2010

Maruti Udyog Limited

International Academy of Management & Entrepreneurship

Balkrushna Ajudiya PGPM/0911/030 2009-2011

Maruti Udyog Limited
Contents
Nature of Business Present turnover History Milestones How Honor Idea, Expansion, Extend Strategic initiatives Vision The objectives of MUL Marketing Analysis Product Profile Target Customers Positioning Strategies Nature of Competition Pricing Strategies Financial Analysis Financial statement Ratio Analysis Value Chain Core Competencies Quality Management Initiative SWOT Analysis Future Outlook 3 3 3 3 5 5 5 6 6 6 7 7 7 8 8 8 8 9 9

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Nature of Business
Automotive - Four Wheelers Small size Mid size Transport

Present turnover
2008-09 Turnover 2, 03,583 million Profit after tax 12,187 million

History
Established in February 1981. The actual production commenced in 1983 with the Maruti 800.

Milestones
• 1981 Maruti Udyog Ltd. was incorporated. • 1982 Stepped into a Joint Venture with Suzuki Motor Corporation of Japan. • 1983 Maruti 800, a 796 cc hatchback, India's first affordable car was produced. • 1984 Installed capacity reached 40,000 units. Omni, a 796 cc MUV was in production. • 1985 Launch of Maruti Gypsy (970cc, 4WD off-road vehicle).
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• 1986 Produced 100,000 vehicles (cumulative production). • 1987 Exported first lot of 500 cars to Hungary. • 1988 Installed capacity increased to 100,000 units. • 1992 SMC increases its stake to 50 per cent. • 1994 Produced the 1 millionth vehicle since the commencement of production. • 1995 Second plant launched, the installed capacity reached 200,000 units. • 1996 Launch of 24-hour emergency on-road vehicle service. • 1997

Produced the 2 millionth vehicle since the commencement of production. • 1998 Launch of website as part of CRM initiatives. • 1999 Launch of Maruti - Suzuki innovative traffic beat in Delhi and Chennai as social initiatives. • 2000 IDTR (Institute of Driving Training and Research) launched jointly with Delhi government to promote safe driving habits. • 2001 Launch of customer information centers in Hyderabad, Bangalore, and Chennai.
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• 2002 SMC increases its stake to 54.2 per cent. Launch of Maruti Finance with 10 finance companies in Mumbai. Start of Maruti True value in Mumbai. • 2003 Production of 4 millionth vehicle. Listed on BSE and NSE after a public issue oversubscribed 10 times. • 2004 Maruti closed the financial year 2003-04 with an annual sale of 472122 units, the highest ever since the company began operations 20 years ago. • 2005 The fiftieth lakh car rolls out in April, 2005.

How Honor Idea, Expansion, Extend
Prime objective to meet the growing demand of a personal mode of transport, caused due to lack of efficient public transport system • The incorporation of the company through an Act of Parliament • A license and a Joint Venture agreement was signed between Government of India and Suzuki Motor Company (now Suzuki Motor Corporation of Japan) in Oct 1982

Strategic initiatives
Vision
"The Leader in The Indian Automobile Industry, Creating Customer Delight and Shareholder's Wealth; A pride of India.”

The objectives of MUL
• Modernization of the Indian Automobile Industry • Production of fuel-efficient vehicles to conserve scarce resources
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• Production of large number of motor vehicles which was necessary for economic growth

Marketing Analysis
 Product Profile
• Offer full range of cars • Entry level Maruti 800 & Alto • Stylish hatchback Ritz, A-star, Swift, Wagon R, Estillo and sedans DZire, SX4 • Sports utility vehicle Grand Vitara • With range of 11 models in 50 variants, Maruti Suzuki has a vehicle for every consumer

 Target Customers Domestic
• Middle Income • Higher Income

Foreign
• Middle level for Entry Level Car (Exports Entry Level Car In 100 Countries)

 Positioning Strategies
• Domestic Indian market More than half the number of cars sold in India wears a Maruti Suzuki badge • Exports entry-level models across the globe to over 100 countries • The focus to identify new markets • Some important markets include Latin America, Africa and South East Asia • A brand new offering A-star, Maruti Suzuki is ready to take on European markets
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Nature of Competition
• With the arrival of Matiz, Santro and Indica (the small car market has become more competitive) • Keen competition in select segments (compact and mid size segments) • Most of the major global players are present in the Indian market; few more are expected to enter • As the demand is unlikely to grow, Maruti Udyog Ltd will face lower capacity utilization

 Pricing Strategies
• Aggressive Pricing Strategy • Reasonable Pricing • It helped the company to retain its leadership position amidst fierce competition by foreign players in India

Financial Analysis

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Value Chain
• Production/ R&D is spread across 297 acres • 3 fully-integrated production facilities • Plant has already rolled out 4.3 million vehicles

Core Competencies
• On an average two vehicles roll out of the factory in every single minute • The company takes approximately 14 hours to make a car • With range of 11 models in 50 variants, Maruti Suzuki fits every car-buyer's budget and any dream

Quality Management Initiative
• In 2001, MUL became one of the first automobile companies, globally, to be honored with an ISO 9000:2000 certificate
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SWOT Analysis
 Strength
Customer base-Market share & Reliability

 Weakness
Brand building-Have builds an image from 1983/84 -Provide Cheapest, Affordable cars in India

 Opportunity
Infrastructure, Network, past performance

Threats
Ever changing customer's taste, purchasing power & global manufacturer's presence in India

Future Outlook
• Enhanced Production Capacity • Greater Depth and Breadth of Knowledge • Enhanced Flexibility • Improved Research Efficiency • Lower Research Costs • Capability to Track New Trends & Markets

Thank You

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