lakh units and Manesar installation accounts for 3.5 lakh units. Suzuki Gurgaon Moreover, is setting-up a 3rd plant at its Manesar facility that leads to hump an annual production the consort ability lakh units in Indian market. The company plans to establish its thir d plant by 2012 at of 2.5 Manesar facility .

SWOT ANANLYSIS OF COMPANY STRENTH S *Contemporary technology *Japanese Management practices services *After sale *Distributio n *Diversification & R&D WEAKNES S Still depends upon SUZUKI COPORATION 10% components are manufactured outside India Still considered as poor mans brand Unaccustomed to international standards or keen competition. OPPURTUNIT Y first company to roll out suitably Designed cars before 2008 as per Govt.s Proposal of newethanol (renewable) Other companies lacks economy of scale Rising demand Untapped rural market THREA T Numbers of new Technology driven players and manufactur es are in market Reduction in subsidies by government on petroleum products Changing environmental and emission norms Higher local taxes